October 7, 2025 
6 mins to read To manage your finances while working abroad is one of the biggest challenges when you’re a young expat. The excitement of moving to a new country often overshadows the practical side of budgeting, but how you handle your money will shape your entire experience. Whether you are planning a gap year, your first job abroad or a longer stay, understanding the cost of living and setting up smart money habits will give you freedom and security.
This guide takes you through the essentials of managing your budget, from opening a bank account to saving for weekend trips, so that your time abroad is not only fun but also financially sustainable.
Why managing finances while working abroad matters
Many young people underestimate everyday expenses. Rent, food, transport and social life quickly add up, and salaries can look very different compared with home. How to manage your finances while working abroad is therefore not only about paying bills, it is about making sure you enjoy your new life without unnecessary stress.
The good news is that you do not need to be a financial expert. With a few clear steps, you can set up a system that works in any country.
Step 1: Understand your cost of living abroad
The first step is research. Average living costs vary widely across Europe. Southern and Eastern countries such as Portugal, Greece or Bulgaria often allow you to live well on €1,000 a month, while Germany or Denmark may require more than €2,000.
Key expenses to calculate include:
- Rent and utilities
- Groceries and eating out
- Public transport or bike rental
- Internet and phone bills
- Leisure, nightlife and travel
Websites such as Numbeo or Livingcost.org provide updated comparisons for cities worldwide. Knowing these numbers before you go helps you choose the right destination and plan your savings.
Step 2: Open the right bank account
Banking abroad can be confusing. Some countries make it easy for EU citizens to open a local account, while others require more paperwork. Having a local account usually means lower fees for payments, rent and withdrawals.
At the same time, many expats also keep an online bank or fintech card for international transfers. Revolut, Wise and N26 are popular options that make managing multiple currencies simple. A mix of one local account for daily use and one international account for transfers and savings often works best.
Step 3: Track your income and spending
When you start working abroad, your first paycheck might feel like a lot. But if you do not track expenses, it can disappear quickly. A simple spreadsheet or an app like Mint or YNAB helps you see where your money goes.
Divide your income into categories:
- Fixed costs: rent, utilities, transport
- Variable costs: food, nightlife, travel
- Savings: even €50 a month makes a difference
This way, you always know how much is left for fun without risking financial trouble.
Step 4: Save for emergencies
Unexpected costs can happen: a broken phone, a last-minute flight home, or medical expenses not fully covered by insurance. Building a small emergency fund gives you peace of mind. Aim for one month of expenses as a safety net.
Even if you earn a modest salary, set aside a small percentage from the start. In affordable destinations, saving becomes easier because daily costs are lower than in Northern Europe.
Step 5: Be smart with everyday expenses
Managing finances abroad is not about saying no to fun. It is about making choices. Here are some practical tips:
- Cook at home and shop at local markets instead of eating out daily
- Use public transport or cycle instead of taxis
- Share housing with other expats to reduce rent
- Take advantage of free or low-cost activities such as outdoor festivals, beaches or hiking
These habits save money without cutting into your social life.
Step 6: Think about taxes and insurance
Even if you are only working abroad for a few months, you need to understand local tax rules. Many countries have agreements that prevent double taxation, but you are still responsible for declaring your income. Keep payslips and contracts organised.
Insurance is another factor. Public healthcare may cover the basics, but some expats prefer private insurance for faster access. Check what is included in your job contract and what you need to arrange yourself.
Step 7: Plan for travel and social life
One of the best parts of working abroad is exploring your new region. But weekend trips, festivals and nights out can take a big bite out of your budget. A good trick is to set a monthly “travel and fun” fund. That way, you enjoy the experience without guilt.
For example, in Portugal or Spain you might spend €50 – €80 on a weekend trip to another city. In Northern Europe, it could be double. Planning ahead helps you say yes to adventures without financial stress.
Everyday examples of living costs in 2025
- Coffee: €1 in Bulgaria, €2 in Portugal, €5 in Denmark
- Lunch menu: €8 in Greece, €12 in Spain, €20+ in Germany
- Metro pass: €25 in Sofia, €40 in Lisbon, €80 in Copenhagen
- Rent (shared flat): €300 in Belgrade, €500 in Porto, €800+ in Berlin
These differences explain why many young people from Denmark, Sweden or Norway move south. The same budget goes much further in Southern or Eastern Europe.
Managing finances while working abroad: your key takeaways
Managing your finances abroad is about balance. If you track your spending, plan for savings and make smart choices, you can live well, travel often and return home with money left over.
The main points to remember are:
- Research living costs before you move
- Open the right bank accounts
- Track income and expenses
- Save for emergencies
- Budget for fun and travel
Your next step abroad
Every expat experience is different, but financial planning makes all of them easier. Whether you dream of Lisbon, Athens or Sofia, knowing how to manage your money will help you focus on the adventure.
If you are ready to explore opportunities abroad, Job Squad can guide you. Get in touch with one of our recruiters, find the right role for your skills, and start your journey with confidence.
