Financial Truths I learned Living Abroad (18 Years Expat)

Welcome back to Saigon, Vietnam. I'm Welcome back to Saigon, Vietnam. I'm Evan A, retired early in Vietnam. Today, Evan A, retired early in Vietnam. Today, Evan A, retired early in Vietnam. Today, we're going to talk about some of the we're going to talk about some of the we're going to talk about some of the financial truths I've lived and learned financial truths I've lived and learned financial truths I've lived and learned over almost two decades of expat life over almost two decades of expat life over almost two decades of expat life and also acknowledge the fact that most and also acknowledge the fact that most and also acknowledge the fact that most financial advice you hear on YouTube is financial advice you hear on YouTube is financial advice you hear on YouTube is wrong. Not because the math is wrong. wrong. Not because the math is wrong. wrong. Not because the math is wrong. The math is usually fine, basic The math is usually fine, basic The math is usually fine, basic arithmetic. It's wrong because it's arithmetic. It's wrong because it's arithmetic. It's wrong because it's built for a specific situation, right? built for a specific situation, right? built for a specific situation, right? You live in a western country, you earn You live in a western country, you earn You live in a western country, you earn in that country's currency, you spend in that country's currency, you spend in that country's currency, you spend there, you retire there, you stay inside there, you retire there, you stay inside there, you retire there, you stay inside the box. If anyone of the assumption the box. If anyone of the assumption the box. If anyone of the assumption breaks, a significant portion of the breaks, a significant portion of the breaks, a significant portion of the advice and math breaks with it. As I advice and math breaks with it. As I advice and math breaks with it. As I said, I've been an expat now for about said, I've been an expat now for about said, I've been an expat now for about 18 years on and off. I've lived on three 18 years on and off. I've lived on three 18 years on and off. I've lived on three continents, earned in multiple continents, earned in multiple continents, earned in multiple currencies, banked in systems that currencies, banked in systems that currencies, banked in systems that didn't speak my language, filed taxes in didn't speak my language, filed taxes in didn't speak my language, filed taxes in situations my accountant back home would situations my accountant back home would situations my accountant back home would never have encountered. I've made never have encountered. I've made never have encountered. I've made expensive mistakes. I've also discovered expensive mistakes. I've also discovered expensive mistakes. I've also discovered a lot of things about money that you can a lot of things about money that you can a lot of things about money that you can only see when you step outside of the only see when you step outside of the only see when you step outside of the financial system back home in America financial system back home in America financial system back home in America that you were raised in. Today, I'm that you were raised in. Today, I'm that you were raised in. Today, I'm going to share eight of the harsh going to share eight of the harsh going to share eight of the harsh financial truths I've learned over the financial truths I've learned over the financial truths I've learned over the years. Not the generic stuff, not tips years. Not the generic stuff, not tips years. Not the generic stuff, not tips you've already read, the specific things you've already read, the specific things you've already read, the specific things that change how I actually thought about that change how I actually thought about that change how I actually thought about money abroad uh from someone again who's money abroad uh from someone again who's money abroad uh from someone again who's been doing this for a very long time.

been doing this for a very long time. been doing this for a very long time. So, the first one, the most important So, the first one, the most important So, the first one, the most important one is that your number is flexible, one is that your number is flexible, one is that your number is flexible, right? This is just a foundational right? This is just a foundational right? This is just a foundational truth. The first and most important truth. The first and most important truth. The first and most important thing that you need to know when you're thing that you need to know when you're thing that you need to know when you're planning for this is that your planning for this is that your planning for this is that your retirement number is not fixed and will retirement number is not fixed and will retirement number is not fixed and will never be fixed. It's going to change never be fixed. It's going to change never be fixed. It's going to change constantly. Most people doing retirement constantly. Most people doing retirement constantly. Most people doing retirement planning take their current spending, planning take their current spending, planning take their current spending, their rent, their healthcare, their car, their rent, their healthcare, their car, their rent, their healthcare, their car, their groceries, their utilities, and their groceries, their utilities, and their groceries, their utilities, and they just project it forward sort of for they just project it forward sort of for they just project it forward sort of for 20 years or 25 years, right? The result 20 years or 25 years, right? The result 20 years or 25 years, right? The result is a portfolio target somewhere between is a portfolio target somewhere between is a portfolio target somewhere between $1.5 and $2.5 million for a comfortable $1.5 and $2.5 million for a comfortable $1.5 and $2.5 million for a comfortable US retirement and they feel like the US retirement and they feel like the US retirement and they feel like the finish line is impossible of course finish line is impossible of course finish line is impossible of course right what I learned within my first right what I learned within my first right what I learned within my first year of living abroad is that the annual year of living abroad is that the annual year of living abroad is that the annual expenses figure in that calculation is expenses figure in that calculation is expenses figure in that calculation is entirely within your control I currently entirely within your control I currently entirely within your control I currently live on somewhere between 24 and 28,000 live on somewhere between 24 and 28,000 live on somewhere between 24 and 28,000 a year in Saigon comfortable apartment a year in Saigon comfortable apartment a year in Saigon comfortable apartment good food gym eating out regularly trips good food gym eating out regularly trips good food gym eating out regularly trips travel you know by standard 4% travel you know by standard 4% travel you know by standard 4% withdrawal rule. The portfolio required withdrawal rule. The portfolio required withdrawal rule. The portfolio required to sustain my life is only $600 or to sustain my life is only $600 or to sustain my life is only $600 or $700,000 and I'm not really budgeting.

