Jacob.. ERE in Europe.

[northman]

Im just wondering.. You are currently living on approx $7000 a year in the US. But, when I try to convert it into NOK, which is almost the same as DK, I get around 42.000 DK. But, considering almost everything is cheaper in the US, how would you calculate your yearly budget in DK?
Using PPP, purchasing power parity, US compared to Denmark is around 1,6-1,7. Or $11.200 a Year, x 6(currency) = 67.000 DK.
Im a Norwegian and Jacob a Dane, so our numbers would almost be equal.
But, again, considering when we buy something in the US, and import it, whe have a "rule" that says; always multiply the US number by 10, because of taxes, 25% MVA. If we just use 25%, that would mean atleast $8750.
So.... $8750 x 6 = 52.000 DK x 1.6 (PPP) = 84.000 DK, to be able to buy the same amount of goods.
Am I making this to complicated?

[Acadien]

Godt Dag,

I just flew in from DK today after living there a few years, so I might comment. While I wasn't specifically doing ERE, I was in a 35% savings mode to reduce my debt.
Comments: The cost of housing in dk is extremely variable, and can range quite alot. In Jutland where I was at, there seems to be a floor of 2000 dkk/mo regardless of the property for a two room apartment. And I was averaging 700 dkk/mo heat&water. I paid out 4300 dkk per month with heat and water, and 700 dkk every three months in Electricity, without being non-frugal.
An indication that the number might be close is the "first pillar" of the danish pension system is the sum of 56,892 dkk. This is the minimum pension a dane would get after the gazillion years of being in the country and working. The basic minimum pension amount in norway is NOK 62161 which you qualify for if you live in norway for three years, and are old enough to qualify.
Obviously, no medical insurance is required in either DK or NO.
The final point, I found groceries in Bergen to be more expensive. While this was entirely non-scientific, there may be a fudge factor in deference to DK.
Tak, og ha' en godt dag,
Emile.

[jacob]

@northman - Yeah, I think you're overcomplicating it. Things like PPP and CPI represent "averages" so they are not so useful to compare the specialized consumption patters we have.
I think @Acadien's comparison with some representative brackets is a good one. I note that the university student stipend in Denmark is now 60000dkk/year (about $10000/year). Presuming it has kept pace with inflation over the past 15 years since I was a student, I remember having no problem living on that amount and that was in my pre-ERE days---neither did anyone else really with blowing $100 on beer for a couple of nights per month being par for the course and few people having student loans(*). In fact if 2000dkk/month = 24000dkk/year = $4000/year is normal, I'll note that I haven't seen anything this inexpensive in the places I've lived in in the states. Even advertised room-sharing with sketchy characters doesn't even get close to that price.
(*) Those few who did that I knew were savvy business students essentially doing a carry trade from government student loans back into treasuries and skimming the yield difference.

[northman]

I was just soaking the stipend/loan in the bank. Then paid it off in full, making a few K. Our stipend is 32K and 48K in loans. But I had a job on the side, so it was just accumilating over 4 years.
Still, I was living comfortably on 7000NOK ~ $1200 a month, as a student, in a student hostel, sharing a bathrom and kitchen with 3 others. But I could cut it even further.
But, that was subsidised housing. A bit more expensive now, as a "civilian"...