How to Support Yourself Financially When You Move Abroad Through Remote Work
Moving abroad can be an exhilarating adventure, offering new experiences and perspectives. However, financial stability is a crucial aspect to consider. One of the most viable options for maintaining financial independence while living abroad is through remote work. Here’s a comprehensive guide on how to support yourself financially when you move abroad through remote work.
Evaluate Your Skills and Marketability
Before making the move, assess your skills and determine how marketable they are in the remote job market. Skills in high demand include digital marketing, software development, graphic design, writing and editing, customer service, and virtual assistance. Websites like Upwork, Freelancer, and Remote.co can help you gauge the demand for your skills and understand the rates you can charge.
Pro Tip:
Enhance your skills by taking online courses from platforms like Coursera, Udemy, or LinkedIn Learning. Certifications can boost your credibility and marketability in the remote job market.
Secure a Stable Remote Job or Freelance Clients
To ensure financial stability, it's ideal to secure a remote job or establish a stable base of freelance clients before you move. Job boards such as We Work Remotely, Remote OK, and FlexJobs specialize in remote job listings across various fields. For freelancing, platforms like Fiverr, Toptal, Upwork, and Guru can connect you with potential clients.
Case Study:
A marketing professional, decided to move to Portugal. She secured a remote position with a U.S.-based company through FlexJobs and supplemented her income by freelancing on Upwork. This dual approach provided her with a stable income and financial security. Her disposal income enabled her to invest in real estate to establish touristic rentals over time.
Understand the Cost of Living
Research the cost of living in your destination country. This includes housing, utilities, transportation, food, healthcare, and other miscellaneous expenses. Websites like Numbeo and Expatistan offer detailed cost of living comparisons for different cities around the world.
Financial Planning:
Create a budget based on your research and ensure that your remote income will cover all necessary expenses. Include a buffer for unexpected costs and emergencies.
Set Up Your Financial Infrastructure
Managing finances from abroad requires setting up a robust financial infrastructure. This includes having the right bank accounts, credit cards, and payment methods.
Banking:
Opt for an international bank account that allows easy access to funds without exorbitant fees. Banks like HSBC and Citibank offer global accounts tailored for expatriates. Alternatively, consider online banks like N26 or Revolut that offer low fees and excellent currency exchange rates.
Payment Platforms:
Ensure you have accounts with payment platforms like Revolut. PayPal, TransferWise (now Wise), or Payoneer, which facilitate easy transfer of funds across borders with minimal fees.
Adapt to the Local Tax Laws
Understanding the tax implications of living abroad is crucial. Some countries have tax treaties to avoid double taxation, while others may require you to pay taxes locally. Consulting with a tax advisor who specializes in expatriate tax laws can help you navigate these complexities.
Resource:
The Internal Revenue Service (IRS) provides information for U.S. citizens living abroad. Additionally, the Federation of American Women's Clubs Overseas (FAWCO) offers resources and advice on taxation for expatriates.
Develop a Routine and Maintain Productivity
Remote work requires a high degree of self-discipline. Establishing a daily routine and creating a dedicated workspace can help maintain productivity. Tools like Trello, Asana, and Slack can aid in project management and communication with clients or employers.
Productivity Tips:
Set clear work hours and stick to them.
Take regular breaks to avoid burnout.
Use productivity techniques like the Pomodoro Technique to enhance focus.
Leverage Local Opportunities
While your primary income might come from remote work, don’t overlook local opportunities. Networking with local expatriates and attending business meetups can open doors to additional income streams, such as teaching English, consulting, or part-time local jobs.
Networking:
Join local expatriate groups on Facebook or LinkedIn. Websites like Meetup or Expat Exchange can help you find networking events in your new city.
Save and Invest Wisely
Saving and investing are crucial for long-term financial stability. Set aside a portion of your income for savings and consider investment opportunities that suit your risk profile.
Investment Platforms:
Explore global investment platforms like Interactive Brokers or eToro, which allow you to invest in international markets. Ensure you understand the risks and regulations associated with investing as an expatriate.
Key Takeaways
Supporting yourself financially when moving abroad through remote work is entirely feasible with proper planning and preparation. By evaluating your skills, securing stable remote employment, understanding the cost of living, setting up a solid financial infrastructure, adhering to local tax laws, maintaining productivity, leveraging local opportunities, and saving wisely, you can enjoy the adventure of living abroad without financial stress.
Taking these steps will not only ensure your financial stability but also enhance your overall expatriate experience, allowing you to fully embrace and enjoy your new life abroad.
Jacquelyn García Vadnais, our co-founder, has primarily lived abroad since she was 19 years old. Throughout her years of travel, she has found ways to earn income while seeing the world as an expatriate. As the remote and freelancing world developed, she built her own business regularly serving clients on 6 continents.
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