$700,000 and I'm not really budgeting. $700,000 and I'm not really budgeting. I'm not really that tight with money to I'm not really that tight with money to I'm not really that tight with money to be honest and I have kids. That's less be honest and I have kids. That's less be honest and I have kids. That's less than half of what the equivalent would than half of what the equivalent would than half of what the equivalent would require in a major North American city. require in a major North American city. require in a major North American city. It's about a quarter of the number a lot It's about a quarter of the number a lot It's about a quarter of the number a lot of people tell you you need to save of people tell you you need to save of people tell you you need to save before you can retire well. And that before you can retire well. And that before you can retire well. And that difference, that more than $1 million difference, that more than $1 million difference, that more than $1 million gap in your portfolio target is not some gap in your portfolio target is not some gap in your portfolio target is not some sort of investment genius. It's not a sort of investment genius. It's not a sort of investment genius. It's not a special tax strategy. uh it's just a special tax strategy. uh it's just a special tax strategy. uh it's just a simple decision about where to live and simple decision about where to live and simple decision about where to live and how to live. So your number is flexible, how to live. So your number is flexible, how to live. So your number is flexible, mine is flexible, geography is the mine is flexible, geography is the mine is flexible, geography is the lever. Okay, the second truth here, lever. Okay, the second truth here, lever. Okay, the second truth here, currency risk is real, but it is currency risk is real, but it is currency risk is real, but it is manageable. Okay, so this is a slightly manageable. Okay, so this is a slightly manageable. Okay, so this is a slightly more analytic one. People think of more analytic one. People think of more analytic one. People think of currency risk, right? Everyone frames currency risk, right? Everyone frames currency risk, right? Everyone frames this as a threat. Fewer people talk this as a threat. Fewer people talk this as a threat. Fewer people talk about how it actually plays out in about how it actually plays out in about how it actually plays out in practice over a long period. Uh whether practice over a long period. Uh whether practice over a long period. Uh whether it's inflation, deflation, stagflation, it's inflation, deflation, stagflation, it's inflation, deflation, stagflation, the concern is legitimate. If you hold the concern is legitimate. If you hold the concern is legitimate. If you hold US dollar assets and the dollar weakens US dollar assets and the dollar weakens US dollar assets and the dollar weakens against your local currency, your against your local currency, your against your local currency, your purchasing power can drop, aka what purchasing power can drop, aka what purchasing power can drop, aka what happened in Thailand. The dollar buys happened in Thailand. The dollar buys happened in Thailand. The dollar buys fewer Vietnamese dong or in this case fewer Vietnamese dong or in this case fewer Vietnamese dong or in this case right now, it buys more, which means right now, it buys more, which means right now, it buys more, which means your local expenses get more expensive your local expenses get more expensive your local expenses get more expensive in dollar terms or less expensive in in dollar terms or less expensive in in dollar terms or less expensive in dollar terms. Here's the reality that dollar terms. Here's the reality that dollar terms. Here's the reality that I've felt across many countries, I've felt across many countries, I've felt across many countries, multiple continents over 18 years. The multiple continents over 18 years. The multiple continents over 18 years. The fluctuation is real, but they're not as fluctuation is real, but they're not as fluctuation is real, but they're not as big of a concern, right? The dong has big of a concern, right? The dong has big of a concern, right? The dong has weakened slightly in most years. the weakened slightly in most years. the weakened slightly in most years. the Thai bat has strengthened a bit. What Thai bat has strengthened a bit. What Thai bat has strengthened a bit. What actually benefits dollar holders is that actually benefits dollar holders is that actually benefits dollar holders is that your US dollar needs to be hedged on your US dollar needs to be hedged on your US dollar needs to be hedged on your investment. In the years where the your investment. In the years where the your investment. In the years where the dong strengthened, the movement was dong strengthened, the movement was dong strengthened, the movement was moderate and manageable. Likewise, the

moderate and manageable. Likewise, the moderate and manageable. Likewise, the Thai bat. Most people who live and bank Thai bat. Most people who live and bank Thai bat. Most people who live and bank in Thailand don't stress about this. It in Thailand don't stress about this. It in Thailand don't stress about this. It really just affects short-term trips and really just affects short-term trips and really just affects short-term trips and short-term spending. For Canadians, short-term spending. For Canadians, short-term spending. For Canadians, Americans, Aussies who home currencies Americans, Aussies who home currencies Americans, Aussies who home currencies are more volatile, uh the currency are more volatile, uh the currency are more volatile, uh the currency consideration is probably more real. consideration is probably more real. consideration is probably more real. Sorry, I meant Canadians, Brits, and Sorry, I meant Canadians, Brits, and Sorry, I meant Canadians, Brits, and Aussies because it swings larger. A bad Aussies because it swings larger. A bad Aussies because it swings larger. A bad year of a Canadian dollar weakness can year of a Canadian dollar weakness can year of a Canadian dollar weakness can meaningfully increase your cost of meaningfully increase your cost of meaningfully increase your cost of living, whether it's in Malaysia or living, whether it's in Malaysia or living, whether it's in Malaysia or Philippines. So, what I've learned is Philippines. So, what I've learned is Philippines. So, what I've learned is simple. You want to keep 3 to 6 months simple. You want to keep 3 to 6 months simple. You want to keep 3 to 6 months of expenses in the local currency. So, of expenses in the local currency. So, of expenses in the local currency. So, short-term volatility doesn't force you short-term volatility doesn't force you short-term volatility doesn't force you to exchange money at bad rates. You can to exchange money at bad rates. You can to exchange money at bad rates. You can use Wise or comparable service for all use Wise or comparable service for all use Wise or comparable service for all your international transfers to get the your international transfers to get the your international transfers to get the near mid-market rate with transparent near mid-market rate with transparent near mid-market rate with transparent fees. Do not try to time the exchange fees. Do not try to time the exchange fees. Do not try to time the exchange rate. You lose more to timing errors rate. You lose more to timing errors rate. You lose more to timing errors than the rate itself. Just take the long than the rate itself. Just take the long than the rate itself. Just take the long view because over any 5-year period, the view because over any 5-year period, the view because over any 5-year period, the currency situation historically is going currency situation historically is going currency situation historically is going to be favorable for dollar holders. The to be favorable for dollar holders. The to be favorable for dollar holders. The dollar crashes, I mean, come on, dollar crashes, I mean, come on, dollar crashes, I mean, come on, everything's out the window. So, yes, everything's out the window. So, yes, everything's out the window. So, yes, currency risk is real. For most people I currency risk is real. For most people I currency risk is real. For most people I know living in Southeast Asia on a US know living in Southeast Asia on a US know living in Southeast Asia on a US dollar income, it has been manageable dollar income, it has been manageable dollar income, it has been manageable and many years has actually worked in and many years has actually worked in and many years has actually worked in their favor. And there's still places their favor. And there's still places their favor. And there's still places like Cambodia where you can just skip it like Cambodia where you can just skip it like Cambodia where you can just skip it and live on the green back. Number and live on the green back. Number and live on the green back. Number three, banking abroad is basically three, banking abroad is basically three, banking abroad is basically simple now because of the internet, simple now because of the internet, simple now because of the internet, because of apps, because of the way because of apps, because of the way because of apps, because of the way banking has changed with crypto. It's banking has changed with crypto. It's banking has changed with crypto. It's just not the same as it used to be.

