Why Living Abroad is the Best Thing You Can Do Financially?

Many of us desire to live abroad for the adventure of it all.  We want to experience a new culture, learn a new language, and meet new and interesting people.  But do you know that there are numerous financial benefits of living abroad?

Not only are the job markets easier to get into (especially as a Westerner who speaks English) but also the cost of living tends to be much much lower. 

Because of this, many expats report being able to save more money living abroad then they ever did back home.  And many of them earn more too.

Even in countries with the reputation of being expensive, there are opportunities for you to save BIG.  Take it from me.  I live in Japan and my monthly living expenses are little under $1,300 a month.

And it would be much less if my city taxes and health insurance weren't so high.

But saving money isn't the only financial benefit of living abroad.  There are so much more.  

Financial Benefits of Living Abroad:

We'll explore these topics more below.  And you'll learn how living abroad truly can be the best thing you do financially.

The Financial Benefits of Living Abroad

Earn More Money

One of the best financial benefits of living abroad is that you can actually earn more money by doing so.  This is especially true if you are coming with a specialized skill set.

Foreign based companies will pay the big bucks for people who match their criteria and are willing to move abroad.  And the best part is many times not only do you get an increase in salary but also more perks.

You may get free housing, increased vacation time, or a much more flexible work schedule.

I don't know about you but that sounds absolutely divine!  Where do I sign up?

Save More Money

Not only does living abroad allow you to earn more money but with the lower cost of living, you can also save more too.

Unless your heart is set on moving to an expensive European country, chances are the place you move to will have a much lower cost of living than your home country.

This means that your expenses will decrease dramatically.  And subsequently, you will be able to save a lot more money then you had been before.  With the extra cash, you can boost your emergency fund and start investing for your future.

Having more money means you have more opportunities available to you.  Plus, you'll have the comfort of knowing that should anything happen, you'll be covered financially.

Pay Off Debt Faster

Speaking of extra cash lying around, I know just where it could be of use.  In paying off that debt!  It's time to once and for all kiss those student loans and that credit card debt goodbye!

Living abroad gives you the opportunity to save a lot of money and then put that money to good use.  

~ Story Time ~

When I first came to Japan, I was too busy enjoying life, the comfort of having a good paying job, and the novelty of being in a foreign country, that it didn't even occur to me that I should pay off my student loans.

One day I finally looked at my bank account and my debt and thought, wait, I could pay off my debt with all this money!  So that's what I did.  

And within the span of about 6 months from the time I first came to Japan, I had officially paid off my student loans!  For the first time in my life I was completely debt free.  At the age of 23!  Can you imagine?!

Debt free, living in a very cheap locale, and making pretty good money.  At 23.  Naturally, I did what any young adult would.  I promptly became addicted to online boutique shopping and racked that credit card debt right back up! 

And that. Is exactly what you don't want to do.

Instead, make a plan now to pay off your debt once and for all, and be done with it.  There are a number of ways to go about this.  You could go hardcore Dave Ramsey style and cut up all your credit cards.  

Or just make the commitment to pay off your credit card every month.  I, personally, chose this route.  Debt isn't the devil especially if you know how (and have the will power) to use it to your advantage.

But all things considered, one thing is for sure.  Debt-free living is the only way to go.

Reach Your Financial Goals Faster

Another added bonus for living abroad and boosting your savings rate is that now you can attain your financial goals that much sooner.  Instead of it taking 10 years to save for a down payment on a house, you could potentially do it in 5.

Quietly, you could probably buy the whole house in cash if you are working 5 years in a good paying job and a high savings rate.  Just saying.

In addition to that, during your time abroad you can build quite a substantial nest egg for your future.  And there's so much more.

Here are some financial goals that living abroad can help you with:

• Paying off debt, back taxes etc.
• Saving up to buy a house
• Preparing for retirement
• Building a solid investment portfolio
• Attaining financial independence
• Being able to retire early
• Building wealth
• Saving up for your children's education

Increase Your Earning Potential

By moving abroad, learning a new language, living in a new culture, and gaining intercultural relation skills, you will definitely give your resume a boost. 

For most companies, having international experience is a definite plus.  It shows that you can handle working in a completely new environment and with different kinds of people.  Further, it shows your self motivation and ability to get out of your comfort zone.

By working abroad, you will have a unique selling point that many others do not.  And in this highly competitive job-hunting environment, you're going to need any and every advantage you can get.

Financially, this move could spell big bucks for you in the future as you will be a hot commodity and more able to negotiate or pick and choose your price point.

So investing a year or two of your time living abroad, may actually prove more than worth it both financially and personally.

Decrease Your Medical Bills

It's no surprise that by living abroad you can have access to more affordable healthcare.  But there's an added benefit to expat life.  Better quality of life.

Stress is a major cause of most sicknesses and illnesses in first world countries.  But one thing I've noticed since moving abroad is that I am much less stressed.

Many countries don't adhere to the fast-paced life style of the western world and because of that there is much less stress going around. 

Not too mention that the number one stressor - Money - isn't an issue. With all the extra savings and increased financial well being there is no wonder people are less stressed and in less need of going to the hospital.

Thus, living abroad is not only good for you financially but it's also good for your health.

Late Savers Get a Boost

For those of us who may be late to the party and havent started saving for our retirement or haven't been saving as we should, living abroad can provide the boost you need to retire on time and with peace of mind.

I know I am pretty late to the game having literally nothing saved for retirement and already well into my 30s.  So living abroad helps me boost my savings rate and adequately prepare for my future.

I often joke with friends that Japan has trapped me. 

But, really, I'm not trapped I just have a plan for my financial future that involves stashing all the cash I can now so that I can retire early.  And with my expenses in Japan being less than $15k a year, I'm trying to keep this gravy train going.

So, if you feel like you are behind on your savings and investing, all hope is NOT lost.  You can still save enough in time for retirement.  

And were I, you, I'd consider moving abroad.  It just might be the trick that could help you stave off future financial disaster.

All in All

I believe living abroad has been the best thing I have ever done.  The financial benefits of living abroad are just astounding really if you think about it. 

In just 6 months I was able to pay off my school loans, my expenses are less than $15k a year, and I am able to turbo charge my savings for retirement.

With so many financial benefits of living abroad, I really wish everyone would just take the leap, move abroad, and experience it for themselves. Financial freedom can be yours!  And a lot sooner than you think.