For many of us who live and work abroad, sending money back to our home country every month is crucial when it comes to how we handle our personal finances. This can be everything from helping out parents, covering some household expenses, paying for education, dealing with medical/family related expenses, and even saving up for what’s next you know, the big move!
When sending money on a monthly basis becomes normal life, things like convenience, speed,exchange rate and cost of each transaction start to matter a lot more. If you are doing this same transfer every month and haven’t looked into other options available, chances are you’re wasting precious hours of your day and/or losing out on valuable savings.
Thanks to advances in technology today, making monthly remittances has got much easier. With secure money transfer services, there really is no excuse not to take control over those recurring transactions!
Why do people send money home every month?
There are various reasons why individuals might choose to send money home each month, including the specific financial needs of their families as well as their own personal situations. For example, migrant workers and expatriates may send money to pay for their households’ everyday expenses, such as groceries, utilities, or rent.
Others may send money home to:
- Support parents or other family members (including school/university payments)
- Contribute to cover household bills
- Manage medical/emergency costs
- Help with paying loans/other financial commitments
- Help build up family savings
- Invest/support a business/investment back home
- Lend money for property related expenses
For most families, such transfers aren’t an isolated action – they’re just another element of your regular financial life. Developing a simple remittance strategy that works well can save you from treating each one as a stand-alone event.
The Challenges of Making Monthly Remittances
International transfers may be a bit more straight forward these days, but there are plenty of potential hurdles for those who send money internationally to their families abroad.
Changing Exchange Rates
Exchange rates for currencies fluctuate daily. So the amount of money that will be sent (in the destination country's currency) might change on different days. Example:
If you have been sending money from Malaysia to India every month, changes in the exchange rate between Malaysian Ringgit (MYR) and Indian Rupee (INR) could influence how much Indian rupees your recipient receives.
Transfer Fees
Some money transfer providers also charge a transactional fee. A relatively low amount can accumulate up if you make transfers every month. Say for instance, a fee of RM 5 doesn’t look much on an individual basis but when you are making transactions on monthly basis over 12 months then this gets accumulated to RM 60 and thus is considered as high fees by some people.
Therefore, all the individuals who send funds regularly should focus on total cost instead of transaction fee.
Time and Convenience
Traditional transfer processes might necessitate additional steps, visits or paperwork that could be tedious for those making transfers monthly.
An efficient and user-friendly digital process minimizes the overall time needed to begin and track a transaction.
Keeping Track of Transfers
If you are making regular transfers of money, knowing when your money went through, how much exactly you transferred, and if the beneficiary got his/her share, is very important.
Getting access to your transaction records and tracking details makes managing your money month after month more comfortable!
Choose a Convenient Way to Send Money
Your best bet for sending money home depends on your destination, preferred payment methods, how often you need to send,as well as the specific needs of your recipient.
If you're making frequent payments, consider what's most convenient for you when selecting a particular money transfer service.
Before selecting a provider, consider:
- How easy is it to initiate a transfer?
- Which country’s currency do they receive?
- What are their bank account options?
- How fast is the processing time for transfers?
- What types of payments can I send from my own account?
- What does it cost me in terms of transaction fees?
- Do these services have good customer support available?
- Is there an option to track your transfers with ease?
If you are doing this once every month then using such services will help you save lots of time overall by not having to repeat procedures each time. The last point we want you to consider when looking at which remittance services offer convenience – providing clearly stated details on exchange rates, relevant charges, etc., so you know exactly how much money will actually be received when confirming your transaction.
Check the Exchange Rate Before Every Transfer
Checking the exchange rate ahead of every transaction is one of our most important tips if you regularly send money abroad. We often see people make the assumption they’ll get the same exchange rate as last month – but rates vary all the time because the foreign exchange market changes constantly. A slight variation might seem unimportant but could mean more or less goes to their family.
