Don't leave the US until you do this with your money

I wasted thousands of dollars during my I wasted thousands of dollars during my first year outside the US. So, if I had first year outside the US. So, if I had first year outside the US. So, if I had to do it again tomorrow, I might do to do it again tomorrow, I might do to do it again tomorrow, I might do things a little differently than when I things a little differently than when I things a little differently than when I first left in 2022. So, in this video, I first left in 2022. So, in this video, I first left in 2022. So, in this video, I want to go through the checklist that I want to go through the checklist that I want to go through the checklist that I would use if I had less than a month to would use if I had less than a month to would use if I had less than a month to prepare. The first thing I would do prepare. The first thing I would do prepare. The first thing I would do differently is establish my domicile in differently is establish my domicile in differently is establish my domicile in a state with no personal income tax. a state with no personal income tax. a state with no personal income tax. Like a lot of people, I just used my Like a lot of people, I just used my Like a lot of people, I just used my family home as my {quote} {unquote} family home as my {quote} {unquote} family home as my {quote} {unquote} address. But, since I'm from address. But, since I'm from address. But, since I'm from Massachusetts originally, that means I Massachusetts originally, that means I Massachusetts originally, that means I paid 5% of my income every year, even paid 5% of my income every year, even paid 5% of my income every year, even though I wasn't even living in the though I wasn't even living in the though I wasn't even living in the state. Thousands of dollars down the state. Thousands of dollars down the state. Thousands of dollars down the drain. And if you're from a state like drain. And if you're from a state like drain. And if you're from a state like New York or California, you earn a good New York or California, you earn a good New York or California, you earn a good living, you might be paying a whole lot living, you might be paying a whole lot living, you might be paying a whole lot more, tens of thousands of dollars. The more, tens of thousands of dollars. The more, tens of thousands of dollars. The move is to establish a domicile in a no move is to establish a domicile in a no move is to establish a domicile in a no income tax state before you leave. income tax state before you leave. income tax state before you leave. Florida is our top choice. It's where we Florida is our top choice. It's where we Florida is our top choice. It's where we set up domiciles for all of our clients set up domiciles for all of our clients set up domiciles for all of our clients because it's easy to do and they have no because it's easy to do and they have no because it's easy to do and they have no income tax or capital gains tax at the income tax or capital gains tax at the income tax or capital gains tax at the state level. We have a lot of videos on state level. We have a lot of videos on state level. We have a lot of videos on how to do that yourself. And you can how to do that yourself. And you can how to do that yourself. And you can also use our service here at Savvy also use our service here at Savvy also use our service here at Savvy Nomad. Link is in the video description, Nomad. Link is in the video description, Nomad. Link is in the video description, and make sure to use the code YouTube and make sure to use the code YouTube and make sure to use the code YouTube for discount. Number two would be to for discount. Number two would be to for discount. Number two would be to sign up for an expat-friendly bank.

