# Managing on a pension



## baldilocks (Mar 7, 2010)

It all depends on where you want to settle and what you want to do. 

If you want to live in "Little Britain" with all the facilities for Brits and shop in overseas branches of British supermarkets and spend your time eating out and getting p*ssed in bars then you will have great difficulty in manging on a basic UK OAP pension.

However, if you are prepared to look a little way off into a typical Spanish village with not many Brits around to push up prices, then you can manage very well. We have a house with five levels including the patio level and have four/five bedrooms, 2 bathrooms and a 42 m² attic that could be converted to provide more bedrooms and another bathroom not to mention a lounge/diner (28 m²) in a warm and friendly village inland for €85k. We (self, wife, mother-in-law and dog) lived very comfortably on my basic pension and still put away about €150-200 per month. True we don't go out boozing but we do eat at the best restaurant in the village - home!


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## xabiaxica (Jun 23, 2009)

I thought this deserved a thread of its own


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## Alcalaina (Aug 6, 2010)

Yes, it is indeed possible. Several million Spanish pensioners live on just over €600 a month. And (judging by our village at least) they enjoy a glass or three and a game of dominoes at the Hogar de Jubilados.

But living a simple life away from the Brit Belt doesn´t suit everyone, of course. It´s fine for people who are content with their own company, can fill their days without getting bored or frustrated, and are open to new experiences (especially on the food front). 

You need to differentiate need from want, be prepared to wear the same old shoes and clothes for years, and not redecorate the house every time you fancy a change of curtains.

If your idea of a great day out is a trip to a shopping centre followed by a show or a fancy meal, then this way of life is probably not for you ... no matter how good the view from the terrace, or how cheap the G&T!


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## Stravinsky (Aug 12, 2007)

Well ... I live 6 kms from the coast. Its not Brit land by any stretch of the imagination, but its not a Spanish village either. I have to say its perfectly possible to live here on a pension. If you dont shop at Kwik Save. Eating out is cheap enough, theres a crisis menu down the road for next to nothing


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## DunWorkin (Sep 2, 2010)

The main problem we find living here on a UK pension is that, because of changes in exchange rates, it is very difficult to budget.

The amount we receive a month now is a lot less than when we first came here 6 years ago. Add this to the increase in prices and we are beginning to feel the pinch.


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## nigele2 (Dec 25, 2009)

DunWorkin said:


> The main problem we find living here on a UK pension is that, because of changes in exchange rates, it is very difficult to budget.
> 
> The amount we receive a month now is a lot less than when we first came here 6 years ago. Add this to the increase in prices and we are beginning to feel the pinch.


I think that is the scary part. How can you plan for what you will need to enjoy your retirement with so many unknowns? How long will retirement be? Will I be able to do things and enjoy my money? And as Dunworkin says - will the value of my assets/income change?

For most retirement is an abrupt change. While you are working, with a bit of luck, you can accumulate money by simply being thrifty or delaying the retirement date. But for most once retirement comes there is no way back. You have either prepared well or you haven't. 

But equally life is for living. What is the point of being the richest person in the graveyard??? If you do not do that trip of a life time will you live to regret it?

The other thing that concerns me is the way society seems determined to keep me alive for as long as possible with no thought as to my quality of life. How many times do you hear people say "don't drink too much" (every time you merely look at a wine bottle). I don't want to live to be a hundred thanks very much. 

While I'm a fair few years away from retirement I do see that to have family and friends visiting, especially the young ones, is something I will appreciate. So a house that welcomes them, near the beach and transport, is something I will plan for. I guess that for some is the problem with retirement in Spain. It puts them out of easy reach of friends and family. 

[Not an issue for me, I have more spanish family than English ]

Whatever I wish everyone a happy retirement and as Baldilocks says it doesn't have to cost an arm and a leg, it's more a state of mind 

ps. the preparation I have started for retirement is greatly increasing my intake of turmeric (ok I adore indian food so not exactly difficult ). Just out of interest has anyone else done anything specific not related to stashing dosh in the matrice?


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## Alcalaina (Aug 6, 2010)

DunWorkin said:


> The main problem we find living here on a UK pension is that, because of changes in exchange rates, it is very difficult to budget.
> 
> The amount we receive a month now is a lot less than when we first came here 6 years ago. Add this to the increase in prices and we are beginning to feel the pinch.


And presumably, because UK inflation has been so low in the last few years, the pensions haven´t been going up each year?


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## Alcalaina (Aug 6, 2010)

nigele2 said:


> ps. the preparation I have started for retirement is greatly increasing my intake of turmeric (ok I adore indian food so not exactly difficult ). Just out of interest has anyone else done anything specific not related to stashing dosh in the matrice?


Turmeric? What´s that all about then? 

I try and walk for at least half an hour every day. We are in a hill town, so this counts as aerobic exercise. 

I also like to keep my mind active, on the "use-it-or-lose-it" principle, so I´ve started to teach myself Portuguese (Sudokus are so incredibly pointless!)


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## nigele2 (Dec 25, 2009)

Alcalaina said:


> Turmeric? What´s that all about then?
> 
> I try and walk for at least half an hour every day. We are in a hill town, so this counts as aerobic exercise.
> 
> I also like to keep my mind active, on the "use-it-or-lose-it" principle, so I´ve started to teach myself Portuguese (Sudokus are so incredibly pointless!)


Alcalaina yes keeping going and not stopping is so important. All the oldens I know who are happy are also active and fighting the good fight. The sad ones watch TV.

