Lifestyle changes that can make you a money-saving expat

Whether you’re spending your retirement on the Costa Blanca or you’re a young expat family living and working in Dubai, you’ll know that moving from one country to another can be tough. The cost of living can vary greatly from county to country, and budgeting for your new expat lifestyle can be challenging, especially if you’re on a limited salary or living off of a retirement.

At Money Saving Expat, we love to give our readers top tips on saving money and living your best expat life - and in this post, we’re going to do exactly that. Below, we’ve put together some simple lifestyle changes that will stop you from wasting money and leave you financially secure.

Live within your means

Perhaps the simplest - yet most effective - piece of advice that we can give you is to learn to live within your means. If you’re just starting out on your expatting journey, it can be easy to assume you’ll be able to live just as you did in your native country - but higher costs of living and more expensive food, accommodation and transport mean it may not be possible. You’ll need to make changes to your lifestyle if you want to save money, and that starts by knowing your budgets.

Calculate your salary and other income, whether that be from investments, retirement funds, or your savings, and you’ll quickly know how much money you can live off. Then deduct all of your monthly outgoings, like rent, electricity, taxes and transport, and don’t forget to include financial commitments back in your home country, whether that be a mortgage or a loan. You’ll then be left with a sum of money for everyday essentials like food, clothing, saving, and eating out.

The chances are that you’ll be surprised at just how much you’re spending, but putting it all down in black and white will make you face reality and get to grips with your finances. If it looks like you’re left with less than you initially expected, don’t panic: there are ways to save money…

Work closer to home

This next suggestion may not always be possible, but it’s worth mentioning nonetheless. UK commuters will spend an eye-watering £135,000 in their lifetime, coughing up for train fares and petrol. It’s a similar story in the United States, where commuters also have to tackle increasing traffic delays and extended journeys to get to work - the average US commute is 27 minutes.

There are a whole host of reasons why you may have decided to move to a new country, but the likelihood is that at least one of those reasons was to do with work and quality of life. If you can, try to work from home as an expat, as you’ll be able to save thousands of pounds a year on your car, fuel, insurance, taxes and other associated costs. You’ll remove unnecessary stresses, too.

Shop at local markets

It can be tempting to do your weekly food shop in the local supermarket or convenience store, but the chances are that you won’t be getting the best value for money. As well as using price comparison websites local to your country, you should head out and shop at local markets, where you’ll likely get much better deals on fresh produce such as fruit, meat, milk and cheese.

Of course, the first few months of your new life will take some getting used to, but in time, you’ll be able to seek out special offers and find the cheapest places for your grocery shop. Indeed, it may be that you need to visit a couple of local supermarkets and the weekly food market to get the very best deals on all of your products. Comparing and switching will save you hundreds.

Befriend other expats

Another great way to save money as an expat is to befriend others. You won’t be the only expats living in your community, so step outside of your comfort zone and introduce yourself to others. The chances are that they’ll be able to impart some of their wisdom, recommending the best supermarkets and websites to get special offers, and sharing their top tips on saving money as an expat. And when you move to a new country, making new friends is always nice.

Who knows? You may even decide to get together and buy things like a trampoline for your children or buy household essentials in bulk to get the best deals. Building a community and working together to save money is fun, and the results will speak for themselves in no time.

Do it yourself

It’s easy and convenient to go out for a meal at the end of a busy week or pay for a cleaner to service your apartment - but if you want to save money, then doing it yourself makes sense.

Restaurants can be expensive, especially if you’re living in a tourist destination, so cook your own meals, or consider eating out at lunchtime rather than for dinner for a cheaper bill. And rather than hiring a cleaner, get your children involved in house chores, offering them some pocket money as a reward for their hard work. These small savings really add up over time.

Understand taxes

Finally, it’s important that you understand local taxes. It’s possible to live in another country and still be required to pay tax in your home country. For example, if you’re living in Mexico but you earn money from a rental property in the UK, you’ll be subject to UK tax rules on that money.

Some countries also have tax treaties, so speak with your local authorities to ensure you’re not overpaying. Our advice is to hire a professional accountant or tax specialist, who will be able to assist in your personal tax circumstances and ensure you’re paying your fair share of taxes.

Wrapping up

Becoming a money-saving expat takes time, patience and willpower, but if you want to live your best life and have money to put aside for holidays and rainy days, there are changes you’ll have to make. Don’t forget that the Money Saving Expat blog is updated every week, where we offer free, impartial money advice and help you navigate through foreign financial landscapes.