Can You Retire and Live Abroad on $200,000?

Welcome back to Saigon, Vietnam. Today, Welcome back to Saigon, Vietnam. Today, we are answering a very simple, direct we are answering a very simple, direct we are answering a very simple, direct question I got from a member recently. question I got from a member recently. question I got from a member recently. Can you retire in Vietnam on $200,000? Can you retire in Vietnam on $200,000? Can you retire in Vietnam on $200,000? So, I want to answer that question as So, I want to answer that question as So, I want to answer that question as honestly as possible because it's a honestly as possible because it's a honestly as possible because it's a question that comes up and I think would question that comes up and I think would question that comes up and I think would change the way a lot of people think change the way a lot of people think change the way a lot of people think about retiring abroad, right? You saved about retiring abroad, right? You saved about retiring abroad, right? You saved something, but not quite enough. Not a something, but not quite enough. Not a something, but not quite enough. Not a million and a half, not the 2 million or million and a half, not the 2 million or million and a half, not the 2 million or 4 million you might need or YouTube says 4 million you might need or YouTube says 4 million you might need or YouTube says you need or a financial advisor back you need or a financial advisor back you need or a financial advisor back home, right? You maybe have a couple home, right? You maybe have a couple home, right? You maybe have a couple hundred thousand dollars, maybe have a hundred thousand dollars, maybe have a hundred thousand dollars, maybe have a house or condo you can sell to raise a house or condo you can sell to raise a house or condo you can sell to raise a couple hundred thousand. And somewhere couple hundred thousand. And somewhere couple hundred thousand. And somewhere in the back of their mind is this in the back of their mind is this in the back of their mind is this thought, right? Could that actually be thought, right? Could that actually be thought, right? Could that actually be enough somewhere to be free, to be enough somewhere to be free, to be enough somewhere to be free, to be financially independent? The honest financially independent? The honest financially independent? The honest answer is yes, but there are certain answer is yes, but there are certain answer is yes, but there are certain conditions and I'm going to walk you conditions and I'm going to walk you conditions and I'm going to walk you through exactly what those conditions through exactly what those conditions through exactly what those conditions are because I think the worst thing I are because I think the worst thing I are because I think the worst thing I could do is give you a clickbait yes or could do is give you a clickbait yes or could do is give you a clickbait yes or no without the real caveats, without the no without the real caveats, without the no without the real caveats, without the pros or cons. Um, it would be like very pros or cons. Um, it would be like very pros or cons. Um, it would be like very lazy of me to have blown the actual math lazy of me to have blown the actual math lazy of me to have blown the actual math of how to make this work in a place like of how to make this work in a place like of how to make this work in a place like this with a number like that. So, the this with a number like that. So, the this with a number like that. So, the truth is somewhere in the middle, right?

truth is somewhere in the middle, right? truth is somewhere in the middle, right? It's in the gray area and it's more It's in the gray area and it's more It's in the gray area and it's more interesting than just saying yes or no interesting than just saying yes or no interesting than just saying yes or no to you. And I'm in a good position to to you. And I'm in a good position to to you. And I'm in a good position to tell it to you because I retired at 40 tell it to you because I retired at 40 tell it to you because I retired at 40 on a number that would make most on a number that would make most on a number that would make most retirement advisors laugh in a city most retirement advisors laugh in a city most retirement advisors laugh in a city most of them have probably never been to and of them have probably never been to and of them have probably never been to and never calculated the financial cost of never calculated the financial cost of never calculated the financial cost of and it works. You know, not on exactly and it works. You know, not on exactly and it works. You know, not on exactly 200,000, but on a very similar number 200,000, but on a very similar number 200,000, but on a very similar number with a little bit of income on the same with a little bit of income on the same with a little bit of income on the same principle that makes 200,000 viable. The principle that makes 200,000 viable. The principle that makes 200,000 viable. The number you need is set by where you live number you need is set by where you live number you need is set by where you live and almost nobody runs that math and almost nobody runs that math and almost nobody runs that math honestly back home in North America. So, honestly back home in North America. So, honestly back home in North America. So, let me start by being brutally clear let me start by being brutally clear let me start by being brutally clear about what $200,000 does on its own with about what $200,000 does on its own with about what $200,000 does on its own with no other income no other income no other income cuz that's where the honesty has to cuz that's where the honesty has to cuz that's where the honesty has to start if we're going to be real about start if we're going to be real about start if we're going to be real about this, $200,000 invested and drawn down this, $200,000 invested and drawn down this, $200,000 invested and drawn down at the standard 4% FIRE safe withdrawal at the standard 4% FIRE safe withdrawal at the standard 4% FIRE safe withdrawal rate generates $8,000 a year, you know, rate generates $8,000 a year, you know, rate generates $8,000 a year, you know, and that's not enough. I don't know and that's not enough. I don't know and that's not enough. I don't know anywhere you can retire on $8,000 a year anywhere you can retire on $8,000 a year anywhere you can retire on $8,000 a year or really live well on that. You could or really live well on that. You could or really live well on that. You could scrape, but that's about $667 a month, scrape, but that's about $667 a month, scrape, but that's about $667 a month, and I'm going to tell you straight up, and I'm going to tell you straight up, and I'm going to tell you straight up, $667 a month is not a comfortable $667 a month is not a comfortable $667 a month is not a comfortable retirement or life here in Saigon, about retirement or life here in Saigon, about retirement or life here in Saigon, about half, a little over half of what I can half, a little over half of what I can half, a little over half of what I can live on. It's survivable maybe in the live on. It's survivable maybe in the live on. It's survivable maybe in the very cheapest parts of Vietnam if you very cheapest parts of Vietnam if you very cheapest parts of Vietnam if you live extremely frugally, but it is below live extremely frugally, but it is below live extremely frugally, but it is below my own burn rate floor of 1,200, and I'm my own burn rate floor of 1,200, and I'm my own burn rate floor of 1,200, and I'm not going to pretend that six or seven not going to pretend that six or seven not going to pretend that six or seven hundred bucks buys the life I talk about hundred bucks buys the life I talk about hundred bucks buys the life I talk about or show you on my channel. On its own, or show you on my channel. On its own, or show you on my channel. On its own, 200,000 is not enough for the

