After 10 Years Abroad — Nobody Taught Me This!

All right, welcome back to Saigon All right, welcome back to Saigon Vietnam. I'm Evan A, retired early in Vietnam. I'm Evan A, retired early in Vietnam. I'm Evan A, retired early in Vietnam, and I've making videos about my Vietnam, and I've making videos about my Vietnam, and I've making videos about my actual numbers for a while now, you actual numbers for a while now, you actual numbers for a while now, you know, my real cost of living abroad, the know, my real cost of living abroad, the know, my real cost of living abroad, the savings rate, the portfolio, the 4% savings rate, the portfolio, the 4% savings rate, the portfolio, the 4% rule, cost of a week of groceries, all rule, cost of a week of groceries, all rule, cost of a week of groceries, all that really matters. But today I want to that really matters. But today I want to that really matters. But today I want to do something a little bit different. I do something a little bit different. I do something a little bit different. I want to step back from the spreadsheets want to step back from the spreadsheets want to step back from the spreadsheets and the calculators and my expenses, and the calculators and my expenses, and the calculators and my expenses, tell you the things that 10-plus years tell you the things that 10-plus years tell you the things that 10-plus years of actually living abroad has taught me of actually living abroad has taught me of actually living abroad has taught me about money, sort of life lessons that about money, sort of life lessons that about money, sort of life lessons that don't fit into any calculator or Excel don't fit into any calculator or Excel don't fit into any calculator or Excel sheet, the ones that you can't really be sheet, the ones that you can't really be sheet, the ones that you can't really be taught because they only show up after taught because they only show up after taught because they only show up after you've lived through them. So, if you've you've lived through them. So, if you've you've lived through them. So, if you've been watching this channel in order you been watching this channel in order you been watching this channel in order you know my story by now, right? Leaving know my story by now, right? Leaving know my story by now, right? Leaving Canada and the big crash, going to Canada and the big crash, going to Canada and the big crash, going to Mexico, spending the next 15 years Mexico, spending the next 15 years Mexico, spending the next 15 years basically across 10 countries, going basically across 10 countries, going basically across 10 countries, going back to Canada briefly, a bit of a back to Canada briefly, a bit of a back to Canada briefly, a bit of a mistake, uh and then landing here in mistake, uh and then landing here in mistake, uh and then landing here in Vietnam, and basically retiring at 40 on Vietnam, and basically retiring at 40 on Vietnam, and basically retiring at 40 on an international teacher's salary. So, an international teacher's salary. So, an international teacher's salary. So, this video is a kind of distillation of this video is a kind of distillation of this video is a kind of distillation of that whole story, the eight things I that whole story, the eight things I that whole story, the eight things I actually know about money now that I actually know about money now that I actually know about money now that I didn't know when I started this journey.

didn't know when I started this journey. didn't know when I started this journey. Every one of them I think earned through Every one of them I think earned through Every one of them I think earned through uh years and experience and the actual uh years and experience and the actual uh years and experience and the actual hard knocks. And several of them earned hard knocks. And several of them earned hard knocks. And several of them earned by by getting it wrong and paying for by by getting it wrong and paying for by by getting it wrong and paying for it. So, they're not so much tips. Tips I it. So, they're not so much tips. Tips I it. So, they're not so much tips. Tips I think are more what you get from people think are more what you get from people think are more what you get from people who read about money. They're These are who read about money. They're These are who read about money. They're These are more like life lessons, which is what more like life lessons, which is what more like life lessons, which is what you get from from living it and being on you get from from living it and being on you get from from living it and being on the wrong side of it. And I I've got the wrong side of it. And I I've got the wrong side of it. And I I've got plenty of it wrong along the way, and plenty of it wrong along the way, and plenty of it wrong along the way, and the wrong part of it's taught me more um the wrong part of it's taught me more um the wrong part of it's taught me more um than really the right parts did. So, I'm than really the right parts did. So, I'm than really the right parts did. So, I'm going to give them to you in the rough going to give them to you in the rough going to give them to you in the rough order I learned them chronologically, order I learned them chronologically, order I learned them chronologically, which hopefully will build on them up to which hopefully will build on them up to which hopefully will build on them up to the point of where I am now. The early the point of where I am now. The early the point of where I am now. The early ones are basically about mechanics. The ones are basically about mechanics. The ones are basically about mechanics. The later ones are things that the mechanics later ones are things that the mechanics later ones are things that the mechanics can't really touch. If you stay with me can't really touch. If you stay with me can't really touch. If you stay with me to the last one, especially because it's to the last one, especially because it's to the last one, especially because it's the most expensive lesson that I've the most expensive lesson that I've the most expensive lesson that I've learned living abroad, uh and the one learned living abroad, uh and the one learned living abroad, uh and the one I'd like most to save you from. Lesson I'd like most to save you from. Lesson I'd like most to save you from. Lesson one, one, one, your retirement number is not fixed. your retirement number is not fixed. your retirement number is not fixed. Despite what anybody tells you, that is Despite what anybody tells you, that is Despite what anybody tells you, that is an absolute lie. It's trash. an absolute lie. It's trash. an absolute lie. It's trash. There's no fixed magical number. There's no fixed magical number. There's no fixed magical number. Retirement number is a function of your Retirement number is a function of your Retirement number is a function of your geography, right? So, this is the geography, right? So, this is the geography, right? So, this is the foundation of everything I talk about on foundation of everything I talk about on foundation of everything I talk about on the channel in geoarbitrage, and I've the channel in geoarbitrage, and I've the channel in geoarbitrage, and I've said it different ways in different said it different ways in different said it different ways in different videos across all of videos across all of videos across all of my whatever it is I've shared, my my whatever it is I've shared, my my whatever it is I've shared, my learnings, my teachings, but it belongs learnings, my teachings, but it belongs learnings, my teachings, but it belongs at the top of any real lesson, any at the top of any real lesson, any at the top of any real lesson, any honest lesson, because the number you honest lesson, because the number you honest lesson, because the number you need to retire is not a law of nature need to retire is not a law of nature need to retire is not a law of nature handed to you by some chartered handed to you by some chartered handed to you by some chartered financial accountant or CFP or whatever.

