Moving abroad is an exciting yet stressful experience. It’s not cheap, but it doesn’t have to be overwhelming either. To help travelers who are planning on relocating overseas, we’ve put together a list of six key expenses they should budget for. Let’s dive in!
Insurance
One thing that people often overlook when moving abroad is insurance. However, insurance is incredibly important to ensure that you and your finances are protected during this big change.
Before you even travel, you’ll want to check into things like medical and travel insurance. They are essential if you are moving abroad and can be an unexpected expense so be sure to put some money aside for this.
Health insurance is absolutely essential if you plan on living abroad; no matter how healthy and fit you feel right now, accidents happen and it is always best to be prepared just in case something goes wrong while away from home (especially if healthcare coverage is not included in the cost of living).
There are a few other types of insurance you will should look into as well. Once you’ve settled, you will likely want to look into home and car insurance.
Travel costs
Moving abroad can sometimes feel like an adventure, and it certainly is! But don’t let the excitement blind you to some of the costs that may creep up on you along the way.
The obvious expense is your plane ticket and there are plenty of ways that you can save on air travel. But don’t forget to consider extra baggage fees if you aren’t going to be shipping all your belongings.
From dealing with visa paperwork to getting flights booked and spending on hotels while you find a new home, there are often lots of hidden expenses that can add up quickly if you’re not careful.
Along with paying for actual moving expenses like shipping, you’ll need to remember to budget for unexpected extras like express passport processing, immunizations and visas.
Additionally, make sure you plan for basic necessities such as a deposit for accommodations and some extra cash for food and supplies until your first paycheck comes in. But don’t worry, once you get everything squared away, your exciting new adventure overseas awaits!
Transportation
But wait, the travel costs don’t just end once you arrive in your new home! Once you’ve settled, you will need to think about transportation. Depending on your new home, this could be a car, public transport or taxi fares.
If you are planning on purchasing a car in your new country of residence, make sure to factor all costs associated with that into the moving budget, such as registration fees and vehicle taxes.
Buying a car in a new country can be scary, especially if you don’t have a lot of money to spend on it, but there are a few tips that you can follow when buying a used family car so that you can have peace of mind about your family’s safety without having to worry too much about how to afford it.
Temporary living costs
We touched on this earlier, but odds are, you probably won’t immediately have a place to call your own, so you will need to make arrangements for a temporary living situation.
If you’re lucky, you may have friends or family that you can stay with, but if not, you will need to budget for a hotel or Airbnb.
If you are moving to a major city and intend on staying for an extended period of time, it may make sense to look into temporary living options such as subletting or signing a short-term rental agreement. These options can help make the transition smoother and provide you with more stability during the transition period.
Permanent living costs
Permanent living costs to consider when taking the plunge should always be top of mind.
Depending on your destination, rent or mortgages, food and grocery costs, transportation rates, school fees for children and any other local taxes or bills you may have to pay should all factor into the decision-making process. Everything from property taxes to utility bills should be factored in because they’ll affect your budget long-term.
Keep in mind that cost of living between different countries can vary greatly: rent may be more expensive in one country than another, for example. Researching costs beforehand will help make sure you don’t get blindsided by any unexpected expenses after relocating!
Have a look at the cost of living in each country and understand how it compares to where you currently live.
Don’t forget that you might have to pay more for items like mobile phone contracts, international operations fees on credit cards, and television services.
Moving costs
People often tend to fall into one of two categories when moving abroad – either they bite the bullet and pay the fees needed to move all of their belongings overbroad, or they decide to leave everything behind and start from scratch.
No matter where you fall, the odds are that there will be at least a few pieces that you will want to move with, and you need to make sure that you use a reputable moving company to do so.
This will, once again, cost quite a lot of money, so it’s best to start preparing for it well in advance. If you’re not sure what to pack when moving abroad, this post could be helpful.
In conclusion
There’s a lot that goes into moving abroad, and a big part of that is making sure that you have enough money to cover all of the costs associated.
As mentioned above, everyone’s move will look different, so you need to keep your situation in mind when setting up your budget, but hopefully, this post gave you some type of guidance when it comes to where to start.
It’s easy to feel overwhelmed by how much money it takes to move abroad, but if you start saving early and make sure to spend some time properly planning your budget, it will make the process much easier.