Are You Missing this Personal Finance Hack?
Structure savings, investments, and compliance smartly - no matter where you live.
A simple system to organise money across countries, currencies, and responsibilities.
Living abroad means your finances are spread across jurisdictions. You earn in one country, invest in another, and your family may be in a third. This creates complexity - but the solution doesn’t have to be complex.
The 3-Bucket Strategy - a personal-finance framework that brings clarity, stability, and discipline to cross-border financial planning.
Bucket 1: Short-Term Liquidity + Local Essentials
This bucket covers what you need immediately and in the country where you live.
What to include:
3-6 months of expenses
Local currency savings
Emergency fund for medical/visa/job risks
Short-term goals like rent, school fees, travel, or deposits
Insurance for yourself and family
Why it matters:
For adequate emergency savings, Vanguard suggests that families have a cash buffer of at least $2,000 or half of a month’s expenses, whichever is more. This is to protect against unexpected costs. Additionally, families should aim to accumulate about three to six months of expenses in accessible assets to mitigate the effects of potential income interruption, including job loss.
For global earners, this buffer must be kept locally, not in India, because emergencies rarely wait for remittance transfers or FX reliability.
Action steps:
Automate a monthly transfer into a local savings account
Keep this bucket in cash or very liquid instruments
Review your emergency fund after major life events (job change, newborn, relocation)
Bucket 2: Long-Term Compounding (India + Global)
This is your wealth-building engine - money that grows over 10-20 years.
What goes here:
India equity, debt, PMS, GIFT City investments
Global ETFs, pensions, and employer stock plans
Retirement and long-term goals
Why it matters:
Global research consistently shows that diversified portfolios outperform concentrated ones with lower volatility. For global Indians, a balance of India's growth + global stability creates an ideal long-term base.
Example:
India offers structural growth (GDP, demographics, equity markets)
Global markets (US, Europe, Asia) smooth volatility
Currency diversification reduces long-term FX risk
Action steps:
Set up SIPs in India + a recurring global investment plan
Cap employer stock exposure to avoid concentration risk
Rebalance once a year to maintain discipline
Bucket 3: Safety, Protection & Compliance (Your Global Safety Net)
This bucket doesn’t grow wealth - it protects it.
What belongs here:
Nominations across India and global accounts
Updated wills (India + country of residence if required)
Power of Attorney, guardianship instructions
Compliance hygiene: FEMA rules, tax filings, bank reporting, KYC updates
Why it matters:
Studies show that over 60% of cross-border families face delays accessing assets due to missing nominations, outdated paperwork, or unclear wills. A proper safety bucket prevents account freezes, legal disputes, and tax complications.
Action steps:
Review and add nominations everywhere
Create/revise your will(s) every 3-4 years
Maintain a compliance checklist for India and your resident country