BajaNomad

El Codo -( The Cheapskate )

bajadedom - 1-3-2008 at 08:50 PM

Here's the Cheapskate story....

A 52 yr. old has busted butt all his life and wants to retire in Baja.....Without any valuable assets or(lawyer,doctor,engineer,contractor-etc.) skills he has lived cheaply all his life and He's worth a grand total of $250,000 and wants to quit working. He will only have this $$ until death,,,,or social security( which won't be much). There is no pension or retirement income.Used to living in a 'frugal' sort of way - he doesn't need much....800 sq. ft. casita would be great. He Speaks Spanish and loves to fish. He is Debt Free and the money will come from selling his paid-for home. He wants to live on $1,000 a month or less...

O.K. - You're the Cheapskate.....what and how would you do it and COULD IT WORK?

[Edited on 1-4-2008 by bajadedom]

Roberto - 1-3-2008 at 08:59 PM

FYI - barato is the word for cheap, as in something inexpensive. A cheapskate would be El Codo.

If you are careful in picking where you live, you could make it work, I think.

comitan - 1-3-2008 at 09:02 PM

#1 Don't buy a house.
#2 Buy an RV 15,00 -20,000
#3 buy a Pickup to tow with shell w/Alum boat on top motor and Misc. inside.
# 4 Drive to the southern Baja where there is still many free beaches. Live and fish.
#5 You can even go to Assuncion and park on the beach and meet shari.
#6 You just have to decide you want to do it.

bajadedom - 1-3-2008 at 09:08 PM

Muchos gracias Roberto -

bajadock - 1-3-2008 at 09:48 PM

Other than the details, JUSTDOIT! I gave up the paper chase 2 years ago at age 51.
My top 10 checklist of personal Baja frugalities:

10. Only drink expensive beverages from others' collections. Be generous with your frugal beverage selection, when you can. Reciprocity works.
9. If you can cook(fisherman I know are good ones), avoid dining out.
8. When you do dine out, dine like a local
7. Find some friends for your entertainment needs. Plenty around me with lots of interesting backgrounds, talents, education, family, biz expnc, etc.
6. Ditto Comitan, especially re: more rural areas for inexpensive living.
5. Also, Comitan's vehicle suggestion. Definitely will like towing capacity, 4WD/solid suspension and under-the-radar appearance. Lots of nomads have grand rigs. They look/perform great. Mine is a beater '89 Cherokee.
4. Get healthy/maintain health. No, we don't get to choose our parents, but, we can improve upon current health. Hike, swim, bike, kayak, explore.
Health care can be a killer, pun intended.
3. Discussion with some gringos in my area a few months ago brought up the delicate subject of income needs...
a) "We're OK at $100,000/yr. Just need to cut back on fine dining & 5 star internation travel.
b) "WOW, we're just hoping our $50,000/yr will get us by. We're not dining out as much as we'd like.
c) "I guess that my $30,000 per year sounds like crackers and cheez whiz for you. Once your home is paid for, what do you spend the money on?"
d, as in DOCK) "WOW!" I'm not going to discuss my income here, but, I enjoy a grand lifestyle for the monthly expenses you(bajadedom) are discussing. The man who dies with the most toys is still dead.
2. Mexicana's solamente(no mas gringas)
1. JUSTDOIT!

bajaguy - 1-3-2008 at 09:59 PM

Quote:
Originally posted by bajadock
Other than the details, JUSTDOIT! I gave up the paper chase 2 years ago at age 51.
My top 10 checklist of personal Baja frugalities:

