Living in Asia is a dream for many expats worldwide, and I can confirm that living in Asia is a fantastic decision. But a question may arise of how to save for moving to Asia?
Saving money is a game. Some people can play the game better than others because strategies and secret power moves can be applied to give them an advantage. We will be talking about these advantages today as we address how to save money for moving to Asia.
Recently we have spoken several times on YouTube about how you can save money for moving to Asia. For those of you who are currently experiencing money worries, as the date is soon approaching, you may wish to look at our – Money Worries: Living In Asia – video as this covers some important areas that you may find helpful.
How To Save For Moving To Asia
Decide What Items You Need Now & What Can Be Bought In Asia
Previously we released two important documents, the first being the official checklist for moving to the Philippines. The second is something similar but based on Thailand. We spoke about essential items in the article, but certain items can be purchased locally, which are often much cheaper.
In other words, if you’re looking at how to save money for moving to Asia, it would be wise to look at where people spend their money. But, unfortunately, most individuals who are moving to Asia spend money on items they do not need. This is one of the reasons why saving for Asia it’s more challenging. For example, 100 face masks are not expensive but, in some Asian countries; face masks in this quantity sell for pennies.
Build A Safety Net First, Even If It’s Only A Few Hundred
One recommendation if you’re planning to move to Asia as a foreigner is to build some kind of emergency fund before you travel. But the good news is you do not need as much as people say you need. If you have a few hundred dollars, pounds, or euros, you are already ahead of many travelers who want to move to Asia. Nevertheless, it is often advised to have at least three to six months of living expenses.
Life in Asia can be incredibly cheap, especially if you live or retire in more affordable countries. Therefore, your emergency fund target will be much easier to hit if you plan to live in countries such as Thailand, the Philippines, Vietnam, etc.
Put Savings On The Frontline Before Moving To Asia
A common mistake when trying to save money for living in Asia is not to put savings at the front line, but what does that mean? Fundamentally, placing something along the front lines ensures that it has more power and priority in your life than in other areas. Therefore it’s more likely you will save more money and spend less if it is a priority.
There are so many things in life that do not cost us a lot of money, and therefore it’s common to spend. An example of this is a small coffee each morning from Starbucks on the way to work. If savings are your highest priority, those little expenses will likely stop, and most often, we cannot save money because those little expenses add up to create a significant cost.
Start Canceling Unnecessary Memberships This Week
If you are looking at how to save money for moving to Asia, one powerful strategy is to cancel any unnecessary memberships and subscriptions you have this week. This could be something such as a gym membership or a Netflix subscription. According to the latest statistics, Netflix has roughly 110 million globally paid memberships this year.
So, why is canceling something that is not a lot of money important? The Netflix subscription differs slightly from country to country; even if an individual pays the lowest amount (a few dollars a month), it is still extra money. In other words, on your road to saving money for moving to Asia, every penny will count.
In addition, it’s often wise to look at the value of your currency in Asia. For example, a $40 subscription each month may not seem a lot if you live in America, UK, Canada, Australia, or Europe, but $40 could feed a single adult for an entire week in Asia. This is why saving those pennies help. More often than not, each dollar pound or euro has more buying power in Asia.
Invest Your Cash If You Still Have 6+ Months Until You Fly
This strategy is best planned carefully, and as this is not financial advice, I would recommend speaking to an independent financial advisor. Nonetheless, some travelers have invested their savings into a low-risk investment before traveling if they still have several months left before they are due to fly out.
It is not recommended to invest in cryptocurrency or other high-risk investments. Still, a low-risk investment may be more suitable, but there are risks even with low-risk investments. Therefore, it’s often recommended to weigh the risks and reward with your financial advisor carefully. However, it may be the way to generate more cash from your savings while you are saving.
Focus On The Tactics Of Building Wealth Before Traveling
There are many different moving components when it comes to building a plan; this includes the initial plan, the mini-goals, the strategy, and the tactics. However, when saving money for Asia, the smaller components often had the most significant results. But before that, you will need to have created a target to aim for. So, if you’re looking at how to save for moving to Asia, how much are you looking to save?
Is it $5000?, $10,000?, or perhaps even $50,000? Now that you have a solid target, you can start building your mini-steps; this is what is referred to as your strategy. What steps do you need to reach that large financial target?
