Moving to the DR on a low budget! Questions and Musings

[Lambada]

Originally Posted by Malibook

If their limited budget isn't a problem for them, why would it be a problem for anybody else?

Because sometimes, unfortunately, they make it so. Ask the owners of bars where some of the limited resources drinking classes hang out. Or read this thread:
Craig Pope

Disclaimer: this is in no way intended to imply that all those on limited budgets are drinking classes, nor that they are irresponsible - I was on a limited budget myself when I first moved here. It is merely to indicate that a person on a limited budget with no emergency fund might have to seek the charity of others when an emergency comes along. And in this sense it can become a problem for others, as per Malibook's question.

[Ricardo900]

Originally Posted by Lambada

Because sometimes, unfortunately, they make it so. Ask the owners of bars where some of the limited resources drinking classes hang out. Or read this thread:
Craig Pope

Disclaimer: this is in no way intended to imply that all those on limited budgets are drinking classes, nor that they are irresponsible - I was on a limited budget myself when I first moved here. It is merely to indicate that a person on a limited budget with no emergency fund might have to seek the charity of others when an emergency comes along. And in this sense it can become a problem for others, as per Malibook's question.

I also believe that a limited budget with an "Emergency" or "Rainy Day" fund is essential, just in case something happens.

I also believe that more questions on storing and securing emergency funds, procedures on registering with your local embassies, keeping US accounts active during your stay, health care, life insurance, home/renters insurance, etc... should be asked.

[Malibook]

I was speaking generally.
Of course it can be a problem.
Some of them might resort to crime and begging but that was not my point.

My point was that if one is willing to accept the reality of their own financial limitations, why would someone else care?

When someone asks if they can do it, they are not asking if others are willing to do it.

I seem to recall a long-term Puerto Plata expat stating that she lives on less than $1,000 US per month and she seems to have a great life with a nice apartment, car, phone, internet, and health insurance.

[Ringo]

My musings and trying to keep things in perspective.

I believe that the D.R. will see many more people on fixed incomes and dudgets looking to move here. As the Baby Boomers retire (and find that they can not afford to maintain the same lifestyles) and young people find that the cost of living has stretched their budgets to the breaking point (use to work to live has become working for gasoline and heating fuel). This appears to becoming more apparent as the U.S. economy is going through a dramatic shift that is having global effects.

Expats that come here must spend money to survive, lots or little, it all helps the Dominican Republic and provides an outside cash flow. But we are guests in this country and are not granted or provided with all the rights and resources that are (as little as they may be) available to the Dominicans. Many Dominicans, not all, are happy to have a gringo as a friend with the gringo learning that they may be looked at more as a possible source of income opportunity and the unknowing new ones can get picked clean in a very short time.

Income does not make the person but may influance that persons way of life and is a matter of personal choices and trade-offs. A person on a budget dependent on a set income can cut the spending only so much before disaster occurs. Being an expat in a "developing" country and counting on a fixed minimum budget without a secure exit plan, in my opioion, is very foolish. Coming with children under those circumstances is, in my opionion... (you fill in the blanks). Does not mean that it can not be done but be very real about such relocation.

Our house in northern New England in the U.S.:
5 years ago heating oil was 63 cents per gallon and we would use 400 gallons per winter month. $252.
Now heating oil is $3.11 per gallon and costs $1,244.
Cord wood for heating was $90 and is now $250 per cord. 10 cords for the winter from $900. to $2,500.
With rising costs, property taxes, food, gaoline, insurance and everything else, our overall living expenses more then tripled in 10 years. Our budget didn't care.
We made choices and started our plans to move to the Dominican Republic 12 YEARS AGO.

In the last 5 years in the Sosua area:
Ocean front lots went from US $24 to $200 per square meter.
Nice 2 bedroom apt. in Sosua from US $45K to $160K.
Bar beer from 20 pesos to 50 if you luckey with the average being 100 pesos. (tourist prices)

Overall, we are much better off living in the D.R. then staying in our U.S. place with a cost of living outflow reduction of more then 75%. However, if we came down today, rather then starting 12 years ago, we could not afford the ocean front lot nor some of the other investments that we have made that will help us continue our lifestyle. We have not touched our retirement funds and we do have an exit plan if needed. And yes, we still work.

This last week we had to make some choices with some not planned for. Need to replace 8 inverter batteries (US $800). Need 200 gallons of diesel for gen. ($800) Need 4 new tires for car. ($600). U.S. taxes due. (None of your business. lol) We also had the rest of our stuff in the U.S. packed and ready to ship ($$$) and will have to pay the D.R. taxes. Our budget is shot for the next few months. We DID plan and have the resources to provide us the options of changing our budget and make choices that allow us to keep going. We do not have to make the choice of heating fuel vs everything else as we would in the States and will not freeze in the D.R.

Budgets are great ONLY if income vs costs stay the same. If replacing a refrigerator, inverter batteries, having a cop shake you down or find you cash/computor missing due to a pick-pocket or your new best freinds came by.. If this will bust your budget for the next 3 months with nothing to draw on, you are in big trouble. Your landlord, most likely, will not care. Nor will the electric, phone, cable or DSL people. Thinking that you can find a job that will pay anything close to what you made back home is a dream. Very, very few can find a good paying job and it does not matter your degrees, education, training or experience. Even if you are willing to clean rooms or a house, you would find it almost impossible to compete with the locals. (Would YOU clean my house; windows, floors, toilets, cleaning up cat "stuff", laundry/ironing/mending, dishes... on ladders and on your knees.... 5 half days a week for U.S. $44.78 a week, food not included? And be happy and smile?)

