etc.)
$100
Clothing
$120
Travel (overseas and back to States to see family, etc.)
$300
Total monthly budget
$3,005
x 12 = Yearly expenses
$36,060
Income per Month
Social Security
$1,200
Small pension
$600
Rental profit on U.S. home
$550
Income from investments
$1,000
Total Monthly Income
$3,350
x 12 = Yearly Income
$40,200
An Algarve Retreat on $30,000 a Year
I met one couple in this area who were fortunate enough to have received an early buyout package from his previous employer, which paid a healthy pension, plus she had inherited a princely sum. They live quite luxuriously and travel frequently. The following budget would not be theirs. I met others who were happy and comfortable on much less. This budget is a compilation of those of people I met who were working part-time but still enjoying the beaches and lifestyle.
Expenses per Month
Housing
Mortgage
$750
Renovations/maintenance
$100
Insurance
$40
Taxes
$60
Utilities
Electric/gas
$60
Medical
Health insurance
$250
Prescriptions
$20
Communication
Postage
$20
Phone
$35
Groceries
$200
Meals out
$180
Entertainment (movies, concerts, opera)
$60
Transportation
Car (used, paid in full)
$0
Gas/maintenance
$150
Car insurance
$50
Miscellaneous (haircuts, newspapers, magazines, etc.)
$60
Clothing
$100
Travel
$250
Total monthly expenses
$2,385
x 12 = Yearly expenses
$28,620
Income per Month
Social Security
$1,200
Income from investments
$450
Part-time jobs
$750
Total monthly income
$2,400
x 12 =yearly income
$28,800
Worksheet: Your Personal Budget
Once you know your destination and have done your homework on costs there, you’ll be able to create your own budget. Be flexible. As you proceed, adjust the figures for better, worse, or breaking even. In our case, for example, we spent less on a used car than we’d planned, but we spent much more on the gas to fill it up.
----
We found yachting generally less expensive than living in the Northeast U.S
.
—Sue and Jim, worldwide cruisers
----
Your Monthly Expenses
Per Month
Housing
Rent/mortgage/hotel/boat/camper
________
Upkeep/repairs
________
Purchases (furnishing, redecorating)
________
Taxes (if applicable)
________
Utilities
Electricity
________
Oil/gas
________
Water
________
Trash pickup
________
Telephone/internet access
________
Medical
Health insurance
________
Doctor/dentist visits
________
Prescriptions
________
Insurance
Auto
________
Apartment/homeowner
________
Life
________
Taxes
Real estate
________
Federal
________
State/local
________
Post office/mailing
________
Groceries
________
Entertainment/recreation
Dinners out
________
Movies/theater/sports events
________
Hobbies, etc.
________
Automotive
Gas/maintenance
________
Miscellaneous (haircuts, newspapers, magazines, film, etc.)
________
Language lessons
________
Clothing
________
Travel (overseas and to States to see family, etc.)
________
Family responsibilities
Alimony or child support
________
College or other child costs
________
Gifts and miscellaneous
________
Charitable contributions
________
Total monthly expenses
________
X 12 = Yearly expenses
________
Your Monthly Income
Per Month
Investment income
________
Income from retirement savings (after 59½)
________
Pension
________
Social Security
________
Home rental
________
Work
________
Miscellaneous other investments
________
Total monthly income
________
X 12 = Yearly income
________
The Bottom Line
Are your expenses and your income close? Then you’re in good shape for running away. If the gulf is wide, don’t be discouraged. Analyze each figure to see where you can add income or cut expenses to make your adventure possible in a few months or a few years.
----
We call this genteel poverty!
—Peter, Saint Senoch, France
----
Tips on Cutting Costs
The next best thing to having more money is needing less. For
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