Here’s how some people overhauled their finances so they could go abroad.
Jean gave up law for Bali
Jean Voronkova reached her goal of $2,000/month in passive income in four years. She could have stayed in her native Singapore to make more money, but then her expenses would also be high. So she moved to less expensive neighboring countries and started businesses there. Some of her lessons:
- Drastically reduce your cost of living, such as by moving to a cheaper place
- Create multiple income streams; don’t rely on one job
- Charge a lot: Don’t be the cheapest provider; compete on quality instead
- Set concrete goals
Brian and Carrie travel full time
In their early 50s, Brian and Carrie decided they wanted to travel full time until they reached retirement. To prepare, they drastically reduced their US expenses. Now they spend $28,000/year traveling internationally.
Their recommendations:
- Track expenses to see what you’re spending
- Cut unnecessary costs
- Remind yourself why you’re doing it
- Get rid of debt
- Downsize aggressively; consider getting rid of everything before you leave
- Create an emergency fund
Adalia taught abroad and now has an online business
48-year-old Adalia got teaching jobs abroad and now runs an online service business from Mexico City. She’s still working but is less stressed.
- She knew that by taking jobs outside the US, she’d be making a lot less money but felt the tradeoff was worth it.
- After several years in teaching jobs, she started an online service business and now works 15 hours a week.
- She has a retirement account of $545,000 but relies mostly on her part-time business income – she’s doing “coast FIRE.”
Photo at top: León, Spain