Frugal chicos journal - ERE in The Basque Country

[delay]

Thanks for your blog update. Happy holidays to you!

[Frugalchicos]

Alright, we are back from the Basque Country right on time for a an update!

Dec 2023:
- Net Worth went up $41,140
- We had a good trip in the Basque Country. It was great to reconnect and see family and friends.
- We only have 18 more months to go! woohooo!
- Big update: while we were in the Basque Country, we bought a new condo for 260,000E. This will be our forever home. It is 121 sq ms (1,300 sq ft) with a storage attic right above of 39 sq ms (420 sq ft). It is very well located with all services around, close to future minis school and it has elevator. It is the top floor so we also have plenty of natural light. It is in a quiet street and will have more than plenty of room for us. Very happy with the purchase. We calculate that selling the other condo and the parking spot for about 200K E, we would only need to put about 120K to cover the rest and renovation. We will not need the parking spot because the new place is close to mom's and she has a parking spot we can use.
- We decided we are not having more kids. One is the perfect balance

Recap 2023:
- Started the year with $854,735 and finished with $1,147,840. Difference of $293,105
- We had $568,084 invested at the beginning of the year (not counting 401Ks) and finished with $796,000. Difference of $227,916
- We invested $85,827
- Our 401Ks increased $85,827
- We saved $12,047 for minis future education (education is "free" in the Basque Country, but just in case she decides to do a fancy degree somewhere else)
- We received $15,677 in dividends and reinvested them
- Our savings average was 60%
- Our living expenses were an average of $5,300 / month - planning in reducing them to $4,600

Achievements 2023:
- I got a promotion in April. $28,000 raise.
- Chica got a fat bonus of $37,500 gross and invested all the net ($24,000)
- I got a $5,300 bonus and reinvested it
- We became millionaires on June 13, 2023!!
- My mom spent the summer with us and had a great time. Her stay helped for mini to become bilingual.
- Mini started pre-K in August.
- I run the half marathon and completed it in 2 hours and 2mns. Not bad for the very little training and diet I had
- We had to move to another apartment. New rent is $2,100. $268 cheaper than the previous
- We bought another condo in the Basque Country for 260,000E

Goals for 2024:
* Financial:
- To live with my salary and save all Chica's salary to pay the condo and the renovation. Projecting a $92,000 savings.
- To save all potential bonuses
- To have $1,000,000 in investments by the end of the year. This is counting 401Ks

*Personal:
- Chico and Chica to go on a date once per month
- Chica to journal every day and read 5 books
- Chica to work on being fully present
- Chico to get into a work out routine
- Chico to achieve beginner/intermediate level at playing guitar

Overall, we are very proud of our achievements and progress in 2023. True, we could have saved more money and spend less, but we have done great and some of those expenses are clearly mechanisms to cope with our daily stressful jobs.

The new condo purchase has made us shift our investments plan for 2024. We will put the money towards paying the difference of equity when we sell the other condo and parking spot and we also need to do the renovation. The difference is only 120K and the difference in living standards will be significantly higher. Much bigger space (I will even have a small room for the computer and guitars!!), elevator and much more centrally located.

I think that even with the new condo purchase, we will achieve our financial goals of having a million bucks in investments. Our contributions to 401Ks is strong and the dividends alone will push the numbers up. Next year, we will need to start saving for our living in expenses and buffer for when we move in July 2025. As of today, we are planning in moving without jobs. If my company offers me working remotely would be great, at least for some time. If not, I wouldn't mind working with my friend doing the touristic tours to fancy rich Americans.

I feel our plan is pretty solid and will be successful. I am more convinced than ever that we will have a great life in The Basque Country.

Hope you all have a good and successful year

[singvestor]

It is nice to see when a plan comes together. At this point the numbers are beyond bullet proof. What are your plans for withdrawing from the portfolio, esp. with regards to the capital gains taxes?

[Frugalchicos]

Hi there, I am planning in working on some capacity for the first years, so the withdrawal strategy still needs to be defined. Chica and I also played with the idea of opening an English Academy. We like the idea of passing a business to our daughter.

