I got a lot of enthusiastic responses to my last newsletter on fulfilling unconventional goals.

So, I’m writing more case studies soon. (DM me if you have a story we can feature.)

Today, in 10 minutes or less, you’ll learn:

• ✈️ Travel costs, rental upfront costs, health/travel insurance costs

• 💵 Taxes, lack of retirement schemes, and international school fees

• 💻️ VPN, virtual mailbox, phone service fees, and currency fluctuation

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👻 Phantom Costs of Living Abroad

I’ve been living abroad for 5 years.

One thing I’ve learned:

You’ll see lots of people bragging about their expat, digital nomad, or remote working lifestyle on social media, but they’re not telling you the whole story.

Especially the phantom costs.

In this newsletter, I’m going to list numerous hidden costs associated with living abroad that you don’t typically hear about.

Let’s start with one of my biggest expenses:

Travel costs

While you’re abroad, the reality is your family and friends will be distributed around the world.

Anticipate more frequent travel. Flying to visit family, especially if you have aging parents. And visiting friends for weddings, birthdays, and vacations.

Here’s a couple of my recent expenses:

• Visiting family: $646.30 for a round-trip flight between Mexico City and Detroit, Michigan to visit my parents

• Attending a birthday: $721.35 for a round-trip flight between Mexico City and Austin, Texas for a friend’s birthday festivities

In my case, the costs aren’t too much higher than domestic US travel.

But if you’re moving to Asia from the US/Europe (like when I was living in Singapore), prepare to shell out more if you want to stay in touch with family and friends.

Rental upfront costs

In some countries, foreigners run into thousands of dollars of unexpected housing costs due to lack of local connections.

For example:

• Singaporean friend moving to NYC for a tech job - My friend had no credit score, US tenant history, etc. Just his offer letter. To qualify for housing, he needed to get a guarantor (3rd party services charge 40% to over 100% of first month’s rent).

• Renting an apartment in Mexico City - Many landlords require a local guarantor to co-sign the agreement. Obviously, if you’re a foreigner, you won’t have the local connections. Alternatively, you can negotiate to pay a higher deposit (e.g. 2-3 months rent) or buy a 3rd party guarantor.

On the other hand, my experience renting in Singapore was relatively straightforward (no guarantor required).

Watch out for additional expenses to qualify for housing in your new city.

Health/travel insurance costs

If you’re an expat, then getting an international health insurance with coverage in your new country (and frequented countries) is essential.

Here’s examples of what I spent:

• Nomad Health - my current insurance, which covers me in 175+ countries for $196/month or $2,352/year.

• FWD International Health Insurance - what I had in Singapore, which covered me across ASEAN for $2,703 (S$3,652) in annual premiums.

If you’re a digital nomad or frequent traveler, then get travel insurance.

For example, in 2019, I took a travel sabbatical and spent $1,617.59 on 1-year travel insurance through World Nomads. This covered potential incidents related to my adventure activities like scuba diving or motorcycle trips.

I’m very grateful to be in relatively good health. I haven’t had to expense major treatments or health emergencies.

But if you’re like me, it’s worth paying for peace of mind and sufficient preparation.

International school fees