financial accountant or CFP or whatever. financial accountant or CFP or whatever. It's a direct function of where and how It's a direct function of where and how It's a direct function of where and how you choose to live, and when. So, so I you choose to live, and when. So, so I you choose to live, and when. So, so I learned this my first year abroad in learned this my first year abroad in learned this my first year abroad in Guanajuato, then Mexico City, when I Guanajuato, then Mexico City, when I Guanajuato, then Mexico City, when I realized basically that my North realized basically that my North realized basically that my North American Canadian US salary expectations American Canadian US salary expectations American Canadian US salary expectations and my Mexican cost of living were two and my Mexican cost of living were two and my Mexican cost of living were two completely independent variables. Most completely independent variables. Most completely independent variables. Most people spend their whole lives believing people spend their whole lives believing people spend their whole lives believing their retirement number is fixed, one their retirement number is fixed, one their retirement number is fixed, one and a half or two million dollars, 25 and a half or two million dollars, 25 and a half or two million dollars, 25 years of savings, 4% drawdown rate for years of savings, 4% drawdown rate for years of savings, 4% drawdown rate for 30 years, blah blah blah, boring, not 30 years, blah blah blah, boring, not 30 years, blah blah blah, boring, not real. They organize decades around real. They organize decades around real. They organize decades around chasing it, you know, the number moved chasing it, you know, the number moved chasing it, you know, the number moved the day I moved. Yours can, too. the day I moved. Yours can, too. the day I moved. Yours can, too. Everything else basically I talk about Everything else basically I talk about Everything else basically I talk about on this channel descends from this one on this channel descends from this one on this channel descends from this one single lesson. It can be summed up in single lesson. It can be summed up in single lesson. It can be summed up in that ugly word geoarbitrage, but it's that ugly word geoarbitrage, but it's that ugly word geoarbitrage, but it's real. real. real. Uh purchasing power is another way to Uh purchasing power is another way to Uh purchasing power is another way to say it. I remember the exact moment it say it. I remember the exact moment it say it. I remember the exact moment it clicked for me. I was sitting in a cheap clicked for me. I was sitting in a cheap clicked for me. I was sitting in a cheap apartment in Mexico City doing the apartment in Mexico City doing the apartment in Mexico City doing the arithmetic on the back of a journal I arithmetic on the back of a journal I arithmetic on the back of a journal I had, and I realized basically that my had, and I realized basically that my had, and I realized basically that my rent was roughly a fifth of what it had rent was roughly a fifth of what it had rent was roughly a fifth of what it had been when I was living in San Francisco, been when I was living in San Francisco, been when I was living in San Francisco, right? My food costs were almost right? My food costs were almost right? My food costs were almost nothing, and the modest teaching wage nothing, and the modest teaching wage nothing, and the modest teaching wage that I was earning, which honestly, that I was earning, which honestly, that I was earning, which honestly, guys, it it added up to about $4.00 an guys, it it added up to about $4.00 an guys, it it added up to about $4.00 an hour, um and I thought was a total dead hour, um and I thought was a total dead hour, um and I thought was a total dead end, end, end, was leaving me a surplus every month.

was leaving me a surplus every month. was leaving me a surplus every month. So, I was able not only to live off of So, I was able not only to live off of So, I was able not only to live off of it for the first time and like live well it for the first time and like live well it for the first time and like live well for the first time in my adult life. The for the first time in my adult life. The for the first time in my adult life. The salary had dropped, you know, in a salary had dropped, you know, in a salary had dropped, you know, in a significant way, but the denominator had significant way, but the denominator had significant way, but the denominator had changed, and that was the whole changed, and that was the whole changed, and that was the whole revelation, right? Sitting there on the revelation, right? Sitting there on the revelation, right? Sitting there on the back of the notebook, I'd done the math, back of the notebook, I'd done the math, back of the notebook, I'd done the math, and I'd spent basically the next 15 and I'd spent basically the next 15 and I'd spent basically the next 15 years of my life since then building an years of my life since then building an years of my life since then building an entire plan around that simple lesson. entire plan around that simple lesson. entire plan around that simple lesson. Lesson two, Lesson two, Lesson two, the gap is the only number that matters. the gap is the only number that matters. the gap is the only number that matters. Not your income, not your salary, the Not your income, not your salary, the Not your income, not your salary, the gap between what you earn and what you gap between what you earn and what you gap between what you earn and what you spend, i.e., your savings rate, this is spend, i.e., your savings rate, this is spend, i.e., your savings rate, this is it. It's all that matters, man. So, I've it. It's all that matters, man. So, I've it. It's all that matters, man. So, I've watched colleagues and friends earn two, watched colleagues and friends earn two, watched colleagues and friends earn two, three, four times what I earned, and three, four times what I earned, and three, four times what I earned, and they save less than I did because their they save less than I did because their they save less than I did because their expenses scaled with their income, and expenses scaled with their income, and expenses scaled with their income, and mine didn't. Whenever I made more mine didn't. Whenever I made more mine didn't. Whenever I made more income, I made sure my expenses income, I made sure my expenses income, I made sure my expenses basically stayed flat, except for the basically stayed flat, except for the basically stayed flat, except for the few years when I went back to Canada, few years when I went back to Canada, few years when I went back to Canada, which were a bit of a mistake. But which were a bit of a mistake. But which were a bit of a mistake. But basically, a high earner with a small basically, a high earner with a small basically, a high earner with a small gap between what they spend and what gap between what they spend and what gap between what they spend and what they earn is poor long-term in the only they earn is poor long-term in the only they earn is poor long-term in the only sense that really matters for financial sense that really matters for financial sense that really matters for financial freedom. A modest earner with a large freedom. A modest earner with a large freedom. A modest earner with a large gap between spending and income is a gap between spending and income is a gap between spending and income is a win. I retired at 40 on a teacher's win. I retired at 40 on a teacher's win. I retired at 40 on a teacher's income because I protected the gap, income because I protected the gap, income because I protected the gap, nurtured it, grew it for basically two nurtured it, grew it for basically two nurtured it, grew it for basically two decades as I learned how to live like decades as I learned how to live like decades as I learned how to live like this. And the size of the paycheck this. And the size of the paycheck this. And the size of the paycheck almost became irrelevant. The size of almost became irrelevant. The size of almost became irrelevant. The size of the gap, that savings rate, was all that the gap, that savings rate, was all that the gap, that savings rate, was all that mattered. It was everything, right? The mattered. It was everything, right? The mattered. It was everything, right? The trap gets people in that the gap, the

