Tips for Managing Your Money During an H-2A Contract
You’ve sacrificed and worked hard to get an opportunity working overseas. Working in America on an H-2A visa is a life-changing opportunity. You now have access to the American economy, and you’re all set to start earning American dollars. Most South African H-2A workers can earn more in one season abroad than they would working all year here at home.
But all of that work is pointless if you don’t have a set plan for what to do with your money. Earning money is only half the equation. Managing your money wisely is what helps you reach your long-term goals. Today’s blog offers a few tips and tools for smartly managing your money during your H-2A or other seasonal contract abroad.
Create a financial goal before you arrive
Having a goal in mind before you start earning helps you stay on track with your money and gives you something to strive for other than just saving. Create specific goals for your earnings and set totals based on realistic expectations. Seasonal visa workers have an advantage in this department because they get a contract, usually in the form of a certified Job Order.
Once you have your contract, you’ll have a clear understanding of what you’ll be paid, the duration of your job, and the number of hours you’ll work each week, providing you with a tool to accurately forecast your earnings. Keep in mind that you are subject to paying Federal Income Tax in America. This allows you to predict spending and forecast savings.
Here are some reasonable financial goals to consider:
Saving for a car
Down payments for a house
Saving for your kids’ education
Starting a business
Building an emergency fund (experts recommend at least 3 - 6 months’ worth of expenses saved in an emergency fund)
Build a simple monthly budget
Once you have goals for your earnings, the next step is to create a monthly budget to meet them. The good news is that most seasonal visa jobs in America require employers to provide housing, reimbursement for transportation expenses, and guarantee a certain number of hours per contract period. All of these will help you keep more of the money you earn and forecast earnings more accurately. Here are some things to consider when building a simple monthly budget:
Know your income and how much you’re earning each week/month
Base your budget on Net Income, which is after income taxes, and refers to total take-home pay
Track expenses for a month to accurately forecast future months
Avoid toxic spending mindsets, such as paying with credit cards
You ultimately work a seasonal position, which means even if you’re invited back to work next year, you still need to stash money away to survive those months you’re not earning an income. We recommend using a free online budget calculator to help you visualize your savings plan.
Be smart about sending money back home
It almost goes without saying that you’ll want to send money to your family back home as you earn abroad. The trick to sending money back home is tying it into your established budget. Here are a few things to consider about sending money back home:
Establish a transfer plan: Decide when during the month you will transfer money back home. Set a target date each month and stick to it.
Use a transfer service: Find a trusted, affordable service for processing transfers back to South Africa or back home. Services such as Yepzy offer an all-in-one solution for banking and sending money home for low fees.
Keep money aside for yourself: Don’t make the mistake of sending too much money back home and not having enough for yourself, should something come up.
Read more about preparing for work and life abroad in our quick start guide
Limit unnecessary spending
An important part of budgeting during your seasonal contract is limiting your spending. We understand it can be exciting to have disposable income in a new country, especially in countries like America, where there’s lots to do and see, but you must limit your spending if you’re going to reach your savings goals. Here are some tips to limit your spending:
Avoid frequently eating out or buying restaurant meals
Limit excessive convenience-store and gas station purchases
Do not engage in impulse shopping
Avoid opening and using credit cards for anything other than dire emergencies
If you must use credit, avoid buying expensive items on credit, such as electronics
Understand banking options
Part of managing your money is understanding and choosing the best banking options. You’ll want to do some research on this, but ultimately need to find a banking partner that fits your needs by offering services such as checking, savings, and easy transfer solutions. Here are a few things to also keep in mind:
Consider opening a bank account abroad and back home
Learn basic banking terms so you’re not caught off-guard
Protect your private information and never share passwords or other sensitive info like account numbers
Prepare for unexpected expenses by building an emergency fund
As a seasonal contract worker, one of your financial goals should be building an emergency fund. A fully-funded emergency fund allows you to focus on reaching your other goals without worrying about something happening that drains all of your savings. Emergency funds are useful for:
Medical expenses
Unexpected travel expenses
Family emergencies back home
The peace of mind you’ll have with an emergency fund is priceless. One of the best ways to start building your emergency fund is by putting back small amounts of money each pay period. Those small amounts start to add up over time, and the savings habit quickly becomes second nature.
Plan expenses and budget beyond the current season
Good budgeting is nothing more than developing a set plan for your money. Whenever possible, plan your expenses ahead of time and be sure to account for the time between contracts, when you’re likely not earning any or much money. You never know if you’ll be invited back next season, so it’s critical to maximize your earnings by saving when you have the opportunity. Likewise, it’s smart to invest in your future with:
Training opportunities
Advancing your education
Buying insurance
Investing in business opportunities
Come for training at USA Truck Labor to maximize future earning potential
At USA Truck Labor, we understand the importance of maximizing your earning potential. One of the best ways to increase your earnings is to land a skilled job abroad. That’s where our training program comes into play. Our 2-day and 4-day training courses prepare candidates for a range of skilled positions, not just truck driving. Learn what it takes to work abroad for a variety of operations, including farming, transportation, and skilled seasonal positions.