200,000 is not enough for the 200,000 is not enough for the comfortable version, full stop. Yet, yet comfortable version, full stop. Yet, yet comfortable version, full stop. Yet, yet my portfolio is smaller than that, and my portfolio is smaller than that, and my portfolio is smaller than that, and I'm doing fine, and I'm not worried. I'm I'm doing fine, and I'm not worried. I'm I'm doing fine, and I'm not worried. I'm going to soften that because the going to soften that because the going to soften that because the channels that tell you any number works channels that tell you any number works channels that tell you any number works no matter what are probably lying to you no matter what are probably lying to you no matter what are probably lying to you and full of it, and the lie is dangerous and full of it, and the lie is dangerous and full of it, and the lie is dangerous when your actual life is on the line. when your actual life is on the line. when your actual life is on the line. So, 670 bucks a month alone in Saigon, So, 670 bucks a month alone in Saigon, So, 670 bucks a month alone in Saigon, Vietnam, means a room, not an apartment. Vietnam, means a room, not an apartment. Vietnam, means a room, not an apartment. It means local food and only local food, It means local food and only local food, It means local food and only local food, you know, like eating a lot of rice, you know, like eating a lot of rice, you know, like eating a lot of rice, drinking a lot of tea, no real buffer drinking a lot of tea, no real buffer drinking a lot of tea, no real buffer for anything that could go wrong with for anything that could go wrong with for anything that could go wrong with your health care, and a kind of anxious your health care, and a kind of anxious your health care, and a kind of anxious thrift that is not what I would call thrift that is not what I would call thrift that is not what I would call enjoyable or pleasant retirement. So, I enjoyable or pleasant retirement. So, I enjoyable or pleasant retirement. So, I want to be the person who tells you the want to be the person who tells you the want to be the person who tells you the unglamorous truth about that so you can unglamorous truth about that so you can unglamorous truth about that so you can plan around it, not the person who sells plan around it, not the person who sells plan around it, not the person who sells you a fantasy you discovers, you know, you a fantasy you discovers, you know, you a fantasy you discovers, you know, hollow or after you've already hollow or after you've already hollow or after you've already quit your job and sold your place. So, quit your job and sold your place. So, quit your job and sold your place. So, the question is, can you retire straight the question is, can you retire straight the question is, can you retire straight up in Vietnam on $200,000 and nothing up in Vietnam on $200,000 and nothing up in Vietnam on $200,000 and nothing else drawing down the safe rate and else drawing down the safe rate and else drawing down the safe rate and living the good life? The honest answer living the good life? The honest answer living the good life? The honest answer is, no, you definitely cannot. Not the is, no, you definitely cannot. Not the is, no, you definitely cannot. Not the good version, not the nice life, not the good version, not the nice life, not the good version, not the nice life, not the quality of life, not safely. But, that's quality of life, not safely. But, that's quality of life, not safely. But, that's almost never the actual situation, and almost never the actual situation, and almost never the actual situation, and this is where I think it gets really this is where I think it gets really this is where I think it gets really interesting. Almost nobody who has interesting. Almost nobody who has interesting. Almost nobody who has $200,000 saved has only $200,000 and no $200,000 saved has only $200,000 and no $200,000 saved has only $200,000 and no other income ever for the rest of their other income ever for the rest of their other income ever for the rest of their life and no possibility of earning. So, life and no possibility of earning. So, life and no possibility of earning. So, most people have something else coming most people have something else coming most people have something else coming or some ability to earn somewhere or some ability to earn somewhere or some ability to earn somewhere somehow, right? A social security somehow, right? A social security somehow, right? A social security benefit they've already earned, a CPP, a benefit they've already earned, a CPP, a benefit they've already earned, a CPP, a government pension, a corporate pension government pension, a corporate pension government pension, a corporate pension from a career, a bit of part-time remote

from a career, a bit of part-time remote from a career, a bit of part-time remote work they can do from anywhere online, work they can do from anywhere online, work they can do from anywhere online, maybe rental income from a house or maybe rental income from a house or maybe rental income from a house or apartment back home they decided to keep apartment back home they decided to keep apartment back home they decided to keep and lease out, right? The version of the and lease out, right? The version of the and lease out, right? The version of the question where $200,000 is all you ever question where $200,000 is all you ever question where $200,000 is all you ever have drawn down forever with nothing have drawn down forever with nothing have drawn down forever with nothing else is actually pretty rare. The common else is actually pretty rare. The common else is actually pretty rare. The common case is that people have some sort of case is that people have some sort of case is that people have some sort of second stream or can create one and the second stream or can create one and the second stream or can create one and the moment you add in a modest modest second moment you add in a modest modest second moment you add in a