Budgeting for Your Move: Understanding the Cost of Living Overseas

It is important to understand the cost of living in your new location. Developing an accurate budget in your new country will allow you to plan accordingly and fulfill your financial goals.

Additionally, having clarity around your budget and overhead will help reduce uncertainty and allow you to enjoy the process of settling into your new home.

Many people think moving abroad is too expensive and therefore unattainable. However, in the majority of cases, people end up reducing their cost of living.

There is a vast selection of beautiful locations around the globe that provide a high quality of life at a reduced overhead. The truth is that relocating to a foreign country can be accomplished at almost any price point!

However, the cost of living can vary dramatically throughout the world and resources like www.numbeo.com can help you discover that places like Mexico for instance are A LOT cheaper than places like Switzerland. Even within a given country, the cost of living can vary widely. As a general rule, cities are more expensive than smaller towns or areas on the outskirts of dense cities.

So, if you are focused on a particular location, but determine it might be too expensive, experiment with shifting your locale to a less-populated area and see how it affects your overhead, particularly with respect to rent.

For example, perhaps you are seduced by the shopping and entertainment in Dubai, but the apartment prices are cost-prohibitive. Try moving outside the city to one of the very desirable neighborhoods that are much more affordable. You will be able to commute for work or to recreate every day, but your overhead will be much lower.

But perhaps the most important strategy is to look beyond the obvious destinations, to the countless cities and towns that are off the beaten path, where things are less expensive but no less amazing. For example, if you’re looking at Spain, consider Valencia instead of Barcelona, or if you’re looking at France, consider Toulouse instead of Paris.

A cost of living comparison between these alternatives and the more popular cities can reveal substantial savings while still offering an enriching experience.

There is a lot to think about when comparing locations as we will discuss below, but from a financial perspective, taking the road somewhat less traveled can make a big financial difference.

STEPS TO TAKE…

1. Make a budget with the expenses specific to your situation. For example, if you know you will not need a car, you will not have to factor that into your budget. Or perhaps you have
   to budget for education for multiple children. Fill out the worksheet provided with as much detail as you can with regard to your situation.
2. Explore several Cost of Living calculators
   to compare and contrast the cost of living in certain locations around the world. Websites like www.numbeo.com, www.livingcost. org, or www.expatistan.com allow you to compare the cost of living between several different locations.
3. Everyone has their own housing standards. To get an idea of what it costs to live in a house in which you would actually want to live, check out local housing costs on country-specific websites. See the Housing section for more details.
4. Explore expat forums that can give recommendations on areas and neighborhoods based on your unique specifications. These forums are excellent sources of information that crowdsource valuable information and perspectives from people who have done exactly what you want to do. They give honest and up-to-date information on all things relating to international moves. Facebook and Reddit have extensive forums and you can google expat forums for your specific location as well.
5. Fill out the worksheet below and compare and contrast the cost of living.

Choosing Your Perfect Country to Move Abroad

Whether you want to move abroad for a career, to study, for love, retirement, or to raise your family, this engaging, easy to follow roadmap will help you find the perfect location to start your new life.

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