Here's how you can thrive abroad on a tight budget

Navigating local tips for budget living

The rising living costs affect expats as much as locals. To manage on a limited budget, start by identifying what locals deem as good deals. Conduct your research online in the language of your host country. If you don't feel like discussing your personal finances, emphasize the ecological and vintage benefits instead. The international second-hand market has grown significantly, and wearing second-hand clothes has become commonplace. Learn from the locals—ask for their tips and tricks. It's also a great way to socialize and integrate.

Selecting the appropriate city  

Unsurprisingly, living costs in a fashionable city center differ significantly from those in a remote suburb. Avoid hastily settling for the first available housing option. Instead, choose a city where living expenses align with your financial capabilities. Whether you're an international student or a professional, consider all costs associated with your accommodation, including rent and additional expenses like transportation. Opting for very affordable housing that's far from your university or workplace can unexpectedly increase your transportation budget. In some cases, choosing a slightly more expensive residence that's closer may prove more economical in the long run. Carefully calculate the costs of different scenarios to maximize your savings.

Furnishing with second-hand items

Before you move abroad, explore second-hand furniture sales advertised on social media, particularly in expat groups. Many expatriates leaving the country often sell their furniture at reduced prices, providing you an opportunity to furnish your home affordably. This is also a chance to gather insights from other foreigners. Find out if they were on tight budgets, too, and learn how they managed their finances.  

Saving on banking fees

Will you choose a local bank or a neobank? If you are employed, it may be wise to open a bank account in your host country to simplify receiving your salary and avoid complications. Be mindful of unnecessary or excessive charges, such as account maintenance fees, withdrawal fees, and transfer fees. Select a banking service that aligns with your needs. If offered a "package" by the foreign bank, carefully review its components to ensure they are relevant to you. Often, these packages include superfluous options that could unnecessarily increase your costs. Apply the same scrutiny to the terms associated with your debit card.

Eating locally

Why move abroad only to eat like you're back home? Unless you have dietary restrictions—like allergies or specific dietary needs—embrace local cuisine. It's an excellent way to integrate and save money while living abroad. Eating locally also deepens your understanding of the host country's culture. Enhance your language skills by engaging with culinary tutorials in the local language. If you have a specific diet, research compatible foods before you relocate and discuss potential dietary adjustments with your doctor. This preparation ensures you can enjoy local dishes without compromising your health.

Discovering discount brands in your host country

Eating like a local naturally extends to learning where to shop. Where do the residents find their best deals? Make it a habit to compare prices across different brands. Explore the markets in your host city for fresh produce, fish, and meat. For non-perishable items like rice and pasta, consider visiting hard-discount stores that specialize in selling products close to their best-before dates. Remember, these products are not expired; they remain consumable past the best-before date, which only suggests they may lose some of their nutritional or taste qualities. This approach can significantly reduce your grocery expenses.

Learning to save money while abroad

Saving money while living abroad, especially on a tight budget, can be challenging but achievable with the right approach. Start by creating a realistic savings plan. Break down your financial goals into manageable steps rather than focusing on a large final sum. Begin by listing all your regular income sources, such as salary and scholarships, and your fixed expenses. Categorize your expenditures into essentials (like housing, local taxes, transport, and basic groceries) and non-essentials (such as dining out, entertainment, and luxury items). After assessing your budget, identify areas where you can cut back, starting with non-essential expenses. Avoid impulse purchases and prepare your meals for the week. Buy in bulk when it makes sense, but remain cautious of deceptive promotions. Aim to set aside a portion of your monthly income and deposit it into a savings account to build your financial buffer.

Integrating abroad on a limited budget: Final tips

Take your time to adjust, especially if tracking all your expenses and income is new to you. Mastering the art of saving on a tight budget while living abroad takes skill and practice. Before you move, gather as much information as possible about your new city. Don't isolate yourself; instead, become part of various groups. Many expat groups share helpful tips online. For instance, opt for outdoor activities with friends instead of paying for a gym membership. These connections are not only ways to save money but also excellent opportunities to integrate into your new surroundings.