modest modest second income to that $200,000, the entire income to that $200,000, the entire income to that $200,000, the entire picture transforms and that's when it picture transforms and that's when it picture transforms and that's when it looks a lot more like what I live on. looks a lot more like what I live on. looks a lot more like what I live on. So, the most common version of this, So, the most common version of this, So, the most common version of this, let's show it to you. Say you claim let's show it to you. Say you claim let's show it to you. Say you claim social security early at 62. For someone social security early at 62. For someone social security early at 62. For someone who worked a modest income career and who worked a modest income career and who worked a modest income career and early claim benefit might be $600 early claim benefit might be $600 early claim benefit might be $600 a month, similar to what it is in Canada a month, similar to what it is in Canada a month, similar to what it is in Canada for a 65-year-old. It's reduced or maybe for a 65-year-old. It's reduced or maybe for a 65-year-old. It's reduced or maybe a 60-year-old, sorry Canadians. Uh it's a 60-year-old, sorry Canadians. Uh it's a 60-year-old, sorry Canadians. Uh it's reduced because you claimed early. I'll reduced because you claimed early. I'll reduced because you claimed early. I'll get to that trade-off, but let's use get to that trade-off, but let's use get to that trade-off, but let's use that number, right? Stack it on top of that number, right? Stack it on top of that number, right? Stack it on top of the 667 from the portfolio and now, the 667 from the portfolio and now, the 667 from the portfolio and now, wallah, magically you're at somewhere wallah, magically you're at somewhere wallah, magically you're at somewhere between 1,200 and $1,500 a month and between 1,200 and $1,500 a month and between 1,200 and $1,500 a month and that range, friend, that range is that range, friend, that range is that range, friend, that range is perfect, you know? 1,200 to 1,500 a perfect, you know? 1,200 to 1,500 a perfect, you know? 1,200 to 1,500 a month is my actual burn rate here, month is my actual burn rate here, month is my actual burn rate here, especially if I'm not traveling and I especially if I'm not traveling and I especially if I'm not traveling and I live really well. I live a great quality live really well. I live a great quality live really well. I live a great quality of life. I've documented this ad nauseam of life. I've documented this ad nauseam of life. I've documented this ad nauseam on this channel as well as on my other on this channel as well as on my other on this channel as well as on my other channel, A Cost of Living Abroad, where channel, A Cost of Living Abroad, where channel, A Cost of Living Abroad, where I interview expats and make vlogs. You I interview expats and make vlogs. You I interview expats and make vlogs. You know, good apartment, great food, gym, know, good apartment, great food, gym, know, good apartment, great food, gym, motorbike, healthcare, regional travel.

motorbike, healthcare, regional travel. motorbike, healthcare, regional travel. $200,000 plus a modest early social $200,000 plus a modest early social $200,000 plus a modest early social security claim in Vietnam is not a security claim in Vietnam is not a security claim in Vietnam is not a survival budget at all. It's a really survival budget at all. It's a really survival budget at all. It's a really great life, a lot like my own. Let's let great life, a lot like my own. Let's let great life, a lot like my own. Let's let that land for a minute because it's that land for a minute because it's that land for a minute because it's basically the whole point of this video. basically the whole point of this video. basically the whole point of this video. The number that retirement YouTube tells The number that retirement YouTube tells The number that retirement YouTube tells you is hopelessly inadequate. $200,000 you is hopelessly inadequate. $200,000 you is hopelessly inadequate. $200,000 combined with a bit of social security combined with a bit of social security combined with a bit of social security benefit that's smaller than most people benefit that's smaller than most people benefit that's smaller than most people hope for can produce in a place like hope for can produce in a place like hope for can produce in a place like this with geoarbitrage exactly the this with geoarbitrage exactly the this with geoarbitrage exactly the comfortable kind of retirement I'm comfortable kind of retirement I'm comfortable kind of retirement I'm living right now. Straight up, the living right now. Straight up, the living right now. Straight up, the geography does that, right? Not a bigger geography does that, right? Not a bigger geography does that, right? Not a bigger portfolio or not more savings. It's the portfolio or not more savings. It's the portfolio or not more savings. It's the cost structure and burn rate of the cost structure and burn rate of the cost structure and burn rate of the place where you choose. If you have any place where you choose. If you have any place where you choose. If you have any additional income beyond that, small additional income beyond that, small additional income beyond that, small online thing, some part-time or remote online thing, some part-time or remote online thing, some part-time or remote work, something you actually enjoy, work, something you actually enjoy, work, something you actually enjoy, right? A tiny pension, rental income, a right? A tiny pension, rental income, a right? A tiny pension, rental income, a hobby income, the buffer just grows, and hobby income, the buffer just grows, and hobby income, the buffer just grows, and the whole thing gets more comfortable the whole thing gets more comfortable the whole thing gets more comfortable and more secure. You add 500 a month of and more secure. You add 500 a month of and more secure. You add 500 a month of any kind of income, and you're living any kind of income, and you're living any kind of income, and you're living very, very well with a genuine safety very, very well with a genuine safety very, very well with a genuine safety margin, even some savings. So, let me margin, even some savings. So, let me margin, even some savings. So, let me actually run that because actually run that because actually run that because I don't want to say it too abstract. So, I don't want to say it too abstract. So, I don't want to say it too abstract. So, let's take the 200,000 at $667 a month let's take the 200,000 at $667 a month let's take the 200,000 at $667 a month from a portfolio number, add a modest from a portfolio number, add a modest from a portfolio number, add a modest early social security check, we'll say early social security check, we'll say early social security check, we'll say 700 a month. So, now you're looking at 700 a month. So, now you're looking at 700 a month. So, now you're looking at 1375.

