For many people, moving to the US is a dream come true. Known as the land of opportunity, America gives its residents a chance to earn a lot of money and build a beautiful life for themselves.
However, although your first salary might seem enticing at its face value, you might have much less money in your pocket at the end of the month. Many people completely disregard all the visa fees, housing challenges, and tax obligations that significantly reduce their savings.
As a newcomer, you must understand the financial nuances of moving to the US and try to minimize expenses wherever you can. Through better preparation, you’ll have a much easier first few months in the country, which are otherwise crucial for most expats living abroad.
Visa and Immigration Costs
Visa fees, document translations, and different types of tests are the first expenses you’ll encounter. Getting a visa, in particular, can be very expensive for people from impoverished countries. For example:
- H-1B is the most common visa for skilled workers and other professionals, as its filing fees exceed $1,500. Although your future employer might cover a part of it, you’ll definitely have to take care of the rest.
- An O-1 visa is a bit less common, as this type of document is reserved for people who excel in their field. While the visa filing is relatively cheap at $460, you might have to pay more than $5,000 in attorney fees.
- A green card application is also an expensive option, as filing will cost you $1,140. You must also consider legal assistance and biometrics, which tend to be quite pricey.
The best way to mitigate some of these expenses is by asking for the future employer’s assistance. Keep in mind that getting assistance may be easy if you’re working in deficietary field or if you’re a professional of great renown. Make sure to clarify these points in advance so you don’t end up being burdened with unnecessary expenses.
You must also take into account intermediary fees. For example, you might use international nursing recruitment agency to connect with employers. These companies use quite a lot of money in different fees, so it wouldn’t be a bad idea to try to ask your future employer for help.
Relocation Expenses
Once you finish everything pertaining to the visa, it is time to plan your relocation. Given that America is probably on a different continent from yours, you’ll have to book an expensive, international flight, which can cost from $500 to $1,200 for each person. Traveling expenses quickly ramp up if you’re relocating with the entire family.
We also have to consider shipping your clothing and other personal items. Movers commonly charge from $3,000 to $8,000 for international relocation, a price that varies based on the amount of things and distance. Lastly, your initial rent might be a bit pricier for the first few months until you find something more permanent. So, expect to pay from $1,500 to $3,000 for an apartment in a large US city.
Many professionals disregard these costs when planning their movement. As with visa fees, some of the employers might help you out with shipping and airfare. They might even cover for a few initial months of renting, until the first salaries start rolling in. Nevertheless, we still suggest that you keep some money on the side if you don’t receive any financial assistance.
Housing and Living Costs
While cars, furniture, and electronics aren’t that expensive in the US compared to the rest of the world, housing and daily expenses are notable. Housing costs have increased a lot in the last few years, following a global trend. Here are a few examples for big cities:
- In New York, one-bedroom apartments often cost from $3,000 upward, although you can find micro apartments cheaper.
- Renting in San Francisco and Silicon Valley is also, as expected, very expensive. Most apartments on the market range around $3,000 a month.
- Although large cities, Atlanta and Houston are significantly cheaper. You can get an apartment there for $1,500 to $2,000.
Besides covering rent, you also have to worry about the internet and utilities, which range around $300. Groceries will cost you at least $600 and potentially significantly more if you’re arriving in the country with your family. On average, Americans pay about $1,000 to use a car, but this cost can be significantly lower if you’re using public transportation.
Local Taxes
Taxes are one of the more convoluted categories for newcomers. For example, everyone has to cover federal tax, which ranges from 10% to 37% depending on how much you earn. State taxes are the secondary burden and every state has different policies regarding it. Texas and Floridate don’t have state tax, while California has a tax of 13%.
On top of that, you’ll have to spend 7.65% of your earnings on Medicare and Social Security. The issue compiles for foreigners, as they are potentially obliged to pay both the US and their home country’s taxes. The only saving grace is that there are some diplomatic treaties in place that might reduce or eliminate one double taxation. Inquire more with a local financial expert to avoid wasting money.
There are also different housing and commercial taxes that further increase how much you’ll lose each month. Most immigrants tend to neglect their impact, but they can leave quite a dent in your personal income. This is why more and more Americans, but also people working in the US, hire financial advisors to help them out.
Should You Move to the US?
If you’re struggling in your home country but work in a highly sought-after field, you should consider moving to the US. Despite recent struggles, America remains one of the best countries for young people to build careers.
Unfortunately, be prepared for high upfront and daily costs. The first few years will likely be tough, but once you get the hang of the ropes, you’ll have numerous opportunities in front of you.
