Moving Abroad – Individual Categories and Limitations

There are a multitude of definitions and means to relocate abroad. Many also have unique circumstances that make it difficult, if not impossible, to classify them in one grouping. So consider the below generalizations of different kinds of groups and the challenges they face. You can for instance be a student and part of a family moving at the same time. Or a person can be a young professional and a manager simultaneously. One does not necessarily take away from the other. The below is, for all intentions and purposes, to get an idea of the kind of challenges each group faces.

Some individuals may have near endless resources at their disposal thanks to wealthy parents, years of diligent savings, scholarships, sponsors or highly lucrative careers. Yet most ‘mere mortals’ will experience financial constraints when they relocate to a foreign country. For the average person there is a need to plan and budget carefully, pick an affordable neighbourhood, factor in rent, transportation costs, and daily expenses and so forth. Activities also can represent a sizable chunk of a person’s monthly budget if not managed carefully. It is often a challenge making the budget work out in the first months of living in a new location. Below are ways of moving abroad and some of the constraints each group faces.

Students

A student includes anyone from high school to PhD candidates. At the high school end, students will have much of the financial decision making process out of their immediate control. They tend to live with host families or similar. At the high school level students are usually not concerned about affording rent, food expenses and so forth.

Most international students are between 19-34 years of age and they pursue degrees at a post-high school level. Students travel abroad to study at a higher education institutes such as universities, colleges or the equivalent. How international students finance their six months of four years abroad depends on a set of circumstances such as:

• The country that they choose to study and whether or not tuition and fees are free or if the institution is public or private.
• Living circumstances. If they have free accommodation or have to pay weekly/monthly rent.
• Working or not. In certain countries internationals are not allowed to work. In other countries foreign students can work part-time up to 20 hours per week. There may be no restrictions on the number of hours that they are allowed to work.
• Access to student loans or monthly allowance.

For students lucky enough to be from well-off families, financial insecurity is rarely a problem. Yet most international students experience financial constraints one way or another. 

Anyone considering becoming an international student should weigh the advantages and disadvantages of studying abroad before making a decision. Are the rewards worth the costs of completing an overseas degree? This is a valid consideration if educational institutions at home have a good reputation with free or negligible tuition fees.

If the intention is to only spend one or two years studying abroad, consider applying through university exchange programs. Most established educational institutions have exchange programs with international universities. This can be an inexpensive way to spend a few years studying whilst living abroad. Students selected for exchange programs overseas can, if they are lucky, avoid paying excessive tuition and fees at the exchange institution. It is a clever means to study, particularly for students wishing to experience college life in the United States, where institution fees for just one semester can be prohibitively expensive.

A would-be student should create a spreadsheet with expected costs of studying abroad. Include the possibility of working part-time if that is an option as well. Online research will provide rough estimations or rents and daily living expenses. If relying on student loans is a must to afford the venture, make sure to initiate the student loan application well in advance.

Working Holiday/Casual Work

Casual workers, per definition, are willing to take on less qualified roles. This category contains students, job seekers, working holiday visa holders and even permanent movers. Few who venture down this path aspire to make a career out of casual work so this tends to be a transient category.

• A student might be a casual worker at a store whilst completing a degree, working up to 20 hour weeks.
• A working holiday visa holder is likely to take on casual work because this is usually the kind or work that this program encourages. For example, picking fruit, working as a clerk in a store or bartending.
• Job seekers may take on casual employment whilst searching for more suitable long-term career opportunities.
• Even a person moving permanently to a new country can end up taking on casual work while they land on their feet.

This line of work tends to pay less because employers can relatively easily replace a casual worker. There are no barriers to prevent entry to this field as few specialized skills or previous work experience is necessary. Before moving abroad to take on casual work be sure to set out the goals and what you want to get out of the experience. If the ultimate goal is to become rich, return with significant savings or even improved career opportunities then think again. Most casual work will keep a person afloat for an average work week, but only just. Of course, ultimately this depends on the destination and the person’s country of origin.

There are however, other benefits. Taking on casual work can be an amazing way to explore and learn more about a new culture and society. Casual work also tends to be a great way of making new friends. It can be tremendous fun if the intention is to have a gap year or spend a few months gaining valuable entry-level work experience.

Because the financial prospects are bleak for casual workers, it is good to be mentally prepared for a restrictive lifestyle from a money perspective. Without family helping out the optimal living setup is likely to have housemates or to even share a room with others. It is good to sit down and work out if this can be a feasible experience of not.

Young professionals

This is a diverse group of people that tends to consist of job seekers, work secondment employees or permanent movers. Most working holiday visa holders will not qualify for this group. Young professionals are up and coming knowledge workers. The profile of a young professional expat is generally between ages 20 to 34. Young professionals often, but not always, have a university degree and/or several years of work experience in a specialized field.