1375. 1375. You add another 500 a month from You add another 500 a month from You add another 500 a month from something small, a part like little something small, a part like little something small, a part like little remote gig, a bit of online teaching or remote gig, a bit of online teaching or remote gig, a bit of online teaching or online Fiverr work, a freelance thing, online Fiverr work, a freelance thing, online Fiverr work, a freelance thing, whatever it is. You do a few hours a whatever it is. You do a few hours a whatever it is. You do a few hours a week because you want to. You want to week because you want to. You want to week because you want to. You want to stay active, not because you didn't have stay active, not because you didn't have stay active, not because you didn't have to. But, that turns into $1875 to. But, that turns into $1875 to. But, that turns into $1875 a month here in Saigon. $1875 a month is a month here in Saigon. $1875 a month is a month here in Saigon. $1875 a month is not at all a careful life. It's a great not at all a careful life. It's a great not at all a careful life. It's a great one with margin to spare. A place like one with margin to spare. A place like one with margin to spare. A place like Da Nang or Hua Hin or I don't know, Da Nang or Hua Hin or I don't know, Da Nang or Hua Hin or I don't know, Cebu, wherever you want to go, Cebu, wherever you want to go, Cebu, wherever you want to go, Dumaguete. There's going to be money Dumaguete. There's going to be money Dumaguete. There's going to be money going back into saving most months and a going back into saving most months and a going back into saving most months and a real cushion underneath you at that real cushion underneath you at that real cushion underneath you at that cost. That same $200,000 couldn't cost. That same $200,000 couldn't cost. That same $200,000 couldn't support you alone, support you alone, support you alone, but it supports you genuinely but it supports you genuinely but it supports you genuinely comfortable life the moment you start comfortable life the moment you start comfortable life the moment you start stacking different income sources on top stacking different income sources on top stacking different income sources on top of it. And that for me, friends, is the of it. And that for me, friends, is the of it. And that for me, friends, is the whole point of this. That is truly what whole point of this. That is truly what whole point of this. That is truly what it means to be financially independent, it means to be financially independent, it means to be financially independent, to know that you can generate money, not to know that you can generate money, not to know that you can generate money, not that you're stuck on hoping something in that you're stuck on hoping something in that you're stuck on hoping something in the market will last for 30 years. So, the market will last for 30 years. So, the market will last for 30 years. So, 200,000 is not the engine, it's just one 200,000 is not the engine, it's just one 200,000 is not the engine, it's just one cylinder, one part of it. So, I promise cylinder, one part of it. So, I promise cylinder, one part of it. So, I promise you the conditions, I'm going to deliver you the conditions, I'm going to deliver you the conditions, I'm going to deliver them honestly because this only works if them honestly because this only works if them honestly because this only works if you actually respect them. Condition you actually respect them. Condition you actually respect them. Condition one, it has to be Southeast Asia or one, it has to be Southeast Asia or one, it has to be Southeast Asia or somewhere very cheap, somewhere somewhere very cheap, somewhere somewhere very cheap, somewhere parallel, you know, Vietnam, Thailand, parallel, you know, Vietnam, Thailand, parallel, you know, Vietnam, Thailand, Cambodia, Philippines, Malaysia, all the Cambodia, Philippines, Malaysia, all the Cambodia, Philippines, Malaysia, all the places I talk about in my cost of living places I talk about in my cost of living places I talk about in my cost of living abroad.com membership, somewhere with an abroad.com membership, somewhere with an abroad.com membership, somewhere with an equivalent cost structure, right?

equivalent cost structure, right? equivalent cost structure, right? Cambodia, parts of the Philippines, the Cambodia, parts of the Philippines, the Cambodia, parts of the Philippines, the cheaper parts of Thailand. This math cheaper parts of Thailand. This math cheaper parts of Thailand. This math probably doesn't work in Bali anymore. probably doesn't work in Bali anymore. probably doesn't work in Bali anymore. It definitely, I don't think, works in It definitely, I don't think, works in It definitely, I don't think, works in Portugal or Spain. Doesn't work in Portugal or Spain. Doesn't work in Portugal or Spain. Doesn't work in expensive expat enclaves in places like, expensive expat enclaves in places like, expensive expat enclaves in places like, you know, I don't know. You probably you know, I don't know. You probably you know, I don't know. You probably couldn't run this in, say, Panama or couldn't run this in, say, Panama or couldn't run this in, say, Panama or Mexico anymore. Mexico anymore. Mexico anymore. Maybe if you struggle, but the $200,000 Maybe if you struggle, but the $200,000 Maybe if you struggle, but the $200,000 retirement is a low-cost country retirement is a low-cost country retirement is a low-cost country retirement, specifically. If you pick retirement, specifically. If you pick retirement, specifically. If you pick the wrong country, the whole thing is the wrong country, the whole thing is the wrong country, the whole thing is going to fall apart. And I push it going to fall apart. And I push it going to fall apart. And I push it farther than just the country. I'd say, farther than just the country. I'd say, farther than just the country. I'd say, it also matters what neighborhood, what it also matters what neighborhood, what it also matters what neighborhood, what area you're in, right? So, on a lean