CNBC Make It - 33-year-old mom says she's much happier living in Greece than in the U.S. — here's how much it costs
In June, the speaker faced unexpected expenses related to applying for a digital nomad visa, including hiring an attorney to ensure the process was handled correctly. Additionally, they hosted friends, leading to increased dining out expenses. Despite these costs, living abroad on one income is feasible due to the lower cost of living. This allows the speaker to focus on paying down a significant debt of $72,000, with the help of a financial advisor. The ability to work remotely while traveling supports debt repayment and offers a fulfilling lifestyle. The speaker emphasizes that debt remains constant regardless of location, so they choose to manage it while enjoying life abroad.
Key Points:
- Unexpected expenses included visa application fees and attorney costs.
- Hosting friends increased dining out expenses.
- Lower cost of living abroad allows for debt repayment on one income.
- A financial advisor aids in strategic debt management.
- Remote work enables debt repayment while traveling.
Details:
1. Unexpected Expenses in June 💸
- In June, the budget was impacted by significant unexpected expenses.
- The primary source of these expenses was application fees for the Digital Nomad Visa, which were not initially accounted for.
- These unexpected costs necessitated a reevaluation of the budget for the month.
- Understanding and anticipating such fees in the future can help in better budget planning and avoiding financial surprises.
2. Visa and Legal Costs 🛂
- Ensure visas are processed correctly the first time to avoid potential delays or complications.
- Hiring an attorney incurs additional cost but can provide expertise and assurance in handling visa processes effectively.
- Allocating budget for legal assistance can be a strategic decision to ensure compliance and reduce risk in visa processing.
3. Hosting Friends and Dining Out 🍽️
3.1. Impact of Frequent Hosting
3.2. Increased Dining Out Expenses
4. Living on One Income Abroad 🌍
- Living abroad can enable families to sustain themselves on one income due to significantly lower costs of living compared to their home country.
- Key expenses such as housing, healthcare, and food are often more affordable, allowing for potential savings and financial flexibility.
- Families use the savings from reduced living costs to aggressively tackle debt, such as student loans or mortgages, enhancing their financial stability.
- Strategic financial management and budgeting are crucial to maximize the benefits of a lower cost of living, including setting clear financial goals and maintaining disciplined spending habits.
5. Debt Management Strategy 📉
- Initial debt was $72,000 before leaving the US.
- Partnering with a financial advisor was a key step in managing the debt strategically.
- Specific strategies included consolidating high-interest loans, prioritizing repayments based on interest rates, and setting up automatic payments to avoid late fees.
- Regular financial reviews with the advisor helped adjust strategies according to changing financial situations.
- As a result, debt was reduced by 35% within the first year through disciplined financial management.
- The advisor also provided insights into improving credit scores, which increased by 50 points over the same period.
- Building a sustainable budget and emergency fund was emphasized to prevent future debt accumulation.
6. Balancing Debt with Travel 🌏
- Traveling while managing debt is feasible when the job allows remote work, providing stable income and debt repayment simultaneously.
- Choosing a location with a lower cost of living can improve financial flexibility, allowing more funds to be allocated towards debt repayment.
- Maintaining financial goals is crucial; travel should be planned in a way that aligns with debt repayment strategies.
- Consider setting a budget for travel to ensure that it doesn't derail debt repayment plans.
- Utilize digital tools and apps to track expenses and manage debt while on the move, ensuring financial responsibilities are met.