September 30, 2023

Hey everybody. I simply got here again to the U.S. from Thailand and I’m hit with sticker shock. The information tells me inflation is slowing down, however I’m nonetheless appalled with how a lot all the pieces prices. Yesterday, I walked by the neighborhood Burmese restaurant and so they had been charging $19.50 for the tea leaf salad. Two predominant dishes, drinks, and ideas would convey the worth as much as practically $100! That’s too costly for an informal meal out. I’d relatively cook dinner at dwelling than spend that sort of cash.

We’re snug financially and we are able to afford to splurge sometimes. Nevertheless, the issue is I just lately spent lower than $2 for an superior tea leaf salad in Thailand. The sticker shock is making me very reluctant to exit. Mrs. RB40 has been telling me about all these new locations opening up in our neighborhood, however I don’t need to go anyplace. I assume I’ll modify to those costs finally, however wow! Life is dear within the U.S.

U.S. sticker shock

After I was in Thailand, I met up with Jason Fieber. He blogs at Mr. Free at 33 however spends most of his time making YouTube clips as of late. He moved to Chiangmai 6 years in the past as a result of the cash goes approach additional there. Nevertheless, he’s planning to maneuver again to the U.S. quickly. The final 6 years gave his internet price an enormous enhance.

Now that he’s wealthier, he thinks he’ll be extra snug within the U.S. It’s too scorching and humid in Chiangmai for him. As well as, the air high quality is horrible from February to April yearly. The burning season places a ton of effective particles within the air. He additionally misses the number of meals within the U.S. He stated Thai meals is sweet in Chiangmai, however different cuisines are overpriced and unpalatable. I disagree as a result of different Asian (Chinese language, Korean, Japanese, and so on…) cuisines are fairly good there. However he’s in all probability proper about western cuisines. I don’t eat pizza and burgers after I’m in Thailand so I don’t actually know.

Life within the U.S. is sweet, however he’ll get an enormous sticker shock when he strikes again. Housing, meals, and transportation are a lot dearer right here. An house in Portland value 3-4 occasions extra. A median new automobile value practically $50,000! And as everyone knows, groceries and consuming out are far more costly than 6 years in the past. The identical life-style within the US will simply value 5x as a lot as in Chiangmai.

RB40 family

Fortuitously, we’re comparatively shielded from inflation as a result of our housing and transportation bills are steady. We bought our dwelling 10 years in the past and refinanced when the speed was low. Additionally, it’s a duplex so the rental earnings helps out loads. The utility payments are going up, however we are able to deal with that. Our transportation expense can also be approach decrease than common. We have already got a automobile and we don’t drive a lot.

Groceries and consuming out are far more costly and we really feel that. We used to spend lower than $50 after we exit, however that gained’t go far as of late. That’s why I’m cooking at dwelling as typically as I can. Groceries are dearer too, however it’s nonetheless approach cheaper than consuming out.  

Jason expects he’ll spend extra when he strikes again to the U.S., however I believe he’ll be shocked how far more. Every little thing is a lot dearer than when he left 6 years in the past. He’ll get a sticker shock, for certain.

Retirees & Inflation

Inflation is an enormous drawback for everybody, however it’s worse for retirees. Staff can change jobs or ask for a pay elevate to assist cope with inflation. Retirees don’t have that luxurious. They must rely on passive earnings which could not sustain with inflation. Fortuitously, Social Safety advantages will enhance by 8.7 p.c in 2023. That’s simply a part of the equation, although. Retirees additionally must rely on private financial savings. That half must sustain with inflation as effectively.

Final 12 months, our passive earnings grew by 32% from the earlier 12 months. That’s significantly better than inflation, however we gained’t be capable to develop at that tempo for lengthy. The principle cause why it grew a lot was that Mrs. RB40 remains to be working. We stored investing and grew our passive earnings. As soon as she retires, we gained’t be capable to make investments as a lot. By then, our passive earnings must be a lot greater than our bills. Hopefully, we are able to reinvest and keep forward of inflation.

In conclusion, I’m nonetheless shocked by the excessive costs, however I ought to be capable to readjust quickly. Our passive earnings outpaces inflation by a big margin. I shouldn’t really feel responsible about splurging sometimes. I’ll in all probability make my very own fermented tea leaf salad, although. $19.50 is ridiculous!

Has something given you sticker shock currently? I heard eggs are fairly costly as of late.

*Passive earnings is the important thing to early retirement. As of late, I’m investing in industrial properties with CrowdStreet. They’ve many tasks throughout the USA. It’s been working so effectively that I’m planning to promote our rental apartment so I can make investments extra. Go examine them out!

Extra about tea leaves salad

Fermented tea leaf salad is a dish from Myanmar (Burma). It’s scrumptious and really wholesome. Here’s a very nice model I had in Chiangmai.

It’s a mixture of fermented tea leaves, lettuce, tomato, cucumber, mango, cucumber, carrot, sesame seeds, crunchy nuts, scallion, honey, and different herbs. It’s certainly one of my favourite issues to eat in Chiangmai. It’s approach higher than the $19.50 tea leaf salad in Portland, IMO.

Anyway, the web tells me I could make my very own fermented tea leaves at dwelling with inexperienced tea. I’ll attempt it out and see if I can replicate this dish at dwelling.

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Picture credit score: OSPAN ALI

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Joe began Retire by 40 in 2010 to determine the right way to retire early. After 16 years of investing and saving, he achieved monetary independence and retired at 38.

Passive earnings is the important thing to early retirement. This 12 months, Joe is investing in industrial actual property with CrowdStreet. They’ve many tasks throughout the USA so examine them out!

Joe additionally extremely recommends Private Capital for DIY buyers. They’ve many helpful instruments that may show you how to attain monetary independence.

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