The value of our savings can vary depending on the country we live in. The money that might sustain us comfortably for a year in the USA or Germany could potentially allow us to live without working for five years in other countries. However, the cost of living is not the only factor to consider; after all, you wouldn’t want to live in a country where you’d fear being robbed or couldn’t safely go out at night. What’s even more important, is amount of savings you can instantly generate by moving to another country.
Factors to Consider when Choosing Best Countries to Move
When choosing the best country to live off savings, consider factors like the cost of living, safety, housing costs, and bond interest. A low cost of living allows your savings to last longer, while safety and healthcare ensure a secure and healthy lifestyle. Additionally, the local culture and language can significantly impact your overall quality of life, making it essential to find a place where you feel comfortable and welcomed.
Cost of Living
I am going to use data about the cost of living from the Numbeo service.
What’s important is that you want to maintain the same level of living or adjust it depending on your savings increase (thanks to bond interests) or decrease it because you are spending too much.
So, I am going to consider that my current level of living is equal to that of a person who lives in Chicago and spends an average salary in 2024 in Chicago. Monthly, it is $4,200. Don’t be terrified; it’s just an example 🙂
Here you can find detailed calculations; now I am going to present the results:
To maintain the same level of living (you spend in Chicago $4,200 monthly) in each country, you have to spend:
Switzerland: $4 472
Denmark: $3 786
France: $3 652
Germany: $3 134
Italy: $2 613
Spain: $ 2746
Mexico $ 2 065
Poland $2 090
Romania $1 747
Cambodia $ 1 662
There is no point in moving to countries where your money is worth less, so in this case, those countries with the highest cost of living index, or higher than 70 are excluded. Living in countries with a lower cost of living index makes your money worth more. Let’s start with places where your money is worth twice as much. The list starts with Mexico, and we continue with the list of these countries:
Lebanon, Hungary, Palestine, Jordan, Armenia, Poland, Mexico, El Salvador, Montenegro, Chile, Guatemala, Venezuela, Bulgaria, Dominican Republic, Serbia, Romania, Turkey, Cambodia, Cameroon, Zimbabwe, Mauritius, Fiji, Bosnia and Herzegovina, Sri Lanka, South Africa, Thailand, Moldova, Georgia, North Macedonia, Ecuador, Kazakhstan, China, Nigeria, Azerbaijan, Philippines, Russia, Ghana, Brazil, Kenya, Botswana, Malaysia, Peru, Morocco, Kosovo (Disputed Territory), Argentina, Iraq, Uganda, Algeria, Colombia, Vietnam, Tunisia, Bolivia, Kyrgyzstan, Indonesia, Iran, Uzbekistan, Belarus, Ukraine, Nepal, Paraguay, Madagascar, Syria, Tanzania, Bangladesh, India, Egypt, Libya, Pakistan
Safest Countries
On Numbeo website you can find data about safety (Safety Index) or Crime Rate by country. I reviewed this table, and in my opinion the country where I won’t go because of safety reason is Russia (what’s interesting, Germany has similar crime rate). And I will start from here. Every country with higher Safety Index is ok, every country with lower Safety Index than Russia is a place where I won’t go. It’s the list of top countries where I would go:
Andorra, United Arab Emirates, Qatar, Taiwan, Oman, Isle of Man, Hong Kong (China), Armenia, Japan, Singapore, Slovenia, Estonia, Monaco, Saudi Arabia, China, Bahrain, South Korea, Iceland, Croatia, Denmark, Georgia, Switzerland, Finland, Rwanda, Netherlands, Czech Republic, Uzbekistan, Poland, Brunei, Austria, Slovakia, Portugal, Azerbaijan, Israel, Romania, Lithuania, Cyprus, Kuwait, Norway, Hungary, Cuba, Luxembourg, Montenegro, Spain, Bulgaria, Nepal, Latvia, Serbia, Thailand
Countrie with Low Cost of Living and High Safety
Now I have two lists of countries: one with a low cost of living and the other with high safety or low crime rates. I checked for countries that appear on both lists, and the result is that I found 13 countries. I separated them into two tiers. The first tier includes countries that belong to the EU or are well-known for their tourism.
Tier 1
Romania, Thailand, Poland, Hungary, Bulgaria
Tier 2
Georgia, Armenia, Montenegro, Azerbaijan, China, Serbia, Nepal
Communication, How well Locals Know English
To determine how well I can communicate with people in the country where I plan to move, I used the EF English Proficiency Index, here is the source of data. There is a list of EF index values (the higher the value, the higher the proficiency) for Tier I and Tier II countries:
Tier I
- Romania: 596 (high proficiency)
- Thailand: 416 (very low proficiency)
- Poland: 598 (high proficiency)
- Hungary: 588 (high proficiency)
- Bulgaria: 589 (high proficiency)
Tier II
- Georgia: 541 (moderate proficiency)
- Armenia: 528(moderate proficiency)
- Montenegro: no data
- Azerbaijan: 463 (low proficiency)
- China: 464 (low proficiency)
- Serbia: 569 (high proficiency)
- Nepal: 507 (moderate proficiency)
Due to the level of English proiciency I decided to move Thailand to Tier II and move Serbia to Tier I due to the high EF Index. It looks like I ended up with the list of Eastern Europe countries or Central European countries, so called New Europe.
