# The Math Calculations Of Daily Money Budget To Live Abroad As Foreigners

This is an explanation of the mathematical calculations used to estimate the minimal amount of money we need daily to as foreigners abroad.

Simplified Explanation of this Budget:

This budget calculates the cost to live in a country, then adds another 300 dollars per month to that amount. Under the premise, that if the locals are smart enough to live in the country, then we, as developed country citizens are not dumber...! We also want you be smart enough to know, that having more money than listed is OK, please understand the word minimal.

The question is,
"How much does it cost to live abroad?"

As a person who has lived abroad for over 17 years, and visited 107 countries, I am painfully aware the answer has little to do with me, and everything to do with you, each one of us is unique we each have special needs. Yet, what want person calls a luxury, another person calls a need. And, when you try to discuss needs versus wants with people, they will defend their wants, desires endlessly.

Maybe the better question is,
"Can you make a list of things, foods, activities you refuse to live without?"

Do not tell me, I truly do not care, you need to have the money to pay for that list, it is your cost of living.

ASSUMPTIONS:
These are beliefs I hold be true, as a person who have lived in 107 countries, and outside the USA for 17 plus years.
Andy Lee Graham

a. We can live in a country for the same amount of money as locals.

b. 300 USD, or 10 dollars per day is sufficient money for food, and miscellaneous costs.

c. Staying longer is cheaper, than staying shorter, the cost of living increases with shorter time periods, and decreases with longer time periods.

d. Believing you need more money means you are not as smart as the locals.

e. You are not doing work that requires special transportation, or for you to live in any specific location.

f. You understand the difference between a foreigners, expats, or tourists because to live cheaply, you must compare your cost to that of the locals.

g Jobs, work, and family requires people to live in certain cities, and neighborhoods, we assume here you are not tethered to a job, or family situation that makes living abroad unfeasible.

e. You believe in the 30 percent of gross income rule, that a person, or family should not spend more then 30 percent of their gross income on housing.

f. You are smart enough to understand the word minimal, and that if you have more money to spend, that is OK.

g. Because we are not tethered to job, or family, we can choose even more economical living quarters than the locals who are tethered to jobs, and family.

The Math: How we found the numbers, the variables?

Monthly Wages: CIA cia.gov --- The data: 2004.txt

Housing expenditure to income ratio tool
"Determining housing affordability is complex and the commonly used housing-expenditure-to-income ratio tool has been challenged. Canada, for example, switched to a 25% rule from a 20% rule in the 1950s. In the 1980s this was replaced by a 30% rule"  Affordable Housing on Wikipedia

The Formula:

(Yearly Wages in Country)
/ divided by
(12 Months in Year)
= Amount of money an average local has available to spend.