06 Jan How To Financially Prepare Yourself For Your Move Abroad
We all know that full-time nomadic travel has not been possible for quite some time now, but many of you out there might be looking to make a move abroad to get that travel fix along with everything that goes with it. With #wfh being a real thing nowadays, a lot of people are looking to move their home to more of an “exotic”or foreign location in order to have that work life balance, and to change up their daily routine and add some new culture to their lives.
But beginning your expat journey and moving far from home is a daunting task. Starting a new life in a foreign land has its challenges and can be extremely expensive. There are a lot of factors that need to be accounted for, from all the registration and application fees and visas, to shipping of your home goods and setting up a new home, just to name a few.
With that in mind below are some of tips to help you get financially prepared for your big move abroad.
Save, Save, Save
If you’re truly serious about your move abroad, then you’re going to have to begin saving up as soon as possible. The best way to do this is to take a look at your daily life right now and scrutinise every possible way to cut down on living costs. When Chanel and Stevo first set off in 2015 they had been saving for over a year, and during that year they really took it seriously. They stopped having take-out dinners, and cooked more at home. They cut down on buying “stuff” including new clothes. It was difficult but it was well worth it. Try get rid of any monthly subscriptions or anything that is seen to be a ‘nice to have’. It’s going to be tough but if you have the bigger goal of moving abroad in mind, you will be able to cut a lot out, thus saving you more money.
There is a lot that needs to be accounted for when saving up for that move abroad such as
- Housing costs
- Temporary accommodation
- Insurance
- Emergency costs
- Flights
- Moving expenses
- Security deposits
- Registration fees
- Shipping costs
Work Towards Being Debt-free
It seems obvious, but before your big move, it’s best to just go ahead and work towards being completely debt-free. Even if you move out of your home country, you’re not entirely escaping your debt! Most countries require you to get a document that states you are debt-free and have paid tax in order to move and export your home goods, so it’s best to just go ahead and pay off your debt as soon as possible, and then begin saving up for your big move abroad.
Do Extensive Research On The Cost Of Living
It’s best to do some extensive research on how much the average cost of living is going to be in your soon-to-be-host country. You shouldn’t find it surprising if some information is contradicted either when doing this research. Some information may be very outdated or just totally inaccurate. While you can’t get a precise estimate on the cost of living, it’s best to just try and get a standard idea. Some of the cost of living factors you’ll want to research can include
- Rental or other housing costs
- The weekly and monthly prices of groceries
- The average price for going to a restaurant
- The average amount for monthly utilities
- Transportation costs
There are plenty of websites you can check out that can give you an estimation such as going to expat related blogs, expat forums, looking at cost of living calculators, watching YouTube videos, visiting Facebook expat groups, or even looking for someone that’s from the area you’re planning on moving to, and asking them questions.
It’s so important to do research on this as you don’t want to move abroad and then be surprised about the cost.
Keep In Touch With Financial Institutions In Your Home Country
It’s best to just continue having your bank account open in your home country – you never know when an emergency hits and you’re needing to withdraw money from your account. You’ll also need to inform your bank that you’re going to be gone. Make sure to tell them what country (city as well), and how long you’re going to be gone.
This way, they’ll know not to freeze your account or your assets. It’s usually difficult to change your address into an international one, so if you have family, ask them if you can switch your address to theirs so your bank account can still be open. Keeping your bank account open is also a great way to transfer money in case any financial emergencies happen.
Look For Flights Far In Advance
This is a tip that many travellers already know about, but it’s still good practice. Usually, the earlier you book your flight, the more money you’re most likely to save. Last-minute transportation comes with a very steep price tag. So whenever you’re making your big move, just make sure you have booked your ticket in advance. Of course this can be tricky given the current situation with COVID-19 and travel regulations changing daily, but try book as far in advance as you can.
Before you go and buy your plane ticket, you’ll want to make sure that you have all the proper paperwork in place. Also be sure to read all the fine print and take out cancellation insurance as these days, as mentioned, flights can change at the drop of a hat.
Avoid Overpacking
The less stuff you have to move over the better. Now is a great time for you to cleanse your home and get rid of the things that you don’t really need before your move abroad. The most difficult thing to do is to let go of the more sentimental objects. Chanel and Stevo kept a bag of “sentimental” things at Stevo’s parents home for over two years (stuff they couldn’t let go of but also couldn’t take with them), and when they finally opened it again, they discarded most of it as it just didn’t hold the same sentiment after a few years of not seeing it.
It’s a great idea to keep a moving checklist with you to make sure that you have everything essential packed, and nothing else. While it’s important to have all of your necessities with you, you also need to avoid overpacking. Some things can wait until you arrive before buying – something large such as a bed set. If possible, try to pack no more than two suitcases, as this is going to be the easiest and most financially viable for you.
Research The Best Shipping Partner
The home goods shipping landscape is very competitive nowadays, and you should try contact as many companies as possible. Get them to quote you and take notice of how good their customer service is. Do they reply promptly and politely? Do they seem like they’re going above and beyond your requirements? Are they offering you other services, such as contact people in the country you’re moving to? This is very important as a move overseas is very stressful and you want the best help possible.
Disclaimer: some links in this blog post may be affiliate links, meaning that we receive a small percentage (at no extra cost to you) if you end up buying through the link. We appreciate the support! You can read our full privacy policy here.
If you enjoyed this post, you may want to follow Chanel & Stevo’s journey on Instagram, YouTube, TikTok, and Pinterest, browse through the HFFH Shop, or check out some other popular articles on the blog.
No Comments