Navigating the Cost of Living Abroad: Budgeting Tips for Indian Students

Studying abroad is an exciting and fulfilling experience that promotes academic success, cultural diversity, and personal growth. However, international students may struggle to manage their finances in a foreign country. It may be challenging to keep track of spending while dealing with accommodation, transportation, tuition, and other expenses. For those pursuing specific courses, such as an MBBS in Russia, the financial challenge can be significant, making options like an education loan for an MBBS abroad a critical consideration. Therefore, developing money management skills is a must for planning to study abroad. With the right planning and budgeting strategies, international students can improve and make the most of their study abroad experience.

This blog will provide you with tips on how to manage your expenditures successfully and cope with the cost of living overseas.

What are the major expenses for Indian students abroad?

To curate an effective budget, it is vital to understand the primary expense you will have once you move abroad. Here are some major expenses for Indian students studying abroad:

• Housing: Rent is the single largest component of your living expenses by far. In addition, prices might be widely different from one place to another and form of accommodation.
• Food: Meal prep, grocery shopping, and dining out may add up. The price of food varies according to your lifestyle and the country you are in.
• Transportation: Paying for public transit or a car can add to monthly living costs. When it comes to transport, some countries provide discounts for students.
• Insurance: Unlike in India, health insurance is mandatory in all nations for overseas students, even if you visit on a tourist visa. Furthermore, health care is expensive in foreign nations. Thus, to lessen your financial burden during eventualities, you need to invest in health insurance before moving abroad and renew it for as long as you reside there.
• Books & Supplies: Depending on the course you have registered in, you may anticipate spending a minimum sum of USD 200-800 or INR 16,000-67,000 every year for merely books & course materials associated with your study program.
  1. However, to conserve your valuable cash, you can always look forward to purchasing old books in excellent shape. Sometimes, the e-copies of books can be found online.

• Leisure & Entertainment: Your total costs also include entertainment, going out, traveling, etc.

As per the latest trends, have a look at the comparison of major expenses and estimated monthly costs for Indian students living abroad

How can I start creating a budget for my study abroad journey?

Creating a budget is the most vital & essential step to balance your money while attending an overseas course. The art of balancing the budget & living within your means is a challenge. Therefore, students can follow some of the steps provided to sort it out.

• Assess your income: To begin with, figure out how much money you think of getting from family, scholarships, part-time work & other sources.
• Compile a list of your expenses: Estimating your expenditures before your arrival and throughout the first month is challenging. Document your expenditures, including flights, visa fees, first month’s rent, security deposit, transit cards, & other costs, in the list to have a deeper understanding of your budget.
• Establish categories: You can sort your expenditures into two categories: variable & fixed.
  1. Variable expenses consist of transportation, entertainment, food, etc.
  2. Fixed expenses include visa fees, rent, insurance, etc.

• Set aside a fund for unforeseen expenses: Keeping aside money for contingencies is always a wise decision. So, when budgeting, do not plan to come home with $0 in the bank. You need to create a buffer or some sort of “safety net” for unplanned bills and emergencies.

How can I reduce my accommodation costs?

Usually, accommodation is one of the major costs of studying abroad. Affordable accommodation for Indian students studying abroad is of extreme importance. Taking this important aspect into account, we have some tips that you can employ to reduce your housing expenses.

• On-campus housing: Seeking housing on campus helps to minimize accommodation costs while also reducing transportation costs.
• Look for shared accommodation: Indian students who seek to study abroad have another option available, which is shared accommodation. Shared accommodation means getting a room and living together with people, ideally students.
  1. The cost can be averaged among all the housemates, lowering the burden of residence.
• Reside outside the city center: City center accommodations are more expensive; therefore, if it is possible, opt to get a place in the suburbs or neighborhoods that are not so far from the campus.
• Live with locals: Seek out a host family or someone local who rents to students. If you can find one, you may be able to save a decent amount of money on lodging.

What are some smart food-saving tips?

Food is an expense that can rack up quickly if you rely on eating out. Check out some tips to help save cash but eat well!

• Have home-cooked meals: Learn to prepare meals at home, which is not only cost-effective but also healthy. Take advantage of the local markets to acquire ingredients and save money as much as feasible.
• Purchase in large quantity: Buying essentials such as rice, pasta, grains, and spices in bulk can lead to substantial savings.
• Take advantage of student discounts: Many supermarkets, cafes, and restaurants provide student discounts. Shop around, and while you do so, do not forget to inquire about student discounts.

How can I save on transportation costs?

Transportation is another major expense, especially if you commute daily. Here are some tactics in this instance you can use to save on transport.

• Use public transport: Utilize public transportation instead of having a vehicle or utilizing taxis. Most cities with universities give students discounts on public transit. Take advantage of the transit pass. Save money and try to reduce your carbon impact.
  1. In case your destination is nearby, you can also consider walking or biking. It is free, healthy, and a terrific way to explore the neighborhood.
• Carpool or share rides: You can choose to carpool with classmates and use ride-sharing services with other students if public transport is out of the equation. If possible, you can also share an equal portion & split the expenses to save money.
• Student transit cards: In many cities, there are also student transit cards that have discounted fares. These cards can help you save a lot on transportation costs every month.

