Want to move overseas, thoughts on my financial position please?

[inhisarms17]

EDIT thank you so so much everyone for your helpful and honest advice, i think I am overthinking this, i plan to still return in a better position than I’m in now so that’s a win! I only have 2 years left in my 20s so I’m going to go for it! Thank you again

Hi everyone

Would really appreciate your tips/thoughts/opinions on my current situation
I’m a 28yo female looking to do my OE and spend the last couple of years of my 20s in London!
I’m just hesitant due to my financial situation and would love your advice

I am planning on leaving early July, at this time (including my KiwiSaver) I will have around $94k as well as a $4400 travel fund

However.. I need to purchase flights, luggage, new phone, visa + take over a buffer before my first pay check in London

I plan to secure a job before I move over so I’m not just spending through all of my savings. I plan to do a little travel beforehand which my travel fund will cover

At this stage it looks like I’ll be going to London w roughly only $88k (incl KiwiSaver)
If I can save $350 p/w, that is $36k in 2 years
I should be returning at 30yo in 2 years w $124k to put towards a house deposit

I believe my parents will give me about 10k towards this, and hopefully I’d buy with someone (either partner or my brother)

Atm I make 95k in NZ and save $700 p/w, so I’ve accepted I won’t be saving nearly as much in London hence the $350 only p/w. (already a lot of research and talking to others which gives me the estimated $350 p/w savings figure)

Does this sound like a good idea, or should I give it more time so I can get more money behind me? I really just don’t want to come back at 30 regretting anything. If I stay in NZ I know I could save a lot more and would spend a lot less. Anyone been in a similar position? I would also hope to make more in London (ideally)

 

[r3nd0m]

@inhisarms17 As a 31 year old who did the UK OE in my mid-20s and went with very little money and then came back with even less….go! You won’t regret it.

 

[psumoose]

@r3nd0m 100%

 

[ondistantshores]

@inhisarms17 Go for the experience. You will jump income bands quicker if you have UK experience when you come back.

 

[amireallyokay]

@inhisarms17 Sounds like a great idea, just do it, you're overthinking it a little bit too much I reckon.

 

[benignity28]

@amireallyokay Concur completely. You are in a better position than me when i moved. If suitable for life now. Go do it, no time like the present.

 

[souhail]

@inhisarms17 Your figures shouldn't include kiwisaver, just let that be a little nest egg and continue to grow.

You're on a pretty good salary atm, do you reckon that if/when you come back you'll be able to find an equal or better role?

 

[inhisarms17]

@souhail I’m only counting it because it’s all going towards my house deposit that’s what I’m ultimately saving for

 

[souhail]

@inhisarms17 Reading your title and the last bit of your post, it seems like you are really facing two conundrums;

You want to buy a house and be in a good position to be able to do so in a could of years

And

You want to travel and experience living overseas because you do not want to miss out on the OE experience (prior to settling down, reading between the lines).

Ultimately there are gonna have to be some sacrifixes/compromises, as its unlikely you can have your cake and eat it too. Maybe make a pro's and cons list?

Me and my partner are in a similar boat. I am originally from Europe, and haven't been back for a while. We are both about to turn thirty. We ended up purchasing a home (and committed to staying in this part of NZ for a while) but other factors such as getting a dog, and the change in lifestyle that came with owning, vs renting really appealled to us. What we are doing instead is saving where we can and planning a longer trip (4 months or so, our work is relatively flexible) and travel Europe and perhaps a bit of South America.

Ultimately you have to weigh it all up, goodluck!

 

[mariposa7]

@souhail I agree with this advice. Whatever decision you make, prepare yourself for the "what ifs"
Doing the OE gives you an enriching experience but may mean you're on the backfoot when you return vs your peers.
Staying means you probably can get ahead with your plans to buy but you'll lose out on an experience of a lifetime.

 

[roeh]

@inhisarms17 A lot of my classmates flew straight to the UK after graduation - no saving, student loan and min pay. They all did fine.

You are in a much better planned position.

 

[resjudicata]

@inhisarms17 I moved to the UK with less than 5k to my name (though wasnt ideal and had friends that hooked me up). Your financial position is easily more than enough

 

[jackson123321]

@inhisarms17 Do it. Best thing I ever did.

 

[sophiang]

@inhisarms17 You’re completely overthinking it.

I came over last year with 20k and that was only because I wanted my own place so needed 5k for a bond and I still had funds left over.

 

[mmbee0112]

@inhisarms17 Woah. I went to the UK with like $4K leftover after all the pre-purchases, so you'll be right.

Do you have a very employable profession that means they're likely to hire you from overseas? If not, I'd actually recommend going over and getting straight into temp agency work until you find something permanent. That way you don't waste precious visa time, can get UK references and hunt for a flat too. Last time I was job hunting there though it took me 6 months - kept getting interviews but no wins, so the temp work was a godsend. Worked in a great office for a long time and they almost took me on permanently until I got a role I really wanted.

Flat hunting could also take quite a long time FYI. I had to live in a 20-bed dorm hostel for like 3 months haha.

When I was finally settled in with a flat and job, sure was able to start saving okay considering London prices.

 

[mmbee0112]

I temped through Office Angels FYI and recommend them.

 

[solitaryman]

@inhisarms17 94k? You’re overthinking it, I moved to North America with $4k and made it work lol

 

[blessed11]

@inhisarms17 Much like the above said, you clearly have a pretty level head and have thought this out more than most...the numbers all seem great, ultimately you will.always find a way to live within your budget , so sounds like you will have a blast!

The part I doubt most is That you come back in two years haha

 

[khodsontosk]

@inhisarms17 Do it, don’t worry let money hold you back - you are in a good position already with your savings and you sound careful with you money. Life is about experiences and having fun, not just trying to pull together dollars and cents.

 

[lovinganimals]

@inhisarms17 What do you do for work?

When I went in 2016 I took 10k with me and needed every dollar of it, but I also got a decent job and came home with 80k after 2 years.