just not the same as it used to be. just not the same as it used to be. Banking abroad is no longer difficult. Banking abroad is no longer difficult. Banking abroad is no longer difficult. Everyone assumes this is a bureaucratic Everyone assumes this is a bureaucratic Everyone assumes this is a bureaucratic nightmare, right? Foreign accounts, nightmare, right? Foreign accounts, nightmare, right? Foreign accounts, international transfers, banks that international transfers, banks that international transfers, banks that don't speak your language, shitty don't speak your language, shitty don't speak your language, shitty [ __ ] YouTubers using clickbait to [ __ ] YouTubers using clickbait to [ __ ] YouTubers using clickbait to scare you about bank accounts being scare you about bank accounts being scare you about bank accounts being closed. If you have a good plan, it closed. If you have a good plan, it closed. If you have a good plan, it doesn't matter. This is what it actually doesn't matter. This is what it actually doesn't matter. This is what it actually look like right now. Three accounts, one look like right now. Three accounts, one look like right now. Three accounts, one back home, wise in the middle, and a back home, wise in the middle, and a back home, wise in the middle, and a local account, right? You can transfer local account, right? You can transfer local account, right? You can transfer money from one to the other to the money from one to the other to the money from one to the other to the other. And you never have to hold money other. And you never have to hold money other. And you never have to hold money where you don't want to hold money. where you don't want to hold money. where you don't want to hold money. I.e., it doesn't matter if anything I.e., it doesn't matter if anything I.e., it doesn't matter if anything happens to your local bank account if happens to your local bank account if happens to your local bank account if you never have more than a,000 bucks or you never have more than a,000 bucks or you never have more than a,000 bucks or whatever in it. You fund it from your whatever in it. You fund it from your whatever in it. You fund it from your home bank account to the wise or the home bank account to the wise or the home bank account to the wise or the middleman bank account. You withdraw middleman bank account. You withdraw middleman bank account. You withdraw from ATMs at near zero fees a couple from ATMs at near zero fees a couple from ATMs at near zero fees a couple times a month with Wise or you transfer times a month with Wise or you transfer times a month with Wise or you transfer internationally at mid-market exchange internationally at mid-market exchange internationally at mid-market exchange to the local currency and pay a small to the local currency and pay a small to the local currency and pay a small transparent fee. So you can use digital transparent fee. So you can use digital transparent fee. So you can use digital or cashless banking like a QR code or a or cashless banking like a QR code or a or cashless banking like a QR code or a tap here. Ultimately there's no worries, tap here. Ultimately there's no worries, tap here. Ultimately there's no worries, right? In my local account here, I only right? In my local account here, I only right? In my local account here, I only ever have a few hundred bucks. In my ever have a few hundred bucks. In my ever have a few hundred bucks. In my Wise account, maybe I have a couple Wise account, maybe I have a couple Wise account, maybe I have a couple thousand bucks. There's no great risk.

thousand bucks. There's no great risk. thousand bucks. There's no great risk. I've literally encountered credit card I've literally encountered credit card I've literally encountered credit card fraud multiple times with this system fraud multiple times with this system fraud multiple times with this system and it was easy to get my money back and and it was easy to get my money back and and it was easy to get my money back and was never a big issue because at no was never a big issue because at no was never a big issue because at no point is my actual real holding in point is my actual real holding in point is my actual real holding in danger. It's not being used. Maybe you danger. It's not being used. Maybe you danger. It's not being used. Maybe you have a checking account, but you don't have a checking account, but you don't have a checking account, but you don't have a regular account you're using for have a regular account you're using for have a regular account you're using for daily spending back home. So once you're daily spending back home. So once you're daily spending back home. So once you're settled, you open a local account in settled, you open a local account in settled, you open a local account in Vietnam, in Thailand, in the Vietnam, in Thailand, in the Vietnam, in Thailand, in the Philippines, right? You walk in with Philippines, right? You walk in with Philippines, right? You walk in with your passport, your visa. Sometimes you your passport, your visa. Sometimes you your passport, your visa. Sometimes you need a local SIM card, like in Vietnam, need a local SIM card, like in Vietnam, need a local SIM card, like in Vietnam, for example. You wait for about an hour. for example. You wait for about an hour. for example. You wait for about an hour. You use this account for like day-to-day You use this account for like day-to-day You use this account for like day-to-day spending, maybe rent, landlord, local spending, maybe rent, landlord, local spending, maybe rent, landlord, local transfers to drivers, whatever. That's transfers to drivers, whatever. That's transfers to drivers, whatever. That's the system. You hold the monthly cash in the system. You hold the monthly cash in the system. You hold the monthly cash in Wise. One app does the transfer Wise. One app does the transfer Wise. One app does the transfer instantly. The horror story of instantly. The horror story of instantly. The horror story of international banking, the blocked wire, international banking, the blocked wire, international banking, the blocked wire, the unexplained holes, the lost money in the unexplained holes, the lost money in the unexplained holes, the lost money in transit. This is largely a problem 10 or transit. This is largely a problem 10 or transit. This is largely a problem 10 or 15 years ago. The tools available now 15 years ago. The tools available now 15 years ago. The tools available now are genuinely good and they're instant are genuinely good and they're instant are genuinely good and they're instant and you use them on your phone. There's and you use them on your phone. There's and you use them on your phone. There's just there's nothing to lose with this. just there's nothing to lose with this. just there's nothing to lose with this. I don't even use it because I have it I don't even use it because I have it I don't even use it because I have it connected to Google Pay, but this is connected to Google Pay, but this is connected to Google Pay, but this is what you get. A simple Wise card. Uh, what you get. A simple Wise card. Uh, what you get. A simple Wise card. Uh, and of course, it's linked below and I'm and of course, it's linked below and I'm and of course, it's linked below and I'm affiliate if you want to help me out.