"Turmeric is currently being investigated for possible benefits in Alzheimer's disease, cancer, arthritis, and other clinical disorders" Some clever person observed that Indians with a large intake of turmeric suffered these evils less. Then serious research took over. Turmeric is possibly the gift of the gods - and a lot cheaper than saffron


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## Guest (Feb 18, 2011)

I hope you don't mind me asking but how much pension do people receive each week from the UK, I never thought you could live in Spain with only a pension to survive on. I keep reading that it's quite expensive in Spain, ie the cost of living, and I would need around 24.000 Euro just to get by,


Robert


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## Alcalaina (Aug 6, 2010)

Robert46 said:


> I hope you don't mind me asking but how much pension do people receive each week from the UK, I never thought you could live in Spain with only a pension to survive on. I keep reading that it's quite expensive in Spain, ie the cost of living, and I would need around 24.000 Euro just to get by,
> 
> Robert


Read the Cost of Living sticky thread above! There is lots of cost-of-living breakdown information there.

It depends whether you have to pay rent, where you live, and what sort of lifestyle you want. If you rent a villa with a pool in an exclusive area, and enjoy eating out a lot, you won't manage that on a basic UK state pension (which is about £100 a week). But as the OP says, if you live simply, away from the expensive areas, it is possible.


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## baldilocks (Mar 7, 2010)

Robert46 said:


> I hope you don't mind me asking but how much pension do people receive each week from the UK, I never thought you could live in Spain with only a pension to survive on. I keep reading that it's quite expensive in Spain, ie the cost of living, and I would need around 24.000 Euro just to get by,
> 
> 
> Robert


Basic state pension including winter fuel allowance works out at about €5716 a year. If you are mortgage-free, don't waste money,don't live in an expensive area nor have expensive tastes, it is possible to live quite comfortably on this amount - three of us plus a small dog were doing so.

It is only expensive in Spain if you live in an expensive area, run around in a high consumption petrol driven car, spend a lot of your time boozing and eating out in expensive restaurants, etc.


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## DunWorkin (Sep 2, 2010)

As a couple (both retired) we receive about €1100 per month UK state pension. It used to be about €1400 per month.

Prices are rising quite quickly here. For example, our electric bills are now about €130 per month. Food has increased in price.

We can still live on our pensions but not in the same way as 6 years ago.


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## Alcalaina (Aug 6, 2010)

So according to the Daily Wail we pensioners are all scurrying back to the mothership:

"There was a 50 pc rise in the number of people bringing money back to the UK over the past six months of 2010, compared with the same period in 2009. Even removals firms are reporting one-way traffic of people moving back to the UK from Spain.

The final nail in the coffin was the latest house price predictions for the coming year. Many Spanish homeowners had believed prices would stabilise after 18 months of falls. However, new figures from property website Idealista.com shows prices dropped by another 6 pc in 2010.

* A drop in the pound against the euro by almost a quarter in three years
* Pitiful savings rates that have slashed their income by two-thirds
* The near collapse of the Spanish and Portuguese economies
* A 50 pc fall in the value of their Spanish homes since 2007, and
* Warnings prices could drop another 30 pc if they don't leave now 

Read more: Thousands of pensioners flee Spain as retirement dreams sour | Mail Online​
Not sure I understand why Spain's current economic situation would cause a pensioner on a fixed income to want to leave? If anything, it keeps prices down as there are lots of bargains around! Neither would the fall in house prices affect you, if you aren't planning to sell up. And the low interest rates apply wherever you are.

And as for the happy smiling couple in the photo who have reputedly "lost" €40,000 because they bought their villa for €400,000 four years ago and have just sold it for €360,000 - if you factor in the exchange rates then and now, they have actually made a _profit_ of around £30k. No wonder they are smiling.


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## nigele2 (Dec 25, 2009)

Alcalaina said:


> Not sure I understand why Spain's current economic situation would cause a pensioner on a fixed income to want to leave? If anything, it keeps prices down as there are lots of bargains around! Neither would the fall in house prices affect you, if you aren't planning to sell up. And the low interest rates apply wherever you are.


I think the people running back are either in debt or were relying on the value of their property to support them (ie. extracted value).

Our lovely members here who are enjoying their retirement I think are few and far between. As Baldilocks says "It is only expensive in Spain if you live in an expensive area, run around in a high consumption petrol driven car, spend a lot of your time boozing and eating out in expensive restaurants, etc.".

Sadly that is what the dreamers set their hearts on - and they are the majority - or they simply have a mortgage that is not covered by the home.

C'est la vie - could be worse, they could be spanish !!!!


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## baldilocks (Mar 7, 2010)

Alcalaina said:


> So according to the Daily Wail we pensioners are all scurrying back to the mothership:
> 
> "There was a 50 pc rise in the number of people bringing money back to the UK over the past six months of 2010, compared with the same period in 2009. Even removals firms are reporting one-way traffic of people moving back to the UK from Spain.
> 
> ...


Just another faked up story by a company (in this case a property company) trying to sell their wares on the basis of "Get in now with us to make the best of it!"

Don't give them the pleasure, ignore it!


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## Xose (Dec 10, 2008)

Robert46 said:


> I hope you don't mind me asking but how much pension do people receive each week from the UK, I never thought you could live in Spain with only a pension to survive on. I keep reading that it's quite expensive in Spain, ie the cost of living, and I would need around 24.000 Euro just to get by,
> 
> 
> Robert


Hi Robert,
Very few % of people in Spain earn 24K€ per year. A Huge number are Milleuristas (1000€) a month and one hell of a lot are on less than that.

What one has to do when reading through these posts (there's lots of posts in lots of threads on the subject) is take a pause and then do a like for like thought process.

Most of the people who retire to Spain don't actually retire to Spain. Think about it. How many people who retire in the UK then go and rent a place and leave their home to hopefully rent out, get a regular income from it and not have it trashed? None? Wouldn't dream of it would they? Yet when they "retire to Spain", quite a few do it appears. They then end up with two homes to look after, a life split between two countries and a list of expectations longer than your arm. This scenario doesn't lend itself to a good success ratio.

Bottom line, if you retire to Spain, have the equity from your home sale behind you (even better) and live as you would in the UK - no Villa with a pool, no flights inter-Europe every 8-12 weeks, no eating at restaurants every week etc., etc.,... i.e. like for like, you will find Spain cheaper and that a lot of what Spain has to offer, if you bother to "live here", is free.

