Smart Expat: 5 Costly Mistakes to Dodge When Living Abroad

Living Abroad: 5 Financial Mistakes to Avoid

When I embarked on a semester-long internship in Amsterdam, I knew it would be an experience of a lifetime. But, as I reflect on my time abroad, I realize that I made some costly mistakes that could have been avoided.

Tourist Traps

As a resident of Amsterdam, I often found myself acting like a tourist, exploring art museums, sampling exotic cheeses, and taking advantage of the city’s attractions. While these experiences were undoubtedly fun, they didn’t necessarily contribute to my personal growth. In hindsight, I could have saved money by avoiding these touristy activities and focusing on more budget-friendly pursuits.

The False Promise of Cheap Flights

One of the biggest misconceptions about living abroad is that it’s inexpensive to travel within the continent. While flights may be cheaper than in North America, they’re still a significant expense. I fell prey to this myth, visiting Portugal during my vacation days and rationalizing that it was a once-in-a-lifetime opportunity. However, I could have saved money by being more mindful of my travel expenses.

Convenience Comes at a Cost

As an intern, I was fortunate to have some meals provided by my company. However, I still spent money on fresh produce and precut veggies mixes, convincing myself that I was investing in my health. In reality, I was being lazy and wasting money. By taking the time to prepare my own meals and planning ahead, I could have saved a significant amount of cash.

The Coffee Shop Trap

Amsterdam’s charming cafés were a siren call to me, and I often found myself frequenting these establishments, buying expensive coffee and supporting local businesses. While it was a lovely experience, I could have saved money by making my own coffee at home. In five months, I didn’t once purchase coffee beans to brew my own coffee – a costly oversight.

Currency Conversion Conundrum

My biggest mistake abroad was forgetting to account for currency conversions. As someone without a euro income, I should have been more mindful of the exchange rates between Canadian dollars and euros. By neglecting to do so, I ended up spending more than I realized, thanks to the conversion fees and exchange rates. If I could turn back time, this is the one mistake I would correct.

In retrospect, my financial failures abroad can be summed up in one word: rationalization. I often convinced myself that I needed something, even when I couldn’t afford it. By being more mindful of my expenses and avoiding these common mistakes, I could have made my time abroad more financially sustainable.

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