affiliate if you want to help me out. affiliate if you want to help me out. Number four, what I just mentioned, I'm Number four, what I just mentioned, I'm Number four, what I just mentioned, I'm going to emphasize it though. Your going to emphasize it though. Your going to emphasize it though. Your portfolio, your big money, your real portfolio, your big money, your real portfolio, your big money, your real money, the thing you're worried about money, the thing you're worried about money, the thing you're worried about losing, it stays at home. It's safe. losing, it stays at home. It's safe. losing, it stays at home. It's safe. This is the one that trips people up the This is the one that trips people up the This is the one that trips people up the most often in the planning stage. they most often in the planning stage. they most often in the planning stage. they get all frisky and excited and they want get all frisky and excited and they want get all frisky and excited and they want to move their entire life savings to to move their entire life savings to to move their entire life savings to [ __ ] Thailand or Philippines. Uh, god [ __ ] Thailand or Philippines. Uh, god [ __ ] Thailand or Philippines. Uh, god forbid. Don't do that. Don't listen to forbid. Don't do that. Don't listen to forbid. Don't do that. Don't listen to someone saying that. Your investment someone saying that. Your investment someone saying that. Your investment portfolio does not and will not and portfolio does not and will not and portfolio does not and will not and should not move when you do. People should not move when you do. People should not move when you do. People assume that because they're leaving the assume that because they're leaving the assume that because they're leaving the country, they need to just restructure country, they need to just restructure country, they need to just restructure their entire investments and life their entire investments and life their entire investments and life savings. They're going to sell off all savings. They're going to sell off all savings. They're going to sell off all their assets. They're going to move it their assets. They're going to move it their assets. They're going to move it somewhere. They're going to do somewhere. They're going to do somewhere. They're going to do something. They're going to put in the something. They're going to put in the something. They're going to put in the Cayman or whatever. Your US brokerage Cayman or whatever. Your US brokerage Cayman or whatever. Your US brokerage account stays open when you relocate account stays open when you relocate account stays open when you relocate abroad. Your index funds stay in your abroad. Your index funds stay in your abroad. Your index funds stay in your Vanguard or your Fidelity account. Your Vanguard or your Fidelity account. Your Vanguard or your Fidelity account. Your dividends pay out to your US bank dividends pay out to your US bank dividends pay out to your US bank account. Your capital gains acrew in the account. Your capital gains acrew in the account. Your capital gains acrew in the same account they always have. Nothing same account they always have. Nothing same account they always have. Nothing about physically living in Saiguan or about physically living in Saiguan or about physically living in Saiguan or Paneang requires you to change your Paneang requires you to change your Paneang requires you to change your investment structure. Taxes, yes.

investment structure. Taxes, yes. investment structure. Taxes, yes. Investments, no. What does change is Investments, no. What does change is Investments, no. What does change is your tax reporting, right? As a US your tax reporting, right? As a US your tax reporting, right? As a US citizen living abroad, you're still citizen living abroad, you're still citizen living abroad, you're still required to file a US federal tax return required to file a US federal tax return required to file a US federal tax return every year, regardless of where you're every year, regardless of where you're every year, regardless of where you're located. You may qualify for foreign located. You may qualify for foreign located. You may qualify for foreign earned income exclusion, the FEIE, which earned income exclusion, the FEIE, which earned income exclusion, the FEIE, which allows you to exclude up to $126,000 allows you to exclude up to $126,000 allows you to exclude up to $126,000 of foreign earned income from federal of foreign earned income from federal of foreign earned income from federal taxes. If your income comes primarily taxes. If your income comes primarily taxes. If your income comes primarily from a US portfolio, dividends, capital from a US portfolio, dividends, capital from a US portfolio, dividends, capital gains, etc., rather than active work gains, etc., rather than active work gains, etc., rather than active work you're doing abroad, the FEIE likely you're doing abroad, the FEIE likely you're doing abroad, the FEIE likely doesn't apply. You will owe US taxes on doesn't apply. You will owe US taxes on doesn't apply. You will owe US taxes on that income as you normally would. So, that income as you normally would. So, that income as you normally would. So, choose your state of residence wisely. choose your state of residence wisely. choose your state of residence wisely. You also have to file an FBAR, FB, if You also have to file an FBAR, FB, if You also have to file an FBAR, FB, if you have a foreign financial accounts you have a foreign financial accounts you have a foreign financial accounts that total more than $10,000 at any that total more than $10,000 at any that total more than $10,000 at any point during the year. If you listen to point during the year. If you listen to point during the year. If you listen to me just now, you will not. This isn't a me just now, you will not. This isn't a me just now, you will not. This isn't a problem. Uh, but you might need it for problem. Uh, but you might need it for problem. Uh, but you might need it for certain visas in Thailand or the certain visas in Thailand or the certain visas in Thailand or the Philippines that want you to put in big Philippines that want you to put in big Philippines that want you to put in big money. So, it's a reporting requirement, money. So, it's a reporting requirement, money. So, it's a reporting requirement, not a tax, but the penalties for missing not a tax, but the penalties for missing not a tax, but the penalties for missing it are severe enough that it needs to be it are severe enough that it needs to be it are severe enough that it needs to be on your calendar without bail. I would on your calendar without bail. I would on your calendar without bail. I would just say get a CPA back home who just say get a CPA back home who just say get a CPA back home who specifically works with US expats, not a specifically works with US expats, not a specifically works with US expats, not a generalist. Likewise, if you need a generalist. Likewise, if you need a generalist. Likewise, if you need a Canadian one, someone who does this Canadian one, someone who does this Canadian one, someone who does this every day, it is worth every dollar. The every day, it is worth every dollar. The every day, it is worth every dollar. The portfolio is going to be fine. It's just portfolio is going to be fine. It's just portfolio is going to be fine. It's just the legal reporting that's going to the legal reporting that's going to the legal reporting that's going to change. You need to plan for that change. You need to plan for that change. You need to plan for that distinction, and the rest is very distinction, and the rest is very distinction, and the rest is very straightforward, especially if you let straightforward, especially if you let straightforward, especially if you let your accountant handle it. Okay, number your accountant handle it. Okay, number your accountant handle it. Okay, number five. The flight home's [ __ ] five. The flight home's [ __ ] five. The flight home's [ __ ] expensive, man. And it's getting worse expensive, man. And it's getting worse expensive, man. And it's getting worse constantly with the oil prices, with the constantly with the oil prices, with the constantly with the oil prices, with the straight of Hormuz, yada yada. I think a