Xose


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## VFR (Dec 23, 2009)

baldilocks said:


> It all depends on where you want to settle and what you want to do.
> 
> If you want to live in "Little Britain" with all the facilities for Brits and shop in overseas branches of British supermarkets and spend your time eating out and getting p*ssed in bars then you will have great difficulty in manging on a basic UK OAP pension.
> 
> However, if you are prepared to look a little way off into a typical Spanish village with not many Brits around to push up prices, then you can manage very well. We have a house with five levels including the patio level and have four/five bedrooms, 2 bathrooms and a 42 m² attic that could be converted to provide more bedrooms and another bathroom not to mention a lounge/diner (28 m²) in a warm and friendly village inland for €85k. We (self, wife, mother-in-law and dog) lived very comfortably on my basic pension and still put away about €150-200 per month. True we don't go out boozing but we do eat at the best restaurant in the village - home!


€5716 a year is your income (from a later post) and you can save up to 200 a month from that ! ........ so you can live on about 3.5k a year


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## baldilocks (Mar 7, 2010)

playamonte said:


> €5716 a year is your income (from a later post) and you can save up to 200 a month from that ! ........ so you can live on about 3.5k a year


Yes, that was when we first came here, December 2008. Wife now has a small teaching job (about €350 p.m. during school time) so we are no longer that "rich" and can afford to finish the reform work on the house and even take short breaks.

It is often a state of mind and adjusting your needs to what supplies are available.
For example:
There are Brits in this region who will pay for frozen pork chops to be brought from UK because they don't like the way the Spaniards have theirs cut so thin to facilitate flash-fry. They end up paying over €8 a kilo. I buy a complete cinta de lomo when it is on offer at €3.50 a kilo and cut off porks steaks the thickness I want and also two or three roasting joints some of which I then spiral cut for stuffing with dried peaches, apples, figs etc.
Some Brits run around in petrol-driven Chelsea tractors (that often will not get round corners in village streets) whereas we have a Citroen Berlingo which costs half as much to run and WILL get round those corners.


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## VFR (Dec 23, 2009)

baldilocks said:


> Yes, that was when we first came here, December 2008. Wife now has a small teaching job (about €350 p.m. during school time) so we are no longer that "rich" and can afford to finish the reform work on the house and even take short breaks.
> 
> It is often a state of mind and adjusting your needs to what supplies are available.
> For example:
> ...


What about the translation jobs your wife is so good at ?, surely that needs to be factored in.
Most Brits I know are fairly canny shoppers (inc us) and that is why so many travel to buy a monthly shop at Iceland (apart from a day out at the coast)
No forget the freezers !............... as the stock a great many (fresh/dry) items that the Spanish supermarkets cannot get anywhere near on price, hence they attract a good many Spanish shoppers after 1800hrs.
Who are the most punters you will find in Dia/Aldi/Lidl apart from the Bulgarians ?
The Brits also have the time to visit Mercadona/Eroski/Consum etc etc to check out the prices & in fact do so.
So on balance the Brits who are on a budget/who also visit the market/who also receive the free stuff from Spanish friends, can be relied to to keep the shopping budget fairly low.
Most of the Brits I know (quite a lot) also have a reasonable/cheapish set of wheels.
Most of the Brit bars in the surrounding areas I know are struggling to keep afloat as the punters just pop in for a tea now & eat at home.

So lets say .......
50 a month for electric.
40 a month for phone/Internet.
40 a month for car/house insurance.
240 a month for shopping.
20 a month for water.
20 a month for gas.
40 a month for logs/gas oil for winter heating (depending on location)
18 a month for council tax/basura.
20 a month for house maintenance, yes I know this would be a good deal more.
20 a month for vehicle fuel & maintenance, again to low.
15 a month for car tax/ITV.
10 a month for clothes.
20 a month for a coffee each (x 2 couple per week)

I have not included any incidentals (as you can see) that would add at least 150 a month (IMO) 
Vehicle replacement.
Alternator/battery/cam belt/head-gasket giving up the ghost.
A little dental.
A flight to the UK maybe.
A meal out once in a blue moon.
A major electrical item in the home going pop.
A little eye care.
A little vet bill on occasion.
A good quality 15 liters tin of paint (look at 50 euros)

I have tried to be Conservative in my amounts, the reality is of course more.
Still you never know I may well be missing something ?


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## Calas felices (Nov 29, 2007)

*Retirement*

If you have worked hard all your life, then retirement is the time for some of the luxuries and things that you were never able to afford or have to time to enjoy. I wold hate to spend the rest of my days ' living simply'. SKIing is much more fun (spending the kid's inheritance!!)


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## gus-lopez (Jan 4, 2010)

So lets say .......
50 a month for electric. ------------ Mines around 35-40.
40 a month for phone/Internet. ------ 35
40 a month for car/house insurance. ---------56 
240 a month for shopping. ---------I never include it as it's variable & we don't spend that much.
20 a month for water.---------16 +3,50 for irrigation water
20 a month for gas. ------------10
40 a month for logs/gas oil for winter heating (depending on location) -----22
18 a month for council tax/basura.--------C/tax 16,14 a year & basura is incuded in the above water bill
20 a month for house maintenance, yes I know this would be a good deal more.---I don't budget for it . Just do it as & when. The place we re-built when we came so there's not much , except when Iget bored & think up new ideas !
20 a month for vehicle fuel & maintenance, again to low.--------Yes, certainly. I never incude this as it's so variable. 
15 a month for car tax/ITV. ------same.
10 a month for clothes. ------- Haven't bought any for years, i've enough to last until I die.
20 a month for a coffee each (x 2 couple per week)----- I don't count this either as you it doesn't need to be spent.

