Banking and budgeting for your first weeks abroad

You have arrived in a new country for work, but your first paycheck is still weeks away. In the meantime, you need to pay for accommodation, transport, food, and other setup costs. This requires access to money, which often means opening a local bank account and moving funds from your home country. Planning for these first few weeks is essential for a smooth start.

This guide covers the practical steps of managing your finances upon arrival: securing a local bank account, transferring money internationally, and budgeting until your salary starts coming in.

Opening a local bank account

Having a local bank account is usually necessary for receiving salary payments from a local employer. It also makes day to day spending simpler and cheaper, as you can avoid the international transaction fees and unfavorable exchange rates that often come with using a card from your home country.

Documents you will likely need

Banks need to verify your identity and your right to be in the country. While the exact requirements differ between countries and even between banks, you should be prepared to provide some or all of the following:

Passport: Your primary form of identification.
Visa or residence permit: Proof of your legal status to live and potentially work in the country.
Proof of address: This can be a challenge when you have just arrived. Some banks may accept a letter from your employer, a rental agreement, or a utility bill. Some countries have systems where you must register your address with the local authorities, and the certificate from this registration can be used.
Proof of employment or study: An employment contract or a letter of acceptance from an educational institution.
Tax identification number: You may need a local tax number from your new country or your tax number from your home country. Understanding tax residency basics for working abroad can be helpful here.

Because gathering these documents can take time, start researching the requirements of banks in your destination country before you leave home.

The process of opening an account

In some countries, you can begin the application process online from your home country, but you will almost always need to visit a branch in person to complete it. This in person visit is for identity verification.

Research banks: Look at the major banks in your new country. Compare their account types, monthly fees, ATM networks, and online banking features. Some banks have accounts specifically designed for newcomers or non residents, which may have different requirements.
Gather your documents: Collect all the necessary paperwork. Make copies and keep digital backups.
Book an appointment: Many banks require an appointment to open an account. Booking in advance can save you a long wait.
Visit the bank: Bring your original documents to the appointment. The process itself is usually straightforward, but be prepared for paperwork.
Receive your card and details: Your bank card, PIN, and online banking information will typically be mailed to your registered local address for security reasons. This can take several business days, so plan accordingly.

Moving money internationally

Once your new account is open, you will need to fund it. Moving a lump sum to cover your initial expenses is usually more cost effective than making many small withdrawals from an ATM with your home bank card.

Comparing transfer services

Banks are one option for international transfers, but specialized money transfer services are often cheaper and faster. When choosing a service, do not just look at the upfront fee. The exchange rate is just as important. A poor exchange rate can cost you much more than a high fee.

Look for a provider that is transparent about its costs. A good service will show you the total fee, the exchange rate they are using, and the exact amount the recipient will get before you commit to the transfer. Also compare:

Transfer speed: How long will it take for the money to arrive? This can range from a few minutes to several days.
Transfer limits: Are there minimum or maximum amounts you can send?
Ease of use: Is the platform easy to use online or through a mobile app?
Security: Is the service regulated by the appropriate financial authorities?

Have a backup plan

Do not rely on a single method for accessing your money. Delays can happen. A transfer might take longer than expected, or your new bank card might get lost in the mail. For the first few weeks, it is wise to have multiple ways to pay for things. This could include having some local currency in cash, a credit card that works internationally (be aware of the fees), and a debit card from your home bank as a last resort.

Budgeting until your first paycheck

Your initial budget needs to cover more than just daily living expenses. You will face many one time setup costs, and your first salary payment might be further away than you think. Many employers pay on a fixed monthly or fortnightly cycle, so depending on your start date and the payroll cutoff, your first payment can arrive several weeks after you start. Ask your employer when the first payday will be.

Anticipate your initial costs

Create a detailed list of all the expenses you expect to incur before you get paid. This helps you figure out how much money you need to bring with you or transfer initially.

Housing: This is often the largest expense. You will likely need to pay a security deposit and the first month’s rent upfront.
Utilities: You may also need to pay setup fees or deposits for electricity, gas, water, and internet.
Household goods: You might need to buy basics like bedding, kitchen supplies, and cleaning products.
Phone and internet: This could involve buying a new SIM card, a phone plan, or setting up home internet. Getting a phone number and mobile data is a common first step.
Transportation: The cost of a monthly transit pass or the initial costs of buying a car or bicycle.
Food and groceries: Your daily living expenses until you get paid.
Professional fees: Any costs associated with visa renewals, residence permits, or professional registrations.

Always add a buffer to your budget for unexpected costs. A forgotten expense or an emergency can be stressful if your funds are too tight.

Tracking your spending

The first few weeks are a critical time for your finances. Keep a close eye on your spending to make sure your initial funds will last. Use a budgeting app or a simple spreadsheet to record every expense. This will not only help you stay on track but also give you a realistic picture of the cost of living in your new city, which will be valuable for long term financial planning.

Check before you go

Financial regulations, banking procedures, and consumer protections vary significantly by country. Always verify information with official and authoritative sources before you move money or open accounts.

The banks in your destination country: Check their official websites or call them to confirm the exact documents required for non residents or new arrivals to open an account.
Your current bank at home: Inform them of your travel plans to avoid your cards being blocked. Ask about their fees for international ATM withdrawals, card payments, and wire transfers.
Official government websites of your destination: Look for information for new immigrants, which sometimes includes guides on financial matters like banking and taxes.
A qualified tax adviser: Consult one if you have questions about the tax implications of moving money between countries or maintaining financial assets at home.