straight of Hormuz, yada yada. I think a straight of Hormuz, yada yada. I think a lot of people don't calculate this lot of people don't calculate this lot of people don't calculate this expense properly. Flights home, cost to expense properly. Flights home, cost to expense properly. Flights home, cost to visit home. you have family in North visit home. you have family in North visit home. you have family in North America and you move to Vietnam, to America and you move to Vietnam, to America and you move to Vietnam, to Thailand, to Cambodia, to Malaysia, Thailand, to Cambodia, to Malaysia, Thailand, to Cambodia, to Malaysia, you're going to fly home maybe once a you're going to fly home maybe once a you're going to fly home maybe once a year, maybe twice, maybe every other year, maybe twice, maybe every other year, maybe twice, maybe every other year, and when something happens with a year, and when something happens with a year, and when something happens with a parent, a child, a friend, you know, in parent, a child, a friend, you know, in parent, a child, a friend, you know, in 18 years, a lot of these things have 18 years, a lot of these things have 18 years, a lot of these things have happened to me, and I've done this, too. happened to me, and I've done this, too. happened to me, and I've done this, too. You're going to buy a last minute You're going to buy a last minute You're going to buy a last minute ticket. You're going to fly standby. ticket. You're going to fly standby. ticket. You're going to fly standby. Whatever the airline decides to charge Whatever the airline decides to charge Whatever the airline decides to charge you for it, you're going to be hit with you for it, you're going to be hit with you for it, you're going to be hit with out of pocket. A roundtrip flight right out of pocket. A roundtrip flight right out of pocket. A roundtrip flight right now from Ho Chi Min City to Los Angeles now from Ho Chi Min City to Los Angeles now from Ho Chi Min City to Los Angeles or Vancouver is about $1,500. Can be or Vancouver is about $1,500. Can be or Vancouver is about $1,500. Can be more during peak seasons or with the oil more during peak seasons or with the oil more during peak seasons or with the oil shifts. That is per person. If you have shifts. That is per person. If you have shifts. That is per person. If you have a partner, double it. If you have a a partner, double it. If you have a a partner, double it. If you have a family like me, quadruple it. If you family like me, quadruple it. If you family like me, quadruple it. If you plan to fly home once a year, add $1,500 plan to fly home once a year, add $1,500 plan to fly home once a year, add $1,500 to $2,000 to your annual budget and your to $2,000 to your annual budget and your to $2,000 to your annual budget and your model will actually be honest. If you're model will actually be honest. If you're model will actually be honest. If you're going to go twice, add 2500 to 3,000. going to go twice, add 2500 to 3,000. going to go twice, add 2500 to 3,000. It's not optional math. Every budget It's not optional math. Every budget It's not optional math. Every budget I've seen that blows up in the first I've seen that blows up in the first I've seen that blows up in the first year underestimates the flight home at year underestimates the flight home at year underestimates the flight home at Christmas when you decide you're going Christmas when you decide you're going Christmas when you decide you're going to do a pop-in visit and surprise your to do a pop-in visit and surprise your to do a pop-in visit and surprise your family. Don't surprise yourself. The fix family. Don't surprise yourself. The fix family. Don't surprise yourself. The fix is not to stop going home. The fix is is not to stop going home. The fix is is not to stop going home. The fix is just to build it into your budgeting just to build it into your budgeting just to build it into your budgeting honestly from the start so you know honestly from the start so you know honestly from the start so you know exactly what you want to do and what exactly what you want to do and what exactly what you want to do and what you're going to spend on it. Quick you're going to spend on it. Quick you're going to spend on it. Quick break. If any of this is landing, I need break. If any of this is landing, I need break. If any of this is landing, I need to run my specific situation through to run my specific situation through to run my specific situation through with someone who can actually see my with someone who can actually see my with someone who can actually see my numbers. Uh, this is exactly what I numbers. Uh, this is exactly what I numbers. Uh, this is exactly what I handle in my monthly live question and handle in my monthly live question and handle in my monthly live question and answer sessions. They're archived in the answer sessions. They're archived in the answer sessions. They're archived in the membership. They get live on YouTube.

