Bali Affordability
Creating Your Financial Roadmap, Wherever it May Be
For over 4 years I ran a Facebook Group called Retire in Bali. It grew to over 15,000 members but I gave the group away a couple of months ago. I found that whenever I posted about cost of living expenses in Bali I was met with skepticism. It’s true that villa rentals and land prices have risen dramatically in Bali over the past 5 years, especially after Covid. But there are still deals to be had, as the video shows below, especially if you pay rent for at least one year in advance.
In any case, I am very pleased that YouTubers Debbie and her mom are posting the nitty gritty about their monthly expenses in Bali. Everything that I’ve been preaching to the Facebook group has been confirmed, so follow along if you want to lower your cost of living in Bali:
Affordable Cost of Living for Retiree in Bali
“Talking with my 81-year-old Mom about the cost of living in Bali. We hope retirees can see that there are other ways to find a cost-effective lifestyle and not be at the mercy of inflation. Ever since I convinced Mom to move to Bali, she has been learning to live within her means. Since her only income is Social Security, it was impossible for her to live in the United States because she was addicted to buying things and didn't save for retirement.”
“But now Mom lives next door to me, and together, we live a new, retired, healthy, worry-free life. Plus, we eat organic foods, stay active, and find ways to entertain ourselves on the cheap. My wish is not for anyone to move to Bali but to find inspiration in this video to think outside the box and find the alternative lifestyle that best suits their situation.”
“The other thing I realize in this video (but don't really point it out) is I subconsciously created a solution, for now, to care for my elderly mother, which there was no way she or I could have afforded in the US. What happens to parents who don't have a backup plan for home care in their later years? Is it up to their children to pay for it and find a place for them in their own homes? Home health care costs a minimum of $4,000 a month, and finding a home for them costs even more money. No one ever talks about this.”
COST OF LIVING REVIEW:
Linda's Monthly Expenses (age 81)
US-related expenses - $214 USD Medicare (US medical)* 12% Social Security Tax* Subscriptions (YouTube, Newspaper, VPN, Podcasts, Skype) *Medicare and SS Tax taken out of monthly disbursement
Bali-related expenses - $1,174 USD $500 - Rent $400, Groceries $35, House maintenance/essentials $90, Entertainment: wine/beer, massages, dining out $40, Getting Around Transportation ($2-3 per trip) $15, Local pharmacy needs $35, Electricity (powers AC, lighting, 1 water pump), $44 Retirement visa, $15 Water/trash, Internet Data for Phone Linda's. TOTAL (Bali & US Expenses): $1,388 USD per month
Debbie's Monthly Expenses (age 55)
$660 - Rent, $450 - Groceries, Pet food, $160 - House maintenance (pool cleaner, maid, saltwater tank, WIFI internet, water/trash, gardener), $25 - Motorbike gas/maintenance (yes per month), $70 - Electricity (powering AC, 3 water pumps, washer/dryer, lighting), $62 - Stay Visa, $10 - Internet Data for Phone, $80 - Misc expenses, including subscriptions, $60 - Vet (having 4 animals, it’s always something), $20 - US Tax REQUIRED on bank accounts outside US over $10k. TOTAL Expenses: $1,597 USD per month
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Whether you are YouTuber Debbie who pre-paid her rent, or whether you build a modest house and pay with cash, freeing yourself up from monthly rent or mortgage payments is invigorating. If you add the savings of using a motor scooter instead of a car, your monthly savings gets another huge boost. You can always use an Uber type service for car rides in Bali, which is super cheap.
For more guidance on how to optimize your retirement planning, follow YouTuber Azul, a USA retired certified financial planner. Here’s a good video:
8 Things To STOP DOING After 60 (& Have MORE FUN 🎉)
Finally, regardless of your age, if you want to project future financial scenarios that may help you better plan a financially secure retirement — then get to know this amazing, free simulator: FIRECalc: A different kind of retirement calculator
Later,
Neill