Frugal chicos journal - ERE in The Basque Country

Where are you and where are you going?
2Birds1Stone
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Re: Frugal chicos journal - ERE in Spain

Post by 2Birds1Stone »

Congrats!!! That's an incredible opportunity to get to FI @ warp speed. Keep us posted on how the move goes.

Frugalchicos
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Re: Frugal chicos journal - ERE in Spain

Post by Frugalchicos »

MARCH INCOME –$14,525.64

MARCH EXPENSES – $879 USD - The expenses below are in Euros, we do the conversion of the total into USD.
Gas (Car): 0 - I will eliminate this line since I am not planning in having a car for a few years
Groceries: $244.84
Cellphones: $29.65
Internet: $0
Misc./Entertainment: $403.89 - Includes PCR, some transportation, clothes, haircuts, etc...)
- HOA: $69

We saved 93.95% of our income.

OTHER EXPENSES RELATED TO HOUSE AND PARKING SPOT PURCHASE: $1,566.70
- Taxes: $818.70
- House Insurance for construction:$105
- Notary: $643


CURRENT ASSETS: $704,580 ($26,636.72 increase from last month)
Cash savings: $55,430
Investments: $480,815
HOUSE EQUITY: $168,335

ACHIEVEMENTS/HAPPENINGS THIS MONTH:
- I got a job. Very happy with it. It also gives me peace of mind and eliminates a lot of uncertainty when getting back to Chicago. The job is good, pay is good and the package is great. Good health insurance, 401K (match of 6% apparently) and stock buying option.
- They already cleared out all the furniture and stuff in the condo. The constructor is waiting for the building permit to start tearing everything down and starting the construction. We are expecting to have everything completed by October/November.
- Chica and mini chica are already in the US. I have 5 more days in The Basque Country to chill and recharge. I feel like I am in a limbo, getting ready for the next chapter. I feel kind of sad but excited to start our next adventure.
- We already have an apartment in Chicago and mini has been accepted in a daycare just down the street.
- Started to rebalance our investments 70-30%.
- Chica is getting vaccinated on Monday. I will get vaccinated the next day I arrive
- Our goal for next month is simple: get settled in Chicago and take it easy. I also want to have a good start in my job.

Cheers and write you next time from the US.

2Birds1Stone
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Re: Frugal chicos journal - ERE in Spain

Post by 2Birds1Stone »

Safe passage!

Frugalchicos
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Re: Frugal chicos journal - ERE in Spain

Post by Frugalchicos »

@2b1s

Thanks buddy!! - let me know if you decide to buy a house in The Basque Country instead of in Portugal

2Birds1Stone
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Re: Frugal chicos journal - ERE in Spain

Post by 2Birds1Stone »

Frugalchicos wrote:
Sat Apr 03, 2021 6:32 am
@2b1s

Thanks buddy!! - let me know if you decide to buy a house in The Basque Country instead of in Portugal
That is a possibility! DW and I have yet to visit Spain. Our planned month last April got thwarted by covid. Can't wait!!!

Nicolino
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Re: Frugal chicos journal - ERE in Spain

Post by Nicolino »

Looking forward to this new chapter in your adventure!!

Frugalchicos
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Re: Frugal chicos journal - ERE in Spain

Post by Frugalchicos »

I am back in America after 34 hours of transit. It took so long that I felt like an emigrant from the mid 1800s traveling by boat from Liverpool to NY.

A good jet lag and allergies (a Basque doesn't do well in the desert of Arizona) mixed with the first shot of Covid made an incredible cocktail to made me feel like poop the first two days. However, I am very happy to see Chica and mini, it is incredible how fast she grew in these couple of weeks I was away from her. Glad we can rest a couple weeks here in Arizona before heading to Chicago. There is no much to do but chilling by the pool, play with mini and read. I started reading "You can retire Young"

Coming back to the US has not been like a crazy impact. It pretty much felt like I never left and came back from a long vacation in The Basque Country. I will try to ease the best way I can and take things calmly with a different approach than before. We know we are here for a relatively short period of time and we would like to enjoy our stay while we achieve our goals. Also, not driving will help considerably. Seeing a ton of massive pick ups and SUVs racing on the highway yesterday made me glad I will not need a car in the coming years.