area you're in, right? So, on a lean area you're in, right? So, on a lean number like that, you're not living in a number like that, you're not living in a number like that, you're not living in a fancy Sukhumvit service infinity pool fancy Sukhumvit service infinity pool fancy Sukhumvit service infinity pool condo in downtown Bangkok, right? You're condo in downtown Bangkok, right? You're condo in downtown Bangkok, right? You're going to go somewhere else like On Nut going to go somewhere else like On Nut going to go somewhere else like On Nut or maybe like Binh Thanh or Go Vap in Ho or maybe like Binh Thanh or Go Vap in Ho or maybe like Binh Thanh or Go Vap in Ho Chi Minh City or Thu Duc. You know, Chi Minh City or Thu Duc. You know, Chi Minh City or Thu Duc. You know, you're going to find a clean, modern you're going to find a clean, modern you're going to find a clean, modern building in a great local neighborhood, building in a great local neighborhood, building in a great local neighborhood, but you're going to be a short commute but you're going to be a short commute but you're going to be a short commute from downtown, right? 20 minutes outside from downtown, right? 20 minutes outside from downtown, right? 20 minutes outside of the classic stool. You're going to be of the classic stool. You're going to be of the classic stool. You're going to be able to have lunch on a place with the able to have lunch on a place with the able to have lunch on a place with the plastic stool. You're going to have plastic stool. You're going to have plastic stool. You're going to have coffees with locals. You're not going to coffees with locals. You're not going to coffees with locals. You're not going to be downgrading, right? I've lived both be downgrading, right? I've lived both be downgrading, right? I've lived both ways, and the neighborhood where real ways, and the neighborhood where real ways, and the neighborhood where real people live is often more interesting people live is often more interesting people live is often more interesting than the expat bubble anyways. Certainly than the expat bubble anyways. Certainly than the expat bubble anyways. Certainly felt this when I lived in Da Nang in Son felt this when I lived in Da Nang in Son felt this when I lived in Da Nang in Son Tra instead of An Thong. Uh, but you Tra instead of An Thong. Uh, but you Tra instead of An Thong. Uh, but you have to actually choose it. You have to have to actually choose it. You have to have to actually choose it. You have to actually find a place in the right area.

actually find a place in the right area. actually find a place in the right area. So, the lean retirement lives where the So, the lean retirement lives where the So, the lean retirement lives where the locals live often, right? Not where the locals live often, right? Not where the locals live often, right? Not where the Instagrammers do or where the expat bar Instagrammers do or where the expat bar Instagrammers do or where the expat bar bubble exists. And if your ego needs bubble exists. And if your ego needs bubble exists. And if your ego needs that, it needs to be surrounded by other that, it needs to be surrounded by other that, it needs to be surrounded by other expats in a western style bar eating expats in a western style bar eating expats in a western style bar eating western food, you're going to need a western food, you're going to need a western food, you're going to need a bigger portfolio to pay for it. bigger portfolio to pay for it. bigger portfolio to pay for it. Condition two here is that you have to Condition two here is that you have to Condition two here is that you have to manage your expenses with real manage your expenses with real manage your expenses with real discipline. You have to track discipline. You have to track discipline. You have to track everything. You have to know all the everything. You have to know all the everything. You have to know all the numbers, especially in your first year. numbers, especially in your first year. numbers, especially in your first year. You got to write everything down or have You got to write everything down or have You got to write everything down or have it in an app. I did a whole video on the it in an app. I did a whole video on the it in an app. I did a whole video on the lifestyle inflation trap before. The way lifestyle inflation trap before. The way lifestyle inflation trap before. The way Southeast Asia makes expensive things Southeast Asia makes expensive things Southeast Asia makes expensive things feel cheap and your budget can quietly feel cheap and your budget can quietly feel cheap and your budget can quietly double. You know, on a $200,000 plus double. You know, on a $200,000 plus double. You know, on a $200,000 plus social security budget, you do not have social security budget, you do not have social security budget, you do not have room for that kind of drift. So, the room for that kind of drift. So, the room for that kind of drift. So, the margin is real, but it's not generous. margin is real, but it's not generous. margin is real, but it's not generous. You have to actually be able to live at You have to actually be able to live at You have to actually be able to live at 12 to 1400 a month and not let it creep 12 to 1400 a month and not let it creep 12 to 1400 a month and not let it creep up to 2000. Here's how the creep up to 2000. Here's how the creep up to 2000. Here's how the creep actually happens. I like that. The creep actually happens. I like that. The creep actually happens. I like that. The creep actually happens. actually happens. actually happens. So, you can see the creep coming. Month So, you can see the creep coming. Month So, you can see the creep coming. Month one, fun metaphors. You're eating at a one, fun metaphors. You're eating at a one, fun metaphors. You're eating at a local place for $1.50. Month three, you local place for $1.50. Month three, you local place for $1.50. Month three, you found a nice western place, a brunch found a nice western place, a brunch found a nice western place, a brunch spot, and it's only $9. What a deal.