trap gets people in that the gap, the trap gets people in that the gap, the savings rate, is invisible. Nobody savings rate, is invisible. Nobody savings rate, is invisible. Nobody congratulates you on your savings rate, congratulates you on your savings rate, congratulates you on your savings rate, right? Nobody can really see it. They right? Nobody can really see it. They right? Nobody can really see it. They see the car, the apartment, the watch, see the car, the apartment, the watch, see the car, the apartment, the watch, you know, the clothes you wear, which you know, the clothes you wear, which you know, the clothes you wear, which are all the exact opposite of the gap. are all the exact opposite of the gap. are all the exact opposite of the gap. Those are costs, often vanity metrics. Those are costs, often vanity metrics. Those are costs, often vanity metrics. So, the whole social world pushes you to So, the whole social world pushes you to So, the whole social world pushes you to shrink the very number that actually shrink the very number that actually shrink the very number that actually buys your financial freedom, and to buys your financial freedom, and to buys your financial freedom, and to display the spending that destroys it, display the spending that destroys it, display the spending that destroys it, right? Earn more, spend more, show off, right? Earn more, spend more, show off, right? Earn more, spend more, show off, super [ __ ] official rewards. Buying super [ __ ] official rewards. Buying super [ __ ] official rewards. Buying back your life, your time, real value, back your life, your time, real value, back your life, your time, real value, invisible. So, I've had colleagues, you invisible. So, I've had colleagues, you invisible. So, I've had colleagues, you know, people in Shanghai who out-earned know, people in Shanghai who out-earned know, people in Shanghai who out-earned me here in Vietnam by a wide margin. me here in Vietnam by a wide margin. me here in Vietnam by a wide margin. We're talking about like a hundred We're talking about like a hundred We're talking about like a hundred thousand compared to 40 or 50 thousand, thousand compared to 40 or 50 thousand, thousand compared to 40 or 50 thousand, who couldn't survive three months who couldn't survive three months who couldn't survive three months without their paycheck because their without their paycheck because their without their paycheck because their expenses rise to swallow every single expenses rise to swallow every single expenses rise to swallow every single raise, right? Where I'm quietly building raise, right? Where I'm quietly building raise, right? Where I'm quietly building an escape hatch on less money because an escape hatch on less money because an escape hatch on less money because I'm protecting the savings gap. They're I'm protecting the savings gap. They're I'm protecting the savings gap. They're spending every time they get in, you spending every time they get in, you spending every time they get in, you know, a raise. It's like, well, first I know, a raise. It's like, well, first I know, a raise. It's like, well, first I spend 5,000 a month, then I spend 7,000 spend 5,000 a month, then I spend 7,000 spend 5,000 a month, then I spend 7,000 a month. It's super easy, man. You just a month. It's super easy, man. You just a month. It's super easy, man. You just move to a nicer apartment, get a nicer move to a nicer apartment, get a nicer move to a nicer apartment, get a nicer car. That's it. And nobody can really car. That's it. And nobody can really car. That's it. And nobody can really see the difference until, I think, see the difference until, I think, see the difference until, I think, ultimately, the day you walk away or the ultimately, the day you walk away or the ultimately, the day you walk away or the day I walked away, right? Like, when I day I walked away, right? Like, when I day I walked away, right? Like, when I told people at my job that I was [ __ ] told people at my job that I was [ __ ] told people at my job that I was [ __ ] quitting to retire, they were just like, quitting to retire, they were just like, quitting to retire, they were just like, with what? How? And I was like, well, I with what? How? And I was like, well, I with what? How? And I was like, well, I have savings. And they're like, how? You have savings. And they're like, how? You have savings. And they're like, how? You have a million dollars? And I'm like, have a million dollars? And I'm like, have a million dollars? And I'm like, what are you talking about, guys? Like, what are you talking about, guys? Like, what are you talking about, guys? Like, we live in Vietnam. You don't need a we live in Vietnam. You don't need a we live in Vietnam. You don't need a million dollars to retire. It's batshit

