Let’s Talk Money: What Is "Enough," and What Actually Happens When You Move Abroad?

Let’s talk money this week.

What is "enough"? Do you have enough? And when you make the leap to move abroad, what are the truly scary financial realities you might face?

According to a survey by Schroders, only 5% of retirees say they are "Living the Dream," while nearly 20% say they are actively struggling.

These are the kind of terrifying numbers we hear tossed around throughout our working lives. But then, almost overnight, we wake up and realize we’re finally old enough for those statistics to mean something personal. None of us work our entire lives with the goal of landing in the struggling category. Yet, it happens to good, hardworking people every single day.

In our own family, we saw both extremes up close:

Alan’s parents ended up squarely in the "dream" category. They retired at 48 years old, built a beautiful home on the lake, and spent the next 40 years hosting huge family visits and making memories that will last generations.

On the flip side, my parents saved diligently, only to lose everything due to a sudden family health emergency. They picked themselves up, rebuilt as best they could, and were then hit by another family health crisis. Ultimately, the financial and emotional struggle became too much, and they had to move in with one of the kids. They were lucky to have family step in to ensure they had a good, comfortable life—but a lot of people don't have that safety net.

Seeing both sides of that coin—the ideal dream and the devastating loss—puts the fear of God in you. It forces you to spend your life obsessing over how to build wealth, how to live a good life, and, above all, how to ensure you never run out of money.

The Traps We Build for Ourselves

Because of those early lessons, Alan and I now find ourselves in a surprisingly strange place. Believe it or not, it’s a spot that almost 40% of retirees land in: after decades of saving, investing, and hard work, we are struggling with spending enough of our money to actually enjoy life while we can.

We know what our original numbers said. Had we stayed in the U.S., healthcare costs and inflation meant we potentially could have drifted toward that "struggle" category down the road. But living abroad? That just isn't the case anymore.

Here, we are safe. We can afford to spend money.

Yet, I still catch myself feeling afraid. I struggle to watch our portfolio balance drop below an arbitrary baseline number I’ve set in my head. Who knew that you could spend forty years learning how to save and invest, only to realize you never learned how to actually spend it when you were done?

It turns out there is an official term for this psychological hurdle: decumulation. And shifting your mindset from accumulating wealth to decumulating it is a whole new challenge.

The Reality of Your First 6 Months Abroad

So, how do you bridge the gap between financial fear and actual reality when you make a major life change? Let’s level-set on what the first six months or so of moving abroad really look like.

It starts with one simple truth: You will spend a lot more money than you think.

Why? Because you haven't fully adjusted to your new life yet, and setting up a foundation costs money.

• The Setup Phase: You arrive at your new place and immediately realize you need the basics: sheets, towels, kitchenware, or—like in our case—a real washer and dryer (because yes, I am absolutely going to dry my clothes!).

• The Comfort Tax: You will spend more on transportation early on. Before you figure out the local bus routes and train schedules, you’ll take taxis or rideshares simply because you’re trying to feel comfortable, safe, and oriented in a foreign place.

• The Learning Curve: It takes time to find the right local markets and grocery stores where you can buy daily essentials at fair, local prices instead of paying markup prices at tourist-oriented spots.

• The Financial Housekeeping: This is a crucial one—you must get your U.S. banking and investment logistics set up properly before you leave. If you don't establish a proper U.S. address, a reliable U.S. phone number, or transition to international-friendly accounts, you risk having your investment accounts frozen or closed entirely. It happens to expats all the time, so plan ahead carefully.

  
  

The Magic on the Other Side of the Transition

Here is the secret no one tells you: the initial financial shock and emotional anxiety don't last forever.

Once you get through all that financial blood-letting, break the ice on the things that scare you, and push past the initial learning curve, something incredible happens. You start building real friendships. You get to know your community. You figure out where you fit.

And then, one day, you’ll find yourself sitting right in the middle of your new dream life.

You’ll be meeting up with new friends for morning coffee, heading out for dinners, enjoying casual drinks, or wandering through one of the endless local street festivals. You’ll catch yourself looking across the table at your spouse or your friends, and you will literally say out loud:

"This is amazing. I just never thought I’d actually be living this life. It’s so perfect."

Does living abroad come with its own set of daily struggles and quirks? Absolutely. It’s not a fairytale every second of the day. But when you’re sitting there living a life you once only dreamed about, you realize every bit of the effort, the fear, and the initial outlay was worth it.

Moving abroad takes work, but navigating those financial and personal realities is completely doable when you have the right roadmap.

A Quick Reminder: We dive deep into practical topics like these, share real numbers, and answer your specific questions during our monthly meetups! If you want to connect with a community navigating the exact same path, come join us. You can sign up anytime at www.itllbefunretirement.com.

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