Budgeting tips for Indians in Europe

More and more Indians are getting jobs in Europe and relocating to EU countries. Moving to Europe can be an exhilarating experience, full of new opportunities and adventures. Along with exciting prospects, life abroad brings many challenges, with managing your finances being one of them. That’s exactly when budgeting comes into play. Ensure a smooth transition and overall financial stability while navigating life abroad with our helpful budgeting tips.

Are you an international student from India studying in Europe? These are some of the financial fails you should avoid.

Reality check

If you’re not accustomed to budget planning yet, your initial focus should be on evaluating your income versus expenses. Here’s a checklist to get you started:

Your budget planning doesn’t have to be fancy if you’re just embarking on your financial journey. The best budgeting tip at this stage is to stay realistic and motivated. Compare your income to expenses to identify any deficits. Look for areas where you can cut back and explore opportunities to boost your income. If you’re in surplus, consider how to use that money effectively. You might want to research investment opportunities or savings accounts.

Budgeting tips. Find your motivation

Taking your first steps in money management can be tricky. To stay committed, choose your goals and motivations to keep going. Consistency in budget planning can benefit you in many ways and enable you to:

• Pay off debt;
• Have a safety net in case of emergencies, giving you more freedom and reducing money anxiety;
• Make your money work for you, not the other way around;
• Develop healthy spending habits;
• Acquire the skill of saving;
• Support your loved ones by sending money home.

Be SMART

Tips on how to budget can sometimes feel too vague or abstract. With a SMART system, you can build a concrete and actionable plan to achieve your financial goals, no matter what they are. SMART stands for: Specific, Measurable, Achievable, Relevant, and Time-sensitive.

After diving 700 by 12, you will have a tangible savings target. To get a bicycle in three months, aim to save approximately 59 euros per week, or roughly 8.5 euros per day. That doesn't seem too challenging, does it? You can implement the SMART approach to any financial goal you set. We believe it is one of the best budgeting tips for everyone, from beginners to saving experts, thanks to its simplicity and attainability.

Budgeting tips in Europe. Shopping

We've all been tempted to make impulse purchases now and then. However, once you’ve moved, it’s important to recognise the cost of living in India and Europe is dramatically different. For example, a single person in Delhi would have to spend roughly 374€ a month without rent, while in Berlin, the same estimate would sum up to approximately 1,005€.

Adjusting to a new environment means staying aware of your shopping habits. That’s why researching budgeting tips in Europe can be especially handy for expats. We’ve drawn up a list of budgeting tips to help you manage your shopping expenses responsibly:

• Make a shopping list each time you go out to get groceries. This is probably one of the oldest and most effective budgeting money tips out there, yet it is often overlooked.
• Pay attention to 1+1 offers for the items you have on the shopping list.
• Stay mindful, and don’t purchase something just because it’s on sale. You most probably don’t need it.
• Split your spending into categories and set limits on each one, such as groceries, clothes, beauty products, etc.
• Before buying new, try to find a second-hand option, whether it’s a piece of furniture, a phone or clothes.

Budget planning apps

Do you find creating a budget plan manually daunting? We have good news for you—there are dozens of money management apps to help you track your spending. These apps offer features like expense tracking, budgeting tips, and regular financial reports, all in one convenient platform.

Find the right app for your needs in our Best budgeting apps 2024 article. It’s especially helpful if you have accounts with multiple banks. By syncing all your banking activities in one app, you can gain a comprehensive overview of how you’re doing financially.

Check out our blog for useful apps for Indians in Europe.

Budgeting tips. 50-30-20 rule

There are many steps to achieving financial freedom. One of them is working on your savings. But just like with anything in life, it’s all about balance. There’s no need to deprive yourself—just follow a 50-30-20 rule, another great beginner-friendly tactic. It comes down to spending 50% of your income on needs, 30% on wants, and 20% on savings.

It’s the best budgeting tip for those who often find themselves spending excessively on non-essential items. It provides a flexible framework that allows you to manage your expenses while still enjoying life's pleasures. Feel free to adjust the percentages to better suit your current financial situation as you ease into this approach.

Indians in Europe. Find wire transfer alternatives

It is no secret many Indians in Europe send money home after moving. With the desire to support their families in India comes the problem of high fees and hidden costs of international wire transfers. Fortunately, you can use budgeting tips when making global remittances, too. The best one is sending funds with a money transfer company instead of directly using your bank. Here’s why you should avoid wire transfers:

• Higher fees and hidden commissions;
• Unfavourable exchange rates;
• Long delivery times.

Money transfer services can help you sidestep these issues. Stay connected with your loved ones in India and support them through Profee, a trusted online remittance company. Why choose us? We're a licensed European company providing a cost-effective alternative to wire transfers. With Profee, sending money is easy, secure, and swift.

• Download the Profee app or visit our website;
• Type in the transfer amount and select India as your destination country;
• Our smart monitoring system will offer you the best currency exchange rate;
• Check upfront the amount your recipient will get in rupees;
• Your first transfer is zero-fee, the following ones come with a fixed fee of only 1 euro.
• Complete a quick registration process;
• Enter your recipient’s bank details, including the account number, the bank’s IFSC code, and full name;
• Choose a payment method;
• Confirm the transfer. All done!

For first-time transfers to India, we're offering a promo exchange rate with no fees (April 2024). Using Profee is one of the best budgeting tips for sending money back to India. Support your family with the best terms—fast and safely.

Are you residing in the UK? Check out the tips for Indians in our blog.

Connect with fellow expats

Networking with fellow expats can be incredibly helpful when adapting to life abroad, especially in financial management. Engage with expat communities or online forums to connect with people experiencing similar situations. You can exchange tips on how to budget, share experiences, and learn from each other's successes and mistakes. When it comes to budgeting tips in Europe, advice from expats who've navigated the same hurdles can be invaluable.

Managing your finances as an expat may seem daunting at first, but with our budgeting tips in Europe and some discipline, it can be both attainable and rewarding. By understanding your new financial landscape, creating a realistic budget, prioritising saving, and building a network, you can set yourself up for financial success abroad. Embrace the adventure of living in Europe, and don’t forget about the best budgeting money tip for sending money back home. Use Profee to transfer overseas and support your loved ones in India whenever they need your help.