million dollars to retire. It's batshit million dollars to retire. It's batshit crazy. Lesson three, this counts a lot crazy. Lesson three, this counts a lot crazy. Lesson three, this counts a lot for many of the teachers I work with for many of the teachers I work with for many of the teachers I work with abroad. Lifestyle inflation is a silent abroad. Lifestyle inflation is a silent abroad. Lifestyle inflation is a silent killer, and it gets worse abroad, not killer, and it gets worse abroad, not killer, and it gets worse abroad, not better, cuz you keep telling yourself better, cuz you keep telling yourself better, cuz you keep telling yourself you're saving money, right? Covered this you're saving money, right? Covered this you're saving money, right? Covered this in the money mistakes video, but it in the money mistakes video, but it in the money mistakes video, but it earns a place here because it's the earns a place here because it's the earns a place here because it's the lesson that catches the most people. lesson that catches the most people. lesson that catches the most people. Lifestyle inflation back home can be Lifestyle inflation back home can be Lifestyle inflation back home can be gradual. Abroad, in a place like gradual. Abroad, in a place like gradual. Abroad, in a place like Thailand, Malaysia, Vietnam, Bali, it's Thailand, Malaysia, Vietnam, Bali, it's Thailand, Malaysia, Vietnam, Bali, it's often turbocharged because everything often turbocharged because everything often turbocharged because everything expensive feels cheap relative to the expensive feels cheap relative to the expensive feels cheap relative to the cost that you have set or fixed in your cost that you have set or fixed in your cost that you have set or fixed in your head wherever you came from. So, you head wherever you came from. So, you head wherever you came from. So, you spend like you're finding all these spend like you're finding all these spend like you're finding all these bargains, when actually you're doubling bargains, when actually you're doubling bargains, when actually you're doubling your burn rate, you're increasing your burn rate, you're increasing your burn rate, you're increasing your spending. The brain just doesn't your spending. The brain just doesn't your spending. The brain just doesn't recalibrate to local prices for a long recalibrate to local prices for a long recalibrate to local prices for a long time or never unless you figured it out. time or never unless you figured it out. time or never unless you figured it out. So, I have to learn to set my budget So, I have to learn to set my budget So, I have to learn to set my budget before I arrive somewhere and then stick before I arrive somewhere and then stick before I arrive somewhere and then stick to it because the version of me that had to it because the version of me that had to it because the version of me that had been in country for 6 months couldn't be been in country for 6 months couldn't be been in country for 6 months couldn't be trusted to judge what is actually trusted to judge what is actually trusted to judge what is actually expensive or affordable here or in other expensive or affordable here or in other expensive or affordable here or in other countries I've lived in. If that countries I've lived in. If that countries I've lived in. If that confuses you, it's probably because confuses you, it's probably because confuses you, it's probably because you've never calculated this. But you've never calculated this. But you've never calculated this. But basically, you know, you plug into cost basically, you know, you plug into cost basically, you know, you plug into cost of living calculator how much you're of living calculator how much you're of living calculator how much you're going to save by living abroad and it going to save by living abroad and it going to save by living abroad and it only works if you stick to a similar only works if you stick to a similar only works if you stick to a similar lifestyle. It doesn't work if you start lifestyle. It doesn't work if you start lifestyle. It doesn't work if you start spending on cocktails by the beach every spending on cocktails by the beach every spending on cocktails by the beach every night and eating out every single day at night and eating out every single day at night and eating out every single day at the most expensive restaurant in town, the most expensive restaurant in town, the most expensive restaurant in town, which is still quote-unquote cheap. By which is still quote-unquote cheap. By which is still quote-unquote cheap. By month six, your reference point will month six, your reference point will month six, your reference point will have quietly moved. You know, a $12 have quietly moved. You know, a $12 have quietly moved. You know, a $12 Western brunch stops feeling like a Western brunch stops feeling like a Western brunch stops feeling like a splurge and starts feeling like normal

splurge and starts feeling like normal splurge and starts feeling like normal because it's still cheaper than the 25 because it's still cheaper than the 25 because it's still cheaper than the 25 bucks or 30 bucks you'd spend at home bucks or 30 bucks you'd spend at home bucks or 30 bucks you'd spend at home for brunch. So, five of those a week, for brunch. So, five of those a week, for brunch. So, five of those a week, $300 a month you didn't plan for, yada $300 a month you didn't plan for, yada $300 a month you didn't plan for, yada yada, you're going to think you were yada, you're going to think you were yada, you're going to think you were living frugally compared to how you were living frugally compared to how you were living frugally compared to how you were at home, but ultimately your burn rate's at home, but ultimately your burn rate's at home, but ultimately your burn rate's going to go up. The only defense I ever going to go up. The only defense I ever going to go up. The only defense I ever found was to compare my spending against found was to compare my spending against found was to compare my spending against my own plan. If you don't have a plan, my own plan. If you don't have a plan, my own plan. If you don't have a plan, you can't do that, right? You can never you can't do that, right? You can never you can't do that, right? You can never compare it against the prices back home compare it against the prices back home compare it against the prices back home because against the prices back home, because against the prices back home, because against the prices back home, everything here looks basically free and everything here looks basically free and everything here looks basically free and you'll spend yourself right out of your you'll spend yourself right out of your you'll spend yourself right out of your savings margin feeling like you're savings margin feeling like you're savings margin feeling like you're getting a deal the whole time. Okay, getting a deal the whole time. Okay, getting a deal the whole time. Okay, lesson four, currency. Currency is real, lesson four, currency. Currency is real, lesson four, currency. Currency is real, it's manageable, it's not worth losing it's manageable, it's not worth losing it's manageable, it's not worth losing sleep over if you keep it simple. I sleep over if you keep it simple. I sleep over if you keep it simple. I spent years trying to time exchange spent years trying to time exchange spent years trying to time exchange rates. I lost money doing it. That's rates. I lost money doing it. That's rates. I lost money doing it. That's also in the mistakes video. The lesson also in the mistakes video. The lesson also in the mistakes video. The lesson underneath the mistake is broader. underneath the mistake is broader. underneath the mistake is broader. Currency risks are real, especially for Currency risks are real, especially for Currency risks are real, especially for Canadians, Australians, like many of you Canadians, Australians, like many of you Canadians, Australians, like many of you watching whose home currencies swing watching whose home currencies swing watching whose home currencies swing more against the US dollar and the dong. more against the US dollar and the dong. more against the US dollar and the dong. It's manageable with some boring habits. It's manageable with some boring habits. It's manageable with some boring habits. Convert on a schedule the equivalent of Convert on a schedule the equivalent of Convert on a schedule the equivalent of dollar cost averaging. Use a service dollar cost averaging. Use a service dollar cost averaging. Use a service that gives you the real rate, the that gives you the real rate, the that gives you the real rate, the interbank rate. Keep a few months of interbank rate. Keep a few months of interbank rate. Keep a few months of local currency so you're never forced to local currency so you're never forced to local currency so you're never forced to convert at a bad moment. Everyone who convert at a bad moment. Everyone who convert at a bad moment. Everyone who tries to outsmart the currency market tries to outsmart the currency market tries to outsmart the currency market loses more than their own cleverness.