From a financial perspective young professionals are all over the board. Some are extremely well-paid whereas others are struggling to make ends meet. The one thing that most young professionals have in common is that they tend to be hard workers, ambitious, and willing to put down the hours necessary to succeed.

For a young professional to move abroad it is important to consider what the purpose is of the experience. Is it a higher salary, personal development, a new lifestyle or self-discovery? Is it OK to share a home with others? What kind of financial constraints will I face there and what is the cost of living compared to home?

Nothing spoils the international experience faster than realizing that the costs of living abroad are significantly higher than anticipated. If an expat has a good lifestyle back home few things makes someone miss home more than when they feel trapped in a financial straightjacket.

For young professionals the year, or years, spent abroad working and living an expat lifestyle is often one of the highlights of their careers. The experience provides memories of a lifetime and an extended network of likeminded friends. It can also be the start of a future career as a serial expat.

Managers

As improbable as it first sounds a manager can be a job seeker. They may end up moving to a new country but need to be on location before they can receive job offers. Managers can also be working secondment employee or someone moving abroad permanently.

The average manager have reached a stage in their careers where their experience enables them to have plenty of lucrative options. In many cases manager’s status is such that they can move overseas either permanently or choose their own version of work secondment (staying for a few years in a new country before returning or moving on to the next location). The benefit of being a manager is that for many, the world is their oyster. With the right kind of background experience, education, network and previous employers, a manager can pick and choose where in the world they want to work. Visas and other restrictions are usually not an issue for them.

From a financial perspective often salaries and perks are motivators for international moves. Attractive countries located in highly desirable locations are a magnet for expat managers. Recently cities in Southeast Asia have recruited their fair share of expat managers that are drawn in to the way of life and opportunity to leave considerably better off than when they arrived.

Managers typically do not normally face many financial constraints. Most of them should earn more than young professionals or someone who is on a temporary working secondment. A couple of the constraints however, that all managers should take into consideration before moving abroad is;

• The cost of living and overall standards. A high salary in one country can be mediocre in another. For instance, working as a manager in Tokyo will be considerably more expensive than having the same managerial position in Columbus, Ohio.
• Personal safety. This should of course be a consideration for any expat moving abroad but managers are particularly vulnerable to this because they are high-income earners. Consider not just physical factors such as robberies but also political stability in the host country.

Families and partners

When spouses or whole families decide to relocate from one country to another, it is either permanently or for a few years on a work secondment. It can also be a job seeker, a student or a person on secondment. Even gap years as casual workers happen, often for partners or younger families. Because moving with families or a partner is never easy and often require a lot of extra effort, most relocations tend to be permanent or for many years.

After uprooting a family and re-arranging schools and/or helping a spouse to find a new career, families are rarely keen on going through the whole ordeal again anytime soon. The only expat category that is unusual for an international move is a working holiday visa holder. That said, there are unique individuals out there who have made a transient way of life the way to life. They are the hippies of the modern age.

Families can range between most ages, from a young couples just starting out in life people in their later years. It can also include entire families across three generations. But this is rare because many nations limit the freedom of movement or individuals after a certain age.

For families the budgetary constraints can be considerable. It is important to factor in all the expected costs and what the standard of living can be like. For instance, costs of living may not only be higher but other factors which are taken for granted at home, now need to be considered. Expenses can rack up quickly. Before making a decision on whether or not to move abroad families and couples should prepare a spreadsheet to determine the financial viability.

Social and cultural considerations should also be taken into account before deciding to go. If moving to a country where people speak a different language, how will that affect the rest of the family? Are there any restrictions that could significantly affect family morale? What steps can be taken to ensure that everyone will have the best possible starting point?

Retirees

Retiree’s often make a permanent or semi-permanent move to a new location. For those retiree’s lucky enough to have the means, they may have the opportunity spend their time between two or more locations.

This may sound strange to the younger generations but for many countries actively court retirees. As long as they are fully insured they are not a net medical cost to the host nation. Pensioners moving abroad also tend to be financially well-off, contributing positively to the local economy. Many couples decide to move abroad once they retire. And shouldn’t they? A retired couple has already done their part in the workforce and if their offspring have flown the coop by then they are free to go. For EU citizens, Spain is a popular location for retirees to relocate to from north Europe. It is a mixed bag how retirees chose to live abroad. Some sell their homes and decide to never return again whereas others still maintain a presence in their country of birth.

Retirees should take into account how well a new home abroad matches not just their emotional needs but also their physical needs. For example, how good is the healthcare and is my insurance applicable?