How to Create a Budget for an International Move

International moves often look much different from local relocations. When moving abroad, you have to consider additional paperwork, visas and ways to set up life in a new country. Each additional factor can impact your budget.

If you're moving internationally, your belongings need to be shipped a longer distance, typically by air or sea freight. They go through customs, and you need to make it through a rigorous screening process that comes with fees and other requirements to legally reside in your new country.

When preparing for your move abroad, you need an ironclad moving budget that accounts for predictable expenses and leaves wiggle room for unforeseen scenarios. Your budget should include the cost of applying for a visa or residence permit, shipping your items and securing new housing. 

This guide explains how to create a moving budget and what it should include so you don't have to stress about your upcoming move.

Research Cost of Living

The biggest consideration when budgeting for an international move is the cost of living in your destination country. Living costs include housing, groceries, utilities, transportation, medical care, dining out and other essentials. 

Depending on the country you're moving to and where you're moving from, your new cost of living can look dramatically different. Switzerland, for example, has one of the highest costs of living in the world. Conversely, many African countries, such as Egypt, and South Asian countries, such as Pakistan and India, offer much lower costs of living. For comparison, the US has one of the highest costs of living in the world. However, living costs can vary widely between cities and states. Manhattan, New York, for example, has a much higher cost of living than the national average. 

Research living costs in your destination country and city and compare them to your current cost. This comparison can give you a more realistic idea of how far your income will go in your new country.

Prepare for Passport and Visa Expenses

When crafting a budget for moving out, you need to factor in potential passport and visa expenses. These costs can vary, depending on your home and destination countries and the type of visa you apply for. 

Beyond the fees for the paperwork itself, you may also need to meet a proof of funds requirement to immigrate. This is especially true for people relocating on a student visa, but some countries also require it for residence and work visas.

Research for Moving, Shipping, Flight and Other Travel Costs

Transportation also factors into your overall budget. Costs for transportation are highly dependent on several factors, from how much you're shipping across borders to the flight you choose for yourself. Booking services and transportation well in advance may help make your flight more affordable.

Some items can be taken with you on your flight if they're small enough to fit in your allowed luggage. These items may include a laptop, some clothing and necessary paperwork.

Your flight cost can also depend on your luggage amount and whether you're flying nonstop or have a layover. To avoid additional fees, ensure your bags are within the allotted weight limit. You can also opt for an airline that allows a free carry-on bag to reduce travel costs.

Since large household items, such as furniture or a car, are often shipped at expensive rates, you may want to consider selling large items and purchasing replacements after you arrive. 

Consider Housing Costs and Accommodations

Your housing will likely include more costs than your monthly rent. Utilities factor into your potential housing costs and are highly dependent on where you move. You may also need to pay a security deposit or additional months upfront, and depending on your lease, renter's insurance may be required.

Depending on the time line for moving into your permanent accommodations, you might also need to secure temporary housing while waiting for your keys. Some people move without having their permanent residence set up and stay in temporary housing while they settle.

Create a Plan for Packing and Organizing Your Belongings

Approximately 8-12 weeks before you move, you should create a plan for packing and organizing your belongings. At this time, you can also contact an international moving company, such as Atlas International, and inquire about moving estimates.

This gives you ample time to decide what to take, review packing tips and pack everything efficiently. Create a list of everything you plan to take or replace once you settle in, and work on disposing of, storing, selling or donating the items that don't make the cut.

As you pack, you also need packing supplies, such as boxes, tape and bubble wrap, which come with their own costs. If you're taking valuables, such as electronics, or fragile items, such as porcelain dishes or picture frames, you might purchase heavy-duty packing supplies to keep them safe. 

Don't Forget About Health Care and Insurance

Health care costs vary widely from country to country. While some countries offer particularly generous health care coverage to all legal residents, including foreigners living in the country long-term, others may require you to buy a health insurance policy. The United States, for example, allows lawfully present immigrants to purchase a health care plan through its insurance marketplace.

South Korea, on the other hand, offers universal health care that extends to expats and travelers. Foreigners who reside there for longer than 6 months are required to enroll in the National Health Insurance program, which provides equal coverage to foreigners and Korean citizens.

You can also purchase private expatriate health insurance plans, which offer extended international coverage for people residing in foreign countries.

It's a good idea to have travel insurance to cover potential mishaps as you travel to your destination country. It can cover costs associated with trip interruptions or emergencies that require you to change your travel plans.

Build an Emergency Fund

According to Murphy's Law, anything that can go wrong will. A car accident can result in repairs. Getting sick may lead to hospital visits and missed work (and therefore pay) for an extended period. Something may break that needs to be replaced immediately. Emergency or urgent expenses can arise at any time for any reason, so you should have an emergency fund prepared in advance.

The size of your emergency fund may depend on your lifestyle, family size and general costs. It's typically recommended you save between 3 and 6 months of your living expenses in case something goes wrong.

Budget for Your Desired Lifestyle Abroad

Your budget also depends on your desired lifestyle, and your realistic lifestyle depends on your actual budget. Depending on where you're moving from, this may not be a problem, especially if you go somewhere with a low cost of living or continue to earn in a currency with favorable conversion rates to your new country's currency. For example, if you get paid in US dollars but live in Japan, your budget may allow for a more luxurious lifestyle.

Consider how frequently you'd like to return home to visit friends or family members and how that impacts your budget. You may have to opt for more infrequent but longer visits. Conversely, if you've moved somewhere with a higher cost of living, you may need to adjust your expectations for living standards and adopt a more budget-friendly lifestyle to make your dreams of living abroad come true.

Contact Atlas International - We Can Support Your Overseas Move

For decades, we've supported individuals and families in their cross-border endeavors, and that assistance extends far beyond packing and transporting belongings. Our international relocation experts can also help with the financial planning and comprehensive budgeting process. 

To get started, contact us online or by phone at 1-888-669-6031 (US only) or 1-206-526-1137 (worldwide) for a free quote and initial consultation to discuss your moving needs and how we can best support you.