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May 20, 2025
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Financial Planning • May 20, 2025
Budgeting for Relocation: From Moving Costs to Living Expenses
Hoxton Blog • Budgeting for Relocation: From Moving Costs to Living Expenses
Relocating to another country can be an exciting (and financially rewarding) new chapter in your life. But behind the adventure lies a reality many underestimate. Relocating is expensive, and the financial impact goes far beyond the plane ticket.
From moving logistics to setting up life in a new country, the costs can add up quickly. Poor planning can lead to early stress and unnecessary financial strain, so to get the best out of the expat experience, you need to make the right choices. With the right approach and tools, you can build a clear, flexible relocation budget that helps you stay on track before, during, and after the move.
Relocation costs tend to be underestimated, especially by those doing it for the first time. It can be hard to gauge how much things will cost based on online research, as every expat’s circumstances are going to be slightly different. It’s also not just about hiring a moving company or booking flights. Think of the full journey, every step from packing up and leaving, to arriving and settling in.
Some of the major costs to think about include:
Transporting your belongings internationally isn’t cheap. Air freight is fast but costly, sea freight is slower but more economical. Costs vary based on volume, timing, insurance, and destination. Factor in customs duties, port fees, and delays too.
Also think carefully about whether it will be cheaper to purchase new items in some cases, rather than ship your existing ones.
Depending on how your move is structured, you may need hotel stays, rental cars, or short-term rentals before you find a permanent home. Booking at the last minute or during peak travel seasons can push prices up significantly.
Visa applications, residence permits, legal consultations, and notarised documents can add up, especially for families. Some destinations also require private health insurance or proof of income and support funds.
Research ahead of time can really pay off, as the costs of getting things like visas or insurance wrong can be significant.
For many expats and their families, an international move will involve bringing along their furry family members too. Often, moving pets can be a lot more work (and more costly) than moving the human members of the family!
Bringing pets abroad will generally require vet certificates, travel crates, and quarantine costs. You might also need short-term storage, end-of-lease cleaning, or repairs to your property if renting. These extras rarely make it into the first draft of the budget but can have a major impact.
Moving to a new country will always throw up things you didn’t expect. Part of the adventure or that you don’t know exactly how everything works, and sometimes that can mean unexpected costs.
While you might not be able to plan for these things (or they wouldn’t be unexpected), you can ensure you set aside a contingency buffer to make sure you’re not scrambling when they arise.
Once you’ve landed, the financial picture changes again. You’re now working with a new cost of living, one that may be significantly higher or lower than what you’re used to. The key point is that the below costs (and all your others) will take some to normalise and for you to really understand exactly what your regular living expenses will be in your new home.
However, while the specifics will be differing, many of the categories of spending will be the same as where you’ve come from, such as:
Rent or mortgage costs vary widely, even within the same city. Depending on the country, upfront rental deposits can stretch to six months or more. Don’t forget about agency fees, utilities, and required insurances.
Commuting costs, school fees (if you have children), and private healthcare can vary enormously. In some locations, you may need a car to get around, while others offer excellent public transport at a fraction of the cost.
Day-to-day living also shifts. Food, entertainment, gym memberships, childcare, and travel options all influence how much you’ll spend in your new home. Understanding these categories before you arrive helps avoid budget shocks.
Even if you’re earning in one currency and spending in another, small exchange rate shifts can have a big impact over time. Tools that provide multi-currency budgeting are especially helpful for tracking spending and managing foreign exchange risk.
All of this makes it sound like budgeting when relocating to a new country is a huge challenge. But while it can be, it doesn’t have to be. If you follow a few simple best practices, you can take the financial stress out of the move.
Treat your relocation like a short-term financial goal. A separate fund gives you visibility and helps you avoid dipping into long-term savings or investment capital unnecessarily.
It might go without saying, but you should spend time comparing the cost of living in your destination. Tools like Numbeo or Expatistan can offer a general idea, but nothing beats speaking with locals or expats already living there.
Always include a contingency, with 10% to 20% of your total budget a good rule of thumb to follow. Unexpected costs aren’t just possible, they’re almost guaranteed.
A comprehensive relocation checklist can help you think through expenses you might otherwise miss. You can include everything from document authentication to setting up a local mobile plan and add more to the list as you research or speak to friends or colleagues on the ground.
Technology can play a vital role in modern relocation planning. The days of tracking spending with spreadsheets and receipts are behind us. Instead, wealth tech platforms offer a far more efficient and accurate approach.
Some useful features that can help make the move a smooth one include:
Tools like the Hoxton Wealth App allow you to connect multiple bank and investment accounts across currencies, giving you a clear view of your financial position at every stage of the move.
See how your finances evolve throughout the relocation process. From cash flow dips due to moving expenses to asset value changes, net worth tracking keeps everything in focus.
Set a target for your relocation fund and track your progress. Once you arrive, repurpose the goal to manage new spending habits or build an emergency fund.
Live currency conversion helps you see how much you’re really spending, regardless of which account or card you use.
Set spending alerts or payment reminders to stay in control while managing messy logistics, paperwork, and settling into a new environment.
Make the Move with Confidence
Relocating abroad is a huge life event, and one that comes with financial complexity. But with the right preparation and budgeting strategy, it doesn’t have to be overwhelming. By breaking the move into stages, understanding your likely costs, and using tech to track spending in real time, you can reduce the financial stress and enjoy the experience of building a new life.
At Hoxton Wealth, we work with expats and global professionals to make sure their relocation plans align with their long-term financial goals. Whether you’re moving for a new job, retiring abroad, or starting a new chapter with your family, we’re here to help.
Start your relocation budget today with the help of the Hoxton Wealth App, or speak to an expert adviser for personalised support.
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