Whatever the search criteria for a job in Europe might be, one is constant. The size of salary, which is important for any candidate. However, an amount that might seem impressive in your home country is not always enough to ensure a decent quality of life in Europe.
To understand a proper approach to budget management, we’ve consulted the team at Profee, a provider of money transfer services from Europe that helps thousands of expats from various countries send money abroad. By the way, the Profee blog also offers some advice on how to find a high-paying job.
How to estimate the size of your expected salary in Europe
What if a vacancy looks promising but provides no information about the salary? The best option would be to consult an expert, but you can also try and investigate yourself. If you know the city of your future employment, use a salary calculator. Type in a position and a city in a European country to see what level of income you can expect.
How to plan for monthly expenses
A high salary, however, does not necessarily mean more money. Settling down in Europe would require some mandatory expenses, and those can be even higher than in your native country. Here are some points to keep in mind when calculating your cost of life in Europe:
· Housing
· Taxes
· Utilities and communication
· Insurance
· Transport
· Groceries and living expenses.
The last point varies the most, perhaps. Some people spend very little on food while others need a well-balanced diet which is not cheap.
But the rest of your expenses are more or less standard. If your housing is not paid for by your employer, then you should evaluate the rental conditions. Say, renting a place cheaply is not that cost-effective if you have to pay your utility bills separately. Exploring the rental statistics for major European cities or a specific country might help you estimate the cost of renting a place there. You can also see how the rental prices across Europe have changed in the past year and try to predict if there is a rent hike coming to your preferred location soon.
Another common fact that is often ignored is this. If you are in the early stages of your career and can’t expect a high salary, then have a closer look at the vacancies in smaller towns. Say, in France, also living in Grenoble or Nimes is much cheaper than in Paris, which could make up for the difference in salaries.
How to manage your budget in Europe
Suppose you have received a job offer and are starting to plan your budget. Make a list of all the must-haves. In addition to the points listed above, you might need money for medicines, studies, support for your loved ones, or even day trips in Europe. Try to pay your rent 2-3 days after the pay day; if it’s still some time until the rent is due, then withdraw the amount in cash as soon as you have the money. If you regularly send money back home. For example, to pay your loan instalments or support your family, this should also be done shortly after the pay day. Finally, it is a good time to stock up on groceries for the month at a major supermarket.
How to save for travel and major purchases
After you have organised your mandatory payments, you can put the remaining amount aside in the currency of your choice. It’s also important to understand that if you earn in euros and live in Germany, France, Italy, or any other EU country, then your expenses are most probably also in euros.
When it comes to savings, however, it sometimes makes more sense to save in the currency of your home country, such as Kazakhstani tenge, Georgian lari, or Moldovan leu. This is preferable if:
· 1. If you plan to move back home once your employment contract expires
· 2. You’re thinking of buying a property in your native country
· 3. You can get higher interest on a deposit in your local currency.
If you’re planning to go on holiday and would like to save up some money for the trip. Then you should think of the best currency for your savings fund. For trips around Europe, you can put aside euros in a dedicated account, but if it’s a trip home. Then you should convert the money into a respective currency and stash it on a local card. This may come in handy for routine payments as well as for buying the flight tickets. In other words, if there are some major expenses on the horizon, then the earlier you start putting aside money in an appropriate currency, the better.
And how to save money on international transfers from Europe
Profee is a licensed European provider of money transfer services in over 60 countries. And Profee’s clients benefit from favourable conditions on transfers, including multicurrency transactions. The conversion rate is always close to the mid-market rate because Profee is constantly monitoring the respective currency market segments. Moreover, the service charges no fees on transfers to popular destinations: until the end of August, transfers from Europe to Moldova, Azerbaijan, Kazakhstan, Georgia (in lari), and Armenia are fee-free. The same conditions apply to the transfers from Poland and the Czech Republic to Ukraine.
Each European resident needs a different amount of money to cover their needs. We hope, however, that, having read this article, you will be able to successfully allocate your budget. And also save some money, at least on transfers from Europe!