spot, and it's only $9. What a deal. spot, and it's only $9. What a deal. It's nothing compared to back home. Back It's nothing compared to back home. Back It's nothing compared to back home. Back home, you pay so much more for eggs home, you pay so much more for eggs home, you pay so much more for eggs benedict. Just because it's half what it benedict. Just because it's half what it benedict. Just because it's half what it costs at home, it doesn't mean you're costs at home, it doesn't mean you're costs at home, it doesn't mean you're saving money, right? So, you start going saving money, right? So, you start going saving money, right? So, you start going twice a week. Month six, you've upgraded twice a week. Month six, you've upgraded twice a week. Month six, you've upgraded the apartment because a nicer building the apartment because a nicer building the apartment because a nicer building was only an extra couple hundred bucks. was only an extra couple hundred bucks. was only an extra couple hundred bucks. And what's an extra couple hundred And what's an extra couple hundred And what's an extra couple hundred dollars to live in so much nicer of a dollars to live in so much nicer of a dollars to live in so much nicer of a place with a view, right? This is place with a view, right? This is place with a view, right? This is literally how it all happens. The literally how it all happens. The literally how it all happens. The discipline isn't necessarily about discipline isn't necessarily about discipline isn't necessarily about deprivation. It's just about comparing deprivation. It's just about comparing deprivation. It's just about comparing your spending plan instead of to the your spending plan instead of to the your spending plan instead of to the prices back home to the prices locally. prices back home to the prices locally. prices back home to the prices locally. So, you know you're actually getting So, you know you're actually getting So, you know you're actually getting good value. Cheap just means paying less good value. Cheap just means paying less good value. Cheap just means paying less for something that's worth a higher for something that's worth a higher for something that's worth a higher value. Okay, condition number three, you value. Okay, condition number three, you value. Okay, condition number three, you need to survive the first five years need to survive the first five years need to survive the first five years without a major financial shock that you without a major financial shock that you without a major financial shock that you can't absorb. I.E., you can't be selling can't absorb. I.E., you can't be selling can't absorb. I.E., you can't be selling off at a big market downturn. This is off at a big market downturn. This is off at a big market downturn. This is the real risk with a leaner number, and the real risk with a leaner number, and the real risk with a leaner number, and especially if you have no income, it's especially if you have no income, it's especially if you have no income, it's super scary. So, a $200,000 portfolio super scary. So, a $200,000 portfolio super scary. So, a $200,000 portfolio doesn't have the cushion that a $500,000 doesn't have the cushion that a $500,000 doesn't have the cushion that a $500,000 portfolio or a million-dollar portfolio.

portfolio or a million-dollar portfolio. portfolio or a million-dollar portfolio. A serious medical event, a bad market A serious medical event, a bad market A serious medical event, a bad market crash right at the start, a family crash right at the start, a family crash right at the start, a family emergency requiring repeated expensive emergency requiring repeated expensive emergency requiring repeated expensive flights home. He's hit harder when your flights home. He's hit harder when your flights home. He's hit harder when your portfolio is leaner, right? This is why portfolio is leaner, right? This is why portfolio is leaner, right? This is why a cash buffer of 3 to 6 months living a cash buffer of 3 to 6 months living a cash buffer of 3 to 6 months living expenses matter. It's why good insurance expenses matter. It's why good insurance expenses matter. It's why good insurance is non-negotiable for most people who is non-negotiable for most people who is non-negotiable for most people who live abroad, and why this works better live abroad, and why this works better live abroad, and why this works better for someone with a bit of ongoing income for someone with a bit of ongoing income for someone with a bit of ongoing income than for someone purely living off that than for someone purely living off that than for someone purely living off that $200,000 nest egg. Okay. Condition $200,000 nest egg. Okay. Condition $200,000 nest egg. Okay. Condition number four, it's an honest one. number four, it's an honest one. number four, it's an honest one. $200,000 just is not a fortress. It's $200,000 just is not a fortress. It's $200,000 just is not a fortress. It's not a moat, right? It's lean. It's a not a moat, right? It's lean. It's a not a moat, right? It's lean. It's a workable position that requires income workable position that requires income workable position that requires income supplement and the discipline and a bit supplement and the discipline and a bit supplement and the discipline and a bit of luck probably in the early years, or of luck probably in the early years, or of luck probably in the early years, or at least dedication. It is not the same at least dedication. It is not the same at least dedication. It is not the same as retiring on a half million or a as retiring on a half million or a as retiring on a half million or a million where you have genuine cushion million where you have genuine cushion million where you have genuine cushion in Southeast Asia. I want you to go in in Southeast Asia. I want you to go in in Southeast Asia. I want you to go in with your eyes open. This is the with your eyes open. This is the with your eyes open. This is the entry-level version of financial freedom entry-level version of financial freedom entry-level version of financial freedom abroad, and entry-level means you got to abroad, and entry-level means you got to abroad, and entry-level means you got to be tighter. be tighter. be tighter. You have to be aware of it. Who's it You have to be aware of it. Who's it You have to be aware of it. Who's it actually for? Well, it's for the person actually for? Well, it's for the person actually for? Well, it's for the person who's saved a couple hundred thousand, who's saved a couple hundred thousand, who's saved a couple hundred thousand, maybe is selling a condo, has social maybe is selling a condo, has social maybe is selling a condo, has social security or a small pension coming in, security or a small pension coming in, security or a small pension coming in, or a small online income. Choosing or a small online income. Choosing or a small online income. Choosing between basically five more years of between basically five more years of between basically five more years of working in their home country or 10 more working in their home country or 10 more working in their home country or 10 more years of working to pad the number, or years of working to pad the number, or years of working to pad the number, or going now and living the better life going now and living the better life going now and living the better life while they're still young enough and while they're still young enough and while they're still young enough and healthy enough to make the most of it.