loses more than their own cleverness. loses more than their own cleverness. They lose way more than they ever would They lose way more than they ever would They lose way more than they ever would have by just doing it regularly and have by just doing it regularly and have by just doing it regularly and scheduled. I know because I was that scheduled. I know because I was that scheduled. I know because I was that person for a couple years, you know, person for a couple years, you know, person for a couple years, you know, watching the dollar against the dong watching the dollar against the dong watching the dollar against the dong like a day trader, holding off on like a day trader, holding off on like a day trader, holding off on converting because I was sure the rate converting because I was sure the rate converting because I was sure the rate would move in my favor, and often just would move in my favor, and often just would move in my favor, and often just being wrong. It's stupid. You never being wrong. It's stupid. You never being wrong. It's stupid. You never really save. You never beat the market. really save. You never beat the market. really save. You never beat the market. So, the boring schedule always beats the So, the boring schedule always beats the So, the boring schedule always beats the clever guesswork. Convert a set amount clever guesswork. Convert a set amount clever guesswork. Convert a set amount on a set day. Use a service like Wise on a set day. Use a service like Wise on a set day. Use a service like Wise that gives you the real mid-market rate that gives you the real mid-market rate that gives you the real mid-market rate instead of a marked-up bank one. Keep a instead of a marked-up bank one. Keep a instead of a marked-up bank one. Keep a few extra months of local confers few extra months of local confers few extra months of local confers currency so you're not under pressure. currency so you're not under pressure. currency so you're not under pressure. That's the whole strategy, boring on That's the whole strategy, boring on That's the whole strategy, boring on purpose, the same way most of this stuff purpose, the same way most of this stuff purpose, the same way most of this stuff works, folks. Less than five, your works, folks. Less than five, your works, folks. Less than five, your obligations are going to follow you obligations are going to follow you obligations are going to follow you across the border. You're still going to across the border. You're still going to across the border. You're still going to be you wherever you go. This is the one be you wherever you go. This is the one be you wherever you go. This is the one most people want to be untrue, and it most people want to be untrue, and it most people want to be untrue, and it just isn't. If you're American, the US just isn't. If you're American, the US just isn't. If you're American, the US taxes you on worldwide income no matter taxes you on worldwide income no matter taxes you on worldwide income no matter where your body is. So, you need that where your body is. So, you need that where your body is. So, you need that FEIE sweet exclusion. If you're FEIE sweet exclusion. If you're FEIE sweet exclusion. If you're Canadian, severing tax residency is a Canadian, severing tax residency is a Canadian, severing tax residency is a real process with real rules. It's not real process with real rules. It's not real process with real rules. It's not just a matter of buying a plane ticket, just a matter of buying a plane ticket, just a matter of buying a plane ticket, so you need to know the rules. You know, so you need to know the rules. You know, so you need to know the rules. You know, you need to know what FBAR, the FEIE, you need to know what FBAR, the FEIE, you need to know what FBAR, the FEIE, you need the deemed disposition rules, you need the deemed disposition rules, you need the deemed disposition rules, the state tax residency traps. None of the state tax residency traps. None of the state tax residency traps. None of it disappears when you land in Bangkok, it disappears when you land in Bangkok, it disappears when you land in Bangkok, Cebu, or Saigon. So, I learned to treat Cebu, or Saigon. So, I learned to treat Cebu, or Saigon. So, I learned to treat that paperwork as a permanent operating that paperwork as a permanent operating that paperwork as a permanent operating cost of this lifestyle abroad. It's not cost of this lifestyle abroad. It's not cost of this lifestyle abroad. It's not a one-time thing that you can handle and a one-time thing that you can handle and a one-time thing that you can handle and forget. Like everyone looks for the forget. Like everyone looks for the forget. Like everyone looks for the sweet like, "Oh, I can just do the visa sweet like, "Oh, I can just do the visa sweet like, "Oh, I can just do the visa once. I can just do the bank once. I can once. I can just do the bank once. I can once. I can just do the bank once. I can just do this once." Not true, man. You just do this once." Not true, man. You just do this once." Not true, man. You have to [ __ ] stay up to date the same have to [ __ ] stay up to date the same have to [ __ ] stay up to date the same as where you would at home. It's just

as where you would at home. It's just as where you would at home. It's just different cuz the administrative and different cuz the administrative and different cuz the administrative and bureaucratic processes are different in bureaucratic processes are different in bureaucratic processes are different in every country. But, every year the every country. But, every year the every country. But, every year the filing happens, an accountant gets paid. filing happens, an accountant gets paid. filing happens, an accountant gets paid. It's not glamorous. It's not optional. It's not glamorous. It's not optional. It's not glamorous. It's not optional. And the people who get hurt are almost And the people who get hurt are almost And the people who get hurt are almost always the ones who assume that leaving always the ones who assume that leaving always the ones who assume that leaving the country means they have no the country means they have no the country means they have no obligations. It does not. This is like obligations. It does not. This is like obligations. It does not. This is like classic ostrich, stick your [ __ ] head classic ostrich, stick your [ __ ] head classic ostrich, stick your [ __ ] head in the sand and pretend like it doesn't in the sand and pretend like it doesn't in the sand and pretend like it doesn't exist. I think the single best money a exist. I think the single best money a exist. I think the single best money a lot of people ever spend on their lot of people ever spend on their lot of people ever spend on their transition is a specialist or a tax transition is a specialist or a tax transition is a specialist or a tax person or accountant who can map out person or accountant who can map out person or accountant who can map out your obligations before your status your obligations before your status your obligations before your status changes so you never end up being changes so you never end up being changes so you never end up being surprised. I'm going to do a whole video surprised. I'm going to do a whole video surprised. I'm going to do a whole video on the tax side of this on my Cost on the tax side of this on my Cost on the tax side of this on my Cost Living Abroad channel because it's more Living Abroad channel because it's more Living Abroad channel because it's more important and it's where people make the important and it's where people make the important and it's where people make the most expensive and avoidable mistake. most expensive and avoidable mistake. most expensive and avoidable mistake. The portfolio for me, for many people The portfolio for me, for many people The portfolio for me, for many people who do this, is a backstop. It's not a who do this, is a backstop. It's not a who do this, is a backstop. It's not a whole plan. It's not about having a set whole plan. It's not about having a set whole plan. It's not about having a set fixed retirement number and living on it fixed retirement number and living on it fixed retirement number and living on it forever for 30 years hoping it just forever for 30 years hoping it just forever for 30 years hoping it just works. You know, when I retired, I works. You know, when I retired, I works. You know, when I retired, I didn't just flip a switch and start didn't just flip a switch and start didn't just flip a switch and start drawing down a dividend portfolio at 4, drawing down a dividend portfolio at 4, drawing down a dividend portfolio at 4, 8%, or 10%. I built multiple income 8%, or 10%. I built multiple income 8%, or 10%. I built multiple income streams before I pulled the trigger.