I have not included any incidentals (as you can see) that would add at least 150 a month (IMO)
Vehicle replacement. ---------Hmmm, Not unless I win the lottery.
Alternator/battery/cam belt/head-gasket giving up the ghost. -----I do it all myself, so it's only parts .
A little dental.-------- I gave that up as it was getting too dear ! I'll get the nurse to pull them out at the doctors .
A flight to the UK maybe.----- Good God, I hope not . I've managed to stay away for the last 6 years.
A meal out once in a blue moon.---- True.
A major electrical item in the home going pop.----- There's too many anyway. I wouldn't bother replacing anything that went bang.
A little eye care.-------- Fortunately the test is free & I've not needed a new prescriptionfor some years.
A little vet bill on occasion.-------- I only include the fixed yearly costs for the dogs, which amount to 14€ a month. ( I had one year where the vet bill averaged 50 € a week ! )
A good quality 15 liters tin of paint (look at 50 euros)-------- I hate painting & tried to do the place so that there isn't any. Anything inside is varnished or stained. Around here I can get top quality paint at 22€, fortunately I hardly buy any.

My total fixed costs amount to less than 3k a year . I don't include food, diesel, cigarettes ,lottery, etc; as they are variables & can be as much or as little as individual circumstances dictate. If I'm fortunate to earn money then more gets spent. many people appear not to have the ability to economise. One couple who moved here earned over 300k in 5 years ( All illegal ! ) & spent it all + what they'd brought with them. they never stopped complaining that they had no money ! I know that what we've got has to last until we receive pensions , or die & don't take into account the possibilty that some day there might be interest on savings or that I might earn some money & so budget accordingly.


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## Alcalaina (Aug 6, 2010)

Calas felices said:


> If you have worked hard all your life, then retirement is the time for some of the luxuries and things that you were never able to afford or have to time to enjoy. I wold hate to spend the rest of my days ' living simply'. SKIing is much more fun (spending the kid's inheritance!!)


Time is the biggest luxury of all. And it´s free.


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## Calas felices (Nov 29, 2007)

*Time on your hands*

Too true - but there's no point in using up the time left to you waiting for the grim reaper or has Spain become God's waiting room in much the same way as Worthing (for example)


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## karunaji (May 3, 2010)

Hi Baldilocks

Enjoyed your post. I already have a small cavehouse - not en suite anything - but a stunning view down onto the Jabalcon, heart-stopping sunsets streaming in through my open door in the summer. At present though the "ambient temp" is 10c. I've not arranged any heating yet-(have not wanted to fling money around till basic pension gets sorted- don't forget, having worked abroad the last 18+ years, I will be missing a lot of NI stamps).So have turned 60 with a little holing of breath!

What you mention is what I have already noted. As I am an excellent cook - despite the restricted facilities-and veggie- I rarely eat out. I have a drink when my neighbour wants to go to Baza for the kind of shopping you mentioned, or Huescar- and it's my shout- after all she is providing the brawn to the driving, and petrol. Baza Consum does seem to be the only place one can get oats - and I do like to have it in store- the best breakfast and great for oat-based sweets.
I also prefer buying in the wines and beers or cider of my choice, and weather permitting I can totally space out (without getting p***d) just on the sunsets one gets up here - and the stars - which can be observed in greater than a 180degrees arc. That is really breathtaking - as Americans would say-"awesome"!!
I suppose I am lucky over many years to have enjoyed the literature of hispanic writers and also their classical music - so for me- it is a treat being in the heartlad of Lorca, de Falla, Granados etc. Despite having cycled across Spain in the early 80s and having walked the Camino, I never thought I'd end up in a semi-arid badlands, with the ruins of a roman temple for a "roof" over my cave. Now it is just a matter of trying to sort a basic pension out!
By the way, down our way, here I believe next weekend will be a tapas/wine festival.Free. Perhaps it may interest your family-apparently in the sports hall.
Thankyou for your responses - and your tongue in cheek humour. Much appreciated


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## jojo (Sep 20, 2007)

Calas felices said:


> Too true - but there's no point in using up the time left to you waiting for the grim reaper or has Spain become God's waiting room in much the same way as Worthing (for example)


...... and my hometown in the UK is....?????????? Actually, Eastbourne is worse lol!!!!


Jo xxxx


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## Alcalaina (Aug 6, 2010)

Calas felices said:


> Too true - but there's no point in using up the time left to you waiting for the grim reaper or has Spain become God's waiting room in much the same way as Worthing (for example)


God's reading room in my case (except I'm an atheist ...) 

After I retired it took about a year to come to terms with the idea that reading is not something you do as a treat, once you've done all the chores. Reading = learning = an end in itself. I can now spend hours with a good book without a guilty feeling that I should be cleaning the windows or something.


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## baldilocks (Mar 7, 2010)

Calas felices said:


> If you have worked hard all your life, then retirement is the time for some of the luxuries and things that you were never able to afford or have to time to enjoy. I wold hate to spend the rest of my days ' living simply'. SKIing is much more fun (spending the kid's inheritance!!)


One of the biggest luxuries is one that money can't buy. By living mortgage-free and credit-free within modest means with no greater ambition than to enjoy the day without all the stresses that working life used to throw at me, without the worries about where I was going to get the money to pay this bill, that bill, etc. that is a real luxury that once you have ended working for an employer and a mismanaged state economy you can just relax and do just what you feel like doing, or not, as the case may be.

I forgot to add that there is no longer any need to keep up with the Joneses, they are trying to keep up with me, jealousy is a wonderful thing when others are jealous of you!


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## karunaji (May 3, 2010)

touché!!


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## karunaji (May 3, 2010)

anyone with withdrawal symptoms from the printed word, I think I can function as an Altiplano library. Battling to find enough wall space in my hunble abode for about 2000 books. I take your point - it took me agesnot to "gorge" on books as source material for tertiary teaching. Enjoying a book really takes "re-learning!


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## mrypg9 (Apr 26, 2008)

Calas felices said:


> If you have worked hard all your life, then retirement is the time for some of the luxuries and things that you were never able to afford or have to time to enjoy. I wold hate to spend the rest of my days ' living simply'. SKIing is much more fun (spending the kid's inheritance!!)


