Top 10 Ways for Expats to Save Money While Living Abroad
Living the expat life is a fun but also daunting experience. In 2023, an estimated 9.5 million US citizens have chosen the expat life and planted roots in other countries.
When you first arrive in a foreign country as an expat, navigating foreign expenses and assessing budgetary needs can be challenging. However, with the right attitude and armed with how to reel in expenses, being an expat doesn’t need to be so scary.
This article will look into 10 savvy ways to save money as an expat living abroad.
Let’s dive in!
What Does Being an Expat Mean?
Before we get into how to save money, let’s take a brief look at what an expat is. In short, an expatriate, commonly referred to as an “expat,” is someone who lives in a country other than their native one, usually for an extended time.
Expats typically live in another country for work-related reasons, such as job assignments or career opportunities, or for personal reasons, such as retirement or lifestyle preferences.
10 Savvy Ways to Save Money as an Expat Living Abroad
Being an expat is already cool, but being a money-savvy expat is even cooler. Let’s find out how to achieve this with 10 easy-to-implement tips.
#1 Create a Detailed Budget and Stick to It
Begin your financial journey by creating a comprehensive budget tailored to your life abroad. List all your income sources and expenses, and calculate your budget percentages, including rent, utilities, groceries, transportation, and entertainment.
Stay committed to tracking your spending and make necessary adjustments to adapt to your financial needs.
#2 Increase Your Passive Income
It’s common knowledge that cutting expenses is a great way to save money. However, an even better way is to increase your income. So, look into unique ways to have passive income while working from your new home country.
From learning the stock market and getting free stocks to social media management for companies, you can set yourself up for financial success by cutting expenses while simultaneously increasing your income.
#3 Learn to Cook Local Cuisine
Eating out frequently can quickly drain your budget.
Learn how to cook cheap meals, embrace local cuisine, and learn to prepare it yourself. This should save you some serious cash while tapping into your creative side.
#4 Hone Your Negotiation Skills
In many countries, haggling or negotiating prices is customary.
Don’t be afraid to bargain when shopping at local markets or dealing with service providers. You’ll be surprised at how much you can save with a little negotiation.
#5 Tap into Online Money Transfer Services
Consider using online money transfer services when sending money across borders or making international payments.
A great option to consider is XE. XE is primarily known for its simple international currency exchange, making transferring money a simple process. Plus, online money transfer services tend to have better exchange rates and lower fees than traditional banks.
#6 Explore Investment Opportunities
If you are planning an extended stay as an expat, investigate investment options in your host country.
Look into local stocks, bonds, or mutual funds that align with your financial goals. Diversifying your investments can help you grow your wealth over time.
#7 Seek Expert Tax Advice
Expat tax rules can be complex, and a lack of understanding can result in unnecessary tax liabilities.
Consult with a professional specializing in expat tax matters to ensure you benefit from available deductions and credits.
#8 Embrace a Minimalist and Sustainable Lifestyle
Adopting a minimalist and sustainable lifestyle can contribute to both your savings and the environment.
Prioritize experiences over possessions, reduce waste, and live mindfully.
#9 Take Advantage of Public Transportation
Public transportation is often more cost-effective than owning a car or relying on taxis.
Become best buds with the local public transit system, and you’ll save on transportation expenses.
#10 Monitor Exchange Rates
Stay in the loop about exchange rates to ensure you get the best deals when converting your money.
Timing your currency exchange can make a significant difference in your financial situation.
Final Thoughts on Saving Money as an Expat Living Abroad
Living as an expat offers an exciting adventure, and with careful financial planning, it can also be financially sustainable.
By following these tips, you can save money without compromising the quality of your overseas experience. Successful financial management abroad requires adaptability and balance, so keep learning and adjusting your strategies as you go.
