Last week the Telegraph reported on a resource which helps potential expats work out exactly what annual salary they’ll need to command in their new post in order to live the kind of lifestyle they want.
For many people the prospect of enjoying a higher quality of life is what draws them overseas in the first place, but sometimes expectations regarding the cost of living in a foreign nation can be unrealistic, and the venture doesn’t turn out to be as financially viable as hoped.
But British company Salary Expectation is aiming to make it easier for expats to access cost of living information and calculate living expenses.
In an interview with the Telegraph, Salary Expectation CEO Kesiena Ogefere stated; ‘With so many statistics floating around, crunching the numbers can prove tricky. With our report, expats do not need to search around for cost of living information. Our salary calculator determines exactly how much they need to earn to maintain and improve their standard of living. [...] Around 90 per cent of the people I interviewed had no idea of the cost of living in the destination they were moving to, and that caused problems with their salary expectations. I’ve known someone to move based on a certain salary level and then realise the cost of living was way higher than they thought it would be. They ended up making the decision to move home again, which caused a lot of problems not just for the candidate but for the recruiter too.’
As the concept behind www.salaryexpectation.com was intriguing we decided to take our own look at the online aid.
The Worldwide Salary Calculator promises you a concise and accurate breakdown of how far your income will stretch, giving you an idea of what to expect and leverage for negotiating a higher salary.
The cost of living indices used as the basis for the Personal Salary Expectation Reports are compiled by the Economist Intelligence Unit and come with assurances of internationally recognised credibility.
All you need to do to apply for your report is submit your name, your current city of residence, the name of the city you intend to move to and your current net salary. Reports cost $50 and can be downloaded within five minutes of payment.
Once complete your salary report will include details like;
What salary you need to maintain your current standard of living
What salary you need to improve your standard of living
The difference in the cost of living between your current and destination cities
The price of essential items in your destination city (like bread, milk, rice, onions, coffee, tea etc)
Average apartment cost in your destination city (both furnished and unfurnished)
Monthly line rental costs
Individual tax summary for your destination city
The aim of the report is to show you whether your increased salary will actually go further or whether you may need to renegotiate your expat package in order to live the life you were hoping for.
You can take a look at a sample report here
What do you think? Is this a good way of managing your salary expectations?
If you know of any useful resources for working out the cost of living overseas please get in touch via Facebook or Twitter, or leave a comment in The Expat Hub forum.