Can You Afford to Move Abroad? You May Be Asking the Wrong Question

Can I afford to move there?

It’s usually the first question prospective expats and digital nomads ask when planning a relocation.

And on paper, it’s not that hard to answer.

You add up the visa fees, plane tickets, moving quotes, and rental deposits. You throw in a few months of temporary accommodation, health insurance, and an emergency cushion, and you get a clear, quantifiable number. You know what it takes to land.

However, getting there is only the beginning.

Those upfront numbers tell you if you can afford to get there. They don’t tell you if you can afford to live there.

That distinction might sound minor, but it’s where standard cost-of-living comparison charts fail most people.

Forget Month One. Picture Month Six.

When we dream of moving abroad, we picture the highlights: sipping wine at an outdoor café, exploring historical streets, or spending weekends by the sea.

Ibiza, Spain

Dreaming is what gets us on the plane, but before making the leap, try imagining something different: Picture an ordinary Tuesday six months after you arrive.

The novelty has worn off. The unpacked boxes are gone. You’re simply living your life. What does that day cost?

Beyond rent and utilities, what does your life look like when you factor in local taxes, phone plans, healthcare, household upkeep, and grocery runs?

What happens if you need to buy a car because public transit doesn't reach your neighborhood? What if your visa requires private health insurance, or your children attend an international school?

The Trap of "It’s Cheaper There"

The phrase "The cost of living is lower there" has tricked many movers. Because the real question should be: Compared to what—and whose—lifestyle?

A city can be significantly cheaper than London, Paris, or New York and still be unaffordable for your specific case.

• Income context matters: Rent might be half the price, but if you’re being paid in local salary, your purchasing power might be lower.

• Lifestyle context matters: A retired couple living on a pension faces a vastly different financial reality than a family with school-aged children. A remote worker earning a U.S. salary has different choices than an entrepreneur starting fresh.

• Location context matters: A quiet remote village budget looks nothing like a central apartment in Lisbon, Barcelona, or Rome.

Budget for the Life You Actually Want (Not a "Survival" Budget)

Too often, we build relocation budgets based on the absolute bare minimum just to make the numbers work on paper. But living abroad shouldn't feel like an exercise in restriction.

• If you’re moving for the lifestyle, budget for it. If you want to explore local restaurants, travel by train on weekends, or visit museums, those aren't "extra" expenses—they are the reason you moved, and should be accounted for in your budget.

• If you're moving away from family and intend to go back to visit. Include the round-trip flights back home in the budget.

• If you expect visitors, budget for the space. When my husband and I first moved, we opted for a one-bedroom apartment to keep costs down, eventually buying a sofa bed for guests. Friends of ours, on the other hand, factored family visits into their plans from day one and rented a multi-bedroom house.

  
  

The difference? We budgeted for survival, while they budgeted for living.