1. Do not accept the insurance below standard
All expatriates with his head screw will be well aware of the importance of having health insurance whist living in Indonesia. If you do not have coverage, you pay. If you do not have money, you are not getting the treatment.
But what about the quality of the insurance you have? Many expatriates are given assurance standard disease with their package, but the quality can be very lacking. drainage cover is often not included. When not included, it can cost tens of thousands of dollars before even sitting in a hospital bed, and many will not be covered much later for the actual medical treatment.
Do not settle for mediocre free coverage; you do not want to have to appreciate the poor quality when it is too late and your medical bill is through the roof. Take the time now to find a quality insurance provider and remember health insurance should be a product for life and if you buy the right plan now you should not need to cut and change supplier every year.
2. Buy what you need, not what you want.
Many expatriates are fortunate to have great big salaries compromising packages with many amenities included, such as housing and transport. With less spending and therefore higher levels of disposable income, expatriates are able to save much more money to invest in their future, their families and large unexpected expenses. Try to understand the difference between what you need and what you want. This is the key to saving your money. It may seem difficult, but your goal should be to save up to half of your disposable income. A hard pill to swallow, but start saving only 10-20% of your income now, and your wealth increases, you should be on track for 50/50 savings expenditure ratio.
There are many products to help you save your money. It is worth spending some time looking at what is there. Some are focused on long-term retirement planning and some around the short term save perhaps to a house, car or other major expenses. Monthly savings plans are the most beneficial because they can take advantage of dollar cost averaging. All this can be explained by professional financial advisors.
3. Your family needs to protect
Expatriates can often enjoy a very good living in Indonesia, but that does not move when the traffic rushing to the hospital in an ambulance, it does not stop terrorist attacks and it certainly doesn 't make ojek drivers take a driving safety course. The need to protect the family from an expat here in Indonesia is significantly greater with the noble packages, all of which is lost with loved one's life. Leaving families without all necessities they need.
too often expatriates underestimate the real cost of living here in Jakarta and therefore remain under-insured. The insurance value of his life will never replace that loved one, but a life insurance application can replace this lost income. An example might be an expatriate with 20 years until retirement with an income of $ 120,000 plus benefits. One advantage of being a little life insurance with an amount generally equal to two to three times his annual salary. This does not cover. Think of the cost of housing, education, cars and holidays that are usually covered under the employment package. How about future premiums, salary increases or promotions? So, the annual salary of two or three times now over the next 20 years of his professional life is simply not enough. The level of coverage should ideally be raised to at least 10 times his annual salary depending on the specific situation. A more realistic sum assured for our hypothetical $ 1.2m expatriate would be opposed to US $ 360k.
If you live in a country where the inheritance is present, you should consider having a life insurance policy that can be written in the confidence that it prevents any potential complaint outside your estate and not subject to the tax. To accompany these products, we recommend you have a will in place to ensure your loved ones benefit from your timely succession.
4. Continue to reassess your finances.
If you have a financial adviser in Jakarta, they work for you. To make the most rapidly changing markets your advisor should be just as dynamic. As your situation changes, your financial advisor can make recommendations to meet those needs. If married, divorced or have more children will result in a major change in your financial needs and will require financial planning. Your situation will often be changing and so will the products and services there. Make sure you have your counsel in front of you at least four times a year to analyze all aspects of your finances. It's their job, do not settle for less.
5. Provide professional advice
Most expats use the knowledge and experience of a financial advisor. But in an unregulated environment expatriates should be cautious. Before handing over your hard earned cash, check business, doing your homework, get references and never rush into anything. The advice you take and directions that you invest in can have a major impact on your financial future, so that the last person you want to get in bed with is a counselor who is under-qualified, under experienced and can see a large sparkling dollar sign on top of your head.
Bio:
GMS Global Management Services, led by Paul Beale was in Jakarta for many years and have built a great reputation by offering professional advice on all financial matters concerning expatriates in Indonesia. For more information, or to book a consultation to see our competition to win a brand new iphone5 this Christmas please visit www.gms-financial.com or call 62 21 520 3574.