Quite. That's what we are doing. We are unrepentant 'SKINs'. No property, sold it all, spending our dosh before we kick the bucket.
I also see retirement as a time to enjoy the lifestyle *of your choice.* Not conforming to what some people see as the 'right' way of living in Spain. 
For a good part of my life I had neither the money nor the time for 'luxuries'.
Our present lifestyle costs more than the average but that is not because we eat out, drive expensive cars, shop in British shops and so on. Our main expenditure is our house which costs us not much less and sometimes more than 2000 euros a month including all utilities.. It is large, on a double plot in a quiet, middle-class Spanish residential street in a Spanish village with few Brits. Our house is our 'luxury'. We had a pleasant old cottage in the UK with plenty of privacy, tried 'piso' living here for a few months but it wasn't for us - besides, we need the garden for our large dog.
I have never yet come across this 'Britland' people talk about. No doubt it exists...and if people want to shop in British, German or Martian supermarkets and read British papers, drink beer etc....that is their choice. I did not realise that there were rules for living in Spain or that you got brownie points for 'simple living' whatever that is. I seem to remember a line from that Attenborough film about Gandhi: 'It costs a lot of money to keep Gandhi in his simple lifestyle'.
There is a middle way between living in a piso in Britland and in a whitewashed casita. Ask yourself: how/where do most Spaniards live?
And if a couple of OAPs from Epping, Ongar or Macclesfield, whose experience of 'abroad' is confined to package holidays, decide to live in an area where they can speak English, shop English and play English: why should anyone think their chosen way of living in Spain is inferior to any other?
If my old mum were alive and wished to live the remainder of her days in Spain she would be happier in such a British community and why the hell shouldn't she without censure for her choice?
We worked hard and had a good standard of living in the UK because of that. We enjoy that standard here. Why retire and downgrade if you don't have to? Only one car between us and that a LandRover for utility - we spend a lot of time driving up and down mountain paths -and our time is spent doing charity work, reading, watching football on tv and with friends. All activities that cost nothing or little. We shop locally and cook -no processed, frozen or packaged foods. Just as in the UK.


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## mrypg9 (Apr 26, 2008)

nigele2 said:


> Just out of interest has anyone else done anything specific not related to stashing dosh in the matrice?




Not sure what you mean by that Nigel...but in our case we waited until we had enough money to be able to live as we wanted, sold up and ******ed off.
We could have stayed, worked on for a further five or ten years, accumulated more dosh...but why?
When we moved here from Prague the exchange rate was £1 ==1.22 euros. I did our calculations on the basis of a 1:1 parity so hopefully we'll survive any drops in the rate to that level.
When we first lived in Prague we received nearly 43 Czech crowns for £1. By the time we left we were receiving 25 CZK to the £1. So we had already experienced a sharp drop in our purchasing power.
It's not possible for evrryone but my advice would be: as soon as you've accumulated enough to fund the lifestyle of your choice, that's the time to stop working.


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## Guest (Feb 19, 2011)

*Managing on a Pension*

well I think this is one of the best Threads that I have read on a forum, great information on how to live on a budget, I have been a member for over 5 years on a few other forums, have lived in Turkey, Greece, Bulgaria, a few years ago, I just couldn't believe that people can live on such a small amount of money, every other forum talks about how expensive Spain is, what I'm reading on this post makes me realize that one can live a good life in Spain without overspending. As for reading books I stopped last year and I now have an Android eBook reader which holds around 3000 books, more if I upgrade the SD card, I will never go back to reading a normal book again, it's just fantastic, the only drawback two of the biggest book sellers in Australia have gone into liquidation, they say that the internet has killed the book trade, now the most important aspect of living in Spain is where to settle down, this is the hardest of part about retiring to Spain, I just don't have a clue, and any help would be appreciated, we like going out for a meal, we like to walk along the prom, have a few drinks in a bar, just an easy lifestyle, not too much hassle. Thanks to everyone that's posted on this Thread as I really enjoyed reading the reply's.

Robert & Margaret


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## karunaji (May 3, 2010)

As baldilocks points out, depends upon your desires/aspirations as a pensioner. I am trying to keep tabs these last few months on my expenditure.I drink at home and prefer my own cooking because I'm vegetarian - and I find Spanish treatment of vegetables leaves a lot to be desired.Because the view where I live, I do prefer drinking out by the table taking in the stunning view - and enjoy the vast aray of food I can prepare-egyptian,turkish,lebanese,greek,hungarian,gujerati and sth indian - so really not much point going out to eat.
I have travelled in a number of countries and lived in a few, about equally spread out in time. I do not feel a great desire to be "elsewhere" to alleviate the boredom. I do not feel bored, though new to being a "jubilado", I doubt if I will feel bored ten years down the road should I live that long or past it.
If people feel bored, there are many charities where able people can be of use- home building projects in the third world,assisting in orphanages, children of prisoners, the handicapped,projects enabling women in their own communities - the list is endless - or animal projects in the third world. Finding a cheap ticket out is not so impossible nowadays and helping out for a 3month stint is also not impossible. Maybe not as cheap as Ryan Air,but I am sure the airline will alow free use of the loo and facilitate your disembarkation without having to supply your own parachute.
For the moment, my monthly expenditure comes out at around 250-300€. This does not include any insurance or iberbanda - which would add around another 67-70€s. Any unforseen costs whether vet or buying paint/wood etc for any improvement of home would be over and above. Heating probably would put another 100€s a month for the cold months. So probably one can make it though with around 450€ a month.


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## VFR (Dec 23, 2009)

gus-lopez said:


> So lets say .......
> 50 a month for electric. ------------ Mines around 35-40.
> 40 a month for phone/Internet. ------ 35
> 40 a month for car/house insurance. ---------56
> ...