membership. They get live on YouTube. membership. They get live on YouTube. One member in the hot seat, real One member in the hot seat, real One member in the hot seat, real numbers, real situations. I do numbers, real situations. I do numbers, real situations. I do one-on-one consults in there as well. one-on-one consults in there as well. one-on-one consults in there as well. You can watch them all back. Last month, You can watch them all back. Last month, You can watch them all back. Last month, someone walked through exactly how to someone walked through exactly how to someone walked through exactly how to sequence their dividend income and sequence their dividend income and sequence their dividend income and social security timing for Vietnam social security timing for Vietnam social security timing for Vietnam retirement. The conversation, like all retirement. The conversation, like all retirement. The conversation, like all conversations, can be available to you. conversations, can be available to you. conversations, can be available to you. We have a guided tier, 6 months. It's We have a guided tier, 6 months. It's We have a guided tier, 6 months. It's roughly 75 bucks a month. That tier will roughly 75 bucks a month. That tier will roughly 75 bucks a month. That tier will get you your only live section and a get you your only live section and a get you your only live section and a 30-minute onboarding call with me as 30-minute onboarding call with me as 30-minute onboarding call with me as well as the archive of everything else. well as the archive of everything else. well as the archive of everything else. Number six, let's talk about the Number six, let's talk about the Number six, let's talk about the lifestyle inflation crap. This one lifestyle inflation crap. This one lifestyle inflation crap. This one catches a lot of expats, probably more catches a lot of expats, probably more catches a lot of expats, probably more than anyone else, and it's a huge than anyone else, and it's a huge than anyone else, and it's a huge financial mistake. Lifestyle inflation financial mistake. Lifestyle inflation financial mistake. Lifestyle inflation to Western standards. It's the pizza, to Western standards. It's the pizza, to Western standards. It's the pizza, burger, and beer trap, guys. The burger, and beer trap, guys. The burger, and beer trap, guys. The pattern. You arrive in Thailand, cost of pattern. You arrive in Thailand, cost of pattern. You arrive in Thailand, cost of living is genuinely lower. You're living living is genuinely lower. You're living living is genuinely lower. You're living off 1,500 2,000 a month. It's off 1,500 2,000 a month. It's off 1,500 2,000 a month. It's comfortable. The math is working comfortable. The math is working comfortable. The math is working gradually because you're a westerner gradually because you're a westerner gradually because you're a westerner with western friends and western expats. with western friends and western expats. with western friends and western expats. Your spending starts to drift. You start Your spending starts to drift. You start Your spending starts to drift. You start eating more pizza more often because eating more pizza more often because eating more pizza more often because local food takes adjustment and it's local food takes adjustment and it's local food takes adjustment and it's easy to order grab. You join an easy to order grab. You join an easy to order grab. You join an expensive expat gym because the local expensive expat gym because the local expensive expat gym because the local one doesn't have the equipment you want one doesn't have the equipment you want one doesn't have the equipment you want or the friends you want to hang with.

or the friends you want to hang with. or the friends you want to hang with. You start flying somewhere every 6 weeks You start flying somewhere every 6 weeks You start flying somewhere every 6 weeks because travel is cheap. You move to a because travel is cheap. You move to a because travel is cheap. You move to a larger, nicer apartment a year in larger, nicer apartment a year in larger, nicer apartment a year in because, you know, whatever. Why not? because, you know, whatever. Why not? because, you know, whatever. Why not? Suddenly, you're spending 3500 a month Suddenly, you're spending 3500 a month Suddenly, you're spending 3500 a month in a Vietnamese or Thai city where the in a Vietnamese or Thai city where the in a Vietnamese or Thai city where the average professional earns a fifth of average professional earns a fifth of average professional earns a fifth of that. I've watched this happen to smart, that. I've watched this happen to smart, that. I've watched this happen to smart, financially aware people. The mechanism financially aware people. The mechanism financially aware people. The mechanism is almost always comfort seeking. You're is almost always comfort seeking. You're is almost always comfort seeking. You're slightly outside your element and slightly outside your element and slightly outside your element and expensive, familiar things feel like expensive, familiar things feel like expensive, familiar things feel like anchors, right? So, you spend on them to anchors, right? So, you spend on them to anchors, right? So, you spend on them to feel comfortable, to take away the fear. feel comfortable, to take away the fear. feel comfortable, to take away the fear. the specific cultures, high-end imported the specific cultures, high-end imported the specific cultures, high-end imported grocery stores, which are going to be grocery stores, which are going to be grocery stores, which are going to be three to five times local places or three to five times local places or three to five times local places or markets. Uh, western restaurants, easily markets. Uh, western restaurants, easily markets. Uh, western restaurants, easily three to four times local food, and three to four times local food, and three to four times local food, and you're doing it three to four times a you're doing it three to four times a you're doing it three to four times a week. Business class upgrades on week. Business class upgrades on week. Business class upgrades on regional flights, which are low by North regional flights, which are low by North regional flights, which are low by North American standards, multiple streaming American standards, multiple streaming American standards, multiple streaming services, phones, internets, too many services, phones, internets, too many services, phones, internets, too many banking setups. I knew a guy with 18 banking setups. I knew a guy with 18 banking setups. I knew a guy with 18 banks. None of these are individually banks. None of these are individually banks. None of these are individually catastrophic, but together they can catastrophic, but together they can catastrophic, but together they can double your monthly budget in under a double your monthly budget in under a double your monthly budget in under a year, no problem. The fix is very year, no problem. The fix is very year, no problem. The fix is very straightforward. Set your target monthly straightforward. Set your target monthly straightforward. Set your target monthly budget before you arrive. Track expenses budget before you arrive. Track expenses budget before you arrive. Track expenses with real discipline for 6 months.

