Raise your hand if you have debt. Yup, me too. According to Market Watch, Americans have $12.73 trillion worth of household debt as of March 2017, topping the 2008 peak of $12.68 trillion! About $1 trillion of that is in credit cards alone. How much of that is YOUR share?

the shame of debt — You, me, and about 80% of Americans.

We all know that debt holds us back, but what can we actually do about it? The first thing you should do is acknowledge it. Add it up and get a total. I like to use Unbury Me to visualize how different steps will affect my payoff date. Then, when I need to make a payment, I use TransferWise to send money back to my US account.

Debt Management Abroad

Moving abroad with no debt is ideal, but for many of us it isn’t realistic. If you can pay off all of your debts before moving, you will have less required monthly expenses. However, you should not use up all of your savings in order to achieve this, as you will need a starter budget to help yourself get set up in your new location.

When moving abroad, you can’t just focus on your total debt. You need to break it down into individual loans and monthly payments. Many personal finance experts, such as Dave Ramsey and Suzy Orman will recommend that you eliminate debt by lowest debt first (Dave) or highest interest debt first (Suzy). I respect both of their opinions.

However, for people moving abroad, the most important thing is minimizing monthly expenses. When I moved to Spain, I had $262.27 in minimum monthly payments. That’s a lot when your steady income is 700 euros a month. Now I’m down to about $42 a month in required debt repayment. How did I do that? Let’s take a look:

BUDGETING FOR MOVING ABROAD

Are you thinking about moving abroad to teach English? Or, if you’re already teaching English abroad, are you looking for a new destination?

Budgeting is the most crucial step for being able to teach English abroad. When should you start your budget? Immediately. If you are still living at home, you will need to begin thinking about things like the cost of moving (including visas, transportation, and possible packing essentials), and a starter fund to get you through your expenses abroad before you get paid (rent, security deposit, groceries). It will likely be one month or more before you see your first paycheck.

PROGRAM BENEFITS

Some programs will offer to pay for your flight (Asia, the Middle East). Typically, this is offered as a flight reimbursement, so you will have to pay the money upfront.

Other programs, like mine, the North American Language and Culture Assistants in Spain, also known as Auxiliares de Conversacion, definitely do not offer such benefits, but there are still lots of ways to find a cheap flight. The point is, you need to be prepared to budget for it.

So, what do I recommend? Where you’re going and what incentives your program offer will greatly affect this amount. Spain will be more expensive than China. Saudi Arabia will offer lots of benefits that you won’t see elsewhere.

Teach Travel Budget

moving abroad

Debt Management For Moving Abroad

Debt Management Abroad

Moving Abroad Starter Budget

BUDGETING FOR MOVING ABROAD

PROGRAM BENEFITS