healthy enough to make the most of it. healthy enough to make the most of it. Makes me think of a guy named Ryan on Makes me think of a guy named Ryan on Makes me think of a guy named Ryan on the go. He has a YouTube channel called the go. He has a YouTube channel called the go. He has a YouTube channel called Solo Life Abroad. We've been talking and Solo Life Abroad. We've been talking and Solo Life Abroad. We've been talking and done a couple calls lately, and it's done a couple calls lately, and it's done a couple calls lately, and it's like for that person, for him, like for that person, for him, like for that person, for him, the math says you can probably go now, the math says you can probably go now, the math says you can probably go now, right? Like Ryan's he's 55 and he's right? Like Ryan's he's 55 and he's right? Like Ryan's he's 55 and he's going now. He's here. He's in Southeast going now. He's here. He's in Southeast going now. He's here. He's in Southeast Asia. He's doing it. It does not make Asia. He's doing it. It does not make Asia. He's doing it. It does not make sense for him to have a bigger number sense for him to have a bigger number sense for him to have a bigger number and wait till 65. With his discipline, and wait till 65. With his discipline, and wait till 65. With his discipline, and just remember, right? Like the and just remember, right? Like the and just remember, right? Like the over-waiter from my last video, the man over-waiter from my last video, the man over-waiter from my last video, the man with 600,000 who wishes he'd left a with 600,000 who wishes he'd left a with 600,000 who wishes he'd left a decade earlier. That's a terrible decade earlier. That's a terrible decade earlier. That's a terrible situation. Like when I went through the situation. Like when I went through the situation. Like when I went through the 10 different people I'd talked to and 10 different people I'd talked to and 10 different people I'd talked to and asked about what number they have when asked about what number they have when asked about what number they have when they retired in my last video, which I they retired in my last video, which I they retired in my last video, which I can link here. But, sitting on three can link here. But, sitting on three can link here. But, sitting on three times the number we're talking about times the number we're talking about times the number we're talking about today, right? Sitting on 600,000 and today, right? Sitting on 600,000 and today, right? Sitting on 600,000 and waiting for a decade too long. And the waiting for a decade too long. And the waiting for a decade too long. And the big regret there is not that you saved big regret there is not that you saved big regret there is not that you saved too little, it's that you wait too long. too little, it's that you wait too long. too little, it's that you wait too long. That you miss too many good years. You That you miss too many good years. You That you miss too many good years. You treat the number as a permission slip treat the number as a permission slip treat the number as a permission slip that you have to earn before you're that you have to earn before you're that you have to earn before you're allowed to actually live your real life. allowed to actually live your real life. allowed to actually live your real life. So, the cost of waiting is real, too, So, the cost of waiting is real, too, So, the cost of waiting is real, too, and it never shows up on a balance and it never shows up on a balance and it never shows up on a balance sheet. Shout out Brian. I hope you watch sheet. Shout out Brian. I hope you watch sheet. Shout out Brian. I hope you watch this video cuz that definitely just made this video cuz that definitely just made this video cuz that definitely just made me think of you. So, if you got 200,000 me think of you. So, if you got 200,000 me think of you. So, if you got 200,000 and a modest income, and you spend the and a modest income, and you spend the and a modest income, and you spend the next eight years padding it to 400,000 next eight years padding it to 400,000 next eight years padding it to 400,000 in a job you know you don't enjoy, you in a job you know you don't enjoy, you in a job you know you don't enjoy, you also spend eight years of your also spend eight years of your also spend eight years of your healthiest, most adventurous part of healthiest, most adventurous part of healthiest, most adventurous part of your life to do it. And that trade is your life to do it. And that trade is your life to do it. And that trade is sometimes worth it. And for some people sometimes worth it. And for some people sometimes worth it. And for some people it's a tragedy. And And you know, you it's a tragedy. And And you know, you it's a tragedy. And And you know, you can't really tell which until it's can't really tell which until it's can't really tell which until it's happened. So, I just want you holding happened. So, I just want you holding happened. So, I just want you holding both sides of it, honestly, because the both sides of it, honestly, because the both sides of it, honestly, because the financial industry is only ever going to financial industry is only ever going to financial industry is only ever going to show you one side to be conservative.

