5 Financial Steps for Moving Abroad & OUT of The USA in 2025
Moving abroad can be one of the most exciting life changes, but financial preparation is key.
With the right planning, you can make your transition smooth and avoid any costly surprises. Here are practical steps to take as you get your finances ready for a new life abroad.
Table of Contents
1. Calculate Your Cost of Living Abroad
Research the cost of living in your chosen country to understand what daily expenses will look like. Look into housing, food, healthcare, and transportation costs to create a realistic budget.
Sites like Numbeo offer comparisons of costs by city, helping you identify what lifestyle adjustments you might need. Having a clear idea of your monthly expenses can prevent overspending and ease your financial transition. Don’t forget to factor in any exchange rate fluctuations, which can impact your budget.
2. Build an Emergency Fund
An emergency fund is essential, as unexpected expenses may pop up when settling into a new country. Aim to set aside at least 3-6 months’ worth of living expenses to cover emergencies like medical costs, sudden travel needs, or visa changes.
Having this cushion will give you peace of mind and a buffer as you adapt to life in a different place. Start setting aside a portion of your income each month to reach your goal before your move.
3. Consider International Banking Options
Opening an international or multi-currency bank account can simplify managing your finances abroad. Look for banks that offer low foreign transaction fees, good exchange rates, and easy access to your funds overseas.
Many expats use digital banks like Revolut or Wise, which provide flexible accounts for multiple currencies. If your U.S. bank doesn’t support international transactions, consider switching to one that does to avoid extra fees, like Charles Schwab.
4. Plan for Health Insurance
Medical costs can vary widely by country, so having health insurance that covers you abroad is crucial. Some countries require proof of health insurance for residency, so research local options and international providers like Cigna or SafetyWing.
Compare policies to find one that covers emergencies, routine care, and, if needed, repatriation to the U.S. Health insurance will protect you from unexpected expenses and ensure you have access to quality care wherever you are.
5. Budget for the Move Itself
Relocating abroad involves upfront expenses like flights, visa fees, shipping costs, and initial accommodation. Estimate these costs and include them in your budget, so you’re financially prepared from day one.
Packing light can reduce shipping expenses, and some countries even have relocation consultants who can help manage these logistics. By budgeting for moving costs, you’ll avoid stress and start your new chapter on the right foot.
6. Sort Out Your Taxes
Moving abroad doesn’t mean you can forget about U.S. taxes. Americans are required to file taxes regardless of where they live, so learn about requirements like the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit.
Consult a tax professional familiar with expat taxes to avoid penalties and understand any benefits available to you. Staying compliant with U.S. taxes while living abroad can save you from complications down the road.
WAIT! There’s More…
Check out my other resources:
- How To Work Abroad & Travel The World
- How to Make Money While Traveling—73 Travel Jobs
- Longest Tourist Visas for U.S Citizens, How to Extend, & More
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