There are a number of reasons to live abroad: to find happiness or love, experience a different challenge, or learn a new language. Relocating to another country is a promising idea but there are several factors that need to be considered before making the move. One of which is can you afford it. According to a CNBC article, older millennials (ages 25-34) have $42,000 in debt. One fourth of that is credit card debt and 16% is student loans.
The cost of living in a different country will vary; therefore, your income will be adjusted to reflect that. Expenses such as rent, groceries, etc may be less or more but your debt stays the same. This may include credit card debt, student loans, and outstanding medical bills with the assumption that if you own your home and/or car, you will sell or rent it.
Numbeo tracks cost of living data for a number of cities throughout the world. Based on your new salary, draft a budget that includes monthly expenses as well as your debt. Also consider if you have money left for dining out, entertainment, travel, and most importantly, to save.
Some or all of the moving expenses may be your responsibility depending on if your employer helps. You will need more in savings to cover temporary accommodations for when you first arrive, food, and security deposit for your apartment. Keep in mind you won’t be receiving a paycheck for at least a month at your new job.
Having children and/or pets will add to those expenses as well. Relocating a family of four is significantly more costly. The pet’s breed and size will determine if he/she can fly under the seat, as checked baggage, or has to be shipped as cargo which is the most expensive.
Settling in even a furnished apartment can add up. Bedding, bath towels, pantry items, etc are just a few of the necessities that you will need to purchase immediately.
Relocating to another country can be a costly investment but it’s worth it.
Moved abroad? Share how you managed the costs in the comments!