Already filed taxes and got a cellphone plan with Lycamobile for $23/month. I start work on Monday, I feel very excited and a little nervous.

guitarplayer
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Re: Frugal chicos journal - ERE in Spain

Post by guitarplayer »

Good luck back in Chicago, I wonder if the real rationale for the move back was to quietly become neighbour with @jacob to become a master ERE'er (just kidding).

Enjoying your journal!

Frugalchicos
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Re: Frugal chicos journal - ERE in Spain

Post by Frugalchicos »

@guitarplayer

You got me! Jacob and I hanged out a couple of times when we lived in Chicago before. I bet we will see each other again!

Frugalchicos
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Re: Frugal chicos journal - ERE in Spain

Post by Frugalchicos »

Finally got some time to do an update. This time writing from the US.

APRIL INCOME –$11,143

APRIL EXPENSES and until MAY 9th – $11,794 USD
- Rent: $1,500 (includes $350 for the stupid moving fee. Our rent is $1,150)
- Groceries: $462 - We had to buy everything a household needs to cook every simple meal. E.g. salt, pepper, spices, flour, olive oil, etc...
- Cellphones: $21 - I currently have a Lycamobile plan. Starting tomorrow I will just use my new plan from work.
- Internet: $0 - Will start paying next month
- Misc./Entertainment: $3,471 (it includes all the furniture, towels, rugs, etc... we needed to get the house running. We also bought a couple of headphones and I finally got a Casio W5600.)
- Cash withdrawals: $80 we used for various things that I don't exactly remember. It has been a crazy couple of weeks.
- Taxes: $6,200. Chica owed taxes from her freelance job back in The Basque Country. She is full time employee again with 401K, insurance, etc...

We didn't save shit this month. Well, we actually invested all Chica's salary and some $3,000 when the market was down for a couple of days.

CURRENT ASSETS: $728,665 ($24,085 increase from last month)
Cash savings: $24,745
Investments: $530,272
Chica's 401K: 5,313
HOUSE EQUITY: $168,335

ACHIEVEMENTS/HAPPENINGS THIS MONTH:
- We all moved to the US. We spent a month in AZ where Chica's parents spend the winters and then moved to Chicago a couple of weeks ago. These last two weeks have been quite hectic, putting all the Ikea stuff together, buying everything, starting a new job, taking care of mini Chica. I am really looking forward for a full chill weekend.

- We rented a 1 bed apt in a very nice area, steps away from the park, lake, supermarkets, gym, bars and restaurants. Mini sleeps in the bedroom and we basically set up the living room like if it was a studio with the bed by the couch. We love it. Super cozy and comfortable.

- Mini stated daycare last week. It was heartbreaking seeing her crying thinking we were abandoning her...I feel very fortunate that we had the opportunity of spending every single day with her for her first 21 months of her life. That's what frugal living got for us :)

- We are fully vaccinated. It feels good to get that out of the way and be able to have less restrictions here than in Europe. Not that I am against using masks, but I probably don't need to be wearing one when I am at the park or mountain by myself.

GOALS:
- Settle, chill, relax a little bit and start enjoying our new stage without having to do a ton of tasks.
- Get the hand of the new job. I already got compliments about my performance by our client and high ups in my company. It feels good to start with the right foot.
- Have some fun and keep making money like crazy.

A cool pic from the AZ dessert
Imagepost image online

Western Red Cedar
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Re: Frugal chicos journal - ERE in Spain

Post by Western Red Cedar »

Congratulations on the successful transition back to Chicago. I'm glad to hear you got to spend some time with family in AZ. Probably one of the best times to visit in terms of weather. It also looks like you got a great deal on rent for a major US metro - very nice!

DW and I have over a decade of shared experience working in early childhood education. Mini chica is at a great age to start a daycare program. The social skills she'll develop in the next couple years will make the transition to k-12 education much easier, whether in the US or abroad. Most toddlers tend to adapt and thrive in childcare if it is a halfway decent program.