If we don't work at all or there is no income stream coming our way, we would need about 2% of our portfolio every year to live comfortably.

The concept of working never really bothered me much, the number one reason to start this journey was the option of living anywhere we wanted (the Basque Country in this case) and never really worry much about work or the lack of it. I think at this point we earned the peace of mind of living a simple good life.

[Nicolino]

Good to see everything´s on track and that you are enjoying the increased optionality resulting from a disciplined execution of a well thought plan. Curious about the new flat! Wonder what 300 K USD can get you in northern Spain (albeit you guys are targetting probably the more expensive part of the north).

Overall a really good 2023 for the Chico´it seems.

[Frugalchicos]

@Nicolino

In my opinion 300K USD can get you a pretty nice condo. Something like 1100sq ft with elevator and centrally located with all the services at walking distance. I am happy with the upgrade, we got a much bigger condo than what you usually can get for that money and with a huge storage room. I am a bit sad that we are not going to invest much this year other than what we contribute to our 401Ks. But I also feel like we had achieved more than expected financially speaking, so we also need to be generous with ourselves and allow us to live in a spacious place that we can call home forever. Bilbao can be along with San Sebastian, one of the most expensive cities in North Spain. But it is also worth it since we have a ton of natural resources and a good running government.

Other updates:
I feel excited for some of my personal goals this year:
- I started lifting weights again. It is going great. I lift about 3-4 times a week.
- I am more conscious with what eat and how much.
- I have only drunk 2 beers (last night with friends) in the last 2 weeks. I have definitely noticed a better sleep and a more steady mood.
- I have been doing the 5 minute journal for a week. In this journal I record what I am grateful for, what would make my day great, a daily affirmation, the highlights of the day and what I learnt. I record this as soon as I wake up and right before going to sleep.

I hope I can keep these habits for an extended period of time. I am excited to bring more positive vibes and good, healthy habits to my life.

Cheers!

[Frugalchicos]

Alright gang, time for our monthly update.

Financials:
Everything goes as planned so far. We had a NW increase of 17.7K, we are allocating all Chica's salary to pay for the condo purchase. We would like to complete the payment by the end of the year.

Life:
This is where life gets interesting:
- Work's environment has been quite gloomy lately. It was announced on the same day that we will not get merit increases, it will be mandatory starting in April that we have to go back to the office 3 times a week and next week there is going to be a significant round of layoffs.
- I don't think I will be affected by the layoffs, but it is a bit harder to go back to work with that over your head.
- On the other hand...I have been working out very regularly (3-4 times a week) and I feel great and strong.
- I have not drank in the last 3-4 weeks and feels amazing. I am definitely more energized and sleep better and deeper. I don't wake up tired anymore.
- I have been reading quite a lot lately. I read 4 weeks so far in 2024.
- I am selling some of my belongings and feels great to let things go. I would like to consume and accumulate less. Although, I don't think I have any problem in this aspect.
- I am also trying to rekindle with my guitar and slowly getting into the habit of playing again.

[Western Red Cedar]

Congratulations on the new condo! The old one looked beautiful so I imagine the frugal chico family will be living in luxury once you return to Spain.

[Frugalchicos]

@WRC

Thank you! These next 17 months’ savings are mostly for extra comfort and peace of mind. I think our finances are pretty solid and we will be able to have a good life where we can dedicate our time to our interests and work will not be mandatory. At least not work as we know it today

[2Birds1Stone]

Congrats on all fronts!

I sound like a broken record in here, but you're well beyond FI and it's hard to commiserate regarding the doom and gloom around work =P

PS: if you keep moving the goal posts, it will always be "just a little more comfort and peace of mind".

[Frugalchicos]

@2B1S

Hey, thanks!

No more moving the goal date. This is it, mostly because mini needs to start mandatory school and that is going to be in the Basque Country. Only 17 more months to go…or maybe 14

[thef0x]

I have a lot of catching up to do but following along. Was in Northern Spain and a too-short week in St Jean De Luz for my late-because-of-covid honeymoon. What a beautiful, delicious area!

Congrats on such a successful 2023!!