streams before I pulled the trigger. streams before I pulled the trigger. YouTube channels, selling digital YouTube channels, selling digital YouTube channels, selling digital products, dividends, stuff that would products, dividends, stuff that would products, dividends, stuff that would cover my burn rate no problem. So, the cover my burn rate no problem. So, the cover my burn rate no problem. So, the portfolio in principle could just sit portfolio in principle could just sit portfolio in principle could just sit and compound. I've covered the full and compound. I've covered the full and compound. I've covered the full structure in a portfolio breakdown video structure in a portfolio breakdown video structure in a portfolio breakdown video before, but the lesson is that the before, but the lesson is that the before, but the lesson is that the strongest version of financial freedom strongest version of financial freedom strongest version of financial freedom isn't one big huge number you slowly isn't one big huge number you slowly isn't one big huge number you slowly spend down. It's a low burn rate covered spend down. It's a low burn rate covered spend down. It's a low burn rate covered by modest income with a portfolio by modest income with a portfolio by modest income with a portfolio standing behind it as protection. It's standing behind it as protection. It's standing behind it as protection. It's multiple layers, multiple income multiple layers, multiple income multiple layers, multiple income streams. I'll preach this hell or high streams. I'll preach this hell or high streams. I'll preach this hell or high water. That structure is more resilient water. That structure is more resilient water. That structure is more resilient than a pure drawdown FIRE, and it's than a pure drawdown FIRE, and it's than a pure drawdown FIRE, and it's available to far more people than the $2 available to far more people than the $2 available to far more people than the $2 million fortress model you've been told million fortress model you've been told million fortress model you've been told works. The fortress model says build one works. The fortress model says build one works. The fortress model says build one enormous number and sit on it like a enormous number and sit on it like a enormous number and sit on it like a dragon or a king or whatever, spend it dragon or a king or whatever, spend it dragon or a king or whatever, spend it down slowly, pray it lasts. The down slowly, pray it lasts. The down slowly, pray it lasts. The structure I actually use, get your burn structure I actually use, get your burn structure I actually use, get your burn rate low, a few modest income streams, a rate low, a few modest income streams, a rate low, a few modest income streams, a portfolio behind it that you don't touch portfolio behind it that you don't touch portfolio behind it that you don't touch if you don't have to. The second version if you don't have to. The second version if you don't have to. The second version does not require you to be rich, it does not require you to be rich, it does not require you to be rich, it requires you to be deliberate, which is requires you to be deliberate, which is requires you to be deliberate, which is a thing almost anyone can choose to do a thing almost anyone can choose to do a thing almost anyone can choose to do with their finances and their money.

with their finances and their money. with their finances and their money. Whereas being rich, most of you, most of Whereas being rich, most of you, most of Whereas being rich, most of you, most of us, can't choose to do that. It will us, can't choose to do that. It will us, can't choose to do that. It will never happen. Lesson seven, enough is never happen. Lesson seven, enough is never happen. Lesson seven, enough is feeling you have to learn and money feeling you have to learn and money feeling you have to learn and money won't teach it to you, okay? This is the won't teach it to you, okay? This is the won't teach it to you, okay? This is the one that took the longest. I've met one that took the longest. I've met one that took the longest. I've met people here with $800,000 who are more people here with $800,000 who are more people here with $800,000 who are more anxious than people with 200,000. You anxious than people with 200,000. You anxious than people with 200,000. You met one of them in the 10 expats video. met one of them in the 10 expats video. met one of them in the 10 expats video. He had nearly a million dollars and a He had nearly a million dollars and a He had nearly a million dollars and a face full of tension. Still running face full of tension. Still running face full of tension. Still running calculations, still convinced that just calculations, still convinced that just calculations, still convinced that just a bit more would finally let him relax. a bit more would finally let him relax. a bit more would finally let him relax. You got to give it up, man. The number You got to give it up, man. The number You got to give it up, man. The number chasers, the casino people, you know, 10 chasers, the casino people, you know, 10 chasers, the casino people, you know, 10 ft away metaphorically, someone else is ft away metaphorically, someone else is ft away metaphorically, someone else is living a happier life on a quarter of living a happier life on a quarter of living a happier life on a quarter of what you have, on a tenth of what you what you have, on a tenth of what you what you have, on a tenth of what you have, because they've learned something have, because they've learned something have, because they've learned something that you have not. The capacity to feel that you have not. The capacity to feel that you have not. The capacity to feel that you have enough is not delivered that you have enough is not delivered that you have enough is not delivered automatically by hitting any number. The automatically by hitting any number. The automatically by hitting any number. The number does not exist, folks. I used to number does not exist, folks. I used to number does not exist, folks. I used to assume that it was real, that there was assume that it was real, that there was assume that it was real, that there was a balance which once reached would flip a balance which once reached would flip a balance which once reached would flip the internal switch from anxious to the internal switch from anxious to the internal switch from anxious to chill to secure. It's just not it. You chill to secure. It's just not it. You chill to secure. It's just not it. You just have to learn to manage your just have to learn to manage your just have to learn to manage your finances properly, right? I've watched finances properly, right? I've watched finances properly, right? I've watched too many people hit their number, too many people hit their number, too many people hit their number, immediately set a new one.

