Cost Of Living, Stuff Back Home To Consider

[gk10002000]

I have been to Thailand nine times. I am pretty familiar of the costs and tadeoffs one can make. I have seen other posters talk about their costs while over there inlcuding everything from lodging, to food, to phone, to internet, to transportation, laundry, clothing, entertainment, Visa fees, paperwork fees that crop up, girlfriend or boyfriend expenses, etc.

I am from the USA and I want to suggest that there are many costs associated with living in Thailand that are usually not discussed. These are the costs you must pay for things you maintain back in your homeland, in this case the USA.

1. Medical insurance.

Yes, you can cancel your USA medical insurance, either blue cross, or COBRA or whatever private plan you have. However, are you aware of what the startup costs might be if you re initiate coverage in the future after having a break in coverage, or how hard it may be to obtain reasonable coverage in the future? You might want to carry your coverage and not drop it.

2. Auto Insurance.

Sure, you can cancel your auto insurance, but some states insist that you can not even get a driver's license without it. You may have to lose your driver's license and just get a State ID card. In addition, are you going to keep your car registered? If you have a break in auto insurance coverage, the start up costs and new premiums can be quite high compared to what you previously had.

3. What are you leaving behind? Putting things in storage and renting a locker or storage unit? Paying minimum rent somewhere to maintain a USA residency address?

4. What other things do you pay for? Land line or Cell phone, gas, electricity, internet usage contract? Are you moving out of your rental free and clear with nothing but your one or two suitcases? Not maintaining any bills back home? Nice if you are a young person living with the parents, but not always the case with others. Canceling your USA cell phone? How will you maintain previous friend and professional contacts? What phone number(s) will be on your resume? USA work places do not like to call over seas numbers, and usually won't. Keeping a USA phone number may be a necessity for present and future needs, phone for voice messages from the IRS, State, or other agencies, etc.

5. How about Memberships? AAA auto club? Union Dues or fees, professional organization like ASME, AIAA etc.

6. Federal and State Income taxes. The IRS loves to tax anything you make anywhere. There are exceptions of course, things like working out of country for 11 months of the year or 330 days out of country, but you are unlikely to meet those criteria unless you start on Jan 1 of the year. There are also adjustments possible for taxes paid overseas also. But do you understand those? Have you ever tried talking to the IRS on the phone from the USA, never mind from overseas? Get a good cheap phone card.

7. Misc. Bank ATM fees out of country? Mail back and forth to USA and forwarding costs.

OK, that is just some things off the top of my head. Are you really cutting loose and taking every thing with you and do you come from a State that has no state income tax? If so, then things are easier. But in the real world, there are probably a lot of things that you have not thought about. Living in Thailand is one thing, but making money and saving money for your retirement is another. The days of Thoreau and Walden Pond are more difficult to do than you may think and need some consideration.

[Martian]

1. The only medical coverage I (will) have is through the Thai social security program, which can be continued as an individual for 432 Baht a month after leaving your job. RT airfare from the USA for a serious, non-emergent situation is far cheaper than any co-pay you would be left with on any policy in the USA. No solution for emergency items...roll the dice!

2. If you don't own an auto, you can't be liable for carrying insurance. If you own an auto and are parking it, be sure it is paid off and carry comprehensive only. Put more coverage on it when you return.

3. Sell everything you absolutely don't need or want to keep, such as family heirlooms and pics and store the remainder at a parent's or friend's house and send them a $100 gift card to a nice restaurant every year...or pay small monthly rental fee for a small storage locker.

4. Never buy into an annual or 2 year contract with a cell carrier in the USA, use pre-paid and only use your mobile phone for emergency cases and don't give your number out. Also, try buying only "unlocked" phones that are GSM..they can be used internationally by just buying a cheap SIM card in your country of choice. As for a land line...buy a Magicjack (Cheap, device and 5 years service is $99) with a local number for your area or somewhere close before you leave the USA and if you have a high speed internet connection in Thailand, it is just like having a USA land line. You can be called by anyone in the USA and you can call anyone in the USA, just like you are in the USA. This works for a resume number as well.

5. Screw the membership fees unless you are returning within a year. You can always re-join, they want your money and won't turn you down.

6. I don't believe the 330 day period has to be per "calendar year", the period can span two different calendar years and there is also something about the first $80,000 is deductible no matter how long you were out of the country??????

7. Open a Schwab investor account with the high yield checking account....costs are nill, nada, nothing and ALL ATM fees are returned to your account by Schwab at the end of each month. No need to transfer money to Thailand when you can access it for free and deposit it in a Thai account yourself.........don't you think????? Why do you need snail mail? Have your banks and or other businesses do electronic mail and/or give a family or friend's address as your address and have them screen your mail. You should be able to reduce the "important" stuff to almost nothing so your friend or family member just shoves stuff directly into the trash...again a nice gift card annually is sufficient to keep them on your side...it's the thought that counts!

Don't come and live in Thailand if you don't have some kind of retirement nest egg built up already (older person) or if you plan on living here more than a couple years and NOT going back to work on the retirement nest egg (younger people).

Edited May 23, 2009 by Martian