Financial Jungle

Canadian Capitalist recently wrote another thoughts-provoking article. This time the subject was on Fidelity’s Retirement Math.

Instead of going off-topic with a long comment, I decided to write a separate article on an unconventional way to retire; live in exotic countries on a shoestring. My wife and I went on a vacation two years ago to Thailand and Malaysia, and we were thrilled to discover how affordable these two countries were. We ate delicious Thai curry chicken noodle soup for $0.75 Cdn, and stayed in a Chiang Mai hotel for $8/day with air conditioning. Although I haven’t done a complete analysis, this retirement seems doable.

The best time to travel is during the Canadian winters when utility bills are the costliest. Some of the eliminated expenses include electricity, heat, telephone/cell phone connections, cables, internet, grocery, gas, car insurance and dine outs, all of which could cost around $1,200/month depending on your lifestyle. $1,200/month is a lot of money to spend in Thailand and Malaysia. To give you some ideas:

• Pad Thai noodles for $1.25/plate. Desserts are even cheaper.
• Hotels in Bangkok run around $25/night. As mentioned, you can rent hotels in Chiang Mai for less than $10.
• Air Asia has countless sub $50 flights inside South East Asia.
• Meals in Malaysia range from $2.50 to $5.00. We ordered a $5/person meal that included a sting ray, chicken satay, frogs, vegetables and drinks. Yummy.
• $30/night for a courtyard double right at the heart of Kuala Lumpur, Malaysia.
• $42/night for an executive room with air condition at Sepilok Jungle Resort, Malaysia.

Another money-saving tip is to plan for extended stays in exchange for rate discounts. To help fund the trip, you could also hire a property manager to lease out your home temporary during your vacation. Again, I’m only scratching the surface here, but it’s something to ponder on.