Go forth and conquer like a Spanish Viking!

2Birds1Stone
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Re: Frugal chicos journal - ERE in Spain

Post by 2Birds1Stone »

Congrats on the successful move!

I do have a selfish question, what did you choose for a mattress? DW and I are in an extremely similar situation in that we will likely have to furnish an apartment completely from scratch, and rather quickly, in a HCOL area in the coming few months.

Wishing you continued success in work and life.

Frugalchicos
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Re: Frugal chicos journal - ERE in Spain

Post by Frugalchicos »

@Western Red Cedar
Thanks for the note. AZ was great, it allowed us to transition back into American life and mini got to spend a lot of time with Chica’s parents.
Mini Chica is doing better at day care. I believe it was very well needed for her to have more interaction and playtime with children her age. We think it will also be a great experience for her to grow up for some time being fully exposed to English.

@2Birds1Stone
We got the Hauga bed and the Hasvag mattress, they are good enough. I would be happy to share our Ikea and Target lists if you want. You guys would probably spend less money than us since you don’t have kids. Ikea is tricky because they don’t ship everything.

2Birds1Stone
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Re: Frugal chicos journal - ERE in Spain

Post by 2Birds1Stone »

That would be awesome! Feel free to PM it.

Frugalchicos
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Re: Frugal chicos journal - ERE in Spain

Post by Frugalchicos »

MAY INCOME –$11,583
*We made $395 selling our old iphones and the laptop that chica was using for work.

MAY EXPENSES (starting MAY 9th) – $3,716 USD
- Rent: $1,150
- Groceries: $357
- Cellphones: $0 - both chica and I are using our work phones.
- Internet: $76.39
- Misc./Entertainment: $703.26 ($510 in clothing for the 3 of us. Bought some stuff for now and next winter on sale. A ticket to Kansas City to visit family and other stuff)
- Cash withdrawals: $40
- Taxes: $99. It seems we still owe some more money
- Day care: $1,280

We also had to pay 987 Euros to an architect (it will be a total of 2,400Eur). The city hall asked for a full project with blueprints of the before and after, etc... Hopefully, this is the end and they give us the permit and allow us to do the construction the way we want it without any issue.

We saved 67.92% of our salary.

CURRENT ASSETS: $732,755 ($4,090 increase from last month)
Cash savings: $20,606
Investments: $537,878
Chica's 401K: 5,936
HOUSE EQUITY: $168,335
Nothing impressive here. Our cash went down because of paying the architect and we invested $8,000.

ACHIEVEMENTS/HAPPENINGS THIS MONTH:
- This was our first month in Chicago. We feel settled, the apartment is fully furnished and with everything we need. We feel confortable and happy.
- Even though I am working a lot, I am doing great and I am getting a lot of recognition from both my company and client. Hopefully, this translates into more $$$ in the near future.
- We made some friends already. I got to meet a good group of Spanish dudes who also have kids and live in the same neighbourhood. I am also going climbing this week with one of Chica's friend's boyfriend.
- I read You can retire young from Larry Ferstenou. The book has a couple of good points but I didn't consider it a life changing book by any means. My next book on the list is the freedom manifesto.

GOALS:
- We both would like to start working out soon. I started to run a couple of weeks ago but allergies have been pretty hard lately...I will try to mitigate it taking antihistamine and perhaps will try with local honey...
- Our miscellaneous should be reduced to $200 or so. There is no excuse to spend much more than that.
- It is really not in our hands, but we hope the architect gets to do the construction project and the city hall gives us the construction permit without any issue.

Other musings... I got to spend some time these days with people that either their lifestyle, housing choices or a combination of both made me daydream about our life goal. One case had a lot of possessions, debt, anxiety and was noticeably unhappy. The other person just bought a condo for over 800K...they pay almost the same in HOA than us in rent (living two streets over). I just imagine us living a simple live back in The Basque Country with our paid off condo, humble car, surfing, taking naps and definitely not worried about money. I guess what I am trying to say that certain choices some people make over time accumulate and definitely develop into a complex life full of stuff but lacking a real meaning making them frustrated and unhappy.
Last edited by Frugalchicos on Tue Jun 01, 2021 6:54 am, edited 1 time in total.

