How to Save for Your Big Move to New Zealand – Part Two (The Two Towers to Saving)
Alright, brilliant kiwi savers, if you haven’t read Part One of this article, make sure you do so before you continue reading this second part here.
Here’s a quick review of what we covered in Part One:
· Recognize your debts and prepare to tackle them
· Discover your magic number
· Find places to decrease spending – get creative
· Grow your magic number to eliminate debt & increase savings
Now that you recognize your ability to save within realistic parameters of what you earn and how you spend, we’re going to move ahead in the savings crusade to get you to New Zealand with as much money as possible.
EXERCISE 3: A Few Tough Decisions To Make
(Climbing Mount Doom)
This part of planning-to-save is where it starts getting fun. In this exercise, you’ll need to think about all of the costs associated with leaving your home to move to New Zealand. A few of those will include:
· Your flight(s) to New Zealand
· A possible medical for your visa
· A place to stay when you arrive (hotel, hostel, Airbnb)
· Or, a place to live (bond/deposit costs)
· A mode of transportation (do you want to buy a car, rent a car, buy a campervan, use public transport?)
· Travel insurance
· Money for activities or anything you plan to do when you arrive
· Spending money
It's imperative that the costs for moving (the sum of the expenses on the list above) are less than your magic number you discovered in Part One.
Before you start calculating the costs of everything above (‘cause that would just be straight overwhelming), consider a few things first:
1. Which island do you want to live on?
2. Which city or town do you want to live in?
3. How much time do you want to explore New Zealand before you start work?
4. If you don’t plan to get a job in advance, how long can you realistically afford to live without work when you arrive in New Zealand?
5. Do you want your own car or are you cool with public transportation?
Let these factors sink in for a bit. You don’t need to make every single decision right now. That’s why we’ve broken this up into three posts with multiple exercises. Go at your own pace because saving for this trip needs to be a marathon not a sprint if you want a decent chunk of cash under your belt.
EXERCISE 4: A REALISTIC SAVINGS TARGET
(You Shall Not Pass…This Step)
Once you’ve done some researching, contemplating, and are comfortable with some decision-making, we can keep moving forward.
Grab a new piece of paper or open a blank page in your notebook and write a list of the things you’ll need for your move.
Here’s a few examples:
· Accommodation (and bond if needed)
· Visa + medical
· Car/van/public transportation
· Food budget
· Money for activities
· Spending money
· Equipment & clothing (if needed)
· Whatever else you can foresee yourself needing until you have a consistent income in New Zealand
Then, write down the estimated cost of each one keeping in mind the length of time you’d like to be unemployed in New Zealand.
Start looking up flight prices during the approximate time you’d like to fly out, look at the price of accommodation where you’d like to spend your initial time in New Zealand, look at your visa costs, etc. and fill in each category. I’d recommend over–estimating so you don’t fall short on arrival.
Calculate the total cost of these educated guesstimations. We’ll call this the “NZ number” since it’s the amount you need to move to NZ.
Okay, this is where we get a tad complicated, but keep following as best you can.
If you don’t have a set date that you want to fly to New Zealand, then the amount of months your magic number needs to be earned to meet your NZ number will determine how long until you can afford to fly out.
Essentially, you need enough time to satisfy that savings target.
Now, if you do have a departure date that you have your heart set on, you then need to ensure you earn and save enough to achieve your NZ number.
Once you’ve completed those two exercises, you’re in the home stretch. Part three will include ideas on how you can make a bit more income and how making/breaking a few of your spending habits can shift your budget into turbo-saving mode, which can mean life in NZ will come sooner!
Leave a comment below on what your approximate “NZ number” is and we’ll cheer you on in your savings quest! You got this.