with real discipline for 6 months. with real discipline for 6 months. Review your actual burn rate. The first Review your actual burn rate. The first Review your actual burn rate. The first 6 months is when the habits form. After 6 months is when the habits form. After 6 months is when the habits form. After that, they're much harder to change. If that, they're much harder to change. If that, they're much harder to change. If you write it down and track it, you will you write it down and track it, you will you write it down and track it, you will actually know. If you don't, you will actually know. If you don't, you will actually know. If you don't, you will not. Number seven, let's talk your not. Number seven, let's talk your not. Number seven, let's talk your actual tax obligations as a US citizen actual tax obligations as a US citizen actual tax obligations as a US citizen because they do not disappear when you because they do not disappear when you because they do not disappear when you leave or you move abroad. Put it this leave or you move abroad. Put it this leave or you move abroad. Put it this here because I've genuinely met good here because I've genuinely met good here because I've genuinely met good people who moved abroad and assumed that people who moved abroad and assumed that people who moved abroad and assumed that leaving the US meant they left the US leaving the US meant they left the US leaving the US meant they left the US tax system. It does not unless you tax system. It does not unless you tax system. It does not unless you actually renounce your citizenship. The actually renounce your citizenship. The actually renounce your citizenship. The United States taxes its citizens on United States taxes its citizens on United States taxes its citizens on worldwide income regardless of where worldwide income regardless of where worldwide income regardless of where they live. So, you're one of only two they live. So, you're one of only two they live. So, you're one of only two countries in the world that does that countries in the world that does that countries in the world that does that and the other one is itria. story to say and the other one is itria. story to say and the other one is itria. story to say to you doesn't mean your tax situation to you doesn't mean your tax situation to you doesn't mean your tax situation is catastrophic. For many expats on is catastrophic. For many expats on is catastrophic. For many expats on modest incomes living in Vietnam, in modest incomes living in Vietnam, in modest incomes living in Vietnam, in Philippines, in Malaysia, the Philippines, in Malaysia, the Philippines, in Malaysia, the combination of the FEIE and the lower combination of the FEIE and the lower combination of the FEIE and the lower total income in retirement means they total income in retirement means they total income in retirement means they owe little or no federal taxes, but you owe little or no federal taxes, but you owe little or no federal taxes, but you got to file every year without got to file every year without got to file every year without exception. The FBAR, which I mentioned exception. The FBAR, which I mentioned exception. The FBAR, which I mentioned earlier, the report of foreign bank earlier, the report of foreign bank earlier, the report of foreign bank accounts over $10,000, also needs to be accounts over $10,000, also needs to be accounts over $10,000, also needs to be filed annually, especially if you have filed annually, especially if you have filed annually, especially if you have dead money in an account abroad to get a dead money in an account abroad to get a dead money in an account abroad to get a retirement visa. This is a FIN CEN form, retirement visa. This is a FIN CEN form, retirement visa. This is a FIN CEN form, not an IRS form, and it lives on a not an IRS form, and it lives on a not an IRS form, and it lives on a different filing system. The penalties different filing system. The penalties different filing system. The penalties for missing it are disproportionately for missing it are disproportionately for missing it are disproportionately severe compared to how simple it is to severe compared to how simple it is to severe compared to how simple it is to just file a thing and do it. If you just file a thing and do it. If you just file a thing and do it. If you maintain legal ties to a state with an maintain legal ties to a state with an maintain legal ties to a state with an income tax, a mailing address, a income tax, a mailing address, a income tax, a mailing address, a driver's license, a voter registration, driver's license, a voter registration, driver's license, a voter registration, anything that a state tax authority anything that a state tax authority anything that a state tax authority could use to claim you as a resident,

could use to claim you as a resident, could use to claim you as a resident, you may have continued state tax you may have continued state tax you may have continued state tax obligations. Just advising someone obligations. Just advising someone obligations. Just advising someone recently on why and how to actually make recently on why and how to actually make recently on why and how to actually make the move from somewhere like Minnesota the move from somewhere like Minnesota the move from somewhere like Minnesota to South Dakota before you go. The to South Dakota before you go. The to South Dakota before you go. The cleanest long-term solution is to cleanest long-term solution is to cleanest long-term solution is to establish official residency in a state establish official residency in a state establish official residency in a state with no income taxes well before you with no income taxes well before you with no income taxes well before you leave. Texas, Florida, Nevada, leave. Texas, Florida, Nevada, leave. Texas, Florida, Nevada, Washington, South Dakota. Common Washington, South Dakota. Common Washington, South Dakota. Common choices. Get the expat CPA. File every choices. Get the expat CPA. File every choices. Get the expat CPA. File every year. The tax situation is manageable if year. The tax situation is manageable if year. The tax situation is manageable if you frontfoot it. Ignoring the situation you frontfoot it. Ignoring the situation you frontfoot it. Ignoring the situation is going to come and bite you in the ass is going to come and bite you in the ass is going to come and bite you in the ass later. Okay, last one. Number eight. later. Okay, last one. Number eight. later. Okay, last one. Number eight. What enough actually feels like? Is What enough actually feels like? Is What enough actually feels like? Is there a magical number in the sky? This there a magical number in the sky? This there a magical number in the sky? This is the big emotional one, the fear one, is the big emotional one, the fear one, is the big emotional one, the fear one, right? A million dollars, $100,000. The right? A million dollars, $100,000. The right? A million dollars, $100,000. The last one, the one that took me the last one, the one that took me the last one, the one that took me the longest to understand. What does enough longest to understand. What does enough longest to understand. What does enough actually feel like when you have it in actually feel like when you have it in actually feel like when you have it in your bank account? What does it actually your bank account? What does it actually your bank account? What does it actually mean to be comfortable? Right? In 18 mean to be comfortable? Right? In 18 mean to be comfortable? Right? In 18 years of living abroad, the moment I years of living abroad, the moment I years of living abroad, the moment I found the most disorienting, the more found the most disorienting, the more found the most disorienting, the more more than any practical challenge, more more than any practical challenge, more more than any practical challenge, more than any logistical problem, uh was the than any logistical problem, uh was the than any logistical problem, uh was the moment I stopped needing to want more.

