Is Living Abroad A Good Choice For Your Bank Account?
Making the choice to move abroad has different results for everyone. It’s not a decision to make on a whim, even if you love the idea of moving to another country. You need to look into your finances to see if you would benefit from packing up, going thousands of miles, and settling down in an entirely foreign city. Sound exhausting yet?
For most people, visiting for a short term period and then deciding to move is the most common approach. However, if you’ve already visited your chosen country multiple times and you’re sure it’s your perfect new home, you’re ready to proceed to the next stage of things.
And that’s where the numbers breakdown comes in. Here are a few points to go through to double check if moving abroad would be a good choice for your bank account. Check the list out below.
It Depends on Where You Move
If you want to live abroad, this will be the crux of your decision. Wherever it is you’re thinking of moving, you need to do your research. And don’t panic, not all the news you discover is likely to be bad. Indeed, some countries have more money opportunities, as jonathan martin nfl will tell you.
Cryptocurrency, for example, has a bigger base in some countries than others. On the other hand, some will have just one currency to invest in and a small stake in the global stock market. Doing your research will let you know if such opportunities exist in your destination of choice. Get started on this as early as possible.
There Could Be a Lower Cost of Living
If you’re moving from the US or the UK, or you’re moving outside of Europe, you could open yourself up to a lower cost of living. This will make living abroad a lot cheaper than living in your home country, and could lead to a better savings pot and more investment opportunities.
But above all, you won’t need to spend as much on bills or the groceries you need to bring home every week. Knowing this, your bank account’s baseline could become a lot healthier over time – just make sure you’re aware of the inflation the country is subject to and how that’s changed in recent years.
Job Opportunities Can Pay More
It’s common for people living abroad to be paid more than those around them, as they bring in more diverse and varied skills and can strengthen the local economy. Similarly, if you currently work a remote job, and your employer doesn’t mind your decision to move, your current level of income may not even change.
You won’t need to look for a new job, you won’t experience a fluctuating income, and you can start refilling your bank account from the moment you move in. Moving abroad can be intimidating enough, but if your financial stability is unlikely to change for the foreseeable future, it’s going to be a lot easier to adjust.
Taxes are Handled Differently
If you choose to move to a country that has a tax treaty with your current country of residence, you could end up needing to handle your taxes differently. This could be beneficial, as it could lead to a lower taxation rate. However, things often get more complicated than that.
Living and working in one country, whereas you’re a native resident of another, can lead to double taxation. Rules are in place to try and avoid this, but you need to be up to date on how these work. You may also want to talk to an accountant that specializes in expatriates and their tax issues for more in depth, actionable information.
Saving Could Be a Lot Easier
We touched on this earlier, but living abroad could pad out not just your current or checking account, but your long term saving account as well. If things cost less, you can put away more each month. This then means you’re more likely to be able to afford real estate and buy your own property within the next 10 years – that’s an attractive prospect for the modern millennial.
Living abroad has its pros and cons. However, will the cons outweigh the financial benefits you’ll open yourself up to? Make sure you take a proper account of your income and how that will flux if you move out of your home country. The more you know now, the less horrible surprises will come your way once you’re out there!