If you are currently planning on moving overseas and starting your life in a different country, balancing finances abroad is a topic you should definitely consider getting involved with. Even though it might sound scary at first, there are plenty of things you can do in order to prepare yourself and your finances for this new chapter. This article will help you understand some key financial issues and how you can make them more manageable.
Moving Internationally Is a Complex Process, So Balancing Finances Abroad Is Crucial
Relocating across the world is complicated and requires a lot of preparation which you must not take for granted. International moving means you will have plenty of expenses which you will need to cover and prepare yourself for. Especially if this is your first time relocating from your country. You should take all the time you need in order to organize your move and prepare all the necessary resources for relocation.
Anyone who decides to live overseas must be aware of the fact that finances in a different country might not be as you expect them to be, which is the main reason why you must learn how to handle finances living abroad. In order to have a stress-free relocation, it’s quite important to conquer this major challenge before you actually purchase your one-way ticket.
Figure Out What Are Your Most Important Expenses and Write Them Down
Preparation is a step you must not overlook if you are willing to have a successful relocation. Writing down all your essential expenses is a crucial task each relocating abroad checklist should have. This task will help you understand approximately how much money you should save up for the move and prepare for your relocation.
If you are confused about this task, and you are wondering How do I budget for a year abroad? Here are some of the most important expenses you must prepare for in advance. Remember, research and preparation are relocating essentials!
Inform Yourself About the Cost of Living in the Country You’re Planning to Travel Abroad To
Suppose you’re still figuring out where to move to, and you’re googling what are the best countries to live in. While you’re at it, think about your financial situation and figure out which country or city has the most convenient cost of life. Even though it might not come to your mind immediately – knowing approximately how much money you have to earn to cover daily expenses in a different city will help you prepare your relocating budget better.
Even when you think you have found one of the best cities in Europe you wish to move to, do not forget to inform yourself properly on the cost of housing, food and groceries, daily transportation, healthcare, and similar daily expenses which you will need to cover once you relocate there.
You can use a website such as Payscale in order to compare different cities and figure out which has better living standards and conditions, bigger salaries, and smaller living expenses. Keep in mind that you should prepare a certain financial cuisine which will help you out until you find a job and start earning income.
Plan Out How Much Money You Will Spend on Transportation to Your Destination
Moving internationally can be quite pricey, mostly because there are quite a lot of fees you will have to cover. However, it does not mean it is impossible to prepare financially for relocation. You just have to figure out in advance how much funds exactly you will need for the transportation and shipping costs.
Once you put everything on paper, it will be easier to track the expenses and figure out whether you can apply deductions to certain items. For example, when planning what to pack for relocation, only carry stuff that is essential in order to lessen the cost of shipping your stuff.
Hiring an international moving company will help you track your expenses easier since you will get a quote in advance, and there won’t be any additional fees. The cost of transportation usually depends on a few different factors, such as:
- Size of your move – if you’re planning on packing your furniture or perhaps shipping your car overseas, it will obviously cost much more.
- Distance – the further you’re relocating to, the more expensive it will be.
- Route – some routes and destinations are quite common and, due to the competitiveness of companies, are also quite cheaper.
- Transportation method – for example, relocating items by sea is less expensive than relocating by air.
- Travel insurance – an expense you should not overlook. Even though international insurance is pricier, it will relieve you from any additional relocating stress.
- Documents needed for traveling abroad – in case you have to issue some traveling documents such as a passport, visa, and other similar documents.
When moving abroad, don’t leave anything to chance. If you prepare thoroughly, the relocation will go without a hitch.
Prepare Your Bank Account and Figure Out Whether It Is Accessible in Other Countries
Once you have listed out all your expenses and prepared the budget for them, it’s time to figure out how you will handle that money overseas. Depending on where you are going to relocate, you should figure out what kind of banks are available there and whether your funds are accessible in that country.
The ideal scenario is that your bank has some international branches which you can use as their client. This is a question that you will solve best with your banker, but you should still do some research and get other opinions. The issues you should be focusing on are:
- Location and number of banks accessible to you,
- What kind of account are you going to be needing,
- Will, you be able to manage finances at home while being abroad,
- The transaction fees between your bank and the international one,
- Currency exchange rate and other similar information.
Online Banking Is Probably the Best Choice You Can Make When It Comes to Tracking Finances Abroad
Almost every financial institution nowadays has an option of online banking and tracking your income and expenses through an app. This can be quite useful when you are starting a life in a different country, and you have to learn how to document the finances when living abroad. Especially if you still haven’t broken the language barrier and you have a hard time explaining certain issues to the employees in financial institutions.
Don’t Withdraw All the Money You Have On Your US Bank Account
A bit of advice you will hear from the majority of people from expat communities is to keep your US bank account active in order to avoid any unexpected costs ruining your financial plans. Most people that plan on relocating across the world wonder Can I keep my American bank account if I move abroad? There is not one single reason why this should not be possible. It is quite reasonable to keep that account and your credit cards in function.
Especially if you have certain loans back in the US, you should keep them in order to transfer a certain amount of funds to it whenever you are able to. There are plenty of useful apps you can use to transfer money from one account to another, even if you are thousands of miles away from your home. Read some articles online, figure out what is the best option for you, and educate yourself a bit on this topic.
A relocating mistake you wouldn’t want happening is transferring all the funds you have on your card to a foreign bank. Keep your money on a few different cards, just in case, and always have some cash by your side as a backup plan.
Once your finances are in order, adjusting to a new country will go much smoother. If you wish to learn some more tips on balancing finances abroad, you can educate through useful videos on Youtube, like the one below.
Tips for Making Budgeting Easier for International Students Living Abroad
Young people living and studying outside of their home country also have to inform themselves as much as they can about budgeting abroad. Studying overseas looks great on everyone’s resume, especially when it means that you are responsible and organized in order to move abroad alone for educational purposes.
If you are planning to study overseas, you have to learn how to track and plan your budget and expenses in order to properly manage your budget. So, how do you manage to study abroad? Here are some of the most useful tips you should keep in mind in order to learn crucial budgeting skills.
Plan a budget for each month
Setting up a monthly or even weekly budget for tracking expenses will help you figure out how much money you are allowed to spend each day, in cash or from your cards. This way, you won’t get carried away and spend more than you can afford. If you have a steady income, find the best ways to distribute it. If you can put some of it in savings, even better!
Get yourself a Student Pass
most countries abroad allow students to have special cards which can offer them useful discounts. Once you start studying in a new place, immediately find out about how to get this card, as it can save you quite a lot of coins on numerous daily expenses.
Open up a student bank account
this will make paying your bills and fees much easier, and you will cut down the transaction costs and charges on your credit cards. Most student accounts allow certain benefits on their cards which can be out of great use.
Find a way to make some additional income
as a student, you mostly focus on good grades, scores, and getting your university degree. However, if you are able to definitely find some side job that you will do in your free time in order to get some additional cash, the extra income can be quite helpful in order to pay for your university supplies and certain loans.
Planning and Organization Go a Long Way When Handling a Relocation Abroad – But, Professional Help Is Always Welcome
Even though you might think you can easily handle your relocation alone with some relocation tips and good organization, don’t underestimate the usefulness of professionals. If you are planning on relocating overseas, an international moving company can be your best friend. Their packing services and immaculate skills can help you make your move more efficient while you are informing yourself on useful tips for budgeting and saving coins abroad.
The movers will help you relocate fast and easily, and you will be able to immediately start your new life more relaxed and optimistically. Keep this useful advice in your mind, and you won’t struggle with your budget, not even for a day. We wish you all the best of luck with the new chapter of your life and your financial future!