Living as an expatriate does not have to be expensive. In fact, many expatriates relocate abroad in order to save money for their retirement or in their early adulthood. The key is to learn how to still enjoy your locale while living on your budget or pension. If you do this, you will be able to save a great deal of money while living abroad.
Here are my top tips for living abroad frugally as an expat:
Use a Currency Exchange Company to Transfer Your Assets
Whether you have USD, AUD or GBP, it is highly recommended that you use a currency transfer company like the ones listed here to transfer your assets abroad if you are moving to an economy with a weaker currency. This will allow you to save a great deal of money if you are making a major purchase such as real estate.
Move to Non-Major Cities
For example, if you want to retire in Australia, consider living in cities that are slightly smaller than Melbourne and Sydney, like the ones listed here. By doing this, you will be able to afford a nicer property for less money. These smaller cities will also have a lower cost of living overall that will enable you to get more for your money and to live on your pension successfully.
Consider Moving to a Developing Country
There are many developing countries that are very safe around the globe. The reason for this is that these markets have very low real estate costs and will likely be more expensive in ten to twenty years. Investing in property in these locations is a fantastic idea because not only will you own a piece of property, but you can also live there and take advantage of the low cost of living that exists in these places. Some examples of markets such as these are Chile, Uruguay, Mexico, Thailand, Vietnam, and Panama. All of these countries are safe, have a good standard of living, and a low overall cost of living.
Enjoy Free Entertainment
In many locales there are several cultural events that are performed for free. This is a great way to enjoy the culture of your locale and to also save a great deal of money. You can also find great deals on TV broadcasts from your home country over the Internet.
If you are living in a destination that is tranquil and has beaches, it is best if you enjoy the view from your home and make meals from your own kitchen. This will end up saving you a great deal of money and also allow you to live off of your pension effectively.
Consider Living in a Country That Has an Inferior Currency to Yours
This is one of the key successes to being an expat. If you are able to find a market that your home currency goes further in, you will be able to live better as a result. Particularly if you have USD, GBP, or EUR, shop carefully for locales that are still nice, but give you an enormous advantage of the currency disparity. A great example of this can be found in Thailand. If one moves to Thailand, they have a sensational exchange rate and a lower cost of living. This will enable an expat to live quite well and will allow their existing assets to go great lengths.
Utilize Public Transportation to Your Advantage
One way to really save money as an expat is to not invest in a car. If you are living in a place that is more rural, but that still has public transportation, you will save a great deal of money by not purchasing a car. By using the local transportation or a service such as Uber, you will cut a major expense and be able to use your pension towards more enjoyable expenses.
Make Your Money Work For You
Whether your funds should be invested in stocks, bonds, ETFs or a more adventurous channel like property, P2P investing, and leveraged trading it's important that it won't be just lying somewhere without generating any interest. When you move abroad, especially to a developing country as advised, your money is your strongest weapon. If you consume your life savings for your day-to-day living, you will end up poor even if you are living in a poor country; If you can generate any form of passive income via smart investments, you will be able to finance yourself in your new home-country easily.
What is important to remember as an expat is that you absolutely can move abroad and live quite well. The key is to find a safe locale that has a lower cost of living and gives you the currency exchange advantage. By doing this, you will be able to live a higher quality of life than you would in your home country for the same amount of money.
Additionally, by investing in property in these lower costing locales, you will also be making a viable potential business investment that could allow you to purchase multiple properties and turn them into a vacation rental business later on. The takeaway is that expat life is a wonderful way to both live well and see more of the world in the process for an affordable price.