You spent two weeks in Portugal, Ghana, Mexico, or Costa Rica, soaking in the food, culture, climate, and people—and now you’re seriously rethinking your whole life? Maybe even plotting a permanent move abroad?
That is bold. That is courageous. And it’s exactly what many Black women are doing as the number of us out of work continues to rise, the federal government shutdown, and we redefine what success looks like—on our own terms.
But before you jump from the frying pan into the fire, let’s slow down for a minute. A move abroad is liberating, yes — but it requires a plan. A financial plan. One that makes living abroad sustainable and stress-free.
So let’s take it from the top.
The “Before You Go” Blueprint.
Planning a move abroad requires intentionality and discipline. Chrishan Wright, founder of Blaxit Global and host of the Blaxit Global Podcast, coaches aspiring expats to know their numbers. “Build a realistic budget, create a timeline, and understand what it takes to sustain yourself financially once you relocate.” Be sure to factor in the cost of housing, utilities, local transportation, groceries, and lifestyle expenses as a local, not a visitor.
For Wright, researching the experiences of other Black expats through her Blaxit Global Podcast provided crucial insight into the hidden costs and strategies for building financial resilience. “I learned that the first year abroad would be the most expensive, with one-time costs like moving, visa and residency fees, and maintaining financial responsibilities in two countries during the transition,” says Wright. “But once those expenses were behind me, my day-to-day living costs stabilized considerably.”
If possible, go see for yourself. Visit the country a few times throughout the year to get an accurate sense of daily life. Over three years, this approach helped me understand the realities of living in Accra, Ghana, that didn’t affect me as a tourist: traffic, infrastructure (water, power), safety, night life, healthcare quality, and early education options for my daughter.
Once you estimate your cost of living, you’ll need resources to sustain it. Will you rely on savings, seek remote work, or find employment locally? Each path comes with its own considerations. Some countries require work visas, restrict certain industries, or expect registration for remote employment — ignoring these rules can turn your dream move into a legal and financial headache. If your plan involves finding new employment or negotiating a remote work option, plan for professional continuity. Certifications, licenses, or memberships may need updating or recognition in your new country — something many aspiring expats overlook.
If you need to free up some cash, don’t be afraid to review your budget for categories to scale back on. “Housing and city choice can make or break your budget. Big cities may offer vibrant expat communities, but costs are higher,” says Wright. To live abroad intentionally, Wright advises aligning your location with lifestyle priorities. “Start in a capital city to build community and establish your footing,” she says, “then explore smaller towns for lower costs and a slower pace of life.”
When the Plans Don’t Go As… Well, Planned.
Even the most meticulous plans can be tested once you’re abroad. Wright cites fluctuating exchange rates as a major challenge. Living in Portugal, she earns mostly in U.S. dollars, which can lose value against the euro. “I always advise aspiring expats to build a financial buffer for the unexpected and monitor exchange rates if they’re holding or earning money in a different currency. That foresight can make all the difference in maintaining peace of mind abroad,”she says.
Even in countries in the Global South throughout Africa, Latin America, and Southeast Asia, where the dollar is typically strong, fluctuations can quickly erode spending power, driving up the cost of living overnight. On the flip side, a stronger dollar can tempt lifestyle creep—spending more simply because things feel cheaper, which can quietly derail your budget.
Unexpected family expenses are another reality of moving abroad. For Wright, her daughter’s decision to move off campus while attending university in the U.S. created higher housing costs than she had anticipated. “Because I had built a strong financial foundation—including a nest egg and emergency fund—I could absorb the change without stress,” she says. For others, these surprises can come in the form of health crises or emergencies involving aging relatives, requiring international travel and extra expenses that aren’t easy to predict.
Remember Uncle Sam Wants His Cut…Always.
And let’s not forget about Uncle Sam.
“Uncle Sam follows you everywhere. That’s the biggest shock to my clients,” says Alleson Tate, CPA and principal at Avere Wealth. “I had a client move to Portugal thinking she’d escaped U.S. taxes, then got hit with a $45,000 bill because no one told her she still has to file.”
Every aspiring expat needs to know that they’re taxed on worldwide income, period. That side hustle in Spain? Taxable. That consulting gig in Ghana? Taxable. The rental income from your U.S. property? Definitely taxable.
You might qualify for the Foreign Earned Income Exclusion, which lets you exclude around $130,000 of foreign earnings, but there’s a catch. “You have to pass strict residency or physical presence tests”—and, according to Tate, “most people mess this up.” Common mistakes include missing deadlines, miscalculating your days abroad for the 330-day physical presence test, including income that doesn’t qualify (like investment or rental income), and claiming the exclusion for a year you didn’t fully meet the residency or physical presence requirements.
So how do you avoid getting taxed twice—once abroad and once by the U.S.? “The Foreign Tax Credit is your pass,” says Tate. “If you’re paying 20% tax in Portugal, for example, you can use those credits against your U.S. taxes. But timing is everything. I’ve seen people lose tens of thousands because they paid taxes in the wrong order or missed filing deadlines.”
Tate recommends mapping out both countries’ tax years first—“they rarely align”—then layering in tax treaties that can reduce or even eliminate certain taxes. “Most Black expats don’t even know these treaties exist,” she adds. “The key is working with someone who speaks both tax languages fluently.”
And if you’re blessed enough to receive an inheritance abroad, don’t celebrate too quickly. “The U.S. doesn’t tax inheritances you receive, but other countries might,” Tate warns. “Plus, the U.S. will tax any income that inheritance generates. And if you inherit foreign accounts over $10,000, you’ve got Foreign Bank Account Report (FBAR) reporting requirements—with hefty penalties for ‘non-willful’ violations.”
Before touching a penny, she advises understanding three things: the source country’s inheritance tax, your reporting obligations, and how to structure the assets going forward. “I’ve seen too many people get excited about inherited property abroad, only to discover they can’t afford the ongoing tax obligations,” she says. “Sometimes the smartest move is selling immediately and bringing the funds home strategically.”
Navigating international finances can be challenging, which is why a strong support system is essential.
Start with a CPA who specializes in expat taxes—they should know FBAR, (Foreign Account Tax Compliance Act) FATCA, and foreign tax credits like the back of their hand: FBAR requires you to report any foreign bank or investment accounts over $10,000 to the Treasury, FATCA requires you to report foreign financial assets above certain thresholds to the IRS, and the Foreign Tax Credit lets you reduce your U.S. taxes by the income tax you already paid to a foreign country, helping you avoid double taxation.
Add in a tax advisor in your host country who understands American implications, an international estate planning attorney, and a cross-border financial advisor who knows the restrictions U.S. citizens face when investing overseas.
“Budget $5,000–$10,000 annually for this team,” Tate advises. “Yes, it’s an investment, but the wrong team—or no team—will cost you way more than their fees.”
“Measure twice. Cut once.” When it comes to relocating abroad, that advice couldn’t be more relevant. Know your numbers, map out your career and income strategy, and assemble a financial team that understands both your home country and your new one. Do all that, and you can move with confidence, knowing you don’t have to come back unless you want to. Thoughtful planning isn’t just about dollars and cents—it’s about freedom, peace of mind, and creating a life on your own terms.
Kara is the founder of The Frugal Feminista and author of heal your relationship with money and Unmasking the Strong Black Woman.