Housing Costs
Housing costs are one of the most significant factors impacting your ability to live off savings, as they often make up the largest portion of monthly expenses. When choosing a country to relocate to in 2024, it’s crucial to consider both rental prices and property purchase costs. In countries with lower housing costs, your savings will stretch further, allowing you to maintain a higher quality of life without the need for employment. Conversely, in countries with high housing costs, your savings may deplete faster, limiting your long-term financial security. Opting for a location with affordable housing not only reduces your monthly expenses but also frees up resources for other essential aspects of life, such as healthcare, leisure, and travel. Carefully evaluating housing costs in your chosen destination is key to ensuring that your savings can support you comfortably for years to come.
Countries with High Bond Intrests
Choosing a country with high bond interest rates can significantly enhance your ability to live off savings, as these rates directly impact the returns on your investments. In 2024, countries offering higher bond interests allow you to generate more income from your savings without the need for employment. This additional income can help offset living expenses, particularly in regions with moderate to high costs of living. However, it’s essential to balance the potential financial benefits with other factors, such as economic stability and inflation rates, which can affect the real value of your returns. While high bond interests can boost your financial security, it’s crucial to ensure that the country’s overall economic environment is conducive to preserving your savings’ value. By carefully selecting a destination with favorable bond interest rates, you can extend the longevity of your savings and maintain a comfortable lifestyle without the need for a regular income.
How to Generate Savings
The first idea is to sell an expensive apartment or house. In England, a house with a garden costs £800,000, so if I buy something in another country for, let’s say, $150,000, then I will have savings almost for a lifetime.
Best Countries in the World to live off Savings
When selecting the best countries to live off savings in 2024, it’s essential to consider those with a low cost of living, economic stability, and favorable exchange rates. Countries like Mexico, Portugal, and Thailand are top choices, offering a combination of affordable housing, healthcare, and daily expenses. In these destinations, your savings can stretch significantly further, allowing you to maintain a high quality of life without the need for employment. Additionally, many of these countries offer favorable tax policies for retirees or long-term visitors, further enhancing your financial security. By choosing a country with a low cost of living and stable economy, you can enjoy a comfortable lifestyle, focusing on leisure and personal fulfillment, while ensuring that your savings last for years.
Why countries like Switzerland, Sweden or Denmark are out of considerations
Determining the best countries to live off savings, Switzerland, Sweden, and Denmark, while known for their high quality of life, are excluded from lists of the best places to live off savings due to their high cost of living. These nations consistently rank among the most expensive in the world, with steep housing prices, high taxes, and costly goods and services. For those looking to stretch their savings without the need for employment, these factors can quickly deplete financial resources, making it challenging to sustain a comfortable lifestyle over the long term. While these countries offer excellent healthcare, infrastructure, and social services, the high expenses associated with daily living make them less suitable for individuals relying solely on savings. Therefore, despite their many advantages, the high cost of living in countries on the list renders them impractical for those seeking to live off savings while maintaining a high quality of life.
How to Determine Which Country Has the Best Quality of Life?
There is plenty of diffrent indicators that let compare in no time differences between countries. For those who want live off savings, the most important is cost of living, it helps assess if we can afford not to work any more. If you want to have good healthcare, you should check this indicators.
No one wants to live with feeling of being potenially robbed during groceries. That’s why very important are indicators that compare Safety between countries. Also, it’s wise to choose countries that are not polluted.
Those indicators will help you discover the best countries for quality of life on your own.
Top 10 countries by world hapiness report 2024
The top 10 happiest countries in the world for 2024, according to the World Happiness Report, are:
- Finland
- Denmark
- Iceland
- Sweden
- Israel
- Netherlands
- Norway
- Luxembourg
- Switzerland
- Australia
You can find full world report here.
Keep in mind, that it has to be compared with cost of living in this country. The goal is to keep spendings low not to spend it in short time.
Quality of life by World Happiness Report
The World Happiness Report calculates the quality of life in different countries using a combination of factors that influence overall well-being. The primary data source is a global survey where respondents rate their lives on a scale from 0 (worst) to 10 (best). These individual ratings are then analyzed in relation to six key variables: GDP per capita, social support, healthy life expectancy, freedom to make life choices, generosity, and perceptions of corruption. Each country’s performance in these areas contributes to its overall “happiness score.” Additionally, the report considers variations across age groups and regions, helping to differentiate happiness levels within different demographics. This comprehensive approach allows the report to rank countries based on how well they provide conditions that foster happiness and life satisfaction. The result is biased because the ratings are given by people living in the country, not necessarily by those who can compare multiple countries.
