Can I retire?

[freedom_lover]

Hey there!

I am a Norwegian, and have so far saved 130,000USD. I currently spend 870USD/mounth for house rental and 350USD/mounth on other expenses. My plan is to move to cheaper countries to get financial freedom. I plan to live as a digital nomad in some different countries, but will stay at least some mounths in each country so that I can get a cheap long-term rental contract the places I go.

I have been thinking of going to Thailand, Vietnam or other super cheap countries, but they require a visa (and that might be hard to get without a formal job) and these countries have not as stable political situation as most European countries. I will therefore prefer staying inside Europe, and as a Norwegian I won't need Visa for those countries.

Do any of you have experience living in cheap countries in Europe (ex. Cyprus, Ukraine, Romania, Greece, Georgia, Portugal, Spain)? Do you think it is possible to spend less than 325USD/mounth (3% withdrawal from 130K)? I need just a 15 square meter studio apartment. I have checked some prices and seems like it is possible, but I almost can't believe that I only needed work 5 years for retirement...

Hope anyone of you has some experience with these countries :-)

My plan is not to stay on the beach all day long. I'm a programmer and will still be programming, but on my own projects and my own business in my own pace without the stress the rat race gives...

[Miss Piggy]

This would fall into the "If it seems too good to be true...it probably is" category for me. Secondarily, living on $325/month does not sound like an appealing retirement to me, but hey, to each their own.

[Enigma]

I remember going to the Philippines and thinking to myself it was super cheap and I could live here.  Nice hotel $20/day, great food $5/day, and transportation by cab starting at $1 per trip.  Long story short I think you sell yourself short by moving to a third world country or an extremely cheap country.

However you earned your 130K USD in Norway, I would keep doing that with a goal of 1.3MM.  That would change your 3% into 3.2K/month.

[MsSindy]

@Enigma - why does the OP need $3.2k/month?  Is that to live by your standards?

Anyhow, I think it would be pretty tight to do on the income you have now.  HOWEVER, if you're young & fairly ambitious (and no dependents) and can still generate more income through programming, you can pretty much make anything work.  It really depends on how you tolerate risk, and if things don't work out, can you go back to your home country and get a descent job back?  If yes, and you're willing to live a little risky and adventurous, then it may be something you wish to do - if for nothing else except the experience of it all.

[russianswinga]

In Asia, yes. In Europe, no (not even Russia or Ukraine is that cheap)
If I were in your shoes, I would attempt to double that number.
My magic number is about $600,000 when I will retire in cheaper places in Europe:
http://forum.mrmoneymustache.com/throw-down-the-gauntlet/retiring-in-montenegro/

[jim555]

$130,000 is not a lot of money over decades of living expenses.  So I would say no to your question.

[honeybbq]

How does healthcare work for a Norwegian living abroad?

Sounds like a very very low margin for 'retirement.'

However, if you wanted to travel and earn money on side gigs and live cheaply for a few years--- go for it!

[Much Fishing to Do]

You're doing incredible if you're living in Norway on 1200USD/month.  I've spent some time in both Scandinavia and Greece and it sure seems like you can live the same lifestyle on half the money in Greece.

[freedom_lover]

Thanks so much for your replies!

However you earned your 130K USD in Norway, I would keep doing that with a goal of 1.3MM.  That would change your 3% into 3.2K/month.

Well, I don't even spend 3.2K in Norway. I'm a minimalist, and need only a 15 square meter studio apartment. I sit mostly in front of the computer when I'm at home, so no need for more.

How does healthcare work for a Norwegian living abroad?

I will get health care covered in EU countries as long as I am member of the Norwegian social security, but that ends after one year abroad. One option is to register as resident in another country and then be taxable for them. I might have to get a small job or register a business there to get the social security. Do anyone knows how this works for EU citizens? (Norway is not member of EU, but part of the European Economic Area, so most of the EU rules apply also for Norwegians).

My plan is to still be working, but work for myself instead of others. I find it hard to start my own business while working full time, and therefore would prefer focusing 100% on this. An option is of course to get back to full time job after 2-3 years if business fails and the passive income is too small.

[zephyr911]

However you earned your 130K USD in Norway, I would keep doing that with a goal of 1.3MM.  That would change your 3% into 3.2K/month.

That's rather arbitrary, and wildly excessive.

[ptobest]

My plan is to still be working, but work for myself instead of others. I find it hard to start my own business while working full time, and therefore would prefer focusing 100% on this. An option is of course to get back to full time job after 2-3 years if business fails and the passive income is too small.

It sounds to me like you have a plan to make this work. You have plenty of money to survive for 2-3 years while you focus on your personal pursuits. If you are successful in your business, and/or your passive income is large enough, congrats! If you are not, and in 2-3 years find that you did not estimate well for your FI plan, you now have the experience of launching your own business (along with several years of dedicated programming experience) to add to your resume when you return to the job market, making you a desirable hire.

[David Lurie]

As an American, I find it hard to believe that you would want to leave Norway. Norway may be expensive, but it is beautiful and has some of the best working conditions anywhere in the world. If you are just itching to be an entrepreneur, that is one thing, but to retire to Southeast Asia when you could stay in Norge?

[Letj]

Do you have plans for a family? That would chanevthe equation entirely.

[human]

If I were you I would research each individual country you are considering and figure out to move between them easily.

I think the early retirement extreme forum would be able to help you out better. There are people there that retire on less than 300k USD. Not sure about 100k.

[freedom_lover]

I think the early retirement extreme forum would be able to help you out better. There are people there that retire on less than 300k USD. Not sure about 100k.

Thanks for tip. Will check out!

Do you have plans for a family? That would chanevthe equation entirely.

Absolutely not :-)