moment I stopped needing to want more. moment I stopped needing to want more. The moment I actually retired, right? In The moment I actually retired, right? In The moment I actually retired, right? In North America, the financial structure North America, the financial structure North America, the financial structure of your life is built around constant of your life is built around constant of your life is built around constant accumulation of assets. You earn, you accumulation of assets. You earn, you accumulation of assets. You earn, you buy, the ceiling rises. You need more to buy, the ceiling rises. You need more to buy, the ceiling rises. You need more to feel secure. The whole economy is d feel secure. The whole economy is d feel secure. The whole economy is d designed to keep that engine running to designed to keep that engine running to designed to keep that engine running to keep you a consumer. And it works. Most keep you a consumer. And it works. Most keep you a consumer. And it works. Most people I grew up with are still running people I grew up with are still running people I grew up with are still running that program at 50, at 55, and it's that program at 50, at 55, and it's that program at 50, at 55, and it's going to keep running probably until going to keep running probably until going to keep running probably until they die. When you move to Saigon and they die. When you move to Saigon and they die. When you move to Saigon and live on, 1500 or 2,000 a month, your live on, 1500 or 2,000 a month, your live on, 1500 or 2,000 a month, your apartment is genuinely comfortable. The apartment is genuinely comfortable. The apartment is genuinely comfortable. The food is genuinely good, and your food is genuinely good, and your food is genuinely good, and your schedule is generally yours. Time and schedule is generally yours. Time and schedule is generally yours. Time and money will shift for you. You're going money will shift for you. You're going money will shift for you. You're going to stop calculating bigger numbers you to stop calculating bigger numbers you to stop calculating bigger numbers you need for a better version of this life need for a better version of this life need for a better version of this life because the version you already have is because the version you already have is because the version you already have is more than good enough. Not adequate, but more than good enough. Not adequate, but more than good enough. Not adequate, but great, real, enjoyable. That shift from great, real, enjoyable. That shift from great, real, enjoyable. That shift from enough is when I have more to enough is enough is when I have more to enough is enough is when I have more to enough is what I have right now is the most what I have right now is the most what I have right now is the most financially valuable thing that happened financially valuable thing that happened financially valuable thing that happened to me and psychological shift. It's a to me and psychological shift. It's a to me and psychological shift. It's a transformation. You know, it's not just transformation. You know, it's not just transformation. You know, it's not just about minimalism. It's about living about minimalism. It's about living about minimalism. It's about living well. It is about the recognition that well. It is about the recognition that well. It is about the recognition that the need for more is manufactured and the need for more is manufactured and the need for more is manufactured and that living somewhere like this cannot that living somewhere like this cannot that living somewhere like this cannot be manufactured back home. And that is be manufactured back home. And that is be manufactured back home. And that is just a mindbender when it first hits just a mindbender when it first hits just a mindbender when it first hits you. I don't know how to teach that in a you. I don't know how to teach that in a you. I don't know how to teach that in a YouTube video. Honestly, I just know YouTube video. Honestly, I just know YouTube video. Honestly, I just know that almost everyone I've met who's that almost everyone I've met who's that almost everyone I've met who's actually spent a year or more abroad actually spent a year or more abroad actually spent a year or more abroad experiences some version of like experiences some version of like experiences some version of like financial enlightenment. And the people financial enlightenment. And the people financial enlightenment. And the people who've never tried it are running an who've never tried it are running an who've never tried it are running an accumulation program that is costing accumulation program that is costing accumulation program that is costing them significantly more than they them significantly more than they them significantly more than they realize. It's costing you your life, realize. It's costing you your life, realize. It's costing you your life, your actual time. It's not just costing

your actual time. It's not just costing your actual time. It's not just costing you money. That's it. Those are my eight you money. That's it. Those are my eight you money. That's it. Those are my eight truths. Your numbers flexible. Geography truths. Your numbers flexible. Geography truths. Your numbers flexible. Geography is the lever. Currency risk is real but is the lever. Currency risk is real but is the lever. Currency risk is real but manageable. Bankling is simpler now than manageable. Bankling is simpler now than manageable. Bankling is simpler now than has ever been online. Your portfolio is has ever been online. Your portfolio is has ever been online. Your portfolio is going to stay at home and your reporting going to stay at home and your reporting going to stay at home and your reporting requirements change. Build flights into requirements change. Build flights into requirements change. Build flights into your budget honestly. Watch for that your budget honestly. Watch for that your budget honestly. Watch for that lifestyle inflation trap in your first 6 lifestyle inflation trap in your first 6 lifestyle inflation trap in your first 6 months. Write everything down. File your months. Write everything down. File your months. Write everything down. File your taxes every year and know your state taxes every year and know your state taxes every year and know your state situation. Pay attention to what enough situation. Pay attention to what enough situation. Pay attention to what enough actually is so you can be content when actually is so you can be content when actually is so you can be content when you have it. The financial truths of you have it. The financial truths of you have it. The financial truths of expat life are mostly just standard expat life are mostly just standard expat life are mostly just standard personal finance with different numbers personal finance with different numbers personal finance with different numbers and variables abroad. The exception is and variables abroad. The exception is and variables abroad. The exception is the last one. The shift in what enough the last one. The shift in what enough the last one. The shift in what enough means is genuinely different from means is genuinely different from means is genuinely different from anything I've encountered in financial anything I've encountered in financial anything I've encountered in financial content that I read before I moved. And content that I read before I moved. And content that I read before I moved. And it turns out to be the most important it turns out to be the most important it turns out to be the most important variable of all. So if you want to go variable of all. So if you want to go variable of all. So if you want to go deeper on any of these specifically in deeper on any of these specifically in deeper on any of these specifically in the context of your own numbers, your the context of your own numbers, your the context of your own numbers, your own personal situation, that is what my own personal situation, that is what my own personal situation, that is what my live consults and sessions do inside the live consults and sessions do inside the live consults and sessions do inside the membership. Real questions, real membership. Real questions, real membership. Real questions, real scenarios, real answers in real time for scenarios, real answers in real time for scenarios, real answers in real time for you. The link is in the description if you. The link is in the description if you. The link is in the description if you want to join now. It's also pinned you want to join now. It's also pinned you want to join now. It's also pinned in the comments. If you comment news in the comments. If you comment news in the comments. If you comment news below, I'll send you my newsletter and below, I'll send you my newsletter and below, I'll send you my newsletter and you can learn more. I'm Evan, retired you can learn more. I'm Evan, retired you can learn more. I'm Evan, retired early in Vietnam. You watch this one on early in Vietnam. You watch this one on early in Vietnam. You watch this one on five places to start over with under five places to start over with under five places to start over with under $10,000 or this one to tour a $1,000 $10,000 or this one to tour a $1,000 $10,000 or this one to tour a $1,000 apartment right here in Saigon.