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I’m a strong advocate for living abroad, at least for a few years. It’s not for everyone, but the following 3 reasons convinced me to move overseas. Living abroad broadened my horizons and padded my wallet. If you like this content, please pay it forward by saving it to Pinterest!
Three reasons why I decided living abroad for 3 years was right for me!
1. Student Loan Elimination
Living abroad changed my life. I wouldn’t be in the financial position I am today if didn’t make the decision to get serious about paying off my student loans.
Like many of you, I finished school with massive debt. $80,000 in student loans to be exact.
Student loans are crippling our generation. Did you know that millennials are predicted to be less financially successful than their parents? I call it the curse of the millennial student loan syndrome.
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After exploring the interest rate details on my first few loan bills, I knew that if I ever wanted to achieve financial independence, and live the lifestyle I wanted in a city, I would need to figure out a way to pay off my loans as soon as possible. But how?
Did you know that many companies will pay more than double your salary if you work overseas? These companies seek the experiences and education that many people from the United States can bring to the table.
A year after graduation, I accepted an opportunity to work on a United Nations program to remediate the damages from the Gulf War oil spill along the coast of Saudi Arabia.
Do you have to consider living abroad in Saudi Arabia?! No way! There are so many opportunities to live and work abroad.
Living Abroad Pays
I’m an ecologist by training and never thought I’d follow my passion to the Middle East. Just like that, I went from a $40,000 annual salary to $90,000 that year, and then up to $120,000. In addition, work paid for my lodging, car, and all expenses in country (massive savings!).
While living abroad, I explored the Middle East, Europe, and Asia. I realized that there is a strong American expatriate community representing most professions. There are teachers, nurses, engineers, scientists, doctors, construction professionals, technicians, and international aide workers just about everywhere, doing what they love while reaping the benefits of an increased salary. A simple google search for international work opportunities will result in plenty of options.
Foreign Earned Income Exclusion
Here’s the kicker. Insanely beneficial tax advantages exist while living and working abroad (consult your tax professional). When a U.S. citizen works abroad, over $100K of income can be excluded from taxes. This is called the Foreign Earned Income Exclusion tax credit. According to the IRS, if you were physically present in a foreign country for at least 330 full days during any period of 12 consecutive months, you may be eligible.
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In just three years, I eliminated my student loans. A huge hurdle towards financial independence.
2. Travel and Adventure Opportunities
No joke, I negotiated with work to cover four round trip flights anywhere in the world (per year!). It is common with international gigs to get three to four trips home per year. While I did take advantage of flights home to see family, more often I would use the cost of a ticket to the U.S. to adventure throughout Europe and Asia. In my three years abroad, I explored over 30 countries.
Since I was determined to eliminate my student loans, I developed ways to travel cheaply while on the ground (many times in expensive cities). Yes, en route, flight layovers. The best way to maximize globetrotting is to purchase flights with at least a 24-hour layover before arriving to your final destination, and again prior to the return. Flights with long or multiple layovers typically cost less, so this was a win-win with work (who was paying for the flights).
London, Paris, Amsterdam, Istanbul, Frankfurt, Dubai, Singapore, Hong Kong, and Seoul (for example) are all major airline connection hubs. On a 24-hour layover, it is possible to explore them to the fullest for under $100. Sure, you might have to sleep a few hours at the airport, but when you are young, and excited to explore, it’s possible.
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The major costs while exploring on a layover can be transit costs. However, most hubs have excellent public transportation that connect the airport with downtown. If you are flying KLM through Amsterdam, for example, you can take the train to central station for around $15 round trip. It takes 15 minutes. From there you can rent a bike at the station for $12/day and explore all the city has to offer, mostly at no cost. They have canals, parks, and tons of history. The remaining $73 dollars could go quickly, but when you are determined to make it last, you’d be surprised at how creative you can be. And how much fun you can have!
3. Career Advancement Potential
When you work abroad, the skills and experiences you bring back home are extremely valuable. Employers seek the discipline and responsibility that comes with working with international stakeholders. They value the sacrifice and can-do attitude that is cultivated when working in remote locations. Employers know that you are curious, adventurous, and eager to push yourself beyond your comfort zone.
In the 3 years since returning home, I’ve negotiated for leadership positions with half the length of service that others have in the same role. I was also able to more than double my salary upon my return.
Was living worth it? Well, there are pros and cons with every decision. It was hard being away from family and, at times, it was hard living in the Middle East. But I was able to pay off those student loans, explore the world, and position myself for a successful career all within the span of a few years.
Question for YOU
Would you ever consider living abroad? Where would you like to work? Enter your responses in the comments below!