Living abroad is a dream for many Brazilians seeking better quality of life, more security, and new experiences. However, making this dream a reality requires thorough financial and emotional planning. In this article, we’ll show you how to save money to move to another country. These practical tips will help you build a solid financial reserve before making the big move.
How to Save Money to Move Abroad: A Step-by-Step Guide
With determination, optimism, planning, and willpower, you can turn your dream of living abroad into reality. Here are seven essential tips to help you save money for your move.
1. Research the Cost of Living in Your Destination Country
Conducting in-depth research about the cost of living in the country or city you plan to move to is crucial. This will help you determine how much money you need to save to cover your living expenses for at least the first few months. Even if you already have a guaranteed job and salary, you’ll need savings to cover relocation expenses.
Your research should include essential costs like rent, food, utilities, leisure, taxes, and visa fees, as well as travel expenses. Comparing the cost of living across different cities can also help you choose the best location.
Additionally, check the country’s minimum wage and average salary to understand how far your income will stretch in your new home.
Where to Research:
- Read blogs and websites by expats living abroad.
- Watch videos from people sharing their experiences abroad.
- Use platforms like Numbeo of Expatistan to get average price estimates for rent, food, transportation, and entertainment.
Cost of Living Guides for Popular European Destinations:
- Portugal
- Spain
- United Kingdom
- France
- Italy
- Germany
2. Use a Spreadsheet to Plan
Creating a spreadsheet is a great way to organize your research and track your savings progress. You can use one sheet to compare living costs in different countries and another to plan your savings and expenses.
Include categories for fixed costs, variable expenses, and your monthly savings goals to make your plan actionable and realistic.
3. Save a Portion of Your Salary
Saving money can be challenging, especially during economic downturns, but achieving your dreams often requires sacrifices.
Ideally, aim to save at least 30% of your salary each month. This will help you build a financial cushion to cover unexpected expenses and ease your transition abroad. The more you save, the better prepared you’ll be.
4. Cut Unnecessary Expenses
Minimize extra spending and avoid non-essential purchases. A small sacrifice now will pay off in the long run. Cutting expenses doesn’t mean giving up everything you enjoy—it’s about prioritizing and being mindful of your spending habits.
Suggestions for Reducing Costs:
- Cancel cable TV and stick to one streaming service.
- Cook at home instead of eating out.
- Use public transportation instead of driving.
- Avoid impulse purchases and only spend on essentials.
5. Do It Yourself (DIY)
In many countries, services like cleaning, nail care, and furniture assembly are expensive, so it’s common for people to do these tasks themselves. Start adopting this mindset while you’re still in your home country to save money.
For example:
- Skip the nail salon and do your own manicures.
- Handle your own research for flights, accommodations, and visa applications instead of hiring an agency.
These small adjustments can save significant money over time.
6. Sell What You Don’t Need
If your plan is to move abroad, start selling items you won’t need anymore, such as cars, bicycles, motorcycles, or other valuable belongings. This extra cash can contribute significantly to your relocation budget.
What You Can Sell:
- Clothes and shoes you no longer wear.
- Furniture, appliances, and household items.
- Electronics and gadgets you don’t plan to take with you.
Use platforms like OLX or your social media channels to advertise and sell your items.
7. Earn Extra Income
In addition to saving money from your regular job, look for ways to earn extra income during your free time.
Ideas for Earning Extra Income:
- Take on freelance work.
- Sell products like baked goods, handmade jewelry, or cosmetics.
- Work part-time jobs or gigs on weekends.
Every extra dollar saved will bring you closer to your goal.
Open a Foreign Bank Account and Save in Your Destination Currency
One of the smartest ways to prepare financially for a move abroad is to open a foreign bank account and start saving in the currency of your destination country.
By gradually converting your money and saving in a foreign account, you’ll be better prepared to manage your finances as soon as you arrive. Digital banks like Wise (formerly TransferWise) are excellent options for this.
Why Use Wise?
- Wise allows you to hold and manage money in over 50 currencies.
- The account is free to open and comes with a debit card for international spending and withdrawals.
- You can send money abroad at low, transparent fees.
Important Notes:
- Wise accounts do not earn interest like traditional savings accounts.
- Personal accounts have a free limit of €15,000. Beyond this amount, a 0.4% annual fee applies.
Send Money Gradually
If you have time before your move, consider transferring money to your foreign account in smaller amounts. Monitor exchange rates daily and make transfers when rates are favorable.
Use reliable sources like financial news websites or currency exchange platforms to track rates and plan your transactions.
Be Cautious and Avoid Scams
While planning your move, prioritize safety. For example, avoid paying for long-term rentals without seeing the property in person. If something seems too good to be true, it might be a scam.
Final Thoughts
Saving money to move abroad requires planning, discipline, and determination. By following these tips, you can build a solid financial foundation and make your dream of living in another country a reality. With careful preparation, you’ll be ready to embrace a new chapter with confidence and financial stability.
