A lot has changed since leaving Spain in May of 2022.
The end of an era. I came to Spain in 2015 with a couple grand in my (virtual) pocket, and by the time I was leaving, partner and toddler in tow, I had about the same. Did I make zero progress? Absolutely not. What used to support one was now supporting three. And the experience of living in Spain for nearly 7 years was priceless.
I really love the time that I spent as a language assistant in Andalucia and the Basque Country. Those two years reinforced how to budget and be frugal. The 4 years I spent at a language academy in Caceres, Extremadura taught me about self study and advancement. And finally, the year as a Director of Studies in a small town in Andalucia allowed me to thrive professionally in an environment that was also great for my then two year old daughter.
One of the hardest things about readjusting to life in the US after living abroad for so long is the sticker shock. I once wrote about spending $80 a month on groceries. In Arlington, VA, I found myself spending that in one shopping trip.
So how do you overcome such a shock when you repatriate? One trick is to convert prices into percentages. If you find that the bottle of Spanish wine you’ve grown accustomed to is now 3 times what you used to pay for it in Spain, is it still a good deal? It is if you’re earning 3 times the salary. Through this perspective, that bottle of Spanish wine was actually cheaper for me than it was when I bought it in Spain.
It’s easy to get carried away with spending when you start earning more. A lot of people fall victim to the Diderot Effect, where one nice new thing leads you to replacing your other things to match the higher quality. It often makes financial sense to buy higher quality products, as they are likely to last longer. But it’s important not to replace things before their time just to feel the high from upgrading.
I bought new shoes for work for 3 times what I would have been willing to spend in Spain. But the replacement was necessary, and a quality shoe will last a lot more miles. At the same time, I still have the same hiking shoe that I bought in 2017. I don’t plan to buy new hiking shoes just because my work shoes are a nicer quality.
This is one of the ways I stay frugal with a higher income. What are some of yours?