Article courtesy of DiversityAbroad.com
Financial stresses can really detract from your experience
abroad. In particular, I struggled because I studied abroad via the
multi-country program, Semester at Sea.
Because we were in a new country every week, I had to constantly adjust
my budget to new currencies and exchange rates. As challenging as this
was, it is absolutely worthwhile because by budgeting properly, I was
able to minimize nagging worries about my expenses, and was able to
fully embrace my experiences abroad. With that, here are some tips for
how you can budget for your study abroad program.
Have an Emergency Fund
Picture this: It is midnight and I am alone in a foreign country. I
had foolishly decided to split from my travel buddies while in
Marrakesh,
Morocco
to explore the winding alleyways and twisting corridors of the city on
my own. The soothing sun has descended and now a chilling moonlight
descends, covering me in cold. I needed to get back to the hotel - fast.
I checked my wallet. All out of Dirham (the local currency)!
Thankfully, I had put aside money for an emergency such as this, and
only needed wifi to transfer the funds into my account. As a result, I
made it back safely.
Preparing
for inevitable unexpected crises by having a financial backup plan is
essential for study abroad success. I recommend saving up or storing a
few hundred dollars in case of emergencies that arise. You'll be
thankful you did!
Establish a Monthly Budget
By creating a
monthly spending budget,
you will start to notice if you are on track to spend every dollar you
have before your trip ends. For instance, while in Hong Kong, I went to a
world famous tailor suit shop called Apsley Bespoke Tailors. I entered
ready to confidently bargain for a perfect price...and ended up spending
$600! Not only had I bargained terribly, but I had also blown my
budget. Buying this suit was definitely a splurge, but because I had
established monthly spending budget and tracked my expenses, I simply
updated my budget sheet and knew exactly how much I had swayed off
track. I was forced to adjust my spending for the future, and as a
result cut future expenses so that I could stay on track in the long
run. For me, having a custom suit was worth it, but that's a decision
only you can make!
Split large expenses with friends whenever you can
While in
Vietnam,
my friends and I rented out a small luxury villa and shared it among 20
students total. It was the most fun I had in years! The total bill for a
week of accommodations per person: $8!! Simply by splitting expenses
you can make awesome experiences more financially feasible for everyone.
Research Hostels, Transportation, and Tourist Traps prior to arrival
One of my friends got stranded in
India.
She was trying to make it to the Taj Mahal, but the bus transportation
she was relying on dropped her off at an abandoned station with thirty
strangers. She was understandably worried and because the buses failed
to help, and she ended up paying over $500 in rupees to take a taxi for
six hours just to get to the Taj Mahal. Although she couldn't have known
the bus would leave her stranded, that extra expense and dangerous
situation could have been avoided had she researched the bus company
ahead of time, and instead chose a mode of transport that was safe,
reliable and affordable. Spending the time to do your research will save
you more money in the long run above all else. Plus, it's a life skill
that you can continue to use anytime you decide to explore someplace
new. Be an informed global citizen and check out resources like the
Diversity Abroad Community Forums or
wikitravel to find out as much information as you can ahead of time.
BONUS TIP: Have A Recurring Source of Passive Income
If possible, try to secure recurring passive income before you go
abroad. This will help you worry less about money and truly enjoy your
experiences abroad. For instance, by renting your on-campus housing to
someone while you are gone, earning royalties for something you created
and published, or investing in high-return stocks with dividends you can
create consistent passive income. However, the process can be risky. I
invested in stocks prior to traveling in the hopes of using the return
on investment to fund my travels. Instead I lost several hundred
dollars. So choose wisely!
In conclusion, budgeting can be a tricky process. Do not
overcomplicate it. By simply,having an emergency fund, tracking your
monthly spending, doing your research and splitting expenses with
friends, you will alleviate the majority of your financial stresses,
allowing you to delve into your life-changing experience abroad without
any distractions!

About the Author
Austin Joseph is a study at Morehouse
College, and a Diversity Abroad Campus Fellow during the 2016-17
academic year. He set sail with Semester at Sea, and volunteered during
the 2016 summer Olympics in Brazil!
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If you need help getting started with study abroad, take a
look at the first steps:
http://studyabroad.uark.edu/getting-started/index.php