Things to Think About Before Becoming an Expat
Alright, so you've caught the travel bug and you're contemplating relocation. But are you really cut out for it?
Do you have that dog in you? Every day, “expats” pack up and move back to their home country.
Some of them simply don't fit in, some of them run out of money, sometimes you just can't navigate the system to figure things out. So here is an in-depth guide to what you should think about beforehand.
Cultural Fit:
Imagine touching down in a new city, thinking you're gonna conquer it. The skyscrapers loom tall, the language unfamiliar, and the customs too different. Every day, ambitious prospecting “expats” show up in cities like Mexico City, Medellin, Seoul, Bangkok, etc. But some of them have really never stepped out of their backyard. Their mindset has been solidified to only understand and work in American/Canadian/English, etc. culture.
In Asia, there is a much deeper respect for hierarchy and collectivism that simply frustrates the average Westerner who is used to just making things happen and being extremely direct. In a lot of cases, the ability for guys to simply recalibrate their thought processes doesn't happen. You will essentially fail or be ostracized as a weirdo in another culture even if you fit fine in yours.
In Latin America - I went through a period where I was frustrated inversely by how informal everything is. Most of my life has been living in a relatively formal environment where I can expect people to show up and get things done. Here, even after a life of travel, I still get frustrated by how slowly and inefficiently things can move. But I adapt; I run my business life completely differently than how I run things in Latin America. I adapt to working with an American mindset and enjoying the downtime with a Latin mindset.
The takeaway is understanding the cultural fabric of your destination is not merely a luxury; it's a necessity. Take the time to immerse yourself in local customs, grasp language nuances, and familiarize yourself with social norms. Whether it's mastering basic greetings or discerning the significance of specific gestures, cultural awareness will be your guiding star in navigating the uncharted waters of a foreign land.
Logistics and Infrastructure:
Shift your focus to the practicalities. In most countries, it's relatively straightforward to find a place to live. There are easy websites, formal processes. But much of the rest of the world does not have these formal processes and efficiencies. If this is all you know, you will pay for your lack of knowledge.
One of the biggest ones is Airbnb. Everyone complains that it's overpriced and no longer worth it. Expats come and solely live out of Airbnbs, paying sometimes twice the normal rate. Why? Because not only does Airbnb charge you taxes and fees, but the host also pays those taxes. They, in turn, raise the prices to counter their own taxes, and you might end up paying a third or more. Many expats never figure out how locals manage and eventually go back home to somewhere they think is more simple and streamlined.
Think? Are you prepared to walk around neighborhoods and call numbers on signs? Are you prepared to work with a realtor that's got the IQ of a box of rocks that doesn't even have a license (many countries don't require real estate licenses)? If these inefficiencies bother you, you're not gonna make it. Because it gets worse. The Western world is used to amenities. When you first think amenities, you think washing machines/dryers, pools. But if you're arbitraging, you're likely sacrificing in some way or another. I'm talking electricity, water, etc. If you pick Argentina - you might get hit with rolling blackouts and currency swings. That's what you accept for cheap steak.
Mexico, for example, has been in a drought for the longest time. Fountains and ponds run dry. Some sections of the city are being told to ration water. That's what you give up for some of the best varieties of food and weather in the world. If you choose to move to a foreign country on a lower budget and live outside of the main cities, you might be dealing with having no central water and lack of internet.
Almost any country where there's a large gap to arbitrage your income will also have a weak and inefficient bureaucracy and possibly a corrupt government that provides little support for the people.
Over the years, I have seen swaths of foreigners leave the city because they simply couldn't figure out how to manage. In some ways, I can understand, but at the same time, I find these issues a small price to pay versus the ridiculous prices you would pay even on an upper-class American income compared to the quality you get.
Work Opportunities and Market Trends:
Covid gave many people an easy justification to go abroad for a while and work. But those market opportunities decreased as the pandemic let up. Many people got called back to the office, some people got let go. So people that came with savings assuming they would figure something out also failed.
One of the hardest parts about living abroad is staying abroad past the 6-month mark. Every time I meet foreigners, they have either been here for less than 5 months or closer to 3. You either survive, make money, figure out how to get residency, or make visa runs, or you pack up and go home cause the money dried up. What type of person are you?
Legal and Immigration Matters:
On that note…the often underestimated hurdle that reveals itself when least expected. You’re enjoying your new country and that 6-month hits, and you have to leave. Don't assume your passport is a magic key, and don't assume that you can make visa runs forever. As of March 2023, I haven't heard as many cases of this happening, but many countries have systems to track how many times you come in and out. Mexico, for a period, started giving people tourist permits for as low as 7 days. They knew that people were doing visa runs and skating the system, and they made an attempt to force people into getting residency.
Most residencies are good for 4 years and easy to get. I'll happily help you if you want to book a call to get residency in a Latin American country. I’ve come across many cases of expats going past the stage of just having a lease but also buying houses without having residency and then not being able to come to the country where their house is.
The processes to get residency are not difficult, but they can be tedious. Having income statements, background checks, fingerprints, and documents like birth and marriage certificates. In the past, I told people, you can do this all yourself, but I realize that not everyone has the know-how to navigate another country's legal system. Many simply go back home and say they enjoyed their vacation. At the end of the day, it comes down to - do you have what it takes to operate in uncertainty? Is your brain malleable enough to make the changes to give you the best life possible?
If you are ready take that next step?
