Retire Early: Double Your Money in One Move
If you’re waiting to escape the rat race until you have enough money to live comfortably, your time has come. What if the money you have tucked away, along with the money you have coming in, were suddenly worth two to three times as much? By the end of this article, you’ll know exactly how to multiply your financial wellbeing and retire early.
You’ll learn a simple strategy to live a luxurious lifestyle abroad for half of what you’re now spending. We’ll explore exotic locations where you can bring in a housekeeper, gardener, and enjoy weekly massages – all without breaking the bank.
Luxury Living on a Budget
Oddly enough, if you’re willing to travel you can double or triple the quality of your lifestyle. If you’ve traveled outside the United States much you know this to be true.
As you explore the countries, economies, and cultures of the world, you recognize the multitude of enticing options and quickly become spoiled for choice. The greatest advantage is usually the lower cost of living abroad.
The perception of long-term travel and living abroad is that it’s a pipe dream; something only the rich can afford. The New Jet Set (who I talked about in the previous video) has debunked this myth and is living the dream. They now spend their days focusing on the positive and living in abundance. You can, too.
Whether you’re looking to retire early or take a gap year, spending time abroad can be a blast and a bargain.
Countries like Ecuador, Mexico, Panama, and Costa Rica all have a low cost of living. So do Malaysia, Colombia, Vietnam, Cambodia, Nicaragua, Indonesia, and Thailand. Before you discount any of these countries as being Third World, stick with me. You’ll be pleasantly surprised.
Social Security for Expats
One trap Americans fall into is seeking security. If we can just put away enough money for our Golden Years. If we just buy enough insurance on our house, our cars, our lives… then we will be happily secure. A false sense of security compromises our happiness no matter how diligently we pursue it.
Security is so important to us, the United States government established an entire department to secure our future. The Social Security Act was signed into law by President Franklin D. Roosevelt on August 14, 1935.
Basically, Uncle Sam (U.S.) promises if you contribute some of each paycheck to your Social Security, he will give that money back to you in the form of a monthly payment when you are old and, presumably, no longer have an income. Security in your old age.
It isn’t so much a request as it is a demand from Uncle Sam. Through your employer, he deducts his cut of your paycheck (including Social Security) before your earnings ever hit your bank account. This is okay, though, because the expectation is that your money will be returned to you when you need it most.
Today, the average Social Security retirement benefit is around $1,900 per month. With this, you can live comfortably in budget-friendly countries all over the world. Ironically, the US is NOT one of those countries. In fact, if all you have in your old age is Social Security and you stay in America, you can expect to live a frugal existence.
Beginning at age 62, you can retire early (by a few years) and have the option of receiving monthly payments from the Social Security Administration (SSA). If you move abroad, you are still entitled to receive these benefits. The government sends 700,000 checks a month to foreign addresses which is an increase of about 40% over the past decade. The SSA will direct deposit your funds to your foreign bank account in most countries.
PRO TIP: Medicare is another story. The national health insurance for those 65 and over can only be used inside the country. If you live outside the United States, you cannot use Medicare. As I’ve discovered, however, the cost of healthcare outside the US is far less expensive.
Regardless of your age, you’ll want to take a hard look at who’s responsible for your well-being and happiness. Despite the promises made about security in your senior years and regardless of the expectations you have for affordable healthcare or financial freedom, YOU are ultimately responsible for the quality of your life.
2x Your Nest Egg
It doesn’t matter if you’re retiring on a pension, enjoying a location independent career as a Digital Nomad, or stepping out as a global entrepreneur, taking off for a better life will have you saving money.
Two of the biggest draws in becoming a global citizen are the reduction in living expenses and the increase in lifestyle enjoyment. Living overseas on a modest budget can still leave you with enough to indulge in a housekeeper and a gardener.
MY STORY: We’ll use Malaysia as an example since this is where I live and know it best.
A colony of the British Empire for more than 80 years, Malaysia is one of those exotic destinations halfway around the world. A billboard for diversity, this nation is a mix of Malays, Chinese, and Indians speaking the common language of the Queen’s English.
The country is in Southeast Asia bordering Thailand to the north and Singapore to the south. Here you find a blend of affordability and value.
It’s not the backpacking, ‘live on a shoestring budget’ lifestyle found in other parts of Asia. If you’re looking for prosperity without breaking the bank, this is a good fit.
If you’re thinking you’ll have to give up the first-class comforts of home to live in some third-world country, you’ll be pleasantly surprised. This location offers a low cost of living, in a warm climate, with high-quality medical facilities, in a safe environment.
The value you receive for the quality and the size of the home is the best in Asia. Malaysia is one of the few places on the continent where foreigners can own land freehold. Renting is an even better value with rents being 70 percent less expensive than in the US.
The images above are of my personal residence. This is where I live. Easily worth more than a $1 million in Florida or California, this 2-bedroom 1,377 sq. ft. suite cost me less than a third of that (I believe we’d have to call this triple the value, wouldn’t we?).
Cut Your Expenses in Half
The price/value of the lifestyle offered in Malaysia is hard to beat. I lead a more luxurious life since I moved here in 2022. I indulge in what I previously considered extravagant creature comforts.
I eat out or have dinner delivered most every night. $400 mo. (It’s cheaper than making dinner at home.)
Housekeeper 3 hours per week. $50 mo. (not per visit but for all four visits)
Weekly massage. $100 mo. (In a month’s time I still spend less than the cost of a single 1-hour massage in Denver.)
The cost of living is significantly less than half of what it is in the United States yet still affords the comforts and modern conveniences you’re accustomed to. How’s that for more than 2x-ing your money.
Intentionally Different
As you settle into your new life in your new country, you’ll also find behavioral changes begin to take hold. You’re no longer on the 9-5 treadmill. You start allocating your time and your money more intentionally—not because you must but because you can.
Your money is no longer spent on driving your popularity.
What impresses your new friends and acquaintances is who you are as a person. It’s not a curated social media presence or a big home full of possessions.
People don’t ask what you do; they ask you where you’re from. You are not competing with your neighbor to own the newest car or the biggest house in the fanciest neighborhood.
Prepare for life to be different in ways you didn’t expect.
If you once suffered from the disease of More, you feel the symptoms subsiding. In the process, you experience a different type of independence and a new style of freedom. You’re not intentionally spending your money on a lifestyle you’re expected to live. You’re spending your money living an intentional lifestyle of your own design.
Another way to have your money go further is to avoid the Top 3 Mistakes Mistakes First-Timers Make.