immediately set a new one. immediately set a new one. You You can't believe that that switch You You can't believe that that switch You You can't believe that that switch exists. I mean, I think it's pretty exists. I mean, I think it's pretty exists. I mean, I think it's pretty common knowledge now that it only takes common knowledge now that it only takes common knowledge now that it only takes about $75,000 a year for people to be about $75,000 a year for people to be about $75,000 a year for people to be happy, and after that it's just happy, and after that it's just happy, and after that it's just diminishing returns. So, this is a skill diminishing returns. So, this is a skill diminishing returns. So, this is a skill you have to develop separately from the you have to develop separately from the you have to develop separately from the savings and living somewhere that isn't savings and living somewhere that isn't savings and living somewhere that isn't constantly manufacturing desire for more constantly manufacturing desire for more constantly manufacturing desire for more makes it easier to develop, in my makes it easier to develop, in my makes it easier to develop, in my opinion. Back home, the whole economy is opinion. Back home, the whole economy is opinion. Back home, the whole economy is engineered to keep you feeling like engineered to keep you feeling like engineered to keep you feeling like you're one purchase short of enough. you're one purchase short of enough. you're one purchase short of enough. Every screen, every street, every Every screen, every street, every Every screen, every street, every conversation is gently calibrated to conversation is gently calibrated to conversation is gently calibrated to keep the target moving, so you're keep the target moving, so you're keep the target moving, so you're constantly on that escalator. Here, I constantly on that escalator. Here, I constantly on that escalator. Here, I think that pressure is quieter, and in think that pressure is quieter, and in think that pressure is quieter, and in the quiet, I finally learned what enough the quiet, I finally learned what enough the quiet, I finally learned what enough actually feels like, and I have it, actually feels like, and I have it, actually feels like, and I have it, folks. I have enough for me. It turned folks. I have enough for me. It turned folks. I have enough for me. It turned out enough was a lot less than I've been out enough was a lot less than I've been out enough was a lot less than I've been told, and the gap between what I told, and the gap between what I told, and the gap between what I actually needed to be content, happy, actually needed to be content, happy, actually needed to be content, happy, with a good quality of life, versus what with a good quality of life, versus what with a good quality of life, versus what I sort of thought I needed for two I sort of thought I needed for two I sort of thought I needed for two decades, uh it was a very expensive decades, uh it was a very expensive decades, uh it was a very expensive illusion to carry. So, no spreadsheet illusion to carry. So, no spreadsheet illusion to carry. So, no spreadsheet will teach you that. No numbers will. will teach you that. No numbers will. will teach you that. No numbers will. Only life, folks. Years of living Only life, folks. Years of living Only life, folks. Years of living somewhere that isn't constantly selling somewhere that isn't constantly selling somewhere that isn't constantly selling you [ __ ] you [ __ ] you [ __ ] is the only way. You got to opt out. All is the only way. You got to opt out. All is the only way. You got to opt out. All right, lesson eight, the cost of waiting right, lesson eight, the cost of waiting right, lesson eight, the cost of waiting is the most expensive cost of all and is the most expensive cost of all and is the most expensive cost of all and nobody's going to put it on a balance nobody's going to put it on a balance nobody's going to put it on a balance sheet. Do not procrastinate. This is the sheet. Do not procrastinate. This is the sheet. Do not procrastinate. This is the lesson I learned when I moved back home lesson I learned when I moved back home lesson I learned when I moved back home for a few years in 2016. It's the one for a few years in 2016. It's the one for a few years in 2016. It's the one I'd carve out the door if I could. You I'd carve out the door if I could. You I'd carve out the door if I could. You know, let me tell it properly because know, let me tell it properly because know, let me tell it properly because the numbers don't capture it.

the numbers don't capture it. the numbers don't capture it. I was on a beach in Thailand when I took I was on a beach in Thailand when I took I was on a beach in Thailand when I took a job back home at a public school. This a job back home at a public school. This a job back home at a public school. This is literally like reverse course, the is literally like reverse course, the is literally like reverse course, the worst case scenario and I knew it was worst case scenario and I knew it was worst case scenario and I knew it was the wrong move from the start. I knew I the wrong move from the start. I knew I the wrong move from the start. I knew I was choosing path that looked was choosing path that looked was choosing path that looked responsible over the path that is responsible over the path that is responsible over the path that is actually right, that I was actually actually right, that I was actually actually right, that I was actually dreaming of, that I actually wanted to dreaming of, that I actually wanted to dreaming of, that I actually wanted to be living because it was the respectable be living because it was the respectable be living because it was the respectable choice, because I was worried about choice, because I was worried about choice, because I was worried about accreditation, of what people thought of accreditation, of what people thought of accreditation, of what people thought of me. The BS got to me, folks, and it made me. The BS got to me, folks, and it made me. The BS got to me, folks, and it made sense to everyone back home. They got sense to everyone back home. They got sense to everyone back home. They got why I was taking the job, but I didn't why I was taking the job, but I didn't why I was taking the job, but I didn't get it and I spent two to three years get it and I spent two to three years get it and I spent two to three years getting back here, getting to Asia, getting back here, getting to Asia, getting back here, getting to Asia, getting to a place where my savings rate getting to a place where my savings rate getting to a place where my savings rate was good again cuz I gave up all these was good again cuz I gave up all these was good again cuz I gave up all these benefits to go home. You know, I chose benefits to go home. You know, I chose benefits to go home. You know, I chose the safe, expected thing and it cost me the safe, expected thing and it cost me the safe, expected thing and it cost me roughly two to three years of the good roughly two to three years of the good roughly two to three years of the good life I could have been living earlier. life I could have been living earlier. life I could have been living earlier. But, the deeper version of the lesson is But, the deeper version of the lesson is But, the deeper version of the lesson is this, right? The dude I know in the 10 this, right? The dude I know in the 10 this, right? The dude I know in the 10 expat videos with the 600k who wishes he expat videos with the 600k who wishes he expat videos with the 600k who wishes he left a decade earlier in his 40s, not left a decade earlier in his 40s, not left a decade earlier in his 40s, not 50s, he wasn't short on money, he was 50s, he wasn't short on money, he was 50s, he wasn't short on money, he was short of years. The cost of waiting short of years. The cost of waiting short of years. The cost of waiting doesn't show up in accounting, it shows doesn't show up in accounting, it shows doesn't show up in accounting, it shows up in the life you didn't live while you up in the life you didn't live while you up in the life you didn't live while you were being {quote} {unquote} sensible or were being {quote} {unquote} sensible or were being {quote} {unquote} sensible or responsible. It's the single most responsible. It's the single most responsible. It's the single most expensive thing I've ever paid for and I expensive thing I've ever paid for and I expensive thing I've ever paid for and I paid for it in years and winters, folks.