Use Online Remittance to Save Time
Technology has played a big role in changing how we conduct international remittances today. You don’t need to go somewhere physically if you use Online Remittance. It might let you put down the money that needs to be transferred depending on your provider, pick out who receives the money, check out what rate they’re going for and other costs before completing this whole transaction electronically.
It’s perfect for anyone doing monthly transfers
Benefits of Online Remittance
Convenience: You can start the process on your phone or computer without having to run an errand.
Faster processing: Digital processes eliminate unnecessary steps that might impede submission of a transaction.
Easy access to information: Review exchange rates, fees and expected amount received before you confirm.
You’ll be able to track transactions online, enabling you to see how far each transfer has progressed. Keeping transnational data online will also help with reviewing past transactions.
This is particularly useful if you regularly make remittances — it can simplify this process considerably for them, turning a monthly chore into something more straightforward.
Create a Monthly Remittance Routine
Create a consistent routine if you regularly have to send money back home. Decide how much money you’ll need to send depending on your financial commitments and your family’s needs. Pick a time of the month that works well for you to check the exchange rate and start the transfer process.
Make sure that when automatic transfers are turned on, they aren’t being set up without first verifying the associated transaction details.
- Double check how much you’re sending
- Look into the current exchange rate
- Know about the transfer fee and other charges
- Ensure that all the beneficiary’s details have been double-checked
- Understand what amount will be received by the beneficiary
- Understand when exactly this amount would reach the hands of the recipient
Also remember to keep your transaction confirmation with you. This small process will prevent errors from occurring at all and ultimately save your efforts for managing remittance every month.
Review Your Remittance Plan Every Few Months
Financial needs and the remittance market are constantly evolving. A service that is ideal at one point in time might no longer be your best bet for another. That’s why regular senders need to check up on remittance arrangements every few months.
Ask yourself:
- What about the competitive exchange rate?
- What about reasonable transfer fees?
- Is this all as convenient as you would want?
- Are those transfers getting through on time for the recipients?
- Did they offer anything new lately that might help us?
- How much do we send every month now?
- Are there better ways our recipients can get their money?
All of these questions are fair if you take some time once every few months or whenever you feel inspired to check in with them — but just because you ask yourself all of this doesn’t mean that you’ll switch providers regularly!
Keep Your Beneficiary Information Updated
Keeping beneficiary information accurate: Before initiating a money transfer, double-checking all details regarding the recipient’s name, bank account information and anything else that may be necessary.
Incorrect details might lead to potential complications with transfers and could even delay them, which would then result in additional processes needed for resolution.
Make sure you keep updated if there are any changes in your family member’s banking account or anything else that requires updating before executing another transfer.
Take a moment more than usual to verify these details. This will allow you to avoid potential issues that could be avoided if you spend an extra little time checking things over.
Make Security Part of Your Monthly Routine
Never compromise on your safety for convenience. Always ensure that when you use an online money transfer service, you’re only doing so via their legitimate website or official app, and avoid giving out your password (including your one-time-password), etc. to anyone. Review transaction notifications/confirmations post-transfer & reach-out to the respective service’s official customer support channels if anything seems amiss.
A secure and transparent transfer process is especially critical if you regularly send international remittances as part of your monthly budgeting strategy.
Conclusion
Sending funds monthly for those who are living away from their home country can sometimes be a challenge.
While the process may have gotten easier over the years, knowing the best way forward for you and your loved ones could ensure that the experience is more enjoyable and even affordable.
So how do I choose between different money transfer services?
Make sure you select a reliable one that’s easy for you to use regularly. Always check the exchange rate and the charges that apply during each transaction. Use online remittance whenever possible because these make things faster and easier. Lotus Remit is the best option for sending money from Malaysia at the best exchange rates.
Keep track of all your transactions and beneficiaries’ details. And remember – review your plan periodically too. It helps you know if there are better options available at this stage of your journey, which might save money in the long run!
Whether sending money home to help your loved ones out of their own country, cover some regular expenses or fulfil other financial needs, setting up a plan for how much to send on a regular basis and when will help simplify your life as you make your remittances every month.