sign up for an expat-friendly bank. sign up for an expat-friendly bank. We've done some videos before on this We've done some videos before on this We've done some videos before on this card, the Charles Schwab debit card. card, the Charles Schwab debit card. card, the Charles Schwab debit card. It's like a golden ticket for nomads and It's like a golden ticket for nomads and It's like a golden ticket for nomads and expats because it lets you withdraw cash expats because it lets you withdraw cash expats because it lets you withdraw cash from any ATM in the world with no fees. from any ATM in the world with no fees. from any ATM in the world with no fees. Plus, and this is the best part, they Plus, and this is the best part, they Plus, and this is the best part, they reimburse the ATM fee, which not many reimburse the ATM fee, which not many reimburse the ATM fee, which not many cards do. If you're going to go to Latin cards do. If you're going to go to Latin cards do. If you're going to go to Latin America or Asia, you're going to realize America or Asia, you're going to realize America or Asia, you're going to realize that a lot of these places are still that a lot of these places are still that a lot of these places are still cash economies more so than Europe or cash economies more so than Europe or cash economies more so than Europe or the US. So, you're going to need some the US. So, you're going to need some the US. So, you're going to need some cash. My first year, I was wasting like cash. My first year, I was wasting like cash. My first year, I was wasting like 10 bucks on ATM fees every single week 10 bucks on ATM fees every single week 10 bucks on ATM fees every single week trying to ration my cash, find ATMs that trying to ration my cash, find ATMs that trying to ration my cash, find ATMs that had lower fees, all a complete waste of had lower fees, all a complete waste of had lower fees, all a complete waste of time and money. Really, just get one of time and money. Really, just get one of time and money. Really, just get one of the cards that we talk about in our best the cards that we talk about in our best the cards that we talk about in our best debit card video, Schwab, Betterment, debit card video, Schwab, Betterment, debit card video, Schwab, Betterment, Fidelity. You're going to thank us Fidelity. You're going to thank us Fidelity. You're going to thank us later. It's like a total no-brainer. On later. It's like a total no-brainer. On later. It's like a total no-brainer. On a related note, you want to make sure a related note, you want to make sure a related note, you want to make sure that you also have a credit card with no that you also have a credit card with no that you also have a credit card with no foreign transaction fee. If you don't foreign transaction fee. If you don't foreign transaction fee. If you don't have that, you're going to be paying have that, you're going to be paying have that, you're going to be paying effectively a one 3% tax on everything effectively a one 3% tax on everything effectively a one 3% tax on everything you purchase. Again, just don't want to you purchase. Again, just don't want to you purchase. Again, just don't want to be flushing money down the toilet for no be flushing money down the toilet for no be flushing money down the toilet for no reason. Number three is getting my phone reason. Number three is getting my phone reason. Number three is getting my phone plan set up before I go. When I first plan set up before I go. When I first plan set up before I go. When I first went abroad, I quickly realized that went abroad, I quickly realized that went abroad, I quickly realized that Verizon was charging me 10 bucks day for Verizon was charging me 10 bucks day for Verizon was charging me 10 bucks day for mobile coverage. Now, I don't know about mobile coverage. Now, I don't know about mobile coverage. Now, I don't know about you guys, but I really can't afford to you guys, but I really can't afford to you guys, but I really can't afford to be paying $3,000 a year just for a be paying $3,000 a year just for a be paying $3,000 a year just for a limited amount of data. That's totally limited amount of data. That's totally limited amount of data. That's totally insane. But, you can't just totally get

insane. But, you can't just totally get insane. But, you can't just totally get rid of your US phone number, either, rid of your US phone number, either, rid of your US phone number, either, because in a lot of cases, you need it because in a lot of cases, you need it because in a lot of cases, you need it for things like two-factor for things like two-factor for things like two-factor authentication. So, in my ignorance, authentication. So, in my ignorance, authentication. So, in my ignorance, what I did was keep paying my US cell what I did was keep paying my US cell what I did was keep paying my US cell phone bill. I put my phone on airplane phone bill. I put my phone on airplane phone bill. I put my phone on airplane mode, and then I got a second cell mode, and then I got a second cell mode, and then I got a second cell phone, where I just put in a local phone, where I just put in a local phone, where I just put in a local prepaid SIM card. Now, what I did is prepaid SIM card. Now, what I did is prepaid SIM card. Now, what I did is definitely an option. It does work, but definitely an option. It does work, but definitely an option. It does work, but it's not the most financially efficient it's not the most financially efficient it's not the most financially efficient solution. Better solution would be to solution. Better solution would be to solution. Better solution would be to port your US phone number to a service port your US phone number to a service port your US phone number to a service like Tello. Uh like Tello. Uh like Tello. Uh very low cost on a monthly basis, and very low cost on a monthly basis, and very low cost on a monthly basis, and you can just use your US number for you can just use your US number for you can just use your US number for two-factor authentication, and get a two-factor authentication, and get a two-factor authentication, and get a local prepaid or postpaid plan for data. local prepaid or postpaid plan for data. local prepaid or postpaid plan for data. Now, a lot depends on the type of phone Now, a lot depends on the type of phone Now, a lot depends on the type of phone you have. If your phone still supports you have. If your phone still supports you have. If your phone still supports physical SIM cards, that makes a big physical SIM cards, that makes a big physical SIM cards, that makes a big difference, because it's harder to get a difference, because it's harder to get a difference, because it's harder to get a local eSIM plan in most countries. We local eSIM plan in most countries. We local eSIM plan in most countries. We have a full breakdown of how to handle have a full breakdown of how to handle have a full breakdown of how to handle two-factor authentication and your cell two-factor authentication and your cell two-factor authentication and your cell phone plan, so make sure you go check phone plan, so make sure you go check phone plan, so make sure you go check out our other videos on this topic. The out our other videos on this topic. The out our other videos on this topic. The fourth biggie would be to make sure I fourth biggie would be to make sure I fourth biggie would be to make sure I got all my visas and my plans for how got all my visas and my plans for how got all my visas and my plans for how I'm going to get into the country I'm going to get into the country I'm going to get into the country squared away. Now, you may or may not squared away. Now, you may or may not squared away. Now, you may or may not have to apply for a visa in advance have to apply for a visa in advance have to apply for a visa in advance depending on how long you plan on depending on how long you plan on depending on how long you plan on staying, what your plans are, all that.