[Frugalchicos]

@thefox

The French Basque Country is a hidden gem man. Love how stylish, classic and chic is. It is also the pioneer in European surfing!

[Nicolino]

Had a day trip to Biarritz years ago, certainly could see myself spending some time there.

[Frugalchicos]

Time for our monthly update.

Financials:
The stock market has helped us to achieve a couple of milestones:
- Our investments are close to 945K and cruising to the 1MM
- Our NW is currently a bit above 1.2MM
- I got a decent bonus. $13,000
- Everything seems to go a bit better than as planned, as usual. We always forecast our goals modestly.

Life:
Months fly away and our goal gets closer and closer. Only 16 more months to go.
- I hanged out with new friends and went indoor climbing and grabbed some burgers. I am trying to expand my friend base, and more espclifically trying to make more friends who like outdoor activities and sports.
- I rather don't talk much about work. Nothing good or bad, everything is alright, things are getting tighter and corporate/leadership is expecting us to do more with less. I try not to take it too seriously.
- I have been working out a lot in the last 2 months. I think I gained 6-8 lbs, I feel stronger and very motivated.
- I am watching my diet closely, making sure I eat healthy and have enough nutrients.
- I think I have drunk like 3 beers since January first. I am enjoying drinking the Athletic Brews. It is a NA beer but tastes like a regular beer.
- I splurged and bought a Taylor GS Mini (I had this guitar before, exchanged and found a great deal second hand) for almost half the price and a hybrid Specialized almost new for $190. I bought these things in Europe, so they will be waiting for me when we come back.
- Booked with points a trip for my mom and I to San Francisco in July and another trip to Denver with Chica in July. It is great having exciting trips to look forward to.

[Nicolino]

Great news. Loved Denver the few days I spent. It´s a great place to maybe open the hand on the beer front. Lot´s of outdoor as well.

[Frugalchicos]

@nicolino

Yeap! I think I will def taste some good local beers. I am also very excited to hit the mountains, see some green, trees and be more in my nature!

[Frugalchicos]

Time for the monthly update.

Financials:
- Investments are 979K. Hopefully we achieve the 1MM before summer.
- NW 1.246MM
- Increase of $39,600
- Bought $1,000 of Crypto

Lifestyle:
- Not much going on this month. It went by pretty fast working and doing chores
- Work is becoming more intense. Starting 4/1 is mandatory to go 3 days a week to the office
- I am trying to take it less seriously at work
- We met a cool couple that is more similar to us and with similar lifestyle.
- Getting tired of the Chicago winter. Can't wait for our vacation in Cancun
- Paid for all the trips we have planned for the year so far. Colorado and San Francisco
- I still don't drink any alcohol. That "rule" might be broken in Cancun...for sure
- Keep hitting the gym. Feeling good
- Playing guitar is being frustrating. I need proper classes to pass the "I know the chords" phase
- I am reading The Wager. It is a cool story about an english ship that shipwrecks in the 1700s
- 15 months left

[Western Red Cedar]

Sounds like things are going well for you physically and financially. That's great - congratulations!

- Playing guitar is being frustrating. I need proper classes to pass the "I know the chords" phase

Care to elaborate a bit on this? There are a few guitar players here and we might be able to give you some tips. I've personally never taken classes and feel like there is a plethora of options for free learning on YouTube. The only things in my way are time and motivation (and currently access to a guitar ).

Where are you at and what are you struggling with? Can you play barre chords? Have you learned any scales? Are you still practicing with friends who are better than you?

[loutfard]

- Playing guitar is being frustrating. I need proper classes to pass the "I know the chords" phase

Both my wife and I have a lot of experience with musical instrument teachers. We were just speaking of them. A good one can bring you far beyond what you could possibly accomplish on your own. Good ones have a lot of the qualities of physiotherapists, psychologists and singers. Bad ones can ruin your physical and mental health, so do choose carefully!

Chances are guitar teachers will be high quality and much cheaper in the Basque country.

P.S. There will be at least one pro guitar teacher at the European ERE meetup in August. You may want to join us should you be in Europe around that time.