*So your point is Gus ?*
You may have noticed that I put my comments in bold so its obvious to all that I have added to the original post, it would of helped had you edited my post likewise.
You cannot just dismiss the cost of this & that because it may be variable, and its ludicrius to say so IMO.
The OP (Baldilocks) has stated that you can live a comfortable live here in Spain on a basic UK state pension & save up to 200 euro a month..........I dispute that, but I take it that you do not.


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## Stravinsky (Aug 12, 2007)

Bottom line is that for the first 3.5 years we were here we had no earned income. I retired early and so did my wife. We got as much dosh together as we could and invested it to produce something to live on. A figure of £800 seemed to do it at first, but then the rate of exchange took the dive. No longer 1.48 ... it almost dropped to parity. Our income dropped considerably also. 

I remember back 4 years ago there were people living here on £600 a month. I'm not so sure it's possible nowadays, even in the cheaper north


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## VFR (Dec 23, 2009)

Robert46 said:


> well I think this is one of the best Threads that I have read on a forum, great information on how to live on a budget, I have been a member for over 5 years on a few other forums, have lived in Turkey, Greece, Bulgaria, a few years ago, I just couldn't believe that people can live on such a small amount of money, every other forum talks about how expensive Spain is, what I'm reading on this post makes me realize that one can live a good life in Spain without overspending. As for reading books I stopped last year and I now have an Android eBook reader which holds around 3000 books, more if I upgrade the SD card, I will never go back to reading a normal book again, it's just fantastic, the only drawback two of the biggest book sellers in Australia have gone into liquidation, they say that the internet has killed the book trade, now the most important aspect of living in Spain is where to settle down, this is the hardest of part about retiring to Spain, I just don't have a clue, and any help would be appreciated, we like going out for a meal, we like to walk along the prom, have a few drinks in a bar, just an easy lifestyle, not too much hassle. Thanks to everyone that's posted on this Thread as I really enjoyed reading the reply's.
> 
> Robert & Margaret


Interesting Rob, just what has this thread informed you about living on a budget (apart from not spending any money)


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## gus-lopez (Jan 4, 2010)

playamonte said:


> *So your point is Gus ?*
> You may have noticed that I put my comments in bold so its obvious to all that I have added to the original post, it would of helped had you edited my post likewise.
> You cannot just dismiss the cost of this & that because it may be variable, and its ludicrius to say so IMO.
> The OP (Baldilocks) has stated that you can live a comfortable live here in Spain on a basic UK state pension & save up to 200 euro a month..........I dispute that, but I take it that you do not.


Yes, I agree with Baldilocks. Regarding food I'm not fussy, as long as there's tea, sugar, milk , bread & cheese , I'm happy. Never having had the luxury of time to eat when I was working, I now look upon eating as the same as filling up with fuel, necessary but needs to be done in the shortest time possible. 
Yes the IBI is 16, 14€ for this year & for 4beds, 2bath, all the outbuildings, nave, workshop, pool, & all 3000M2 although I don't have to pay on the land as it's under the minimum payment value of 1200€'s so there's no charge & it's the 1st time it's gone up since it went down by 30% in 2004. 
We don't really have any maintenance . I certainly don't paint anything . I do all the construction , electrics, plumbing, etc; Regardless of what needs doing there's so much stuff for everything here that I haven't bought anything for some years. If there is something that needs doing that requires money spending then it's got to wait until there is some. 
Vehicle replacement. Hmm, that's a sore point as I'm a car afficionado & could easily spend every day buying new cars, but having spent a fortune over the years I now manage to restrain myself & spent 9 months making sure when I bought 2 years ago that i got exactly what I wanted . When I do win the lottery the car list is already done. I also used to use 100 litres of diesel a week but I've cut that down to less than 50 a month now. 
The last clothes I bought , except for work clothes, was a huge amount in Turkey in 1997. When You work 7 days a week you don't wear anything except workwear & the decent stuff last 's for ages. Shoes , now that's a different matter. The male Imelda Marcos the wife & daughters used to call me. they're banned as well now.
In addition I'm married to a woman who hates shopping !! She refuses to pay stupid prices for clothes, if you can get her to buy any !! 
From being able to buy anything I wanted without a thought when working, I now refuse to spend anything that I don't have to especially if I can get it for nothing. 
The more money you've got , or earn, the more you'll spend. There's very few people who don't.
Sorry about the reply before but every time I try to use different colours I end up being unable to change back ? I 'll have to have another attempt.


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## Pesky Wesky (May 10, 2009)

gus-lopez said:


> Yes, I agree with Baldilocks. Regarding food I'm not fussy, as long as there's tea, sugar, milk , bread & cheese , I'm happy. Never having had the luxury of time to eat when I was working, I now look upon eating as the same as filling up with fuel, necessary but needs to be done in the shortest time possible.
> Yes the IBI is 16, 14€ for this year & for 4beds, 2bath, all the outbuildings, nave, workshop, pool, & all 3000M2 although I don't have to pay on the land as it's under the minimum payment value of 1200€'s so there's no charge & it's the 1st time it's gone up since it went down by 30% in 2004.
> We don't really have any maintenance . I certainly don't paint anything . I do all the construction , electrics, plumbing, etc; Regardless of what needs doing there's so much stuff for everything here that I haven't bought anything for some years. If there is something that needs doing that requires money spending then it's got to wait until there is some.
> Vehicle replacement. Hmm, that's a sore point as I'm a car afficionado & could easily spend every day buying new cars, but having spent a fortune over the years I now manage to restrain myself & spent 9 months making sure when I bought 2 years ago that i got exactly what I wanted . When I do win the lottery the car list is already done. I also used to use 100 litres of diesel a week but I've cut that down to less than 50 a month now.
> ...


But Gus, I have to agree with Playamonte - you can't make a serious attempt at a budget without factoring all the variables. You might not be fussy about food, but you and your partner _*do*_ have to eat, and everyday, so if you don't calculate at least a minimum your figures won't have any value. It's a shame you don't enjoy food more living in a country where the appreciation of food is so much part of the way of life.
Personally, I'm not interested in the high life, hardly "go out", don't yearn for shopping, but don't actively dislike it either. However, when I _*do*_ go shopping, go to the cinema, go for a meal or a drink, I enjoy it and hope I'll have more time and "ganas" to do it when Ive retired and work doesn't tire me out!


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## Guest (Feb 20, 2011)

playamonte said:


> Interesting Rob, just what has this thread informed you about living on a budget (apart from not spending any money)


I liked that one ??? I have found it very informative, I now know I can live in Spain on my yearly interest of around 25.000 Euro, and not touch my principal, there is no way I could live on 6000 Euro, I don't know if I can still get my Australian pension as I think it stops once you are out of the country for more than 6 months, my UK pension I will receive but that's only 60 pounds a week, so all in all very informative,

Robert


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## mrypg9 (Apr 26, 2008)

Pesky Wesky said:


> Personally, I'm not interested in the high life, hardly "go out", don't yearn for shopping, but don't actively dislike it either. However, when I _*do*_ go shopping, go to the cinema, go for a meal or a drink, I enjoy it and hope I'll have more time and "ganas" to do it when Ive retired and work doesn't tire me out!


That's how I see things.
I have to say that if I had thought I'd have to count every penny I spent I would have stayed in the UK.
Retirement should not be a time for cutting back but for enjoying what you've worked all your life for: free time to do whatever you desire without someone making judgments on your choices.
I like a quiet life enjoying our house, dog and friends but if I felt like getting pissed out of my skull in a bar in Britland I would do so and not give a damn about what others thought of how I chose to live in Spain or anywhere.


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## jimenato (Nov 21, 2009)

mrypg9 said:


> That's how I see things.
> I have to say that if I had thought I'd have to count every penny I spent I would have stayed in the UK.
> Retirement should not be a time for cutting back but for enjoying what you've worked all your life for: free time to do whatever you desire without someone making judgments on your choices.
> I like a quiet life enjoying our house, dog and friends but if I felt like getting pissed out of my skull in a bar in Britland I would do so and not give a damn about what others thought of how I chose to live in Spain or anywhere.


:clap2::clap2: You tell 'em Mary!!


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## mrypg9 (Apr 26, 2008)

jimenato said:


> :clap2::clap2: You tell 'em Mary!!


And if I felt like getting pissed out of my skull, I would do it in your bar!!


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## baldilocks (Mar 7, 2010)

mrypg9 said:


> That's how I see things.
> I have to say that if I had thought I'd have to count every penny I spent I would have stayed in the UK.
> Retirement should not be a time for cutting back but for enjoying what you've worked all your life for: free time to do whatever you desire without someone making judgments on your choices.
> I like a quiet life enjoying our house, dog and friends but if I felt like getting pissed out of my skull in a bar in Britland I would do so and not give a damn about what others thought of how I chose to live in Spain or anywhere.


But the thing is, even if you *do* have to count every penny you spend, the sums work out much better in Spain than in UK! and the quiet life (as described above) is generally much cheaper than "living-it-up", however the ones who are bellyaching about how far their pensions *won't* go are the ones who are living-it-up.

By being careful, one doesn't necessarily have to "count every penny" just not have a profligate lifestyle while taking advantage of offers to save money when they are presented to you, e.g. if cinta de lomo is €4.50 this week and on offer at €3.50 next week, and you are only going to cut it up into chuletas and joints and put it in the freezer why not put off buying it until next week and save €3 - €4 on your bill?


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## mrypg9 (Apr 26, 2008)

baldilocks said:


> But the thing is, even if you *do* have to count every penny you spend, the sums work out much better in Spain than in UK! and the quiet life (as described above) is generally much cheaper than "living-it-up", however the ones who are bellyaching about how far their pensions *won't* go are the ones who are living-it-up.
> 
> By being careful, one doesn't necessarily have to "count every penny" just not have a profligate lifestyle while taking advantage of offers to save money when they are presented to you, e.g. if cinta de lomo is €4.50 this week and on offer at €3.50 next week, and you are only going to cut it up into chuletas and joints and put it in the freezer why not put off buying it until next week and save €3 - €4 on your bill?


Yes, you are right. I agree with everything you have said.  It is -slightly - cheaper to live in Spain than in the UK. I certainly have no time for people who didn't do their sums before they left the UK and now moan.
Our major expenditure and source of enjoyment here is our house. But as we have sufficient income to support it and intend to spend our capital before we keel over we intend to go on living where we are although doing so accounts for the entire monthly income of one of us..Thankfully we both have fairly good pension and investment income and assets. If for whatever reason the money runs out, we'll downsize.
We eat well, buy local produce wherever possible and don't go out drinking to bars . OH is teetotal and I've decided to stick to fruit juice as I want to lose a few kilos out of respect for our neighbours when I put on swimwear for the pool.
We may be luckier than most though -or simply more selfish - as we do not need to worry about son, dil and family who are big earners and will have a substantial inheritance from both parents ( dil's parents and my ex, not me!)


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## Pesky Wesky (May 10, 2009)

mrypg9 said:


> Quite. That's what we are doing. We are unrepentant 'SKINs'. No property, sold it all, spending our dosh before we kick the bucket.
> I also see retirement as a time to enjoy the lifestyle *of your choice.* Not conforming to what some people see as the 'right' way of living in Spain.
> For a good part of my life I had neither the money nor the time for 'luxuries'.
> Our present lifestyle costs more than the average but that is not because we eat out, drive expensive cars, shop in British shops and so on. Our main expenditure is our house which costs us not much less and sometimes more than 2000 euros a month including all utilities.. It is large, on a double plot in a quiet, middle-class Spanish residential street in a Spanish village with few Brits. Our house is our 'luxury'. We had a pleasant old cottage in the UK with plenty of privacy, tried 'piso' living here for a few months but it wasn't for us - besides, we need the garden for our large dog.
> ...


