By default, relocating abroad isn’t an easy decision. But it is worth it. However, before you make this decision, there are many factors you must consider. How will your family cope? Can you handle the financial requirements? And most importantly, where are you relocating to?
Detailed below are some of the financial factors you must consider to make sure that your migration is worth it.
1. Can you be able to pay the bills?
Before you decide to move, make sure you can afford to live alone. Create a detailed monthly budget that represents your money spending plan. First, write down how much you spend and how much you earn in a month.
When creating this spending plan, consider the additional costs you may incur upon moving out. 1 This includes utilities, transportation, food, rent, etc. If you lived at home, you might have spent most of your salary on entertainment and other unnecessary things.
If you move alone, you may have to cut corners around here. Then subtract your expenses from your income. If this number is negative, you are still unable to meet your living expenses and need to earn more or spend less to live within your means.
If the number is positive, plan how you will spend the remaining money. Have enough income to pay the rent
2. Factor Rent expenses
One of the criteria landlords often use when screening tenants is the income-to-rent ratio of 3:1. This means that it is desirable to have an income of three times his monthly rent
This is a useful rule of thumb for assessing whether you can afford to rent on your own. If the rent you’re looking at is $800 a month, you need to earn at least $2,400 a month to comfortably pay that rent without straining your family budget.
If you can’t afford to pay the rent, you may need to downsize to a smaller property or delay moving out until you have enough income to pay the rent.
3. Can find a roommate?
A roommate isn’t a requirement to move out. But hiring a roommate is a great way to save money on rent, as the high rent can be split between roommates. Your roommate may allow you to live in a larger apartment than you can afford.
4. Engage with your immediate community
When discussing transfers with candidates, one of the most common questions that come up is. First, take a step back and think about your family before accepting an offer. It’s best to speak up as soon as you hear about the possibilities.