05 Jun 2023
Do you know what is the core purpose of going abroad from Bangladesh to earn a living and send money to Bangladesh back home to offer financial aid?
Well, you might think that it is to earn a living and financially support your family.
This is, indeed, the core purpose of your expatriation, but it is only temporary. The long-term goal is to achieve financial stability even after you stop working abroad.
Think about it.
You somehow manage to support your family financially while earning a living in your native country, but the need to go abroad arises when you fail to stretch your finances to the extent of fulfilling your pressing needs that go beyond bread and butter and include education, savings, breaking away from the acute poverty, etc.
So, what do you think is needed to ensure that you secure your future financially even after you return from abroad after working there for quite a while?
Well, it is the smart management of your finances while you live and earn abroad that births the need to live your life according to a budget you must create.
This blog will guide you about the importance of creating a budget and ensuring to live by it so that you secure your future financially.
First, let’s take a look at the Bangladeshi expatriates and their contribution to the economy through the remittances they sent in from abroad.
A report by IOM UN Migration said that about 7.5 million Bangladeshi migrants are living in different countries worldwide as migrants. This number of migrants working abroad makes Bangladesh the 6th largest country of origin for international migrants, on the list of top 20 countries with the biggest diaspora populations worldwide.
Although such a large number of migrants warrants that the country (Bangladesh) be placed among the top 10 remittance-receiving countries, it is not. The same report said that the country made its way into the list of top 10 remittance-recipient countries only in 2015.
The Dhaka Tribune reported that Bangladesh received $12.45 billion in inward remittances during the first seven months (July-January) of FY22-23.
The Bangladesh Bank said that expatriates sent in $1.96 billion in January, against $1.69 billion that flew in December. The BB said that these remittances were sent through legal channels only.
Let’s take a quick look at the Bangladeshi economy before proceeding.
These economic figures show that the economy is faring better regionally, but still, people suffer financially and, therefore, work abroad to earn a living and support their families financially through a money transfer to Bangladesh, whose frequency and repetition they decide based on their financial viability.
Let’s now learn about the importance of budgeting.
Budgeting helps you estimate your income and expenses over a certain time. It is usually created on a monthly, quarterly, or yearly basis.
As a Bangladeshi migrant, you do have some financial goals that you want to achieve during the course of your expatriate life. So, a budget helps you achieve those and also helps you prepare for financial emergencies.
Therefore, making and budget and living by it is essential for the maintenance of healthy personal finance and that of your family’s financial future.
LEARN HERE the best techniques to create a budget as an expatriate.
You cannot understand the importance of budgeting unless you have understood its benefits, some of which are discussed below.
Primarily budgeting helps you make informed and sound financial decisions which depend on your financial health. And a wrong decision, needless to say, can prove financially fatal.
Here are, however, some of the critically important benefits of budgeting.
You will spend beyond your means when you do not have a budget. You may have a rough idea about how much you spend on what every month, but without accurate numbers, which a budget helps you have, you will overspend. So, a budget controls your spending habits.
Sure, you earn a living as a Bangladeshi migrant to support your family back home through an online money transfer to Bangladesh regularly, but you have other financial goals too that you strive to achieve.
A budget, therefore, helps you stay focused on those goals, lest you stray away from them.
Finance can overwhelm you both ways. With lots of money, you can go into spending overdrive, whereas with limited resources comes depression and anxiety. But living on a budget can keep you away from such feelings as you tend to stay within your means while aligning with the budget. It also leaves little margin for unexpected things to jump up and bite you!
A budget helps you stay away from taking debts and also to pay you off easily if you are already indebted, as it keeps you focused on your financial goals and does not allow you to wander away.
In addition to keeping you within your financial means, a budget helps you prepare for emergencies that can appear anytime and anywhere and require your immediate financial attention. And the best part is that such preparations do not come at the expense of your routine financial activities.
These are some of the critically important benefits of budgeting that you can also have while living on a budget.
Since you send money to Bangladesh online from overseas while living on a budget, you need to find a service provider that offers you the best deal with low fees and competitive currency exchange rates, in addition to several other benefits. And while living on a budget and doing the needful, ACE Money Transfer is your best bet.
Why is budgeting important for Bangladeshi expats?
Budgeting is crucial for Bangladeshi expats as it helps them maintain financial discipline, plan for expenses, save money, and achieve their financial goals while living abroad.
How can budgeting benefit Bangladeshi expats in managing their personal finances?
Budgeting allows Bangladeshi expats to have better control over their spending, identify areas of unnecessary expenses, allocate funds for essential needs, and save for emergencies and future plans.
What are the common challenges faced by Bangladeshi expats when it comes to budgeting?
Bangladeshi expats often face challenges such as fluctuating exchange rates, managing expenses in a foreign currency, dealing with higher living costs, adapting to new financial systems, and maintaining financial commitments back home.
How can Bangladeshi expats set realistic financial goals through budgeting?
Budgeting helps Bangladeshi expats identify their financial objectives, whether it's saving for a down payment on a house, funding education, or planning for retirement. By tracking income, expenses, and savings, they can set achievable goals and work towards them systematically.
Are there any specific considerations for Bangladeshi expats when it comes to tax planning and budgeting?
Yes, Bangladeshi expats need to consider their tax obligations both in their host country and in Bangladesh. Proper tax planning can help them maximise tax benefits, understand tax treaties, avoid double taxation, and ensure compliance with local and international tax laws.