A Step-by-Step Guide to Managing Your Money from the Diaspora

 Managing your finances as a member of the diaspora can be particularly challenging due to a variety of factors, from having your needs split between different countries to dealing with differences in financial systems and currencies. However, with the right strategies and planning, it is possible to make the most of your situation achieve financial stability. Here is a step-by-step guide to help you manage your money from the diaspora effectively:

Step 1: Be Clear about Your Financial Goals

Before you start managing your money, it's important to be clear about your financial goals. What do you want to achieve? In most cases, you will find that you have goals that you want to achieve in the country you in are such as getting a Master’s degree and advancing your career, and other goals that you want to achieve back home such as building a home or taking care of your parents. If you are not very clear as to what you want to achieve, you will find that your goals may begin to work in contradiction with each other, with resources being pulled in too many directions and eventually achieving nothing. Once you have a clear understanding of your goals, you can develop a plan to achieve them.

Step 2: Establish a Budget

Once you have clarity on what you want, the next step in your plan is to establish a budget. You need to budget for both your immediate needs where you are, as well as for your family’s needs back home. This budget needs to factor in your financial goals and set aside suitable amounts to enable you save and invest to achieve them. It may be easier to use a budgeting tool or spreadsheet to help you stay on track, and prioritize your spending accordingly.

Step 3: Be careful of entrusting your finances to someone back home

We’ve all heard the sad stories of hardworking Kenyan’s who, after having diligently sent money home year-after-year to a trusted relative for the purpose of investing or building a home on their behalf, come home to find that their funds were squandered and there is nothing to show for their years of toil. While I am not implying that you should distrust your people, I am advising that you manage your finances prudently and with sufficient checks to ensure you are able to monitor what your money is doing at all times.

Step 4: Take Advantage of Technology

With the rise of digital banking and financial apps, it is easier than ever to manage your money from anywhere in the world. In fact, it is even possible to track mutual funds and stock portfolios online now.  You are now able to monitor your investments back home without having to rely on someone to go around requesting for physical statements. Take full advantage of a mobile banking and financial apps to check your account balance, transfer funds, and pay bills from your smartphone.

Step 5: Be Aware of Currency Fluctuations

One common issue when managing your money from the diaspora is currency fluctuations. Keep an eye on exchange rates, and consider using a currency exchange service that offers low fees and favourable rates.

Step 6: Seek Professional Guidance

Consider working with a financial advisor or coach who has experience working with clients in the diaspora. They can provide valuable guidance and advice on how to manage your money, invest wisely, and plan for your financial future.

Step 7: Monitor and Adjust

Monitoring your finances regularly is essential to ensure that you are on track to meet your financial goals. Regularly review your budget and investments, and make adjustments as necessary to stay on track.

In conclusion, working in the diaspora offers a lot of advantages, but also comes with its own unique set of challenges. Managing your money from the diaspora requires careful planning, diligence, and a willingness to adapt to changing circumstances.

By being clear about your financial goals, budgeting, being aware of potential risks, seeking professional guidance, and monitoring your finances regularly, you can confidently manage your money from anywhere in the world.

If you’d like to talk to a me about your experience with managing your money from the diaspora, or you simply have a question, you can book a free 30-minute Zoom call with me HERE.