Moving abroad is exciting and overwhelming and everything in between. There’s plenty to plan and think about, and one of the top issues to tackle is that of your finances.
The move itself can be a costly experience and adjusting to a new paycheck in a new country might just prove to be a whole new challenge for you and your family. However, Staying Financially Stable on top of your finances when you move abroad is certainly not impossible – here are a few ways to do it.
Take Out Insurance
We all think of insurance policies as those monthly expenses that never really seem to benefit us in any way – until disaster strikes and you need to claim. This is why health, auto and other insurance policies are essential to add to your budget.
Insurance in a foreign country can be a little tricky, but there’s always a way around it. You can definitely find U.S. health insurance for U.K. citizens abroad that will be far more affordable than dealing with hefty medical bills after an unexpected incident or illness.
Find an Affordable Rental
Try to save money when it comes to your living expenses, especially if you’re unsure of what your monthly or weekly budget will truly look like in practice.
Starting the journey of renting a home overseas can be intimidating, to say the least, but looking for more affordable homes, especially for the first year, is a great idea. Minimising your bills and set expenses will leave you with more wiggle room when it comes to variables like groceries, transport costs, etc.
Keep Unnecessary Expenses to a Minimum
Just like we mentioned in the previous point, it’s a good idea to avoid wasting money. While a roof over your head is an essential expense, subscriptions to streaming services and constant takeout coffees definitely aren’t.
While you’re finding your feet financially in your new country, it’s a good idea to keep expenses like these to a minimum. You can start to add them back into your life slowly but surely as you find stability and figure out what you can reasonably manage to spend.
Start a Side Hustle
If you’ve moved abroad with your partner for a job they were offered and you don’t have employment yet, then starting a side hustle from home is a great way to bring some extra bucks into your back pocket each month and make things a little easier.
Being able to fund your own expenses (even if it’s just a dinner date here and there) will help make you feel more independent too.
Set a Budget and Stick to it
Budgeting is important no matter where you live, but after a big move abroad it becomes more essential than ever. Set a budget for the move itself and try your best to stick with it. A move will almost always involve unexpected expenses, but it’s important to be as prepared as possible.
You also need to set a monthly budget to try and stick to once you’ve actually moved. This budget will probably change quite a few times as you adjust to the cost of living.
Track Your Expenses
Budgeting is one thing, but actually keeping track of what you spend is another. Try to tally up your expenses once a week or so and compare your spending to what you had planned for at the beginning of the month.
You might notice that you either need to adjust your budget or adjust your spending habits.
Plan For Fun Experiences
We’ve noted that wasting money after your move is something to avoid, however, it’s also important that you get to experience and enjoy what your new home has to offer.
To balance this, Staying Financially Stable plan for fun in your new city – visiting attractions, travelling around, and visiting new restaurants. Set yourself a monthly or weekly budget for fun and enjoy yourself within those limitations.
Talk to Locals About the Cost of Living
Keep in mind that the cost of living could be vastly different from what you’re accustomed to.
It’s a good idea to start by using a cost of living calculator to make some estimations for your budget and get an idea of what you’ll be spending on a monthly basis. However, it’s equally important to talk to people in your community about what are reasonable prices for various items and what are not.
Stop Checking Currency Conversions
Finally, if you want to stay sane, you’ll need to stop converting everything you spend into your home currency.
This habit could either make you overspend due to thinking of certain items as absurdly cheap (when they’re really not in relative terms) or even make you feel guilty for buying essential items because of how drastically expensive they seem in the currency you’re used to.