Top European Countries by World Hapiness Report: Finland, Netherlands and Denmark
This report shows the appreciation of locals for their country, and it provides valuable insight. However, when it comes to daily expenses or housing costs, these countries are expensive. The goal is not to work but to live off passive income. If I had $1,500,000, then I would consider these countries. But I don’t.
Northern Europe might be appealing; they offer a high quality healthcare system, but the costs are high.
Below, I will show you data about the cost of living and housing prices in those countries. As an example we will use Hungary, Hungary, according to Numbeo, has a cost of living index equal to 41.7.
Cost of Living (CLI)
Finland, CLI is equal to 63. Almost 50% more expensive
Netherlands CLI is equal to 63. Exactly the same situation like with finland.
Denmark CLI is equal to 72. It means you will spend almost two times more in Denmark than you would in Hungary.
Housing Cost
It’s important to buy your own home; it can be a house or an apartment. It’s difficult to estimate long-term expenses when you rely on renting.
To easily compare house prices without going through a ton of listings, you can use this Numbeo feature. You enter a city from country A and a city from country B, and you can easily compare housing cost differences. Again, I compared these countries with Hungary.
Finland – cost of a house will be two times higher (+100%)
Netherlands – cost of a house will be almost four times higher (+270%)
Denmark – cost of a house will be almost two times higher (+105%)
Housing costs is the most important factor when planning living off savings.
Best Countries to Live by Job Opportunities: Remote Edition
Choosing the right country to live in while working remotely is crucial for maximizing savings and maintaining a high quality of life. In the digital age, where job opportunities are no longer confined by geography, the decision to “Work For” a company based in a high-income country while living in a more affordable one can significantly impact your financial health. On the other hand, the ability to “Work From” a country that offers a low cost of living, favorable tax policies, and a high standard of living can greatly enhance your remote work experience. This dual approach—selecting the right employer and the right location—can help you optimize your earnings, minimize expenses, and ultimately save more money. In this section, we will explore the best countries for remote work, focusing on both where you “Work For” and where you “Work From” to make the most of your remote job opportunities.
Check also: How to Stay Productive While Traveling
Work From
Choosing the right country to “Work From” is essential for remote workers looking to maximize their savings. Ideal countries offer a low cost of living, favorable tax policies, and a high standard of living. For example, countries like Portugal, Mexico, and Thailand are popular choices for remote workers due to their affordable housing, vibrant expatriate communities, and excellent internet infrastructure. Portugal offers a mild climate and a friendly tax regime for expats, while Mexico provides a low cost of living and easy access to the U.S. market. Thailand, with its rich culture and affordable lifestyle, is another top destination. By strategically selecting a country to “Work From,” remote workers can enjoy a comfortable lifestyle while significantly reducing their expenses and increasing their savings. It’s very important to manage Time Zones effectively.
Work For
When considering where to “Work For,” targeting companies based in high-income countries can significantly boost your earnings. Countries like the United States, Canada, and Germany are home to many top-tier companies offering competitive salaries, especially in fields like tech, finance, and consulting. Working for a U.S.-based company, for example, while living in a lower-cost country, allows you to earn a higher income while keeping your expenses minimal. Canada and Germany also offer strong economies with numerous remote work opportunities, enabling you to maximize your savings while enjoying a flexible, global career.
When the plan goes wrong
Later, I will show calculations on ‘How much money you need to never work again.’ But if you’re not sure about your situation, it is wise to consider options that will help you gather more money. The easiest way to earn additional income is by tutoring English online. As a native speaker, you can earn well in Eastern and Central Europe. English tutoring can be a hustle job that will let you earn money and maintain desired work-life balance.
On the other hand, remote job market is growing, I don’t belive that it will ever fail.
Check also: What to Look for in a Coworking Space
Maintain High Standard of Living by Low Cost
Achieving a high standard of living while keeping costs low is a strategic approach to maximizing savings and ensuring financial stability. To do this, it’s essential to choose a country where the cost of living is significantly lower than in high-income nations but still offers quality amenities, healthcare, and infrastructure. Countries in Tier I and Tier II list are excellent examples, where affordable housing, low healthcare costs, and inexpensive daily expenses allow for a comfortable lifestyle without the need for high income. In these countries, you can enjoy a rich cultural life, access to modern conveniences, and a vibrant community, all while spending much less than you would in places like the United States or Western Europe. By carefully selecting a location with these advantages, you can maintain a high standard of living while ensuring your savings last longer, providing you with financial peace of mind.