The Advantages and Disadvantages of Frugal Living Abroad

Frugal living abroad can save one a lot of money. There are many countries that have a low cost of living; many of these nations are becoming retirement hot spots for those who want to save money and still live comfortably. However, one will not automatically save money by moving abroad. There are pitfalls to watch out for when moving to a foreign country and it is important to be aware of these. Following are the advantages and disadvantages of living abroad.


The Advantages of Living Abroad

A retiree who is fairly active and adventurous will not mind learning a new language, trying new food and embracing a new culture. Frugal living abroad is a joy to a retiree who is active and in good health.   In some instances, it is possible to live abroad on a limited budget without having to learn a foreign language. Panama City for instance is a popular retirement spot because many people speak English, the infrastructure is modern and the cost of living is low. The Philippines is yet another country where one would not have to learn a foreign language. The Philippines has a low cost of living, beautiful weather, gorgeous beaches and many forms of entertainment and recreation.

High quality medical care is much cheaper abroad than it would be in the United States. A retiree spends an average of $5,000 per year on medical care; this figure does not include dental care or medication bought from a pharmacy. On the other hand, Panama, India, Thailand, Mexico and other popular retirement destinations have US trained doctors that only charge a fraction of what American doctors charge. Dental care is also much cheaper abroad than it is in the United States and Europe.



The Disadvantages of Frugal Living Abroad

There are some disadvantages to frugal living abroad. Many people do not want to move far from their home country and leave family and friends behind. In most instances, the cheapest countries to retire to are countries where English is not the native language.

An older person is likely to face an adjustment period as he or she gets used to new food and a new type of weather. In fact, many retirees get sick when they first move abroad, usually due to the food or water.

Obtaining a proper visa is an integral part of living abroad. While many countries are eager to welcome retirees, all countries have certain requirements that must be met in order to obtain a retirement visa. In most instances, one will need to provide a health certificate showing that he or she does not have AIDS. A police record and proof of pension and/or savings is also required.

Cheap living abroad can save one a lot of money. Whether or not it is the best option is something that must be decided on an individual basis. A lot depends on what a person wants out of retirement. A person should weigh up the pros and cons and decide if frugal living abroad is the best way for him or her to save money and enjoy retirement.


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