show you one side to be conservative. show you one side to be conservative. So, [snorts] it's not right for the So, [snorts] it's not right for the So, [snorts] it's not right for the person who wants a generous margin and person who wants a generous margin and person who wants a generous margin and zero financial stress and the ability to zero financial stress and the ability to zero financial stress and the ability to absorb it without a shock. That person absorb it without a shock. That person absorb it without a shock. That person should probably keep building towards should probably keep building towards should probably keep building towards 500,000 or a million. And you know, I 500,000 or a million. And you know, I 500,000 or a million. And you know, I can talk about exactly what that buys in can talk about exactly what that buys in can talk about exactly what that buys in another video on the Cost of Living another video on the Cost of Living another video on the Cost of Living Abroad channel. It's also not right. Abroad channel. It's also not right. Abroad channel. It's also not right. There's no right or wrong. I want to be There's no right or wrong. I want to be There's no right or wrong. I want to be honest with this, right? This isn't honest with this, right? This isn't honest with this, right? This isn't financial advice. For someone who's financial advice. For someone who's financial advice. For someone who's going to be miserable living below a going to be miserable living below a going to be miserable living below a certain standard or certain cost of certain standard or certain cost of certain standard or certain cost of living or who has like dependents, living or who has like dependents, living or who has like dependents, parents or kids who rely on them, or who parents or kids who rely on them, or who parents or kids who rely on them, or who has health conditions has health conditions has health conditions that make a thin margin risky. The lean that make a thin margin risky. The lean that make a thin margin risky. The lean number demands a different temperament, number demands a different temperament, number demands a different temperament, right? It demands someone who genuinely right? It demands someone who genuinely right? It demands someone who genuinely doesn't mind local food, local doesn't mind local food, local doesn't mind local food, local neighborhood, modest life. You know, for neighborhood, modest life. You know, for neighborhood, modest life. You know, for me I find that experiential life and me I find that experiential life and me I find that experiential life and interacting and being a part of the interacting and being a part of the interacting and being a part of the local culture rich and rewarding. It's local culture rich and rewarding. It's local culture rich and rewarding. It's not depriving. It's not living hard or not depriving. It's not living hard or not depriving. It's not living hard or deprivation. So, if that's not you, if deprivation. So, if that's not you, if deprivation. So, if that's not you, if you spend the whole time resenting you spend the whole time resenting you spend the whole time resenting constraints, pining for a better life, constraints, pining for a better life, constraints, pining for a better life, you know, dreaming you were living like you know, dreaming you were living like you know, dreaming you were living like a king, and you could have had a better a king, and you could have had a better a king, and you could have had a better life and a bigger number, then $200,000 life and a bigger number, then $200,000 life and a bigger number, then $200,000 probably isn't freedom for you. It's probably isn't freedom for you. It's probably isn't freedom for you. It's It's a cage with a decent view and maybe It's a cage with a decent view and maybe It's a cage with a decent view and maybe a beach, and you should either build a beach, and you should either build a beach, and you should either build more first or pick a different plan. So, more first or pick a different plan. So, more first or pick a different plan. So, we're definitely not trying to talk we're definitely not trying to talk we're definitely not trying to talk everyone into a lean version of this.

everyone into a lean version of this. everyone into a lean version of this. I'm just trying to tell you honestly who I'm just trying to tell you honestly who I'm just trying to tell you honestly who I think it fits, because the wrong I think it fits, because the wrong I think it fits, because the wrong person doing it is worse than not doing person doing it is worse than not doing person doing it is worse than not doing it at all, right? The $200,000 question it at all, right? The $200,000 question it at all, right? The $200,000 question doesn't have to have a yes or no answer. doesn't have to have a yes or no answer. doesn't have to have a yes or no answer. Ultimately, it has a yes, but a yes, if Ultimately, it has a yes, but a yes, if Ultimately, it has a yes, but a yes, if you go somewhere genuinely low cost, use you go somewhere genuinely low cost, use you go somewhere genuinely low cost, use real geoarbitrage. Yes, if you have some real geoarbitrage. Yes, if you have some real geoarbitrage. Yes, if you have some income streams alongside it. Yes, if you income streams alongside it. Yes, if you income streams alongside it. Yes, if you manage your expenses with discipline, manage your expenses with discipline, manage your expenses with discipline, and yes, if you can weather the first and yes, if you can weather the first and yes, if you can weather the first few years. Under those conditions, yeah, few years. Under those conditions, yeah, few years. Under those conditions, yeah, like me, $200,000 is going to buy a like me, $200,000 is going to buy a like me, $200,000 is going to buy a Vietnamese retirement that millions of Vietnamese retirement that millions of Vietnamese retirement that millions of people with far bigger numbers in people with far bigger numbers in people with far bigger numbers in expensive countries like the United expensive countries like the United expensive countries like the United States, Great Britain, or Canada are States, Great Britain, or Canada are States, Great Britain, or Canada are frankly going to be envious of and just frankly going to be envious of and just frankly going to be envious of and just not believe. So, obviously, if you want not believe. So, obviously, if you want not believe. So, obviously, if you want to run your own specific version of to run your own specific version of to run your own specific version of this, your numbers, your whatever, your this, your numbers, your whatever, your this, your numbers, your whatever, your specific plan and situation, you can specific plan and situation, you can specific plan and situation, you can join my membership, talk to me, we can join my membership, talk to me, we can join my membership, talk to me, we can get on a call, we can put a serious get on a call, we can put a serious get on a call, we can put a serious action plan and 12-month timeline, talk action plan and 12-month timeline, talk action plan and 12-month timeline, talk together, and work on your own together, and work on your own together, and work on your own relocation ideas, your specifics, where relocation ideas, your specifics, where relocation ideas, your specifics, where you want to be, how you want to get you want to be, how you want to get you want to be, how you want to get there. You can also tell me in the there. You can also tell me in the there. You can also tell me in the comments of this video what your number comments of this video what your number comments of this video what your number and what your income is. Be specific. I and what your income is. Be specific. I and what your income is. Be specific. I mean, I'll reply, I'll see what you mean, I'll reply, I'll see what you mean, I'll reply, I'll see what you write, and I'll tell you honestly what I write, and I'll tell you honestly what I write, and I'll tell you honestly what I think it can buy you, the comfortable think it can buy you, the comfortable think it can buy you, the comfortable version of life or a lean one. Thanks so version of life or a lean one. Thanks so version of life or a lean one. Thanks so much for watching. I'm Avenaj, retired much for watching. I'm Avenaj, retired much for watching. I'm Avenaj, retired early in Vietnam. You can watch this one early in Vietnam. You can watch this one early in Vietnam. You can watch this one where I interview some other expats where I interview some other expats where I interview some other expats about their cost of living abroad, or about their cost of living abroad, or about their cost of living abroad, or you can watch this one you can watch this one you can watch this one where I talk about what I spend in a where I talk about what I spend in a where I talk about what I spend in a week here. Take care.