The final step is the most important, and that is the tactics. These tactics are the actions and habits that will need to be introduced within those mini-goals. So, for example, the tactics could include drinking no coffee for one week or avoiding going to an expensive restaurant for two weeks, etc. These tactics will allow you to reach that mini-goal, and the mini-goals will enable you to reach your larger target.
Apply The 30 Day Rule To Save More Cash
So what is the 30-day rule, and how can this help you save for moving to Asia? The 30-day rule is not to spend money on a product or service you want (the keyword is want and not need) for 30 days. This is because many purchases are impulse buys. I found this out when I purchased a virtual reality headset which I have used about four times in the last year!
As mentioned in the sections above, this is a useful tactic. After all, we often lose money because we spend it on items we do not need. If you’ve ever experienced a period of having no money, you will usually be surprised just how little you need to get by. These are often the bare essentials.
These strategies and tips on how to save for moving to Asia are not to say that you should avoid all pleasantness in life because that would be a very dull life indeed! But if you are to save enough money to live in Asia, there will often have to be some structure you go by, and this is especially true if time is not on your side
How Much Money Do I Need To Save To Live In Asia?
The amount of money you will need will depend on whether you will be earning income in Asia and the location you’re planning to live in.
If an individual is working in Asia (employment income) or retired (pension income), they will be earning additional income throughout the months. Therefore, they should budget at least 2 – 3 months of living expenses before moving to Asia. As an estimated cost, two to three months of living expenses is between $2200 – $3500 USD.
On the other hand, if an individual is not working or earning any money, then the amount of money they need will depend on how long they wish to live in Asia. For example, if an average individual spends $1000 a month living in Asia and wishes to move for two years, they would need a minimum of $24,000 USD.
But there are many moving parts to consider. If you live a relatively quiet lifestyle and do not have many expenses, then it is likely that your life in Asia will be similar, and therefore you may be able to live on much less than $1000. As crazy as this sounds, it is possible in some parts of Asia but spending wisely is the key.
It is often recommended to budget a few hundred over what you believe you will spend to cover unplanned expenses. However, when calculating the cost of living, many websites do not include the added extras such as visa fees.
What’s The Next Step On How To Save Money For Moving To Asia?
We talk about many countries here at Owl of Asia HQ, but did you know in America statistics show that 69% of American adults have less than $1000 in their personal savings account! So whether you are in America, UK, Canada, Australia, etc., saving money is a challenge, so how is saving money for Asia best tackled?
If you have not already done so, the best thing you can do is calculate how much you think you will need for your journey. This can be accomplished by heading over to our YouTube channel, where we speak about living costs for different countries. You can also take part in some independent research if you wish.
Once you have your estimated costs, you can then start to build your plan for saving money. When looking at how to save for moving to Asia, it’s recommended to include your strategy and tactics to help you reach your goal in the easiest way possible.
Once the initial planning stage has been completed, it’s time to start taking action. For example, if you only have a few months left before you plan to move to Asia, you may find that your saving target is higher than you want it to be. Hurdles are common when saving; thus, it is recommended to focus on the solution to the problem rather than the problem itself.
As you are working through your plan, it is also best to continue to monitor the situation. For example, you may find different habits that allow you to save money, or perhaps a change in your routine results in you saving money for traveling. Nonetheless, here are a few extra resources that you may find helpful on your road to saving money to live in Asia.
Moving To Asia: Extra Resources & References
- Cost of living statistics – https://www.statista.com/statistics/915112/asia-pacific-cost-of-living-index-in-megacities/
- Cost of living index – https://www.numbeo.com/cost-of-living/region_rankings.jsp?title=2021-mid®ion=142
- Cost of living map – https://www.expatistan.com/cost-of-living/index/asia
- Currency / buying power – https://www.globalpropertyguide.com/Asia/currency-value
- City costs – https://www.asean.mercer.com/our-thinking/cost-of-living.html
- Save money advice – https://www.budgetdirect.com.au/blog/11-tips-to-save-money-in-tough-times.html
- Tips for saving money – https://americasaves.org/resource-center/insights/54-ways-to-save-money/
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