The prospect of moving to another country can sound exciting. The mere thought of it can make you imagine waking up to a new view, going to work with a big smile on your face, loving your job, and enjoying your life while traveling and making merry. But in reality, things are often not so rosy!
When shifting base, there are a lot of things you need to factor in. While your job could be paying you well, your expenses could increase. Schooling for your kids, repairs for the house and your car, office commute, utility bills, everything could turn upside down because of the way things work in that country.
Unsplash | Living abroad can be tough if you're not diligent with your finances
But you can’t let that uncertainty stand in the way of progressing in life. And that’s why, the key lies in effectively managing your finances when living abroad. If you take care of how you handle your money, you can pretty much survive and thrive in any part of the world.
Plus, here are a few tips that can help:
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Know the exact amount you’re earning before you start spending
Make sure you accurately know not just your monthly income, but also your monthly household and recurring expenses. You could use a pen and paper or even a spreadsheet to keep a track. Such tracking will help you computer your savings (if any) at the end of each month.
Unsplash | Keep a track of your earnings and expenditure, and at month end find out your savings
Save first and then spend, not the other way around
Try your best to save 10% or more of your monthly salary. If you’re not used to saving, keep your salary largely out of your reach so that you don’t unintentionally spend it all. It may be difficult at first, we know, but in two or three months you’ll get used to it. After a few months, note how much you saved and how you saved it. This will give you a great incentive.
Define your needs and desires, and separate between essentials and luxuries
Things like providing food for your family and calling parents back home are basic needs that you must fulfill in any way possible. But there are some expenses, such as buying the latest gadgets or a high-end car, which won’t affect your daily life much. You need to try and filter out what are your desires and what are your needs. Then prioritize your needs over your desires and see how that positively affects your finances.
Unsplash | Prioritize essentials over luxuries
Read – Thousands of Britons living in EU told their UK bank accounts will be closed
Wrapping It Up
Living outside your home country can actually be an exciting and rewarding experience, but you should know that nothing is perfect if you’re careless. If you’re ready to take full responsibility for yourself, you must change your way of life to safeguard your family from any potential crises.
