Do Not Retire on 1000 USD Month Before Reading
Make sure to watch last week’s video where my guest star shares how she lived on $673 a month in Dumaguete in the Phillippines.
Where is it possible to live on $1000 Month?
One. There are people living on $1000 USD per month in the USA right now. That is all they have so they have to figure out how to make it work. They get creative. They move to small towns in cheap states, they get roommates, they ride public transportation, and they live in cheap housing. They have to figure it out. That is all they have, so they have to make it work.
Two. There are cheaper places in the world to live than the USA. In fact, the average (local) salary in almost every one of my retire cheap countries is below $1000 USD per month.
Three. That means that the average local person in each of these countries is living on less than $1000 USD per month.
Four. So when people say that it is impossible to live on $1000 USD a month in Phillippines, Vietnam, Malaysia, Peru. Mexico, etc., what they really mean is that it is impossible for them to live on $1000 USD per month in that country. That means they have more to spend than $1000 per month.
Five. In that case, we invite them to politely share their itemized personal budget for that country in the notes below and include how long they have lived there. Their cost of living data is welcome here.
Six. The fact that a person spends more than the average salary in a country is not proof that their budget is the minimum cost of living in that country. How could it be the minimum if half the people in that country are living on less?
Seven. Comments that insult or belittle anyone will be removed. It is the policy of this channel to block rude people, but polite people are welcome here including their contrary facts presented politely.
Eight. What I or a guest star (or someone that makes a polite comment below) budgets to live in a country does not mean you can live in that country on that budget.
Nine. You must do an exploratory visit to verify what your living costs will be in any county. Nobody else’s budget matters in that country but yours. Everyone else’s budget is just a data point that may or may not make sense for you.
So if you think about it, the real question is where would you be willing to live on $1000 per month, even if you determine you are able to live on that budget in a foreign country?
Where would I be willing to live on $1000 USD Month?
We report on the best Retire Cheap Places in the World on VagabondBuddha.com. We also tour all of these countries and report on our favorite places to live in each country. For this reason, we can talk intelligently about where I would be willing to live or retire cheap in the World on $1000 USD per month.
There is a difference between where it is possible to live on $1000 USD per month and where I would be willing to live on $1000 USD per month. For example, I would not be willing to live on $1000 USD per month in the USA even though other people are able to live on so little there.
Since I have seen the world, and I know I can get a better life for the same money in other countries, I would not be willing to live on $1000 per month in the USA.
Here are the countries where I would be willing to live on $1000 USD per month: Mexico, the Philippines, Malaysia, Cambodia, Ecuador, Nicaragua, Guatemala, Peru, and Vietnam.
I have lived in our visited 65 countries in my life so far. There are many more places I would likely be willing to live on $1000 USD per month but I am only including ones that I have visited in the last 5 years since that knowledge is fresher. If you are like me, your favorites will change over time. In my next video, I will discuss my favorite cities in each of those countries and the pros and cons of each, so make sure to subscribe so you will know when I post that video.
Favorites Cities in those Countries.
Next, I will share my favorite cities in each of the places where I would be willing to live on $1000 USD per month.
Retire cheap reports are available for almost all of these destinations on VagabondBuddha.com.
My Top Three Favorites in World
These are not in order. I suggest you visit all three before making up your mind? You will never know if you can live somewhere on your budget without going personally for an exploratory visit. I suggest 2 to 3 months each before making a final decision. The costs you are able to research personally in a 1 or 2-week visit will likely not be enough.
Pros: Low costs, Food, Beautiful Beach and City, Vegetarians/Vegans
Cons: Language, Dating, English Speaking Expats are in DaNang
Pros: Low Costs, Food, Highlands, University town, Culture
Cons: Remote, Beach far,
Pros: Low Costs, Dating, English, Friendly People
Cons: Infrastructure, Food, Beach far
If you are going to try to live on $1000 USD per month you really need to have some emergency savings in case of illness or other surprises. Many western countries have better safety nets. For example, if you get in a car wreck in the USA and other western countries, the hospital is probably required by law to treat you even if you have no ability to pay. But in the USA, the hospital can take everything you own if you can’t settle your bill. Whereas in Europe, health care is provided by the government and funded through taxes.
But if you move to many of these retire cheap places and go to the hospital, you may be refused treatment if you have no insurance or emergency money.
Also, you need to think about inflation. What will $1000 buy you around the world in 5 or 10 years? So, begin to think about ways to supplement your income now so it will be there later when you need it. I supplement my income with my hobby.
Don’t assume you can live as cheaply as we do. Here are six resources that explain why most people will be unable to live as cheaply as we do:
I do not want to ruin your dreams with negativity. I just want you to try to think of all the back-up plans you will need in place before you act.
To see our retire cheap reports for all of these cities visit VagabondBuddha.com. To have a copy of my free eBook emailed to you, visit this link, How I Fired My Boss and Traveled the World for 13 Years. To learn how I paid for our world travel expenses for 2020 read “The Hobby Income Course–How I pay for things without having a soul-sucking job”.
Thanks for reading this post–Do Not Retire on 1000 USD Month Before Reading.
This is Dan of Vagabond Awake, the YouTube Channel for Vagabond Buddha. The world is your home, what time will you be home for dinner?