10. Only drink expensive beverages from others' collections. Be generous with your frugal beverage selection, when you can. Reciprocity works.
9. If you can cook(fisherman I know are good ones), avoid dining out.
8. When you do dine out, dine like a local
7. Find some friends for your entertainment needs. Plenty around me with lots of interesting backgrounds, talents, education, family, biz expnc, etc.
6. Ditto Comitan, especially re: more rural areas for inexpensive living.
5. Also, Comitan's vehicle suggestion. Definitely will like towing capacity, 4WD/solid suspension and under-the-radar appearance. Lots of nomads have grand rigs. They look/perform great. Mine is a beater '89 Cherokee.
4. Get healthy/maintain health. No, we don't get to choose our parents, but, we can improve upon current health. Hike, swim, bike, kayak, explore.
Health care can be a killer, pun intended.
3. Discussion with some gringos in my area a few months ago brought up the delicate subject of income needs...
a) "We're OK at $100,000/yr. Just need to cut back on fine dining & 5 star internation travel.
b) "WOW, we're just hoping our $50,000/yr will get us by. We're not dining out as much as we'd like.
c) "I guess that my $30,000 per year sounds like crackers and cheez whiz for you. Once your home is paid for, what do you spend the money on?"
d, as in DOCK) "WOW!" I'm not going to discuss my income here, but, I enjoy a grand lifestyle for the monthly expenses you(bajadedom) are discussing. The man who dies with the most toys is still dead.
2. Mexicana's solamente(no mas gringas)
1. JUSTDOIT!




Outstanding and well thought out advice from a guy who believes in # 10. Anybody who drinks Pabst Blue Ribbon while offering his guests imported German beer has his ducks in a row!!!!

debindesert - 1-3-2008 at 10:11 PM

I think comitan has nailed it for you.

I personally want a blow-by-blow account of how you are doing. So, factor in that laptop. I'm about 7 years behind you in the "master plan".

- Deb

wilderone - 1-4-2008 at 09:45 AM

52? You still have 10 years to make more money. Buy something with somebody else, then it only costs half as much. You can double an investment in 10 years at 7%. Plan to dabble at some type of vocation which will provide some income - even an extra $300/mo. will count. Freelance writer, photographer, guide, wood carver, car polisher, sell lemons, ice, paperbacks, keychains, postcards, chickens. I've been poor - it doesn't take much money to eat well if you know how to make soup, grow your own squash. Don't sell the paid-for home, rent it out for income and when the time comes that you want to return to the USA, you've got some place to go.

CaboRon - 1-4-2008 at 09:48 AM

Quote:
Originally posted by debindesert
I think comitan has nailed it for you.

I personally want a blow-by-blow account of how you are doing. So, factor in that laptop. I'm about 7 years behind you in the "master plan".

- Deb


Some great suggestions in this thread that I live by. I retired this year and my Social Security and my Disney pension total a little over $1,100- per month.
I also cook 90% of my meals at home, drive an old beater, and most of my income goes to housing expenses, I just found a nice casa in Todos Santos a shout walk from the beach (surf fishing will contribute to my healthy lifestyle in the form of wonderful meals) and plan on walking for most of my errands ..... gotta make that old Ž90 Bronco last a long time.

One of the best suggestions is for a laptop with wi-fi, you can access free wi-fi at many coffee shops and hotels, if you do not want to go in just park outside and go online.
My biggest mistake was only having a large system and so have to spend money on either internet cafes or in the case of my new home .... luckly was able to get DSL hooked up into the casa (but that adds fifty dollars a month to my meager budget)
All I can say is go for it ...... and please do keep this board posted.
The Best of Luck to You,
CaboRon :cool:

SDRonni - 1-4-2008 at 10:23 AM

You guys are all a lot braver than I. One major illness/injury/car repair could put you behind the 8-ball. The truck won't last forever. There's a bit of "wishing I could do that" in me, but reality and practicality would never enable me to take on that challenge.:no:

Osprey - 1-4-2008 at 10:36 AM

Ronni, if you get really hurt or really sick anywhere in the world there will never be enough money -- that's just the way it works with or without this or that kind of insurance. I quit at 58, came down with no bills and about 100K to last til my SS kicked in. Must have figured it pretty close because the first SS payment came hours before I would have been in the red. My big expenses were the house > $25,000, fixup and furn > $15,000 -- now all I have to worry about is $ for visas/elect/propane/gas for cars/boats. Life is good while the peso keeps falling with the dollar -- if that stops, then, ni modo.