staying, what your plans are, all that. staying, what your plans are, all that. Now, I'm lucky in that I have a US Now, I'm lucky in that I have a US Now, I'm lucky in that I have a US passport. We kind of take it for granted passport. We kind of take it for granted passport. We kind of take it for granted that we're going to get those 90 days or that we're going to get those 90 days or that we're going to get those 90 days or 180 days when we go through immigration 180 days when we go through immigration 180 days when we go through immigration at the airport. In retrospect, I was at the airport. In retrospect, I was at the airport. In retrospect, I was kind of just lucky that I wasn't given kind of just lucky that I wasn't given kind of just lucky that I wasn't given less time by an immigration official or less time by an immigration official or less time by an immigration official or that I was denied for some technical that I was denied for some technical that I was denied for some technical reason that I didn't know about before I reason that I didn't know about before I reason that I didn't know about before I left. One time I remember I almost got left. One time I remember I almost got left. One time I remember I almost got screwed because I had plans to go to screwed because I had plans to go to screwed because I had plans to go to Peru, but Peru requires six months of Peru, but Peru requires six months of Peru, but Peru requires six months of validity remaining on your passport. My validity remaining on your passport. My validity remaining on your passport. My passport was about to expire, so I ended passport was about to expire, so I ended passport was about to expire, so I ended up running around at the very last up running around at the very last up running around at the very last second trying to get my passport renewed second trying to get my passport renewed second trying to get my passport renewed within 2 weeks. Definitely not something within 2 weeks. Definitely not something within 2 weeks. Definitely not something you want to deal with, so make sure you you want to deal with, so make sure you you want to deal with, so make sure you get that squared away before you leave. get that squared away before you leave. get that squared away before you leave. Number five would be to plan out my Number five would be to plan out my Number five would be to plan out my federal taxes a lot better. When I first federal taxes a lot better. When I first federal taxes a lot better. When I first left the US, I had no idea about things left the US, I had no idea about things left the US, I had no idea about things like the foreign earned income like the foreign earned income like the foreign earned income exclusion. For those who don't know, the exclusion. For those who don't know, the exclusion. For those who don't know, the US tax code allows you to exclude up to US tax code allows you to exclude up to US tax code allows you to exclude up to $130,000 $130,000 $130,000 a year of earned income from your a year of earned income from your a year of earned income from your federal income tax returns if you're federal income tax returns if you're federal income tax returns if you're living outside the US. I had no idea living outside the US. I had no idea living outside the US. I had no idea that I could reduce my federal income that I could reduce my federal income that I could reduce my federal income tax to basically zero if I just did some tax to basically zero if I just did some tax to basically zero if I just did some pre-planning, if I made sure I was pre-planning, if I made sure I was pre-planning, if I made sure I was spending 330 full days outside the spending 330 full days outside the spending 330 full days outside the country. A lot of digital nomads like me country. A lot of digital nomads like me country. A lot of digital nomads like me are under the impression that they don't are under the impression that they don't are under the impression that they don't qualify because there's so much bad qualify because there's so much bad qualify because there's so much bad information floating around the information floating around the information floating around the internet. Again, we have videos on this.

