budeting for living expenses abroad

Creating a Budget When You Don’t Know Your Expenses

Creating a Budget

Creating a budget can be very overwhelming – especially when you’ve just moved and you don’t know what your expenses will be. I’ve definitely been there. When I arrived in Spain in 2015, I came with $2000 as my starter budget, but without a plan in place, I blew through over half of it before receiving my first paycheck. If I could do it again, what would I do differently? This is what I recommend for incoming auxiliares de conversacion.

I would begin by creating a budget using the 50/20/30 Rule. Here’s how it breaks down:

  • 50% of your income goes to cover your NEEDS – Things like rent, food, electricity, transportation, internet, etc. These are the absolute basics you will pay for every month.
  • 20% of your income goes to SAVINGS – You may need to buy a plane ticket at the end of the year. Or, if you’re staying in Spain over the summer, you’ll need a summer fund for when other opportunities dry up.
  • 30% of your income can go to WANTS – things that you could do without in a pinch, but make life more enjoyable: eating out, drinks, travel, new clothes, etc. These things are likely the reason you are here.

Creating a Budget with the Auxiliar Income

So how would it look for an auxiliar creating a budget based on this plan?

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