Step by step guide to financial planning for expats | HSBC Expat

First, write down all the things you'd like to achieve - in the next few years and over the long term.

Depending on what stage in life you've reached, your goals could be to:

• pay off your property early
• make your savings and investments tax efficient
• buy a property - at home or overseas
• get married and start a family
• make sure your children get a good education
• retire early, with enough income to enjoy life.

Planning experts say that when you write down your goals, you're more likely to achieve them. So it's worth spending time making a list - and prioritising your actions.

Looking at what's happening in your life now will give you a good reference point - especially if you're going to talk to a financial planning adviser.

The key areas to consider are:

• Your household budget - by calculating your monthly costs, you can work out how much you've got left to save or invest
• Savings, investments and protection policies - what do you already have?
• All your financial commitments - back home and where you're living or working abroad
• Your family commitments - are you married, do you have children, are you a grandparent?
• Your tax position - is it different now you're living or working abroad?

You also need to think about how your financial situation could change:

• Do you need to plan for any significant costs in the future, such as a family wedding or a property purchase?
• Do you have an emergency fund to cover the costs you can't predict, like the boiler breaking down in the property you're renting out back home?
• If you have protection, does it cover you abroad? How would your family cope without your income if you lost your job, fell ill or died suddenly?
• Are you expecting your current income to increase, maybe with a bonus from your company? Or are your children about to fly the nest, leaving you with lower monthly costs and more disposable income?
• Are you planning another move? Do you know where you're likely to retire to?
• Are your assets spread across multiple jurisdictions? Or are any local laws/regulations likely to impact your financial planning?

If you've got about 30 minutes to spare, that's all it takes to start creating a basic financial plan - giving you a good foundation to build on.

At this stage you need to look at how you're going to achieve the goals you listed in Step 1. There are many different ways to save and invest - from deposit accounts and bonds to property, shares and investment funds. To find out what options are available to you, you could do some research online. Or ask your family and friends how they manage their finances.

If you're thinking about building an investment portfolio, a financial adviser could recommend savings, investment and protection strategies based on your current situation, your plans for the future and your goals in life.

When you're looking at your options, there are some key issues to think about:

• How much risk are you prepared to take?
• With deposit rates low and inflation high, could there be a shortfall in your savings when you retire?
• Can you take advantage of any potential tax benefits* of living and working abroad?
• How would a life insurance policy be affected if you moved to a different country?
• If you're thinking of retiring abroad, have you checked how the cost of living compares with where you're living now?

When you've written down all your options, you can weigh up the pros and cons of each one. Be realistic about how much you can afford to save each month - and think about how much you're happy to keep in long term investments.

Now you've assessed your financial situation and your goals for the future, you may want to meet with someone to discuss different strategies and approaches. Or you might feel confident enough to start implementing your plan yourself.

*The value of tax treatment will depend on your individual circumstances and may be subject to change in the future.

This is one of the hardest steps for some people. But even the smallest changes can make a big difference over the long term. The most important thing to remember is that the longer you leave it, the harder it will be to grow your wealth - and you could be faced with a shortfall in your savings and investments when you retire.

It's unlikely your financial situation will stay the same throughout your life, especially if you're an expat. Key events such as moving to a different country, starting a family or buying a property should prompt you to check your financial plan to see if you still have the same goals - and if you need to change any of your saving, investment and protection strategies to fit your new situation.

You should also review your financial plan annually. (January is a good time for most people.) Even if nothing has changed in your life since your last review, it's worth making sure your plans are still on track - and your savings and investments are on target.