It’s Far, Far Less Than Most People Imagine
Sometimes, statistics are a lot like 2+2=7—they just don’t add up.
Case in point: A new U.S. survey of 1,000 adults from GoBankingRates.com, which reports this…
About 45% of those in the 45-54 age group and 32% of those in the 55-64 age group have $100 or less [in a savings account]. Those are the biggest percentages by far for both age groups.
I don’t know… that smells of whatever it was that Shakespeare found rotting in the state of Denmark.
I just don’t buy into the idea that the largest percentage of Americans between 45 and 64 have $100 or less in their savings accounts. That doesn’t seem logical.
But maybe I’m wrong. And if so, well that’s really what today’s dispatch is all about.
I am on a “move to Europe” bender at the moment.
I’ve had a larger-than-usual number of people chat to me in direct messages on Twitter recently asking about living in Europe. There’s an increasing frustration I sense among my fellow Yanks who are just completely over America because of a host of social and political matters we won’t touch on today.
The larger point of those conversations, however, centers on practical finances: What is the cost of living really like in Europe? How much are the taxes? How much will I have to pay to land a residency visa of some kind?
As I tell my interlocutors, those are all facts-and-circumstances questions. There is no one-size-fits-all answer to any of them. Every last one of those questions hinges on personal desires.
Here’s what I mean:
I can tell you living in Prague is magnitudes more affordable than, say, Los Angeles, where I lived before escaping to Europe in 2018. But if you’re looking for a coastal lifestyle in a major city like, say, Barcelona, then whatever facts I share about the cost-of-living in Prague, the ins and outs of Czech taxes, and the local visa process are going to be entirely irrelevant to your circumstances.
The cost of living is different in both places. The tax structure is dramatically different. The process of obtaining the necessary visas is very different as well.
It’s sort of like comparing basketball to golf—they’re both sports, but they function very differently.
But there is a more holistic answer to the overarching question, “Would you recommend I move to Europe?”
And that returns us to those fishy statistics…
From a purely cost-of-living perspective, America has jumped the shark.
Hell, it has jumped a Sea World-sized tank of sharks.
I cannot stress strongly enough how expensive America is relative to most of Europe. I am obviously excluding certain major capitals like London, Zurich, Oslo, etc. because those are all pricey cities. But when you compare “normal” Europe to “normal” America, the cost-of-living gap is stunning.
Let’s compare a few major U.S. cities to a couple of destinations in Greece, since it’s fast becoming Europe’s most desirable hotspot (but this pattern repeats across France, Italy, Spain, Portugal…)
Take Thessaloniki, Greece vs. Seattle, Washington.
Greece’s #2 city is a quasi-doppelgänger for Seattle. Both are important port cities. Both have a similar population. Both have an S in the name.
But life in Thessaloniki is less than half the cost of living in Seattle. If you spend $5,000 on living expenses in Seattle, you can enjoy the same lifestyle in Thessaloniki for under $2,300. (And you can easily live a good life in Thessaloniki for less than $2,300 if you want.)
Plus, Thessaloniki has much better weather.
Or consider Charleston, SC versus the city of Corfu on the eponymous Greek island.
Both are unique coastal cities. Both have a fabulous food scene. Both are beautiful and have immense character (though Corfu wins on at least 2,500 years of recorded history).
But the cost of living in Corfu is almost half the cost of living in Charleston.
If you spend $5,000 on living expenses in Charleston, you can enjoy the same lifestyle in Corfu for $2,800… (and again, you don’t need to spend nearly that much to live in Corfu).
Now, consider what $5,000 per month buys you in Corfu or Thessaloniki.
Man—you’d be living like a Greek god at that point. You can reside in a mansion and hire nymphs to peel your grapes and pour your wine.
If 45-to-64-year-old Americans really are as financially anemic as that GoBankingRates.com survey claims, then my answer to “Would you recommend I move to Europe?” will always be, “YES!!”
Limited savings is not the way to win the game of life in America. It’s not the way to win the game of retirement in America.
Not when there’s a multitude of ways to live a richer, better life for less in Europe.