How can I reduce my entertainment and leisure expenses?

Studying abroad is not just about academics but also about experiencing a new and different culture and making memories. On the contrary, entertainment and leisure activities can cost a pretty penny. In light of this, here are some tips on how to have fun in your free time without breaking the bank:

• Look for free things to do: Often, there are several free events, shows, concerts, and festivals going on in many cities. Look for free or inexpensive events in your community calendar.
• Become a member of student clubs: Sometimes low-cost social events, trips, and excursions are organized by the university student club. This is the best option to get acquainted with new people as well as remain within budget.
• Make use of discounts & coupons: Several places offer student discounts, especially cinemas, theaters, museums, and amusement parks. Never buy anything without asking for a discount.
• Immerse in nature: Hiking, biking and getting lost in nature are activities that you can do for free and that can help you make the most of your stay abroad without spending much.

How can I make the most of part-time jobs?

A part-time job gives financial assistance and useful work experience to students studying abroad. In 2023, 55% of students were working part-time, according to data from the Higher Education Policy Institute (HEPI). Managing academics with a career needs careful planning, time management skills, and smart task prioritization to satisfy academic and employment responsibilities.

Here are some useful tips to help you handle the needs of both work and study to ensure a smoother and more harmonious experience while learning abroad.

• To manage your time, craft a winning schedule: Time management becomes critical when it comes to managing your part-time job and academics properly. It is necessary to make a precise calendar that accounts for your courses, study time, work hours, & personal activities.
• Set achievable objectives: Setting reasonable and attainable objectives for your part-time employment will help you remain motivated & focused. Whether they are financial, skill-based, or career-oriented objectives, you should develop work goals that correspond with your academic duties.
• Look for a job that offers flexibility: When it comes to student life, you must recognize that each job may differ in terms of flexibility, responsibilities, and how well it fits around your schedule. Look for employment that provides flexibility & appreciates the constraints of your school calendar.
• Look for an on-campus job: Most universities offer on-campus part-time work opportunities for students. It is considered that campus employment are more flexible with the scheduling and more adaptable to academic duties.
• Walk a thin line between work & study: Your primary focus should be on your studies. Therefore, do not overwork yourself. Look for a part-time job with flexible hours that allows you to manage studies alongside a job.

What are the best ways to manage your money while abroad?

To comprehend how to manage money while studying abroad, it is necessary to know your living expenses breakdown. When applying for a student visa to nations like Australia, the UK, and Canada, you will need to provide proof of funds. To study in the USA, you need to supply this information at the university application stage itself. This documentation indicates if you are financially able to fund your tuition and living costs while studying abroad. Therefore, doing research and creating your budget ahead of time will greatly help you with your money management later on. Here are some factors that you should consider to manage your money effectively:

• Set up a local bank account: One of the first things you will do as an overseas student landing at your destination is set up a student bank account. Student accounts come with a range of features that might help you manage your money.
  1. With a local student bank account, you can make direct transfers for things like utility and rent payments and your phone bills. Moreover, you will be able to directly receive your paychecks from part-time jobs or paid internships. If you are a scholarship holder, the award amount goes directly to your account. Plus, your family or other sponsors can transfer tuition fees and other amounts to this account for easy access.

• Track your expenses: To keep an eye on your income and expenses, you can use budgeting apps or spreadsheets, which can help you stick to your budget and avoid overspending.

• Financial Goals: To manage your money, you can set short-term and long-term financial goals.
  1. For instance, you can try to save a certain amount of your monthly income or keep a certain amount aside for travel.
• Avoid unnecessary debt: While credit cards are important and useful, avoid amassing debt. In case of necessity, if you have to use your credit card, then make sure you pay it off in full every month.

Can scholarships help reduce the cost of living abroad?

Yes, scholarships can significantly reduce the financial burden for students living abroad. For many students, scholarships are the first form of financial aid they encounter. In essence, a scholarship provides free money for your education. Scholarships, unlike loans, do not need to be repaid, which makes them highly sought after by students. Typically, they are based on merit, academic excellence, extracurricular activities, or leadership skills. They are considered to be the lifelines for many students, which ease the burden of expenses & offer a pathway to fulfill their academic dreams.

Many courses such as MBBS, often lack scholarships in such scenarios students can research education loans for MBBS in Russia or other financing options.

For Indian students to effectively organize their finances and guarantee a pleasant stay while studying abroad, it is essential to comprehend the cost of living. Students may maximize their study abroad experience without jeopardizing their financial security by carefully planning their budget and evaluating costs. To efficiently manage living expenditures and take advantage of the prospects of living abroad, it is crucial to do research and prepare beforehand.

However, if scholarships are not an option then Indian students can go through the JanSamarth portal to gain an understanding of the education loan schemes provided by the Indian government.

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