Slowmad - 1-4-2008 at 12:28 PM

I'm liking the Osprey Model.

livencabo - 1-4-2008 at 12:33 PM

Meet with a sincere financial planner (or 3 or 4) to get an opinion on how to create long term income from your nestegg.
Get a good Baja rig and take a long vacation on the whole Peninsula.
Having retired at 52, 15 years ago I only rented, $100 to now $400/mo.
After ten years I began to think it had been a good vacation so I pulled out my academic credentials and lifelong hobby of linguistics and stepped through all the hoops to teach English and French.
There were many extra expenses along the way, too numerous to list.
Ultimately, your choice will be made on your experience and resources. Keep your options open.

BigWooo - 1-4-2008 at 12:53 PM

Yes, get a good financial planner. Then I'd put the $250,000 in a safe investment. I bet you could easily earn $730 a month in interest. Then go somewhere and rent a house similar to what you want to live in. Draw the rent plus $1000 dollars/month living expenses from your investment for a year and see if it works for you.

If not, at least when you go back you'll still have the majority of your nest egg intact.

My biggest worry would be health care though and the ability to afford a GOOD physical every year.

[Edited on 1-4-2008 by BigWooo]

Barry A. - 1-4-2008 at 01:20 PM

Big Woooo is right----------$250,000 invested in the Market in a good Mutual Fund in Vanguard (low fees) should easily yield $1000 a month, and not deplete the principal. I figure a 5% return min. from my investments, and they normally do much better than that. 5% of $250K is about $12K a year. Then no matter what you decide to do, you still have all your principal, and then some.

barry

bajadedom - 1-4-2008 at 02:09 PM

Well, I'm getting some great response to this post - and varied....glad I did ask!

bajaguy - 1-4-2008 at 02:17 PM

Contact Shari in Asuncion and see if she has a line on any property for sale there. Buy a travel trailer and plunk it down.......all done. A home, a car and a great spot for fishing.

CaboRon - 1-4-2008 at 02:32 PM

Quote:
Originally posted by bajaguy
Contact Shari in Asuncion and see if she has a line on any property for sale there. Buy a travel trailer and plunk it down.......all done. A home, a car and a great spot for fishing.


DO NOT !!!! I repeat DO NOT buy anywhere until you have rented at least a year..... youŽd be suprised.... it is very likely you will not like living in the first place you settle.


CaboRon :cool:

tripledigitken - 1-4-2008 at 04:44 PM

Congrats to you Morgaine on your new life in La Paz, one of my favorite ciites in Mexico.


Ken

bajadedom - 1-4-2008 at 04:52 PM

Quote:
Originally posted by SDRonni
You guys are all a lot braver than I. One major illness/injury/car repair could put you behind the 8-ball. The truck won't last forever. There's a bit of "wishing I could do that" in me, but reality and practicality would never enable me to take on that challenge.:no:


Hmmm....I take 'reality' as I only live once and practicality as Death or mis-fortune can ruin anyone 'practically' anywhere and at any time.....though I appreciate caution and that's why I'm thinking this through before acting it out.....But I believe in the next 18 - 24 months Baja will have a new Nomad year-rounder!!
First I need to quit my job......:coolup:

[Edited on 1-5-2008 by bajadedom]

tripledigitken - 1-4-2008 at 05:12 PM

You should be able to retire and live in Baja at least as cheap as in the US.

Try it for year, don't like it........................at least you should have eaten some good food, met great people, and posted some more good sunrise shots for the rest of us, and then come back to the US which undoubtedly will cost more to live in than when you left.

Come on were NOMADS here, roll the dice and go.:coolup:


Ken