Starting a new life abroad is an exciting milestone, whether you’re taking your career overseas, embracing a remote work opportunity or simply chasing a change of pace.
But while the idea of moving countries can be thrilling, the financial side of relocation often catches people off guard.
From upfront setup costs to everyday living expenses, there’s a lot to account for, especially if it’s your first time living abroad.
In this guide, we’ll walk you through the core expenses to plan for, how far your savings might stretch in key expat hotspots, and smart ways to manage your money once you’re living internationally.
Planning your expat budget
A successful move overseas starts with a realistic budget. You’ll want to map out your finances across three stages: before departure, when you arrive and your ongoing monthly spend.
Upfront costs
Before you even set foot on the plane, there are several costs to account for.
Visa applications, travel insurance, flights and shipping are common early expenses. Depending on your destination, you may also need to pay for vaccinations, medical checks or notarised documents.
These one-time costs can add up quickly, and many of them are non-refundable, so it’s important to factor them in well ahead of time.
Setup and settling in
Once you arrive, the initial setup phase is often more expensive than people expect.
You might need to pay a rental deposit, first month’s rent, and purchase essentials like furniture, kitchenware and bedding. If you're staying in temporary accommodation (like a hotel or short-term rental) while searching for a long-term place, those costs can climb even higher.
You’ll also likely need to sort out a local SIM card, utilities, transport passes and other basics. A good rule of thumb? Set aside at least two months of living costs just for this transition period.
Regular expenses
After you’ve settled in, your monthly budget becomes your financial baseline.
This usually includes rent, groceries, utilities, health insurance, transport and a social budget for eating out or exploring.
These costs vary significantly between cities, so it pays to do some local research before you go.
How far will £10,000 take you?
A £10,000 savings pot gives you a solid starting point, but its value changes depending on your destination, and your lifestyle.
To illustrate the difference, here’s how that budget might stretch in two very different cities: Lisbon, Portugal and Cape Town, South Africa.
Lisbon: Stylish, sunny and rising in cost
Portugal’s capital has long been a favourite for British expats, offering a mix of ocean views, cultural charm and a fast-growing tech scene.
However, living costs in Lisbon have climbed. A single person might spend around £650 per month (excluding rent), while rent for a one-bedroom flat in the city centre ranges from £950 to £1,200. Total monthly costs can easily sit between £1,600 and £1,900.
Factoring in setup costs, your £10,000 could be used up in just four to five months, potentially less, depending on your spending habits.
Cape Town: Affordable lifestyle and global appeal
Cape Town stands out as a much more affordable option for first-time expats.
Thanks to lower everyday costs and a favourable GBP/ZAR exchange rate, your budget can go a lot further here.
Living expenses (not including rent) typically come in at around £500 per month, while a one-bedroom apartment in the city centre ranges from £400 to £600. That means your overall monthly spend is likely to sit between £900 and £1,100.
Add in an estimated £1,500 for initial setup costs, and a £10,000 budget could comfortably cover seven to nine months, almost twice the staying power compared to a city like Lisbon.
Practical tips for managing your finances abroad
Even with a solid plan in place, budgets can sometimes fall through. Exchange rates fluctuate, surprise costs can arise, and local prices don’t always match what you researched beforehand.
For instance, utility bills, healthcare, or everyday groceries may end up costing more than expected, or seasonal changes could affect prices. Having a dedicated emergency fund can give you peace of mind, helping you deal with unforeseen expenses without derailing your overall budget.
Once you’ve settled in, it’s essential to keep a close eye on your spending.
Budgeting tools and apps can help you track exactly where your money is going, making it easier to adjust your habits if necessary. You may also notice that your lifestyle shifts depending on local options. For example, fresh markets and local eateries might be cheaper and healthier than imported goods or tourist-focused restaurants.
Adopting simple, everyday habits can make a big difference to how long your budget lasts. Preparing meals at home instead of eating out, using public transport rather than taxis, and engaging with the local way of life not only stretches your savings but also helps you feel more connected to your new surroundings.
If your income is in one currency while your expenses are in another, managing currency transfers efficiently becomes even more crucial.
Fluctuating exchange rates can affect the real value of your earnings, so planning ahead and using a reliable international transfer service can save you money.
That’s where Currencies Direct can make a real difference.
Smarter money management with Currencies Direct
Moving abroad often means juggling finances across borders. Whether you're transferring a large sum to set up your new home, paying rent internationally, or covering ongoing expenses from a UK account, Currencies Direct is here to support you every step of the way.
We provide:
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Excellent exchange rates and no transfer fees, so you keep more of your money.
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Fast and secure international payments to over 120 countries worldwide.
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Forward contracts that let you lock in an exchange rate for up to a year, helping you protect your budget against currency fluctuations.
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A multi-currency card that makes everyday spending abroad effortless, allowing you to hold and manage multiple currencies in one convenient account.
With over 25 years of experience and dedicated support from our team of currency experts, we take the complexity out of international money transfers, so you can focus on settling in and enjoying life abroad.
Talk to us today and discover how Currencies Direct can help your money go further.
