6 Financial Considerations to Make Before Moving Overseas
According to the US State Department, an estimated 10 million Americans live in countries across the world. Approximately 40% of residents live in North American nations, such as Canada and Mexico, and the rest live in countries further away, such as Great Britain, Germany, Australia, and Israel.
If you want to follow in the footsteps of millions of Americans, you must protect your cash flowat your new destination. Here are six financial considerations to make before moving overseas.
1. A Realistic Relocation Budget
Moving overseas is the opposite of cheap. In addition to funding flights and accommodation, you may need to pay for:
- A visa
- Shipping costs
Research the essential costs for moving overseas to create a realistic budget, which will ensure you will not receive any unwanted financial surprises when relocating.
2. Overseas Moving Costs
If you have never hired movers before, you might pick the first company you find online. However, this is a big mistake, as not all companies are created equal. Different moving companies will have different fees, services, and standards, and you would be wise to thoroughly research a brand before hiring them. Read testimonials and request quotes from trustworthy movers to receive a hassle-free moving experience for an affordable fee.
3. The Financial Basics at a Destination
Countries will have different legal requirements, processes, and services, which you would be smart to research before relocating overseas. For example, you must learn:
- How a country’s tax system works
- How to open a bank account
- How to secure a visa or residency documents
4. The Cost of Living
Learn about the cost of living before setting your heart on a destination. An overseas company might provide an attractive salary, but it might not be enough to fund your lifestyle at your destination due to its cost-of-living rate.
For example, London is well-known for being more expensive than other cities across the UK, while Berlin is an affordable capital where your money will go further. Also, the likes of Norway, Switzerland, Iceland, and Australia are regarded as the most expensive countries on the planet, and you might struggle to live comfortably on your salary.
5. A Health Insurance Plan
Most nations will charge for various healthcare services. Protect your health and finances by securing health insurance before moving overseas. Your medical insurance plan and fees will be determined by your:
- Country of origin
- Medical history
- The country of coverage
6. Closing All Credit Cards
It makes sense you will want to resolve any outstanding debts before moving overseas. In a perfect world, you would have time to gradually organize your financial affairs, but an overseas career or life event might prevent this from happening. If you have many months to prepare for a relocation, close each credit card gradually and not all at once. If you close all accounts within a small timeframe, you could damage your credit score, which could have huge financial repercussions.