Tired of a domestic lifestyle? Live your dream with smart budgeting! Start planning for an exciting foreign life today.
When you’re dreaming of moving abroad, it might be difficult to concentrate on the dull subject of money. However, by making a few wise choices and following a few basic preparation steps, you could end up saving thousands of dollars.
Consider how much it will cost to free yourself from your present financial responsibilities before taking any action. Do you need to break your mobile phone or cable TV contract, stop automatic payments, get out of a gym membership, or put off your magazine subscription? These expenses should be totaled and placed in the budget’s “never-seeing-that-money-again” column.
Next, give your possessions a thorough inspection. You should get rid of any unnecessary gifts and bad purchases right away; else, you’ll end up spending to transport them across the globe. A typical two- or three-bedroom home’s contents will cost around £4,500 to ship from London, England, to Toronto, Canada, so taking less will have a very real influence on your budget. Also keep in mind that the cost of relocating will vary depending on whether you choose ground, air, or sea freight. Intlmovers is a good tool for finding and comparing movers all over the world.
Consider some important information about your new home as you are cleaning everything out. How is the climate there? Do you really need those winter coats and boots? Similar to this, would your current appliances work in your new country’s electrical system? Get a copy of the floor plan, along with measurements, if you know the exact home you’re moving into so you can determine which pieces of furniture will or won’t fit.
How much does a beer or a cup of coffee cost where you live now? On the international price comparison website wopri.com, you may find the answer to that query, which will provide you with a good starting point for creating the necessary daily budget.
Money matters
Obtaining a visa will be your first major obstacle. You may be responsible for the expense of an immigration lawyer even if you are sponsored by a business or a person. These can be pricey; in the US, you should budget upwards of $5,000 in attorney fees for the processing of visas, and the price of the visa itself often varies from $200 to $400.
The problem of transferring money to your new house is a little trickier. Since money transfers are vulnerable to the whims of currency fluctuation, the problem gets worse the more money is involved. Foreign exchange offices should be avoided unless you just need to convert a little amount of money because the exchange rates are bad. You’ll probably get a better rate through your bank, but watch out for commission and transfer fees. Look for a package that waives fees if you are transferring anything worth more than £5,000 to avoid paying them.
PayPal allows the transfer of small sums of money with no minimum transfer requirement, however, there is a fee for each transaction that is currently fixed at 3.9%. Moneysupermarket.com provides a list of the top transfer firms and offers for sending money to or from the UK. Be aware that your new financial institution can charge a “receiving fee” as well.
Consult a financial planner for personalized guidance if you have more complex financial requirements, such as maintaining an investment portfolio or having to pay taxes in two places on a regular basis.
Moving costs
Whether you intend to rent or purchase a home, you should think about hiring a professional who can suggest neighborhoods that best suit your requirements as well as conduct property research, provide advice on rental or property values, attend inspections, submit applications, and bid on your behalf at auctions. Some moving agencies will take care of everything, including transferring the cat, locating a nanny, and rerouting your mail. Consider using NYC Navigator, London Relocation, or Resettlement Services Australia, however similar services are offered by businesses in most major cities.
A security deposit and at least one month’s rent will likely be your initial outlay if you plan to rent. However, if you don’t have any local references and are renting in a more competitive market (like New York City or Melbourne), you might need to set aside a larger budget.
Although the cost of purchasing property will be significantly influenced by the location, you should budget for the standard ancillary costs, such as taxes, insurance, and legal fees. Consult a foreign mortgage expert, such as those at Homesgofast.com, if you need a mortgage to pay for your purchase. They can assist you with re-mortgaging your present house, getting a new loan in your current nation, or borrowing money abroad.
Along with spending money on new furnishings, you’ll also need to set aside money for your utilities, which include cable TV, wireless internet, gas, water, and electricity. Also remember to include your health, house, and auto insurance. Public health systems vary greatly between nations, so it’s critical to grasp what’s available before making the best decisions for you and your family. The World Health Report 2000 from the World Health Organization, which rates the global health systems on five important service-related criteria, is a great resource. France tops the list. Burma comes last on the list.
Schooling
Schooling will probably be high on the priority list for parents. Think about whether or not education is free. Although there are surprisingly inconsistent definitions of what free education implies, in most locations this won’t be a problem.
Switzerland offers eight years of elementary education, but Germany offers free education to children for the duration of their schooling. Think about if the calibre of the education being offered fits your expectations. If not, and depending on the area, you might wish to think about international schools, which offers instruction to foreign nationals in their mother tongue (often English) using a global curriculum. Families with smaller children should look into their pre-school and childcare alternatives and budget for them.
When you get there
It’s time to begin putting back together some of the components you had earlier disassembled after the plane’s wheels have finally landed on the airstrip of your choice. You’ll probably still want the magazine subscription and gym membership. Additionally, since you’ll be in a new location, you might want to budget some money for social activities like joining a group or taking a class.
Finally, allocate a “exploration budget” that will provide you free, unrestricted access to your money for a few days as you get used to your new home and explore its amenities.