Save Money and Upgrade Your Life

Why moving abroad should be your next chapter.

Tracy Collins

Published in

Crow’s Feet

6 min readApr 29, 2023

Backdrop

If the last few years have taught me anything, it’s that tomorrow is not guaranteed.

Over the last 20 years, I have lived in Canada, Mexico, the United Arab Emirates, Taiwan, and South Korea. I have visited 35 countries with plans to visit many more.

Some of my fondest memories:

A $6/ night shack in Tioman Island, Malaysia, with the most breathtaking sunrises I have ever seen.
Not one, but two, once-in-a-lifetime luxury African safaris.
Gambling and drinking moonshine with a notorious Taiwanese gang leader.
Attending a stunning wedding in Islamabad, Pakistan.
Sneaking out of South Korea with the help of the US military.
Yoga retreats in Goa, Ko Samui, Bali, and Sri Lanka.

These days we live in Mexico. After five international moves, I can assure you that starting over in a new country has never been easier.

Consider the following realities:

Millions of people immigrate to new countries.
Millions of retirees move to cheaper locations to enjoy their retirement.
Millions of remote workers work abroad.
Millions of employees transfer to global offices.
Millions of students study abroad.

If they can do it, so can you.

Check your mindset.

The biggest mindset shift is to get over your biases and see the world for what it is: An incredible opportunity to learn about yourself and others.

There are wonderful and terrible things about every country on the planet. Leaving your home country doesn’t mean you’re gone for good. Even a 3-month hiatus will give you valuable perspective.

I’ve spent a lot of time in Canada, and while I love many things about it, I don’t want to live there.

Over the years, these are some comments I’ve heard:

‘Isn’t it dangerous?’
‘What about health care?’
‘All those terrorists!’
‘But women are treated terribly there!’
‘Don’t they eat dogs?’

Perspective and opinion are best earned from personal experience. News, stereotypes, and fear-based thoughts don’t count.

To help get the creative juices flowing, here are some incredible resources created by expats for expats.

In addition to adventure and a fresh start, living abroad can also help you:

Save money through geoarbitrage.
Dramatically improve your life.

Save more money through geoarbitrage.

Geoarbitrage means leveraging a stronger currency to live in a cheaper country. This is a powerful tactic to combat inflation.

The great news is that no matter where you are in the world, there is always a cheaper country that you can move to.

One of the best-kept secrets is that many countries are courting retirees, expats, and digital nomads. This means that if you have a few thousand dollars per month, you could be eligible for generous perks like easier visa processing as well as attractive tax advantages, health care, and discounts.

When was the last time your home country courted you with benefits, perks, and tax breaks?

I rest my case.

Financial pitfalls to avoid.

If you earn or generate $80K USD, and the country you plan to live in costs $50K USD, you have the potential to save $30K per year. I use the word potential for a reason. Many people who have excess money, don’t save it. They blow it.

Here are some important pitfalls and strategies to consider:

Estimate the true cost of living in your new city.

The obvious place to find information about the cost of living is in blogs. Yet, most blog budgets I’ve seen are low compared to reality. They also tend to miss important expense categories like healthcare, pets, and travel.

Relying on blogs for cost-of-living estimates can be misleading and set you up for failure. International Living is a global leader for living and retiring abroad, but their blog budgets are no longer realistic in the current economy.
I experienced this when I moved to Playa del Carmen, Mexico. I created a budget based on what I’d read online and discovered that the actual cost was 30% higher.
When referring to blog posts, pay attention to the details and compare. A budget for two people, living in a studio apartment, in a lower-cost neighborhood, during the off-season will be much different than an active family who needs a villa near the beach during peak season.
Globally, short-term rental costs (Airbnb/ VRBO) have increased dramatically in the last 18 months. In some cases, prices have more than doubled. That means that the same condo that used be cost $2,000/ month, might now cost $4,000 or more per month. Be sure to carefully research accommodation costs so you don’t end up with sticker shock. Longer bookings generally come with discounts, but always ask for an additional discount. It never hurts to ask.
Look for budget categories that were excluded in your reference blog posts. Flights, health insurance, pet care, medications, shopping, and fitness costs are often left out. If you currently track your expenses, use your categories and compare them to what’s shared in a blog budget.

Once you have an estimate of your cost of living, you’ll have a realistic idea of how much you can save.

When you arrive at your new location, I suggest tracking your expenses. Generally, the trend in the first few months is to spend more than what you intended. Give yourself some grace, but also plan to work towards a saving target once you settle in.

Don’t fall for lifestyle creep!

With more disposable income, you might succumb to lifestyle creep.

Lifestyle creep means increasing your spending on non-essential expenses.

Let’s say you live in the US, and a mid-level family restaurant meal costs you $70. If that same amount affords you fine dining in Italy, you might use fine dining as your new baseline.

A better approach is to periodically splurge on a nice meal out. Find lower-cost restaurants or cook at home to maximize savings. Just because your money goes further, does not mean you should spend more!

The key is discipline and sticking to your goals.

An important tactic I use is to pay myself first.

While living in Dubai, I saved 40 percent of my salary by sending money home on payday. I lived off the rest. Many people wait to see what’s left over at the end of the month and save that. This is a recipe for failure.

Just like you pay your rent or mortgage on time, it is better to pay yourself on time too.

If you need help tracking your spending, here is a post that covers all the basics.

Immersing yourself in a new culture will change you for the better

I cannot think of a single person who ever said that travel ruined their life. Travel is expansive and will open your mind to new ways of thinking.

Learning a new language

Learning a language helps keep your brain active and young. While you can definitely learn on an app, this is not the same as applying the language in context. Would you rather learn about ordering pizza on an app or at a family-owned restaurant in Rome? Real-life experience is much tastier!

Culture

I’m Canadian, and Canada is a highly diverse country. Nevertheless, my circle is limited to friends very similar to me. While I don’t have many close Arab friends in Canada, I have many Lebanese, Syrian, Egyptian, Jordanian, Palestinian, and Sudanese friends from the UAE. No melting pot can replace the direct experience of living in another culture.

Friends

Whether you end up meeting more locals or ex-pats, you will meet people who will enrich your life in unimaginable ways. Though I love the friends that I’ve known forever, I also appreciate the new friends I’ve made along the way.

Long-term travelers, digital nomads, and retirees have incredibly interesting lives. Rich in travel, adventure, and unique perspectives, I am always amazed by the incredible stories people share.

There is also an unwritten rule among many ex-pats to focus on similarities and leave differences aside. It makes for friendly, easy relationships and conversations. I am friends with many people whose political views differ from mine, but these are topics we leave on the table.

Conclusion

Geoarbitrage is a powerful hack to help you fight inflation and save money. Though it’s been popular for decades, now is a particularly great time to get on board.

Though saving money is one motivation, the invaluable relationships, memories, and experiences you’ll pick up along the way are even better.

If you liked this post, feel free to follow me! I write about Financial Independence, mindfulness, and travel.