Jean Marie and Pascale Butterlin.
How to retire early in Ecuador: Part II
by Jean Marie Butterlin
The expense side of the “retire early equation” is one of the most important yet the easiest part to address:
– From this side of the equation it will depend on what you will need as additional income and the type of work you will do to meet those expenses.
A) House Cleaning : one needs to go over each expense and decide whether it is absolutely worth keeping. Here is the question one has to ask is: DO I REALLY NEED TO MAKE THAT EXPENSE? It always amazes me at how much you can save each month by cutting unnecessary things from your life like newspapers, movie channels etc…
B) The Cost of Living in Ecuador: The Real Truth
a. To live comfortably without taking rent into account, you will need $1,500 for a couple ; that includes internet, cell phone, Direct TV, utilities, HOA, food, taxis, restaurants, clothes, basic health insurance, etc…
b. If you have some expensive tastes like good wines everyday on your table, you will need to budget that on top of the $1,500
c. You will have to budget also airline tickets to go back and forth and the cost of owning or renting a apartment.
I know of many clients who just started thinking outside the box i.e. re-thinking their REAL needs. We have many examples around us in Bahia and San Clemente of people in their fifties who live a more frugal life but all enjoying every moment of it.
They downsized some areas in their life that were not considered “priorities” and trimmed a lot out of their monthly expenses. This allowed them to match their expenses to their planned income, be it passive (investments) or residual income from their businesses in the US for example.
I cannot stress enough how important that new logic is to prepare for a life change! It will bring more hope to come and enable you to live the good life in Ecuador.
Learn how to earn by writing in Ecuador: