8 expert tips for expats & digital nomads to budget for the cost of living crisis
Expats around the world are experiencing the worst cost of living crisis in a generation, with spiking prices of consumer goods and the energy cap adding hundreds of pounds to expats’ household spending. With the rising cost of inflation leaving thousands of expats worse off this year, what can one do to deal with the upcoming crisis?
The expat insurance experts at William Russell have offered their top tips for expats on how best to manage their budget during the current cost of living crisis.
Top 8 tips for expats and digital nomads to survive the 2022 cost of living crisis:
Think about diversifying your income streams. Employers are tightening their purse strings too, so you may not see a pay increase in 2022. But you can earn extra income by taking freelance or consulting jobs to supplement your usual income.
Inflation is a major threat to the value of savings. Keeping your money in cash or in savings accounts leads to lost value, as it can’t keep up with inflation. Investing could be the solution. The economic situation isn’t likely to improve any time soon as inflation is here to stay – so if you’re hoping that the effects of inflation will only be temporary, you should think again. Before you start investing, carefully consider what level of risk you are prepared to take on. Ensure your investments are properly managed.
Cut out unnecessary spending. Many expatriates are enticed by a more luxurious lifestyle while living abroad, it could prove economical to cut out spending on certain gratuitous conveniences.
Are you helping relatives abroad? If so, do your research on the best deals on money transfers.
As Martin Lewis puts it, ‘heat the human not the home’ and try to cut down on energy usage.
Top-up your state pension. Pension credit is a tax-free, means-tested benefit aimed at retired people on low incomes and can be worth £1,000s a year.
Think about the cost of your international health insurance. You may be able to save by switching suppliers or by reducing the comprehensiveness of your plan.
Consider taking out global income protection. This form of insurance promises to pay out up to 80% of your usual salary if you become incapacitated while living abroad and unable to work.
William Cooper, Marketing Director at William Russell has emphasised the importance of international health insurance when you move abroad:
“Starting a new life overseas can be deeply rewarding, but is not without its challenges. With international health insurance, you can know you and your family will be covered no matter what life throws at you.
If you don’t have the right health insurance abroad, the cost of medical treatment abroad can be enormously expensive: for example, according to the Association of British Insurers, you could face a US$124,000 bill for treating a fractured spine in Thailand or US$74,000 for a hospital stay following a road accident in Spain.
From dental appointments to broken bones and even bigger things such as cancer and COVID-19, there is always a risk that you and your family will experience a health crisis while living abroad – which is why it pays to be prepared.
Here are the main reasons to have international health insurance as an expat:
International health insurance can cover you for the things public healthcare doesn’t.
It can help you avoid surprise costs.
It can cover you in multiple regions or countries.
International health insurance ensures you get priority treatment at world-class facilities.
It can provide you with a medical evacuation (Medevac), if you need one.
It can help cover the cost of medications and prescriptions.”
