Money-Saving Tips for Expats Living Abroad
With these proven tactics, maximize your income and reduce expenses while living in a foreign country.
Many of us expats initially go abroad to save money and see the world. Depending on where we settle down, the economic benefits compared to our home countries are just too good to pass up.
Yet, if we’re irresponsible, the cost of living, currency exchange rates, and unexpected expenses can quickly add up, making it difficult to stay financially stable. I like to say that this happens to expats who get “lost in the sauce.” You’d be surprised how many peers I’ve met haven’t saved a single dollar in five years, blowing all their money on bottles at the club or random crap.
However, with the right strategies, you can save money, maximize your income, and enjoy your time overseas. Thus far, in three years as an expat I’ve paid off over $40,000 of my student loan and counting! I could do this comfortably due to the strategies I put in place.
So, here are my money-saving tips for expats living abroad:
Create a budget and stick to it
Creating a budget is critical in staying financially responsible while living abroad. Determine your fixed expenses, such as rent, insurance, and utility bills, and allocate funds for food, entertainment, and travel. You can Google free-to-use financial budgeting spreadsheets that will do all the calculations for you!
Be realistic with your budget and adjust it as needed. I typically overestimate my monthly expenses so I’ll save even harder than I genuinely need to. This is a great motivator to stay on top of your finance.
Sticking to a budget will help you avoid overspending and ensure you have enough money to cover your essential expenses. Plus, it’s a good life skill for any point in your life.
Minimize bank fees
Banking fees can quickly add up, especially when you’re living abroad. Although this point is typically reserved for brand-new expats, I still believe that it’s worth mentioning here. As an expat, you must immediately sign up for a local bank instead of using your home nation’s bank.
Foreign transaction fees from the few businesses that allow foreign currency and ATM withdraws add up quickly! It’s best to have a local bank as soon as you can. This can also relate to sending money back home, as bank transfers can sometimes get outrageous. One way to save money on transfers is by using peer-to-peer money apps like Swapsy (for China), where your money is insured, the process is much faster, and the fees are way lower!
Shop around for insurance.
Health insurance is essential for expats living abroad, but it doesn’t have to break the bank. Many expats will be granted coverage by their places of work, but this isn’t always the case.
Beautiful resources and insurance companies exist for expats, digital nomads, and travelers. One of the best that I’ve used in the past (and to be clear, I have been sponsored by them on YouTube, but not on this specific article) is SafetyWing. This is just one example of an insurance company that can cover us with straightforward, easy-to-understand traveler’s insurance.
Getting local health insurance from a country where you don’t speak the language can be incredibly hard without help, so it’s up to you to decide what’s best for your situation. For me, I’m lucky enough to have my work cover all of my insurance issues, but not everyone has that luxury.
Shop for the best deal, compare policies, and consider opting for a high-deductible plan. You can also reduce your insurance costs by taking advantage of preventative care and wellness programs offered by your insurance provider.
Take advantage of local deals and discounts.
Expats living abroad can take advantage of local deals and discounts unavailable in their home country. I can speak on my experience here in China, where “everything is cheaper on Taobao.” The “Amazon of China,” Taobao isn’t even the cheapest online shopping platform! There are platforms like PingDouDou where you can get deals directly from factories!
Many expats don’t know how to search for deals, but they’re readily available for us to take advantage of to save a quick buck. Ask your local friends what they use to find cheap products, anywhere from produce to furniture, and I guarantee they can show you where everything is more affordable than the rest.
From shopping sales to discount coupons, there are many ways to save money while living abroad. Take the time to research local deals and discounts and take advantage of them whenever possible.
Be mindful of your energy consumption.
Energy consumption can be a significant expense for expats living abroad, especially if you’re living in a hot or cold climate. At least here in China, any time you have the AC on, you are draining cash straight out of your wallet and into the toilet.
One example of how to combat this is using lower-electricity-dependent equipment to get the same job done, like smaller fans and things of that nature. Perhaps your country’s electricity won’t be affected too much by AC, but we still need to turn our lights off, unplug things we aren’t using, and the whole nine.
Another way to reduce electricity costs is to find energy-efficient lightbulbs, as many apartments abroad don’t have these by default. You can cut down big time this way!
All in All
Living abroad can be a unique and exciting experience, but staying financially responsible is essential. You can save money and enjoy your time overseas by creating a budget, minimizing bank fees, shopping for insurance, taking advantage of local deals and discounts, and being mindful of your energy consumption. Remember to adjust your budget as needed and stay vigilant in your efforts to save money. With these tips, you can ensure that your time living abroad is enjoyable and financially responsible.
If you could be an expat in any country, what country would you choose? Comment down below!!
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