Everyone is looking for creative ways to save money, and some people are looking abroad. One Redditor struggled to make it in the United States but now saves more than $3,000 per month. While strategies like house hacking, skipping Starbucks, and cutting monthly subscriptions can make a difference, your location plays a decisive role in your monthly costs.
One Redditor took this to the extreme and moved to Tunisia to save thousands of dollars each month. Those savings have allowed the Redditor to create their dream lifestyle from a remote job. The Redditor shares financial figures that highlighthow much you can save and what type of lifestyle you can have in a developing country like Tunisia.
Key Points
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A Redditor is currently saving $3,000 per month by relocating to Tunisia.
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U.S. citizens have an opportunity to save up for a down payment or retirement by temporarily living in another country.
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How Much Does Rent Cost in Tunisia?
Tunisia is a Northern African country that is as close as you can get to Italy without being in Europe. The city is growing at a fast pace as people are attracted to the high quality of life at a fraction of the cost.
Americans may be shocked to discover that they can rent a 1,300-square-foot apartment for only $375 per month. Those types of prices are unheard of in the States, and you even get an 860-square-foot terrace. The Redditor provides these figures based on their personal experience.
People who want to live more luxurious lifestyles can rent a 6,800-square-foot villa for $2,200 per month. You can find larger villas for $3,200 per month, and with that much space, it’s much easier to house hack. Living with 2-3 roommates will bring down costs significantly. Meanwhile, you’d be lucky to get a shoebox in Manhattan that is under $2,000 per month.
The Redditor mentions that Tunisia has plenty of places where you can buy food. The original poster mentions that they spend $600/mo on food and doesn’t have to cook anymore.
Save Up for a Down Payment or Retirement
The Redditor says that they save $3,000 per month in Tunisia. It isn’t only the housing that’s cheap. Restaurants, espressos, taxi drives, energy bills, and the subway are much cheaper than their U.S. counterparts.
Saving $3,000 per month comes to $36,000 each year. You can save $180,000 in five years, which makes a down payment much easier. Letting the money compound over time in a portfolio can also set you up for retirement. Granted, the money you use for a down payment can’t compound in a portfolio, but this setup will give you more options with your money.
Multi-Generational Houses Are the Best Alternative
While the thought of living in Tunisia to save thousands of dollars each month may seem appealing, not everyone wants to move out of their town or city. Young adults who can still live with their parents may want to capitalize on that opportunity.
Multi-generational homes are becoming more common due to higher living costs and other factors. Some people have no desire to move out of their homes until they get married, and in the meantime, they can save thousands of dollars each month instead of making unnecessary rent payments.
Married couples who are tight on their finances may even want to consider temporarily living in multi-generational households. Housing is the biggest expense, and that’s why people are moving to more affordable locations. Granted, other living expenses are also lower, but housing is the big one. Any arrangement that allows you to cut your housing costs will make it much easier to save money toward your long-term goals.
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