I think that most of the expats that have been successful in business have had some experience in that business, researched, worked hard, have lots of patience and have dad the extra money to invest in that business with back-up assets/cash if needed Some came with enough cash to get themselves established in an area, meeting others and earning respect from others that led to employment.. but still had an exit plan if needed. I am also reminded of a few that moved here after selling everything thay had and spent MOST or ALL they had on their dream of a little beach bar. Some became their own best customers; drunk, broke, stuck here and fade away to??? Most of us that have been here awhile have seen an expat or two on the streets begging. No home, no food or even enough to get them to their embassy to try to get help.

As a closing and personal note. My wife is a positive person and everything will work out all by itself. For years she said that I was the negative person. I research and analyze everything to look at all the "what ifs", real or not. We now both agree that I am a realistic person. I will not fool myself be seeing things with only a positive or negative attitude, that the grass is greener, and rose colored glasses that blind me from what is real. Like it or not.

Best of luck and eyes wide open, Ringo

[Chris]

Originally Posted by Ringo

My musings and trying to keep things in perspective.

I believe that the D.R. will see many more people on fixed incomes and dudgets looking to move here.

Thanks Ringo, I do think your post contains a lot of value.

Generally Yes, I believe that we will see many more people on fixed incomes and budgets looking to move here as we are moving into a tougher financial picture elsewhere. Hence this thread with my thoughts. Let's keep it cool and develop something where others can learn from. Let's not use other people as examples and give their names. They may not want their details all over the board.

So, to confirm .. are we talking about around US$1,000 for one person? Let's try and develop that number a little more. Where could a person with such a budget stay? What level of food can they eat? How long do you see this budget sufficient for a lifestyle in the DR? We've all experienced the increase in cost of living over the past number of years right in the DR as well.

We are definitely also talking about some kind of exit plan? What should this be?

[Lambada]

Originally Posted by Chris

So, to confirm .. are we talking about around US$1,000 for one person? Let's try and develop that number a little more. Where could a person with such a budget stay? What level of food can they eat? How long do you see the current budget sufficient for a lifestyle in the DR?

I'm a bit torn here between attempting to answer some of your questions, Chris, and that being perceived as active encouragement by people coming in with that sort of income and thus to misinterpretation by those who really want to move insufficiently resourced. Or as Ringo says

Originally Posted by Ringo

A person on a budget dependent on a set income can cut the spending only so much before disaster occurs.

particularly if that budget is US$1000 or under.

Sure, it can be done and there are 'old hands' doing it, many of whom have years of experience here behind them. But can a 'new hand', knowing very little really manage it in a problem-free way? And can they learn enough from a message board to achieve this? Or does it have to be through feet on the ground experience?

[EnclineDesigns]

I just want to start off by saying I didn't read every single post on this thread, most of them but not all (there are sooo many!), so hopefully I'm not duplicating what anyone else said. However, living in DR on a very very low budget, I want to express my opinion about the $1,000 budget.

My husband and I live on $400-$500 a month. This is after we purchased our vehicle. This amount includes a 2 bedroom, fully furnished really nice apartment which includes, trash pick up, electricity, invertor, and running HOT water, it includes all of our meals/groceries. And despite what was suggested in one post, we eat very well and good quality of meals.

Now, how is all of this possible on such a small amount of money? We have very little entertainment (that cost anything), we cook almost all of our meals and we don't live in the Americanized part of the country. We too left the U.S. to get away from the American life style, so we didn't want to get back into it here by being around all of the American places and people. We live 30 minutes outside of Puerto Plata. We are far enough out to live a little cheaper but close enough to have access to what we need.

Do I recommend this for everyone? No, it all depends on their personal circumstances but it drives me crazy when I see post on here saying you cannot live in the DR for less than $2,000 or $1,000 a month.

And just because we live on such a small budget, does not make us a burden on the DR society (that would be hard to do considering the overall shape of the country's economy). We do not live on that budget because that's all the money we have but because we choose to live a simple and inexpensive life style. If we wanted all of the fancy and creature comforts of life, we would have stayed in our executive jobs in Executive America, in our big house and fancy car, but we were tired of Corporate America and the stuck up people who think they are special just because they have a title and slave to their job. Just because some people live on a small budget doesn't mean they are a lesser individual, there are plenty of clean, good hearted people who live under their means. In fact, my personal opinion is that this class of people are doing much better because they are not worried with living out of their means and enjoy the more important things in life.

Anyway, to sum it up... you can live on less than $1,000 a month for 2 people but don't expect to live like you do in US or Canada or where ever you come from, don't expect to be going out every weekend partying and don't expect to have a beach front condo. Anyone can do it, depending on what they are willing to "sacrifice" as some call it.

DR has it's challenges but it also has it's blessings. The best thing is, we who live here, see a different way of life than we were raised around. It makes more rounded people in my opinion.

[Chris]

My hat off to you EnclineDesigns. Thanks for responding as there are a number of people seriously looking at a different lifestyle and hoping that this board will give them some answers.

[leekiv]

Originally Posted by Chris

My hat off to you EnclineDesigns. Thanks for responding as there are a number of people seriously looking at a different lifestyle and hoping that this board will give them some answers.

Super response EnclineDesigns. I think that as you have stated it can be done but as you also stated it depends on how you live which is what one poster on here has been saying they would like to do. This post says it all in my opinion.

[Chris]

Originally Posted by Lambada

And can they learn enough from a message board to achieve this?

Yes, I feel 'tentative' on what 'right action' would be on these issues. And I do sense change.

Though, people do use message boards to try and find out as much they can. So, if we develop something around a number, say US$1,000, we may just be helpful, instead of a hindrance. And I am sure we will get more posters like EnclineDesigns.

In fact, if I was single with no responsibilities and no family, I think I can live on less than US$1,000 in the DR. Especially without the cost of a vehicle.