Married2aSwabian
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Re: Frugal chicos journal - ERE in Spain

Post by Married2aSwabian »

Enjoying reading your journal. Happy for you that family is reunited in Chicago and all is going well!

I’m originally from Chicago area and while it’s a bit too crowded for DW, we always enjoy going back to visit family and friends there! Of the cities I’ve visited, I would say it’s my second favorite after Amsterdam. ;)

Seems like you’re kicking ass on your savings and investment goals. What is NW number you and Chica are targeting for FI?

Frugalchicos
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Re: Frugal chicos journal - ERE in Spain

Post by Frugalchicos »

@Married2aSwabian

Thanks! Chicago has worked pretty good for us. It is a beautiful city with plenty to offer, it has allowed us to develop our careers and achieve our financial goals.

Our goal is having 1MM invested to retire. We already have a house and a parking spot paid off. Once we get to the 1MM we are back at our mountains and beaches in The Basque Country :)

Frugalchicos
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Re: Frugal chicos journal - ERE in Spain

Post by Frugalchicos »

Mid month update. The following are just some thoughts, goals and things I have done so far that I wanted to put together:
- Started running today. Run 3.5 miles in 30 minutes. Not bad. My goal is to run again regularly and get back in top shape.
I see myself going back in a good shape with stamina to be able to enjoy all the things I want to do: running, biking, surfing and hiking. One my goals/dreams when retiring is training for a triathlon.
- I started a savings account where I deposit $10 a week for the next three years (the time we are estimating to stay in the US). I will use that money to buy a nice bike and a longboard.
- I am finishing the Freedom Manifesto by Tom Hodgkinson. I am really enjoying this book, I will recommend it to anyone.
- I bought a kindle paperwhite 2 for $38. It is old but in good shape and it has back light.
- I downloaded some books I had in my reading list: The Old Man and The Sea, The importance of Life, The book Thief, The Slaughterhouse Five, Independent People, How to Idle, The Fear of Freedom, Walden, Work Less Live more, 1984, Meditations, The book of five rings.
- Chica got our story featured on Frugalwoods as a Reader Case Study. You can see it on:https://www.frugalwoods.com/2021/06/09/ ... e-country/
- We changed our investments to 80-20%.
- We calculated our expenses and we have $500 of expendable income a month. We will use my salary to cover all the expenses and Chica's will go to investments.

Western Red Cedar
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Re: Frugal chicos journal - ERE in Spain

Post by Western Red Cedar »

Cool to see your case study. Great photos and a really impressive spread of sushi. I generally agree with Liz, though I think it makes sense to stay put in Chicago for at least a year or two since you just moved back to the US. You should easily be able to leave in three years if you can keep expenses in Spain below 20-25 thousand.

A 2.5% SWR rate seems really conservative. I also understand the mentality of making money now while you're young and have access to opportunities, and think you'll probably be happy you did a couple years down the road.

I'd encourage you and frugalchica to listen to this podcast with Michael Kitces on the 4% rule: https://www.madfientist.com/michael-kitces-interview/

You've basically solved the financial piece of the puzzle and things are on autopilot. I think it might be worthwhile thinking about purpose and identity without work - though I may be projecting some of my own issues here.

I also second one of the comments about investing in some good winter gear. Like they say, there is no such thing as bad weather, only bad gear.

Frugalchicos
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Re: Frugal chicos journal - ERE in Spain

Post by Frugalchicos »

@WRC

Thanks! Chica is a great sushi maker

Thanks for the link, I will definitely download it. Yes, we understand the 4% rule. However, we think we have a great opportunity to make all that extra money that will give us piece of mind. Besides, we would like to buy a rental condo in The Basque Country as another source of passive income. The idea is renting it for like 20 years and then mini Chica can move in there.

I honestly have no identity built into my job. I am planning in dedicating my time to surfing, hiking and training marathons. Family and spending time at home cooking and reading are also top on the list.

In regards to the winter gear, I am planning in buying this summer a good pair of gloves, a hat and some trail hiking water-resistant sneakers

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