[UK] Digital nomads and expats: surviving the cost of living crisis

For many people who have chosen to work more flexibly, soaring inflation and rising energy, fuel and food costs have taken a toll.

HR News has 8 tips to help digital nomads survive the cost of living crisis and some advice on how to keep yourself safe and healthy while doing so.

1. Consider diversifying your income streams. Employers are growing more budget-conscious too, so you may not see a pay increase in 2022. But you can earn extra income by taking freelance or consulting jobs to supplement your usual income.
2. Inflation is a major threat to the value of savings. Keeping your money in cash or in savings accounts leads to lost value because it can’t keep up with inflation. Investing could be the solution. The economic situation isn’t likely to improve any time soon as inflation is here to stay so think twice if you’re hoping that the effects of inflation will only be temporary. Before you start investing, carefully consider what level of risk you are prepared to take on. Ensure your investments are properly managed.
3. Cut out unnecessary spending. Many expats are enticed by a more luxurious lifestyle while living abroad, it could be economical to cut out spending on the more gratuitous conveniences.
4. Helping relatives abroad? If so, do your research on the best deals on money transfers.
5. Follow Martin Lewis’s advice and ‘heat the human not the home’ to cut down on energy usage.
6. Top-up your state pension. Pension credit is a tax-free, means-tested benefit aimed at retired people on low incomes and can be worth £1,000s a year.
7. Take a look at the cost of your international health insurance. You may be able to save by switching suppliers or by reducing the comprehensiveness of your plan.
8. Consider taking out global income protection. This form of insurance promises to pay out up to 80 per cent of your usual salary if you become incapacitated while living abroad and unable to work.

William Cooper - Marketing Director at William Russell - highlights the importance of international health insurance when you move abroad,

“Starting a new life overseas can be deeply rewarding, but is not without its challenges. With international health insurance, you can know you and your family will be covered no matter what life throws at you.

If you don’t have the right health insurance abroad, the cost of medical treatment abroad can be enormously expensive: for example, according to the Association of British Insurers, you could face a US$124,000 bill for treating a fractured spine in Thailand or US$74,000 for a hospital stay following a road accident in Spain. 

From dental appointments to broken bones and even bigger things such as cancer and COVID-19, there is always a risk that you and your family will experience a health crisis while living abroad – which is why it pays to be prepared. 

The main reasons to have international health insurance as an expat:

• International health insurance can cover you for the things public healthcare doesn’t.
• It can help you avoid surprise costs.
• It can cover you in multiple regions or countries.
• International health insurance ensures you get priority treatment at world-class facilities.
• It can provide you with a medical evacuation (Medevac) if you need one.
• It can help cover the cost of medications and prescriptions.”

Source: HR News

(Quotes via original reporting)

For many people who have chosen to work more flexibly, soaring inflation and rising energy, fuel and food costs have taken a toll.

HR News has 8 tips to help digital nomads survive the cost of living crisis and some advice on how to keep yourself safe and healthy while doing so.

1. Consider diversifying your income streams. Employers are growing more budget-conscious too, so you may not see a pay increase in 2022. But you can earn extra income by taking freelance or consulting jobs to supplement your usual income.
2. Inflation is a major threat to the value of savings. Keeping your money in cash or in savings accounts leads to lost value because it can’t keep up with inflation. Investing could be the solution. The economic situation isn’t likely to improve any time soon as inflation is here to stay so think twice if you’re hoping that the effects of inflation will only be temporary. Before you start investing, carefully consider what level of risk you are prepared to take on. Ensure your investments are properly managed.
3. Cut out unnecessary spending. Many expats are enticed by a more luxurious lifestyle while living abroad, it could be economical to cut out spending on the more gratuitous conveniences.
4. Helping relatives abroad? If so, do your research on the best deals on money transfers.
5. Follow Martin Lewis’s advice and ‘heat the human not the home’ to cut down on energy usage.
6. Top-up your state pension. Pension credit is a tax-free, means-tested benefit aimed at retired people on low incomes and can be worth £1,000s a year.
7. Take a look at the cost of your international health insurance. You may be able to save by switching suppliers or by reducing the comprehensiveness of your plan.
8. Consider taking out global income protection. This form of insurance promises to pay out up to 80 per cent of your usual salary if you become incapacitated while living abroad and unable to work.

William Cooper - Marketing Director at William Russell - highlights the importance of international health insurance when you move abroad,

“Starting a new life overseas can be deeply rewarding, but is not without its challenges. With international health insurance, you can know you and your family will be covered no matter what life throws at you.

If you don’t have the right health insurance abroad, the cost of medical treatment abroad can be enormously expensive: for example, according to the Association of British Insurers, you could face a US$124,000 bill for treating a fractured spine in Thailand or US$74,000 for a hospital stay following a road accident in Spain. 

From dental appointments to broken bones and even bigger things such as cancer and COVID-19, there is always a risk that you and your family will experience a health crisis while living abroad – which is why it pays to be prepared. 

The main reasons to have international health insurance as an expat:

• International health insurance can cover you for the things public healthcare doesn’t.
• It can help you avoid surprise costs.
• It can cover you in multiple regions or countries.
• International health insurance ensures you get priority treatment at world-class facilities.
• It can provide you with a medical evacuation (Medevac) if you need one.
• It can help cover the cost of medications and prescriptions.”

Source: HR News

(Quotes via original reporting)