How to Live Cheaply in a Foreign Country

One of the biggest challenges to living in a foreign country is living economically. A few simple steps can ensure that your time in a foreign country can be as thrifty as it is enriching.

Difficulty:

 

Moderate

Instructions

1. • 1
     Exchange money when beneficial. Currency and exchange rates fluctuate over time; if you know of your relocation well in advance, it may work to your advantage to track exchange rates of the currency of the country you will be traveling to for a period of time before you depart. This will help you determine whether the exchange rates will make it more beneficial to exchange your money before or after you leave the United States.
   • 2
     Vary your forms of currency. Most travel agencies warn that traveling with all of your money in one form, such as travelers checks or large amounts of cash, will make you a larger target for theft and will also increase your chances of being stranded with no resources if your funds get lost or stolen. Exchanging some of your cash, using some travelers checks and having an emergency credit card will help you budget your funds and help keep your money safe.
   • 3
     Contact your financial institution. Prior to departure, discuss with someone familiar with international travel and currency exchange about the possible fees and penalties that your bank may impose for transactions conducted overseas. While most international countries accept American credit cards, many banks will charge a fee for each transaction that you charge outside of the United States. This could lead to one or two credit card charges costing you a lot more than originally anticipated and knowing this information ahead of time will help you budget your funds.
   • 4
     Utilize public transportation. The majority of Europeans rely heavily on subway systems as their primary source of transportation due to the high cost of owning a vehicle and limited inner city space. Most international subway systems will allow you to purchase a pass for a day, week or month that will be less costly than taking taxis all over the city. Most of the transportation centers where you purchase these passes, at least in Europe and Asia, will usually also have an English-speaking employee to answer any questions you may have.
   • 5
     Eat like the locals. Many international cities have year-round farmers markets and vendor markets that offer everything from fresh fruits, vegetables and cheeses to clothing, dry goods and automotive parts at a fraction of the price one would pay for these items in a store. Shopping at these open-air markets also allows you the opportunity to haggle and bargain with locals who may initially try to elicit a higher price from you upon first realizing that you are an American but will usually be reasonable and negotiable with their prices.
   • 6
     Live locally. Many international countries feature youth and travel hostels whose accommodations are no-frills but adequate and will cost much less than living in a hotel or renting an apartment. Of course, whether this proves to be a bargain for you will depend on the length of your stay in the country. If relocating there permanently they may still offer a cheap temporary solution until permanent housing is secured.
   • 7
     Budget your money. This makes sense no matter what country you are residing in, but when living in a foreign country it can be easy to get caught up in the new sights and different experiences and spend outside your means. Set a spending limit per month or week for yourself and adhere to it, or set a daily limit if you are going to a special event or traveling to a neighboring country for the day.
   • 8
     Be vigilant. Theft and crime can occur in any country, so it is just as important to keep track of your financial transactions when living in a foreign country as it is in the United States. Secure any money you are carrying with you when traveling on the subway or in the city, and check your bank statements regularly for signs of fraud or suspicious activity.