Money Saving Tips for Ex-Pats

Moving abroad can take a major chunk out of your life’s savings. From Visas and travel expenses to hiring professional movers and even legal fees, there are seemingly endless costs to a move of this magnitude. 

With that in mind, once you arrive at your destination, you’ll be eager to calm down on the spending and take a few months to rebuild as you start fresh. But adjusting to a new economy, a new job, and a whole new lifestyle can be tough, and you might take a while to find your financial bearings.

Here are a few tips to help you get settled and sort out your bank account. 

Budgeting for Ex-Pat Living

You’ll need to spend some time analyzing and adapting to the cost of living in your new country – this can take some trial and error, and you’ll need to give yourself grace. 

However, right off the bat, you should try your best to create a realistic budget, inclusive of both essentials and some fun, too, since you’ll want to be able to explore and enjoy the new experiences that await you.

Getting professional assistance might be a good idea as well. Getting in touch with a financial advisor who’s familiar with ex-pat planning and a global insurance broker will help you manage and understand your expenses. 

Understand the Local Currency and Banking Systems

A key part of being able to budget effectively is understanding the currency, exchange rates, etc. However, comparing prices to the currency you’re used to might not be a good idea, and you need to remember that everything is relative. 

Start by researching the local banks and choosing an option with fees, interest rates, and services that will work in your favor and align with your estimated monthly or weekly budget. 

This is another instance when talking to a professional might be beneficial if you need some extra help getting your bearings. Otherwise, advice from a trusted friend or family member should help. 

Take Advantage of Ex-Pat Benefits

If you can, try to organize some kind of expatriate benefit package from the company you work for – especially if you are relocating for work. This could include factors like financial assistance with your relocation, more flexible work hours, additional PTO, housing assistance, and other benefits. Discuss your needs and expectations with your employer (or future employer). 

Once you arrive and settle down, you can also do some research and figure out if you qualify for any ex-pat benefits outside of your company package, particularly relating to tax and insurance. 

Look for Cost-Effective Housing

Keeping your cost of living as low as possible is important, especially in the first few years of living as an ex-pat. This is because you’ll want to put as much excess money into savings and exploration as possible while you’re new to the country. 

One of the best ways to keep your living expenses low is to seek out more cost-effective housing options. You might want to look for a home outside of the major cities and commute to work if you need to – these smaller towns are often far more affordable to live in, and the money you save on rent will far outweigh what you’ll spend on commuting.

Explore Local Discounts

Saving a little bit here and there can always make a difference. When you get settled in your new home, start looking out for local loyalty programs with supermarkets and other stores you might be visiting regularly. Look for ways to save on expenses like gym memberships and transport, and sign up for digital coupons, too. 

Keep an eye open for weekly specials on groceries and other general expenses, and ask the locals you meet for advice on the most affordable places to shop. 

Socialize and Explore on a Budget

Moving abroad opens so many new opportunities and things to experience, which means you’ll want to do a bit of traveling around your new country. It’s important that you embrace these opportunities but keep your budget front of mind. 

It’s a good idea to make space for travel and fun in each monthly budget so that you can allow yourself to enjoy your new home without any guilt or stress about money. Find affordable ways to travel and explore your new surroundings in cheap (or free) ways, like walking tours and visiting local parks. 

Expect the Unexpected

Finally, remember that you always need to be prepared for emergencies. If you don’t have a financial cushion, start building an emergency fund so that you know you’re taken care of in the case of any major unexpected expenses. 

Set savings goals for each month and accept that you might need to make sacrifices in certain areas in order to reach those goals. Your future self will thank you for it!