internet. Again, we have videos on this. internet. Again, we have videos on this. Make sure you know how to qualify and Make sure you know how to qualify and Make sure you know how to qualify and how you can claim this exclusion. Number how you can claim this exclusion. Number how you can claim this exclusion. Number six would be setting up mail forwarding. six would be setting up mail forwarding. six would be setting up mail forwarding. Whenever I would visit back home in Whenever I would visit back home in Whenever I would visit back home in Massachusetts, my mom would give me a Massachusetts, my mom would give me a Massachusetts, my mom would give me a big stack of mail about this thick that big stack of mail about this thick that big stack of mail about this thick that had accumulated over months and months. had accumulated over months and months. had accumulated over months and months. What I didn't know at the time is that What I didn't know at the time is that What I didn't know at the time is that there are virtual mailbox services that there are virtual mailbox services that there are virtual mailbox services that will scan and upload your mail to the will scan and upload your mail to the will scan and upload your mail to the cloud so you can view it remotely. A lot cloud so you can view it remotely. A lot cloud so you can view it remotely. A lot of these services are pretty affordable, of these services are pretty affordable, of these services are pretty affordable, 15 20 bucks a month and you don't miss 15 20 bucks a month and you don't miss 15 20 bucks a month and you don't miss things like bills that you should have things like bills that you should have things like bills that you should have seen earlier. We recently did a video seen earlier. We recently did a video seen earlier. We recently did a video that reviews all the most popular that reviews all the most popular that reviews all the most popular options for expats and nomads, so make options for expats and nomads, so make options for expats and nomads, so make sure you go check that out. Again, a sure you go check that out. Again, a sure you go check that out. Again, a quick plug for Savvy Nomad. We have a quick plug for Savvy Nomad. We have a quick plug for Savvy Nomad. We have a plan that bundles mail services into our plan that bundles mail services into our plan that bundles mail services into our Florida domicile service. So, you're Florida domicile service. So, you're Florida domicile service. So, you're really getting several different really getting several different really getting several different services in one subscription. Now, services in one subscription. Now, services in one subscription. Now, everything we covered in this video is everything we covered in this video is everything we covered in this video is really just the beginning. We have a really just the beginning. We have a really just the beginning. We have a full 20-point pre-departure checklist full 20-point pre-departure checklist full 20-point pre-departure checklist that covers all the steps you need to that covers all the steps you need to that covers all the steps you need to know in sequence from 6 months before know in sequence from 6 months before know in sequence from 6 months before your trip to the first 90 days abroad.

your trip to the first 90 days abroad. your trip to the first 90 days abroad. This is a full guide packed with tons of This is a full guide packed with tons of This is a full guide packed with tons of useful info on things like healthcare, useful info on things like healthcare, useful info on things like healthcare, banking, taxes, all the stuff I wish I banking, taxes, all the stuff I wish I banking, taxes, all the stuff I wish I knew before becoming a digital nomad and knew before becoming a digital nomad and knew before becoming a digital nomad and leaving the US. It's totally free for leaving the US. It's totally free for leaving the US. It's totally free for anyone who subscribes to our email list, anyone who subscribes to our email list, anyone who subscribes to our email list, so link is in the video description to so link is in the video description to so link is in the video description to sign up and get that. If this video sign up and get that. If this video sign up and get that. If this video helped you, hit that like button and helped you, hit that like button and helped you, hit that like button and subscribe. We're putting out content subscribe. We're putting out content subscribe. We're putting out content every week to simplify your financial every week to simplify your financial every week to simplify your financial life abroad. And drop a comment. What's life abroad. And drop a comment. What's life abroad. And drop a comment. What's one thing you wish you did differently one thing you wish you did differently one thing you wish you did differently before leaving the US? before leaving the US? before leaving the US? Safe travels and we'll see you in the Safe travels and we'll see you in the Safe travels and we'll see you in the next video.