How to budget for a move abroad

Phase 2: the landing period (weeks 1 to 6)

This is where most budgets break. You may be paying for:

• Temporary accommodation such as serviced apartments or short-term rentals, which cost much more per night than a normal lease
• Rental deposits: one to three months of rent, sometimes plus the first month and agency fees. In Japan, key money and guarantor fees can add up to four or five months of rent upfront.
• Furniture and basics: bed, kitchen items, bedding, a winter coat. Budget 1,000 to 3,000 US dollars, even second hand.
• Setting up: SIM card, transport pass, internet installation, bank card fees
• Eating out more than usual while you have no kitchen

Phase 3: the first three months

Your first salary may not arrive for four to eight weeks, and some countries pay monthly in arrears. You need to cover at least two to three months of living costs from savings. Include:

• Rent and utilities
• Groceries and transport
• Health insurance if not included
• Phone and internet
• Language classes
• A small social budget, which is essential for mental health

A simple formula

Add up:

1. 01All visa and document costs
2. 02Flights and shipping
3. 03Four weeks of temporary accommodation
4. 04Deposit and first month of rent for a long term place
5. 05Three months of normal living costs
6. 06A buffer of 15 to 20 percent of the total

Worked numbers: a single person moving to Amsterdam

When I moved from Toronto to Amsterdam, my rough budget was:

• Flights and extra baggage: 900 euros
• Short-stay apartment for five weeks: 3,200 euros
• Deposit (two months) and first month on a 1,650 euro studio: 4,950 euros
• Furniture, bike and basics: 1,400 euros
• Three months of living costs excluding rent: 3,000 euros
• Buffer: 1,500 euros

That comes to about 15,000 euros, not counting my visa which my employer paid. It felt like a lot, but I used almost all of it.

Ways to reduce costs

• Negotiate a start date that gives you a salary quickly, or ask for an advance
• Book a room in a shared flat for the first months instead of a serviced apartment
• Bring essentials that are expensive at your destination, but sell bulky items at home
• Use a multi-currency account to avoid poor exchange rates and card fees
• Check what your employer's benefits cover: public transport, phone, gym

Track it from day one

Use a spreadsheet or budgeting app from the day you book your flight. You will be surprised by where the money goes, and your notes will help friends who follow you.

This guide is general information for planning. Rules and prices change, so always confirm with the official source before you apply or sign anything.