DO I NEED A BUDGET?

“Who of you wanting to build a tower does not first sit down to calculate the expense to see if he has enough to complete it? Otherwise, he might lay down the foundation but not be able to finish it, and all the onlookers would start to ridicule him, saying: ‘This man started to build but was not able to finish?’”

These were the words of who many would call “the wisest man to walk the Earth.” Granted, building a tower is a project that not many of us are interested in. However, the principle remains: make sure you have the resources needed to do what you plan on doing. In other words, if you are planning on traveling abroad, make sure you have the money needed to do so. How sad it would be to have to  shorten your time in a particular part of the world because you went unprepared. It’s not the most enjoyable part of moving, but planning a budget will allow you to focus on living in another country rather than finding the money to live.

QUESTIONS TO ASK YOURSELF

So, I’ve convinced you that you need a budget. Great. But, now the real work begins. Keep in mind that it’s imperative to research the cost of living in whatever part of the world you move to. If possible, find out how much it costs for someone from your home country to live in a particular part of the world. For example, in Bolivia, a native can live comfortably on a lot less than the typical person from the United States. In addition, many activities may cost more for a foreigner than they would for someone who is a citizen. So ask yourself:

  • What will be the traveling costs for me, my family, and the stuff we want to take with us?
  • How much money will I need to save in order to survive before getting settled?
  • Will I be able to obtain residency? How much will it cost to live until I obtain residency? Or will I have to make “visa runs”?
  • What are the fees to obtain the necessary visas? Will I need to use a lawyer or other company who specializes in getting foreigners their necessary documentation?
  • What is the value of my money vs. the value of the money in the country where I want to live?
  • What is the exchange rate?
  • Will I be able to obtain work, online or in the country?
  • How much is health care?
  • Do I need to open a bank in that country or will I keep the one in my home country? Will I do both?
  • How much is rent for comfortable accommodations?
  • Will I pay to furnish a place or find one that is already furnished?
  • What’s the average price of utilities a month?
  • How much does food cost? Will I mainly eat out or cook at home?
  • How much is the internet for my needs?
  • What will I pay to have sufficient recreation and entertainment?
  • Getting around: Do I need a driver’s license and vehicle in that country or will public transportation suffice?

These questions are by no means exhaustive, but they should get you started in thinking about the price of living and moving costs. As you think about these questions, no doubt others will arise . Write them down and research the answers. Of course, no one can prepare for all the financial possibilities that may come up, but we can set ourselves up for the best possible outcome. So, take the time to calculate the cost.

You thought you were done, didn’t you? Well, guess what? Though you may physically leave your country, your financial obligations to it may not. We’ll look at some things you may need to include in your budget regarding your country of origin before and during your life abroad.