paid for it in years and winters, folks. paid for it in years and winters, folks. [ __ ] freezing ass [ __ ] [ __ ] freezing ass [ __ ] [ __ ] freezing ass [ __ ] winters. I hate winter. winters. I hate winter. winters. I hate winter. Um, unless I'm skiing for about a week, Um, unless I'm skiing for about a week, Um, unless I'm skiing for about a week, that's it. So, the one currency you that's it. So, the one currency you that's it. So, the one currency you can't earn back, time. The market can't earn back, time. The market can't earn back, time. The market eventually gave me back the money, but I eventually gave me back the money, but I eventually gave me back the money, but I will never get back years and that's the will never get back years and that's the will never get back years and that's the part part part you ultimately can't hold on to and only you ultimately can't hold on to and only you ultimately can't hold on to and only you can make it that mistake. you can make it that mistake. you can make it that mistake. It's going to cost you It's going to cost you It's going to cost you an irrecoverable portion of your life. an irrecoverable portion of your life. an irrecoverable portion of your life. So, when I tell you that the cost of So, when I tell you that the cost of So, when I tell you that the cost of waiting is the most expensive cost of waiting is the most expensive cost of waiting is the most expensive cost of all, I'm not just being poetic or all, I'm not just being poetic or all, I'm not just being poetic or metaphorical. I've run the numbers. The metaphorical. I've run the numbers. The metaphorical. I've run the numbers. The actual number is still understated. It's actual number is still understated. It's actual number is still understated. It's literally more expensive to wait. For emphasis, I'm making my brain For emphasis, I'm making my brain explode, giving you a brain exploding explode, giving you a brain exploding explode, giving you a brain exploding emoji. Okay, those are eight, folks. emoji. Okay, those are eight, folks. emoji. Okay, those are eight, folks. Those are eight. And if I had to Those are eight. And if I had to Those are eight. And if I had to compress them into single sentence, it compress them into single sentence, it compress them into single sentence, it would be this: Money is a tool for would be this: Money is a tool for would be this: Money is a tool for buying back your time and freedom. And buying back your time and freedom. And buying back your time and freedom. And almost everything about how we're taught almost everything about how we're taught almost everything about how we're taught to think about money is [ __ ] [ __ ] to think about money is [ __ ] [ __ ] to think about money is [ __ ] [ __ ] and backwards and is only meant to keep and backwards and is only meant to keep and backwards and is only meant to keep you working longer. We're taught to you working longer. We're taught to you working longer. We're taught to spend time accumulating money as if it spend time accumulating money as if it spend time accumulating money as if it were the end point, the end goal, and it were the end point, the end goal, and it were the end point, the end goal, and it just isn't. The money's only ever worth just isn't. The money's only ever worth just isn't. The money's only ever worth what time it can buy you back. What what time it can buy you back. What what time it can buy you back. What quality of life it can get you. And quality of life it can get you. And quality of life it can get you. And there's a cruel arithmetic there that there's a cruel arithmetic there that there's a cruel arithmetic there that nobody mentions, which is that the time nobody mentions, which is that the time nobody mentions, which is that the time you're trading away in your 40s, your you're trading away in your 40s, your you're trading away in your 40s, your 50s to buy security in your 60s and 70s 50s to buy security in your 60s and 70s 50s to buy security in your 60s and 70s is not the same quality of time.

is not the same quality of time. is not the same quality of time. Healthy, adventurous, energetic years Healthy, adventurous, energetic years Healthy, adventurous, energetic years are the expensive ones to spend, and are the expensive ones to spend, and are the expensive ones to spend, and they're exactly the ones that the they're exactly the ones that the they're exactly the ones that the standard plan asks you to trade. In standard plan asks you to trade. In standard plan asks you to trade. In other words, there's a massive other words, there's a massive other words, there's a massive diminishing return on waiting longer. I diminishing return on waiting longer. I diminishing return on waiting longer. I traded two or three years I wish I could traded two or three years I wish I could traded two or three years I wish I could get back. get back. get back. 4% rule, the FIRE thing, the portfolio 4% rule, the FIRE thing, the portfolio 4% rule, the FIRE thing, the portfolio structure, the savings rate, those are structure, the savings rate, those are structure, the savings rate, those are just the how. The eight lessons are the just the how. The eight lessons are the just the how. The eight lessons are the why, and the why is the part that why, and the why is the part that why, and the why is the part that actually changes what you do on Monday actually changes what you do on Monday actually changes what you do on Monday morning, what you wake up to, what you morning, what you wake up to, what you morning, what you wake up to, what you enjoy in your life. Obviously, if you enjoy in your life. Obviously, if you enjoy in your life. Obviously, if you want to go deeper with any of these with want to go deeper with any of these with want to go deeper with any of these with your own situation, with your own your own situation, with your own your own situation, with your own relocation plan, with your own move relocation plan, with your own move relocation plan, with your own move abroad and retire early ideas, abroad and retire early ideas, abroad and retire early ideas, I do live sessions inside my membership I do live sessions inside my membership I do live sessions inside my membership at the costoflivingabroad.com. at the costoflivingabroad.com. at the costoflivingabroad.com. There's people at every stage working There's people at every stage working There's people at every stage working through these exact lessons applied to through these exact lessons applied to through these exact lessons applied to their real lives, real situations. And their real lives, real situations. And their real lives, real situations. And yeah, if you want my help, you can get yeah, if you want my help, you can get yeah, if you want my help, you can get it there. It's linked below. If you want it there. It's linked below. If you want it there. It's linked below. If you want to watch a couple more videos, you can to watch a couple more videos, you can to watch a couple more videos, you can check out some costoflivingabroad expat check out some costoflivingabroad expat check out some costoflivingabroad expat interviews here, interviews here, interviews here, uh or you can watch videos where I break uh or you can watch videos where I break uh or you can watch videos where I break down my own costs and expenses in down my own costs and expenses in down my own costs and expenses in Vietnam here. Thanks so much from A Vietnam here. Thanks so much from A Vietnam here. Thanks so much from A Minute Retired Early in Vietnam.