“How Long Until Your Money Runs Out?”

When we started telling people about our plans to quit our jobs and move to Spain, one of the most frequently asked questions was, “Can you work over there?” because most people assumed we would still need an income. When we explained we were applying for non-lucrative visas and wouldn’t be working, they often looked confused and while they may not have said it, their expression asked for more. One person minced zero words asking, “How long until your money runs out?” 

I had to take a deep breath on that one. Holy smoke! 

Okay, when we were both straddling 40 years old, I was 38, John 43, and quit our jobs to move to Italy, that question made sense. We had a 21-month plan for John to continue his education at a Rome university, and we followed a strict budget so we didn’t run out of money. We knew we’d have to move back to the States after graduation and resume adulting as it’s now called.  

Twenty years later, straddling 60, the question didn’t make sense to me. We would not have quit our jobs to move to Spain at this time in our lives if we thought we’d run out of money and have to get jobs again. We both experienced age bias when we tried to get jobs in Austin in our 40s. It would be even worse now, and not just in youth-oriented Austin but just about anywhere. 

So how can we be so sure we won’t run out of money? Well, for one thing, we’ve both taken active roles in managing our money, and we have a very trusted financial advisor we’ve worked with for a long time. She ran all kinds of scenarios for us over the years as we planned for retirement. In 2019, when we were first seriously looking at moving to Spain, our chances of not running out of money even if we never made another dime were 89%. Pretty good, but I was still a little uncomfortable. For a few reasons, we weren’t able to make the move abroad  that year. In 2020, enter COVID and our plans were stalled another year. In 2021, vaccines were available, the housing market was on fire, and our chances of not running out of money even if we never worked another day had increased to 99%. Alrighty then!

We sold the house for more than we expected, downsized to an apartment, then downsized to 27 boxes and two bicycles and shipped them, ourselves, our teen, and two cats to Valencia. A year later, it’s still a bit hard to believe that we’ve been able to do this financially. 

It’s not that complicated but requires more than a one-sentence answer, so I often feel like Lucy Ricardo with a lot of ‘splaining to do.The most important financial steps we took to get here are outlined below, but know it wasn’t always easy. There were some tough years when money was really tight. We’ve made all kinds of mistakes too. So, if you’re thinking it’s too late or just need a pep talk to keep on track, I hope something here will inspire you to keep working toward your goal. These are the things we’ve done at least for the past 22 years we’ve been married. 

We never carried a balance on credit cards. The good thing for us, is that we’re on the same page with debt and spending. We abhor debt. We use credit cards for convenience and perks, but never charge anything we can’t pay for in full that month. 

We bought our house based on one income. Our decision for buying a home was that we would be able to pay the mortgage and all our other bills with one income. Did this mean we bought one of the smallest houses in the neighborhood? Yes. Did this mean we were deprived? No. Buying a smaller home gave us breathing room if one of our jobs went away, and yes, of course, one did. About a year and a half after we bought our house, my job was eliminated. We didn’t panic. I took some time to fix up the house, paint some furniture and a couple of rooms, and I looked for another job, but not too seriously. I loved my former job, and within a year things had improved for my employer, and I was rehired and back on the payroll!

We saved early and often however we could, and we left it alone. We both starting saving and investing in employer plans early in our careers (well before we met), and never touched those funds, even when we switched employers, even when I got laid off, even when we moved to Italy, even when money was sooooooo tight and we had a very young child. We didn’t even talk about touching that money. It was like it didn’t exist. Compounding returns are truly magical!

When I worked for a small company that didn’t have a savings plan, I started a Roth IRA (Individual Retirement Account) in which I deposited $500 a month after tax. When the time comes to tap this account, I won’t owe taxes on what I’ve deposited or on the returns that have accrued. Fun Fact: I started this account with money that I saved from a part-time job where I chose to have a percentage that amounted to about  $4.00 per paycheck deposited into the company savings plan. At the time, it felt silly to see a $4.00 withdrawal on my paystub, but when I needed some money to start the Roth account a few years later, it had grown to $800! That didn’t feel silly; it felt fabulous! 

We lived beneath our means. Not keeping up with the Joneses wasn’t a hardship for us. We didn’t want to pay for expensive cars or a big house to clean, heat, cool, furnish and maintain. Two of the three vehicles we bought during our marriage were used, and we paid cash for all three of them. Not having a car payment wasn’t possible for me when I was starting out, but it is a good goal to have. We spent several years getting along with one car. It can be done with thoughtful planning. We chose to live in places on bus routes, and where at least some things were walkable, and John would rather ride his bike any day than drive a car. 

So no big surprises. There’s nothing complicated about our financials. Its advice you’ve probably heard a thousand times, but the part that surprises me most is how few people actually do any of it. Even one or two of them. Start saving early, keep out of debt, live beneath your means. They’re about as boring as you can get, but they work. We’re proof positive.

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Have you Read My Book? If you enjoy my blog, maybe you’d like to read my memoir about the two years I lived in Rome. Times New Roman: How We Quit Our Jobs, Gave Away Our Stuff & Moved to Italy is available from libraries and bookstores everywhere. Just ask for it if you don’t see it on the shelf.