Budgeting for family back home when you work abroad
Earn in one currency, support family in another. How to treat remittances as a fixed cost, track both currencies, and keep a safety buffer.
If you work abroad and support family at home, you live in two economies at once. You earn in one currency, you pay rent and food in it, and you send part of your pay to cover costs in another. A budget for that has to treat sending money home as a core cost, and to keep a buffer that works in the currency you would need.
1. Treat remittances as a fixed cost
If you send a similar amount most months, it is not spending you decide each time; it is a recurring cost. Count it that way. Your runway is then honest: the money leaves every month whether or not you think of it as “spending”.
2. Track both currencies
Record what you earn and spend in the currency you are paid in, and record what you send in that same currency, noting the amount received at home. Over time you will see what each sending really cost, including the exchange rate you got.
3. Budget with a cautious exchange rate
Rates move. If you plan with the weakest rate you have seen in the last three months, a bad month does not surprise you, and a good month is a bonus.
4. Compare the total cost of sending
Look at the fee and the exchange rate you are given, not the fee alone. A “free” transfer with a poor rate can cost more than a transfer with a visible fee. Compare the amount that arrives. Sending a larger amount less often can reduce fixed fees, if that suits the family’s needs.
5. Size your buffer for your situation
If your work or visa depends on one employer, a hard month can mean months of searching for new work, plus the cost of travel. That points to the high end of the range in how many months of expenses to save. Keep part of it in the currency you would need to live on.
6. A worked example
Suppose you earn 6,000 a month, living costs are 3,200 and you send 2,000 home. You keep 800. Your monthly costs, counting the money you send, are 5,200. With savings of 15,600, your runway is 15,600 ÷ 5,200 = 3 months. If you can lift your savings to 31,200, you reach six months. Seeing that as a countdown makes the trade-off between sending more and saving more concrete.
7. Know the family’s own runway
If the family at home also holds savings, noting how long their costs are covered gives both sides a calmer picture of what is needed and when.
Try the runway calculator with your costs including remittances, or learn how to track bKash and Nagad spending.
Frequently asked questions
Should I treat money sent home as a fixed cost?
If you send a similar amount most months, yes. Counting it as a recurring cost makes your runway honest, because that money leaves every month whether or not you think of it as spending.
Which exchange rate should I budget with?
Use a cautious rate, for example the weakest you have seen in the last three months, so a bad month does not surprise you.
How big should my buffer be if my visa depends on my job?
Larger than for a typical employee. Consider the months it could take to find new work, plus the cost of travel or relocation, in the currency you would need.
This guide is general information, not financial advice. Your tax, debts and plans are your own, so check what applies to you.