How Much Money Should You Save Before Moving Abroad?
Moving abroad doesn’t have to be expensive. If you’re happy to find a job, write articles online or start a travel blog, living abroad can be cheaper than living at home. In this post, I show you exactly how to save money before moving abroad (it’s not as much as you think!)
Wouldn’t you love to be able to afford to live overseas?
I’m sure you’ve thought about it before. You may have even been lucky enough to have travelled overseas on holidays for a few weeks. I bet at the time you were thinking “I wish this never had to end!”
The truth is, it never has to end!
Most people believe that moving abroad has to be expensive. They feel they need to save ten’s of thousands of dollars if they’re going to be able to start a new life overseas.
These feelings are normal!
However, moving abroad doesn’t have to be expensive. Today I’m going to show you exactly how much money you should save before moving abroad.
It isn’t as much as you think!
In fact, you should be able to move abroad for less than the price most people spend on a 2 week holiday!
Watch the quick video below to learn exactly how much money you should save before moving abroad:
1. Find The Perfect Location
The first step is researching where you want to move to.
Whether you enjoy relaxing by the beach, hiking in the mountains or living in a big city, you should already have a good idea of the type of place you wish to explore.
By visiting a website such as Nomad List you can select certain filters that allow you to narrow down the cities that match your preferences.
For example, if you know that you’re going to be on a tight budget while living overseas, you would select the ‘less than $1,250 per month‘ filter. By selecting filters that match your preferences, you’re able to narrow down the number of cities that are suitable as a potential new home.
After selecting the filters that are relevant to you, search through each of the cities that match your criteria. Take note of the cost of living per month for each city that interests you.
Note: After a month or two of living abroad, you should be able to get your cost of living half way between ‘the expat cost of living‘ and ‘the local cost of living‘.
2. Research The Cheapest Flights
The second step in working out how much money you should save before moving abroad is researching the cost of flights. This is as simple as visiting Skyscanner and searching for flights to your destination.
It’s important to look at flights for each of the destinations that fit your criteria because some are going to be a lot cheaper than others, depending on where you currently live.
3. Get A Free Travel Insurance Quote
The third step is to get a quote on travel insurance.
I suggest that you invest in travel insurance because you don’t know what’s going to happen while living abroad. In the case of an emergency, you want to know that you’re covered. I recommend visiting World Nomads Insurance and getting a quote in less than 2 minutes.
For the point of this exercise, you should look at getting an insurance policy for 2 months. The great thing about World Nomads is that you can extend your insurance policy while abroad, meaning you can pay month to month and extend your trip as you please.
4. Fill Out The Budget Spreadsheet
You can download the budget spreadsheet for free here.
So if I wanted to move to Cancun, Mexico the process would look like this:
-Research the city that I want to move to (Cancun)
-See the monthly cost of living ($1,000)
-Work out how long it will take to settle in and find a job (2 months)
-Get an idea of how much flights will cost ($1,000)
-Work out how much I’ll have to spend on travel insurance ($240)
-Add an extra $2,000 as a safety net (not able to find a job, flight home etc.) This figure should be equivalent to 2x the monthly cost of living.
If we totalled up all of these amounts we would get this equation:
Total savings=(2 x Monthly Cost of Living) + Flight + Insurance + Safety net
In this case, it would be:
Total savings needed = (2 x $1,000) + $1,000 + $240 + $2,000
Total savings needed = $5,240
You can use the same process for multiple cities and fill them out in the spreadsheet. By doing this, you can start to compare cities and see which option is best for you.
Although you may think that moving abroad is expensive, it doesn’t have to be.
Just because your friends spend thousands of dollars to go on a 3-4 week trip overseas, doesn’t mean that it’s expensive to move abroad.
By doing your research and filling out the budget spreadsheet you’ll be able to figure out in 10 minutes or less, how to save money before moving abroad.
If you’re willing to cut out a few unnecessary costs over the next couple of months, you should be able to save enough money to move your life abroad!
I can’t wait to start hearing about the different places that you guys are planning on moving to!
Do you now understand how to save money before moving abroad? Where are you planning to move to?