Little Known Ways To Save Money While Working Abroad
Going abroad is a great experience to help you learn more about the different types of people and cultures around the world. Not only does it broaden your horizons, but it can be highly enjoyable. Unfortunately, while you’re enjoying all of the sights, you’ll still have to make money abroad, especially if you’re spending more than a few months in a new country. Here’s how you can save money while working overseas.
Learn How to Save Before You Go
Saving is all about budgeting correctly, so it’s important you already have a foundation for saving. Before you leave, make sure you have a savings account you can access and add to while working abroad.
Whether this will be your first job or your tenth, you’ll still need to practice basic spending and saving habits before you go on your trip to make sure you can exercise self-control. While working overseas may feel like a vacation, it’s not. While you can enjoy the experience, it’s not a time to splurge on everything you want.
Aim to save a portion of your paycheck every pay period so your savings can continue to grow when you’re working abroad. This will be particularly beneficial if you plan to move abroad for good.
Do Your Homework
Wherever you’re from and wherever you’re going, it’s always important to do your homework on how far your money will go when you move abroad. Make sure you always research any place you intend to stay, whether it’s an extended stay hotel or you’re renting an apartment. Finding somewhere to live overseas is not easy, which can make it tempting to settle on the first place you tour. However, you need to make sure you’re getting a good deal.
It may be best to find cheaper property in a surrounding area than a big city, but make sure you account for transportation and travel costs for commuting to work.
You should also research the living costs in the area where you’ll be staying and working. Make sure you can cover housing, food, transportation, utilities, and transportation. Everything that you pay for in your home country will be something you’ll need to pay for in a new country.
Always Stick to Your Budget
Make sure you have a budget so you know where your money goes and can find ways to keep your spending at a minimum. The amount of money that goes into your savings each month should stay the same until you get a raise or a higher monthly income. If your income goes up, then so should the amount going into your savings accounts.
Your budget should also remain limited. Costs in a new country can add up, so it’s important to remember this isn’t a vacation, and you can’t eat out every single night since you’re in it for the long term rather than the short term.
If you’re working overseas and sending money back home, then try to avoid commissions. Money transfer services can quickly add up, especially if you don’t research them beforehand. You can look for reliable service without hidden fees before you begin working abroad.
Cut Rent Cost
If you’re planning on renting a place to live, you may want to consider getting a roommate so you can keep your costs down. Cutting your rent in half means you can save more every single month and put it into savings.
You can also choose to store your stuff before you move abroad so you take fewer items with you. The less you have when you arrive, the less space you’ll need to live in since you won’t be needing to use a spare room in your apartment for storage.
Invest in Your Retirement
Retirement accounts are investment accounts that help you take care of yourself after you’ve retired and left your job. If you plan to return to the States after living and working in another country for years, you can open an IRA before you go and monthly put money into it. This is something you’d likely do in the U.S. to remain prepared for retirement and ensure you won’t have any financial strain when you’re no longer able to work.
Cook At Home
We’ve already said not eating out every night is a great way to save money, but you’ve got to eat something. No matter where you’re living, you can purchase groceries from the local shop and cook yourself. When you stop spending money on food delivery and restaurants, you’ll be surprised by how much money you save in a single week.
Find Cheaper Transportation
Walking, riding a bike, and taking public transportation are much cheaper than using taxis to get around. Not only that, but by walking around the city where you’re staying, you can learn more about the culture and people and familiarize yourself with the location so you don’t get lost.
Find Offshore Financial Opportunities
Working abroad can help you avoid being taxed, which means you can keep more of what you earn in your pocket. Of course, being able to keep income offshore will depend on your tax status in the country where you work, but these opportunities are worth exploring.
Live Within Your Means
Don’t let your enthusiasm make your financial decisions. Many people associate working in another country as something that allows them to live outside of their means and spend their money on fancy dinners, cars, and clothes to impress friends in their home country.
While your stay should always be comfortable, it should never be overly luxurious so you must continue to save money while you work.
If you were living within your means back home, then you need to take those habits with you when you live in another country. If you weren’t living within your means back home, then now is the time to try it so you don’t get stuck with avoidable expenses.
Saving money abroad is the same as saving money in your home country. Never make the mistake of thinking you’re on a glamorous vacation because you can very quickly put yourself in debt. The goal should be to save, not to spend.