Getting Started
Once you’ve built up your emergency fund, the next step in creating long-term financial security is investing. For many British expats living in Asia, knowing where and how to begin can be daunting. But the sooner you start, the more time your money has to grow.
If you’re a new expat – perhaps recently relocated for work and still building up your financial foundations – a savings plan is a simple and effective way to begin. Leaving cash in a bank account may feel safe, but in reality, it’s just gathering dust. To beat inflation and build wealth, you need to put your money to work!
Why Expats Need to Take Charge
In the UK, pension contributions are taken directly from your wages and invested for your future. But as an expat, you’re typically not enrolled in a workplace pension scheme, meaning you need to recreate that same discipline yourself. A good rule of thumb is to aim to invest 10 – 15% of your monthly salary.
Without employer pension contributions, you’re responsible for your own financial future. That might sound daunting, but it also gives you more flexibility and control over your investments.
Start Small
Begin by setting aside a realistic amount – something you can comfortably commit to each month without compromising your lifestyle. Many structured expat investment plans start at around 200 USD per month.
The key is consistency. A regular savings plan can help you:
- Build discipline and financial structure
- Automate your investing habits
- Grow your money through diversified portfolios over time
What Happens to Your Money?
Your money doesn’t just sit in a savings account – it’s actively invested in things like global stocks, bonds, and mutual funds. With the right provider, your funds are managed by professionals aiming to maximise returns within a level of risk you’re comfortable with.
Think Long-Term: The 10-Year Rule
Investing is a long-term game. If you commit to a savings or investment plan for 10 years but withdraw early, you may incur penalties or miss out on gains. But if you stay the course, history suggests you’ll come out ahead.
For example, the average annual return of the S&P 500 over the past 30 years has been around 10.22% (source). While that doesn’t guarantee future returns, it shows the long-term power of compounding.
Building a De Facto Pension
A savings plan can function as a pension alternative, giving you access to retirement-style investing without relying on your employer. And you can personalise it to fit your goals – whether that’s retiring early, funding your child’s education, or purchasing a property.
You can also:
- Hold multiple funds within one account, tailored to different goals and risk levels
- Take advantage of tax-deferred growth, though tax rules may apply when you withdraw, depending on your residency and age
Flexibility and Support
One advantage of structured savings plans is the built-in flexibility. Some providers allow you to:
- Overpay in good months
- Pause contributions if you’re between jobs
- Adjust the investment mix as your needs change
These features provide a safety net and peace of mind, especially important for expats whose income and location may shift over time.
Investing with Discipline
Many expats say they intend to invest, but without a plan, life gets in the way. Having a structured strategy means:
- You’re more likely to stick with it
- You won’t be tempted to dip into savings
- You’re holding yourself accountable
It’s not about chasing quick wins. It’s about creating long-term financial security.
Is it time to start investing in your future?
Take our free Financial Health Check – a quick, 15-minute assessment that gives you a 360° view of your assets, opportunities, and next steps. It’s the perfect first move for beginner expat investors looking to build a strong foundation.
About Three Sixty Financial
Three Sixty Financial is dedicated to helping expats navigate their financial journeys with confidence. We provide impartial, fee-based, and holistic financial planning to ensure your wealth is managed effectively and ethically. As expats ourselves, we understand the challenges of investing while living abroad and offer tailored investment solutions in Malaysia, Thailand, Hong Kong, and beyond.
Meet Your Adviser
This article was written by our experienced financial advisers at Three Sixty Financial, who specialise in helping British expats get started with investing, no matter their background or level of experience.
Want to explore your options? We’re here to help.
Before choosing an investment strategy, it’s worth understanding what to look for in a financial adviser. Here’s our guide for expats in Asia.
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