So you’ve taken the plunge and decided to move abroad. Congratulations on your exciting move to a new country. There’s nothing quite like the thrill of going abroad when you’ve decided not just to visit, but to live somewhere totally new and foreign.
Now that you’ve decided where you’re headed, it’s time to think about the financial logistics of your move. After all, it can be an expensive process. It’s important to have a budget that allows you to get the most out of your new life.
The following are four essential things every soon-to-be immigrant must do before they set out on this grand endeavor.
Research employability in your new country
If you are not being transferred by your current employer to work abroad, and don’t have the ability to work remotely, you’ll need to find employment in your new homeland. Ideally, you will want to line up work before officially moving, but in the event that this isn’t possible, make sure you have a financial cushion to live off during your search.
One of the most important factors to consider at this stage is what your employment prospects look like overseas. A recent report found that the countries with the best employability ratings were the Netherlands, Poland, and Norway. If your new nation ranks lower, be sure to start your job hunt all the sooner.
Start saving early
If you have even an inkling of desire to travel or move abroad, it’s highly recommended that you create a designated savings account. As with any move, there are plenty of costs involved, so you’ll want to be prepared. Start contributing what you can afford to this pot as soon as you decide to become an expat.
It’s a win-win situation. You either commit to the move and have a big chunk of the upfront costs already taken care of, or you don’t, and suddenly find yourself with a very healthy bank account. The sooner your start, the easier it’ll be.
Create an emergency fund
Everyone should have an emergency fund for when life throws you a curveball. You never know when you may need to pull from savings for an unexpected expense or a temporary job loss. However, having an emergency fund is especially important when living abroad where you may lack the safety net of government protection or family assistance.
It is recommended to have three to six months of living expenses put away in order to be completely safe. This gives you a very healthy window in the event that something goes wrong, or you suddenly become unemployed.
Calculate any upfront costs
Any move is costly – but when you’re jumping international barriers, the figures add up quickly. In fact, one report suggests it could cost as much as $20,000 to fully up and move your life overseas. This is something that needs to be factored into any budget or plan when moving. If it comes as a sudden shock, you could find yourself majorly on the back foot from a financial sense.
Moving can be expensive, but it doesn’t have to break the bank if you have a solid budget or financial plan in place. For an expatriation that doesn’t cost an arm and a leg, use this post as your starting point. You could end up with more pennies in your pocket than you first anticipated.