Reader case Study: Financial questions from the Costa del Sol

[Fenicio]

Greetings, I'm a 27 year old programmer who recently started living with his girlfriend. I've been working for 2 years and I have come to the exquisite realization that the best thing i can buy with my money is to not work. Or at least not do under the thumb of a tyrant.

Starting in September my SO will begin working as a programmer too and she's already planning what to do with the money. Due my constant pestering she has adapted to the moustache way of costs and we're happily living without indulging in costly pleasures (which have not disappeared at all, just stalking us, waiting to hunt in the darkest hour).

Her new job is in walking distance from our rented flat, but my job is in a near town and i have to spend half an hour to get there and half an hour to get here. The reason that we moved here is that we're near the Parque Tecnologico de Andalucia, which is a recint where IT companies are built. And so I was expecting to get a new job here.

Without any other flowery description this is my situation:

Net Income:
Mine: 1100 €/month (12 pays)
SO: 1050 €/month (14 pays)

Total Averaged Income: 2325 €/month

Expenses:
Flat + Water: 370 €/month
Gas: 100 €/month
Electricty: 25 €/month
Food: 200 €/month
Internet: 25 €/month
Phones: 40 €/month
Car insurance: 600 €/year so 50 €/month
Cleaning girl: 100 €/month

TOTAL Expenses: 910 €/month

Debt
0 € :D

Monthly net income:
1415 €/month

Saved as of this moment:

My bank account: 12000 €
SO's bank account: 3000 €


She's planning to course a master starting on October which will cost her about 2300 €.
I'm at loss at where to progress my life as of this moment, still haven't finished my PFC (Engineers in Spain have to present a project at the end of their studies, I've been delaying it because work exhausts me).

As for the cleaning girl, I know is an unnecesary luxury, but we both have our allergeis and when we have to dust and sweep and all that is snot town over here. It's an expense that makes or relationship a lot better.

So, I think I'm not missing anything, what worries me/us more is having the money in our bank and not getting something out of it. We've been looking at "Planes de pensiones", Treasure Bonds, ING's Funds bet we haven't decided for anything since we're mostly out of our element.

[EricL]

...we're happily living without indulging in costly pleasures (which have not disappeared at all, just stalking us, waiting to hunt in the darkest hour).

LoL!

I wish I could be more helpful but thanks to a visit to the Costa Brava my modern Spain memories are of no use.  My only Spain specific advice: if you offend an old guy in shabby armor riding a sad looking horse and he challenges you to a fight, apologize a lot, and beg forgiveness.  It doesn't hurt to affirm his SO is the most beautiful chica around.  It will save you much embarrassment.  I'm sure you already know that.

As for the allergies.  Have you tried doing your own cleaning wearing a bandana or dust mask over your mouth and nose?  If you do that, avoid touching your eyes, and go outside until the dust settles you may be able to do without the cleaning girl.  Your food expenses seem a bit high, but the flat rent plus water makes me envious.  Will your SO's masters get her a raise?  If so that € is well spent.  Consider if it does and she gets it your "work exhausts me" statement concerning your own career bears re examination or at least a medical evaluation.

[theonethatgotaway]

I think you're asking where to put your investments. I have no idea about the EU system/ tax system.

The good news is that your wage should go up soon! You've been at that company for two years? I would try looking g for a new position for more € closer to where you live and drop the commute. I would aim for 40,000€ annual gross.

Source: my husband is British and manages developers in the UK and USA.

[EricL]

I think you're asking where to put your investments. I have no idea about the EU system/ tax system.

The good news is that your wage should go up soon! You've been at that company for two years? I would try looking g for a new position for more € closer to where you live and drop the commute. I would aim for 40,000€ annual gross.

Source: my husband is British and manages developers in the UK and USA.

Indeed he did.  But I've no expertise in overseas investments.  (Hopefully there'll by post by a knowledgable European Mustache soon.)

But can a junior programmer actually as for that much of a raise?  Spain's economy isn't in great shape and the OP hinted his managers weren't so great either.

[theonethatgotaway]

I wouldn't bother asking for a raise-

Low pay after two years, he should start applying to different companies with a new salary requirement for his services. M husband sees it all the time with developers settling for very little money, when they can ask for more especially after some experience (they just don't know it for some reason).....

He could also freelance on the side. We know a lot of developers that do this and bring in half a salary. It just depends on how fast he wants to meet FI.

Also: If the local economy IS a barrier to higher wages, move. The EU has an open policy, he could fly to the UK tomorrow and land a good wage. Make it a temporary thing and build up the stash.

[EricL]

He probably could fly to another country.  Lots of Spain's college grads are because the economy is so bad.  But not all of the EU is doing well enough to make it work.  The UK probably has jobs but he should stay out of London if he can.

[Fenicio]

He probably could fly to another country.  Lots of Spain's college grads are because the economy is so bad.  But not all of the EU is doing well enough to make it work.  The UK probably has jobs but he should stay out of London if he can.

Actually this was a possible planned routine, why stay out of London? It's work bad there? Expensive?

[EricL]

London is the bomb but it's horribly expensive and only worth living in if you can find a job that will keep you solvent.  A couple years back there was an article that profiled a guy who worked in London but lived in Spain. He swore even with the commute it was cheaper.

[theonethatgotaway]

London! I just moved back.

It's expensive, but not crazy (considering I moved from manhattan). There are definitely ways to keep the expenses down. Transportation is great. Healthcare is great. The only thing to really look for is housing. But even that can be manageable as long as you're not living in central london. (A lot of our friends live in band 2 and earn between 40-70)

The have Costco. Win!

The developers on my husbands payroll were earning 45,000 pounds annually and up, to give you an estimate. So if you land a role and your GF lands a role, you guys will be doing great.