Living Abroad and Stretching a Budget

Summary: How to afford to live abroad and what to do to enjoy lower costs of living overseas

The allure of living abroad has captured the attention of more than 5 million Britons to date.  With thousands leaving the country each year to make new lives for themselves in places far and wide, the trend isn’t likely to end anytime soon.  One of the top reasons expats cite for leaving is the economics of living in the UK.  Whether it’s Bulgaria that offers lower housing prices or Belize with a more reasonable cost of living, the appeal of having the opportunity to live better and afford more is incredibly strong.

Shortly after settling down in their country of choice however, many Brits living abroad find the “affordable” costs they anticipated aren’t adding up.  Scratching their heads as they look at grocery bills in Venice or electric bills in Bulgaria, they wonder what they are doing wrong.  Chances are the answer to their woes lies in a few common mistakes that expats often make – let’s look at living abroad and stretching a budget.

Here are some of the ways that expats can enjoy an actual lower cost of living in areas that promise as much.  There are some tricks to stretching a budget and taking advantage of lower prices that can actually be had in these locations.  Here are a few tips suggested by expats themselves: -

Get control of international calls – if phone bills are eating up every pound in savings, come up with a new way to communicate with friends and family back home.  Try e-mails, actual letters, instant messages and even Internet-based voice programs such as Skype.  Just avoid using the telephone or cell as much as possible.

Avoid trendy and touristy spots – unless you want to pay twice as much for everything from a soft drink to a blouse, these areas should be considered off limits for shopping.  Reserve spending in these places for very special occasions to make a budget go further.

Shop where the locals do – find out where friends and neighbours get their groceries, clothing and other essentials of daily living.  Shop like they do and those fabled lower living expenses might actually pan out.

Say goodbye to imports – if your plan was to move to Portugal and live like a Brit, chances are you’re getting milked in import fees.  Imported foods, clothing and other products will really run up the expenses in any country.  A story from an American expat in France really brings the lesson home rather clearly.  Craving a six-pack of her favourite American soda, this expat travelled to Paris where she knew it could be found.  Much to her dismay, the price for six cans was a whopping EUR 11.  Back at home, it would have cost her about USD 2.50.  Imagine what that would do to a budget if she bought that soda on a weekly basis along with other American foodstuffs!

The real secret to stretching a budget and enjoying a low cost of living that a different country might offer lies in living like the locals do.  Shop where they shop, eat where they eat and avoid “luxury” buys as much as possible and chances are, being able to splurge occasionally will fit into the budget enough to make starting a new life living abroad quite enjoyable.

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