If I _*can*_, I'll be a SKI er. With the unemployment and economy issues you never know though.
I too see nothing wrong with indulging in life's pleasures, what ever they may be in your book, if you can. I'm not interested in earning brownie points either - been there done that and got the beret. 
I just (!) ask for good enough health to enjoy and take advantage of the twilight years.


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## Alcalaina (Aug 6, 2010)

Pesky Wesky said:


> If I _*can*_, I'll be a SKI er. With the unemployment and economy issues you never know though.
> I too see nothing wrong with indulging in life's pleasures, what ever they may be in your book, if you can. I'm not interested in earning brownie points either - been there done that and got the beret.
> I just (!) ask for good enough health to enjoy and take advantage of the twilight years.


The health issue is really important. One of the reasons we gave up our stressful but high-earning jobs and retired ten years early was because of OH's diabetes, which reduces life expectancy considerably. We didn't want to carry on working till we were 65 ... We have effectively bought ourselves ten extra stress-free years by adopting a low-spending lifestyle.

And thankfully since being here, by getting lots of exercise and completely changing the way we eat, he has managed to reduce the risks drastically - something Jojo knows all about.


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## VFR (Dec 23, 2009)

Alcalaina said:


> The health issue is really important. One of the reasons we gave up our stressful but high-earning jobs and retired ten years early was because of OH's diabetes, which reduces life expectancy considerably. We didn't want to carry on working till we were 65 ... We have effectively bought ourselves ten extra stress-free years by adopting a low-spending lifestyle.
> 
> And thankfully since being here, by getting lots of exercise and completely changing the way we eat, he has managed to reduce the risks drastically - something Jojo knows all about.


Not to mention the biggest killer *Stress !*
So like you & so many others we kicked all that fast lifestyle into touch and came to Spain 

˙ǝɯıʇ ǝɯɐs ǝɥʇ ʇɐ ɥʇuoɯ ɐ pǝɹpunɥ ɟo ǝןdnoɔ ɐ ǝʌɐs oʇ ƃuıʎɹʇ ǝɯıʇ ǝɯɐs ǝɥʇ ʇɐ
˙uoısuǝd ǝʇɐʇs ɔısɐq ɐ uo ǝʌıן oʇ ƃuıʎɹʇ ʇno ɟןǝsʎɯ ssǝɹʇs oʇ pǝǝu ʇou op ı 'ʇɐɥʇ pıɐs ƃuıǝʌɐɥ


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## Pesky Wesky (May 10, 2009)

playamonte said:


> Not to mention the biggest killer *Stress !*
> So like you & so many others we kicked all that fast lifestyle into touch and came to Spain
> 
> ˙ǝɯıʇ ǝɯɐs ǝɥʇ ʇɐ ɥʇuoɯ ɐ pǝɹpunɥ ɟo ǝןdnoɔ ɐ ǝʌɐs oʇ ƃuıʎɹʇ ǝɯıʇ ǝɯɐs ǝɥʇ ʇɐ
> ˙uoısuǝd ǝʇɐʇs ɔısɐq ɐ uo ǝʌıן oʇ ƃuıʎɹʇ ʇno ɟןǝsʎɯ ssǝɹʇs oʇ pǝǝu ʇou op ı 'ʇɐɥʇ pıɐs ƃuıǝʌɐɥ


And this is your way of stressing us out I suppose Playamonte. I just had to ask my daughter to stand on her head to read that!!


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## mrypg9 (Apr 26, 2008)

Alcalaina said:


> The health issue is really important. One of the reasons we gave up our stressful but high-earning jobs and retired ten years early was because of OH's diabetes, which reduces life expectancy considerably. We didn't want to carry on working till we were 65 ... We have effectively bought ourselves ten extra stress-free years by adopting a low-spending lifestyle.
> 
> And thankfully since being here, by getting lots of exercise and completely changing the way we eat, he has managed to reduce the risks drastically - something Jojo knows all about.


I agree with all that apart from the bit about a 'low spending lifestyle'.
Why should that be a positive health-wise? For some people low spending is a necessity, a concomitant of poverty.
The key is to have sufficient means to enjoy your chosen lifestyle.
No way would we be happier if we lived in a smaller, cheaper, pool-less house.
I like lying by our pool, naked if I feel like it (which I don't out of respect for my neighbours and because some parts of your anatomy are very painful when sunburnt) to read my cheap second-hand books from amazon.uk.
As I keep saying, it's horses for courses.


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## Alcalaina (Aug 6, 2010)

mrypg9 said:


> I agree with all that apart from the bit about a 'low spending lifestyle'.
> Why should that be a positive health-wise? For some people low spending is a necessity, a concomitant of poverty.
> The key is to have sufficient means to enjoy your chosen lifestyle.
> No way would we be happier if we lived in a smaller, cheaper, pool-less house.
> ...


No no, that's not what I meant! The low-spending lifestyle is the price we pay for the ten years not working. I'm not saying there's anything virtuous about it, nor that it's healthy _per se_. It's just a trade-off. Because we don't have to go to work, we have time to cook fresh food rather than eat microwave ready-meals, and go for long walks rather than sit in an office for nine hours a day.

If someone were to bestow unforeseen wealth on us I would have no problem at all finding things to spend it on - lounging by a pool or going horseriding or travelling all over the world.

Just don't ever make me set foot in an office again ...


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## mrypg9 (Apr 26, 2008)

Alcalaina said:


> No no, that's not what I meant! The low-spending lifestyle is the price we pay for the ten years not working. I'm not saying there's anything virtuous about it, nor that it's healthy _per se_. It's just a trade-off. Because we don't have to go to work, we have time to cook fresh food rather than eat microwave ready-meals, and go for long walks rather than sit in an office for nine hours a day.
> 
> If someone were to bestow unforeseen wealth on us I would have no problem at all finding things to spend it on - lounging by a pool or going horseriding or travelling all over the world.
> 
> Just don't ever make me set foot in an office again ...


Ah...I understand.
I only spent a very short period of time in an office...enough though to know whayt you mean.


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