I came across this article by Earnest Hemingway from the Toronto Star. It was written in 1922.
Paris. -Paris in the winter is rainy, cold, beautiful and cheap. It is also noisy, jostling, crowded and cheap. It is anything you want-and cheap.
The dollar, either Canadian or American, is the key to Paris. With the US dollar worth twelve and a half francs and the Canadian dollar quoted as something over eleven francs, it is a very effective key.
At the present rate of exchange, a Canadian with an income of one thousand dollars a year can live comfortably and enjoyably in Paris. If exchange were normal, the same Canadian would starve to death. Exchange is a wonderful thing.
Two of us are living in a comfortable hotel in the Rue Jacob, it is just back of the Academy of the Beaux Arts and a few minutes’ walk from the Tuileries. Our room costs twelve francs a day for two. It is clean, light, well heated, has hot and cold running water and a bathroom on the same floor. That makes a cost for rent of thirty dollars a month.
Breakfast costs us both two francs and ahalf. That totals seventy-five francs a month, or about six dollars and three or four cents. At the corner of the Rue Bonaparte and the Rue Jacob there is a splendid restaurant where the prices are a la carte. Soups cost sixty centimes, and a fish is 1.20 francs. The meals are roast beef, veal cutlet, lamb, mutton and thick steaks served with potatoes prepared as only the French can cook them. These cost 2.40 francs an order. Brussels sprouts in butter, creamed spinach, beans, sifted peas and cauliflower vary in price from forty to eighty-five centimes. Salad is sixty centimes. Desserts are seventy-five centimes and sometimes as much as a franc. Red wine is sixty centimes a bottle and beer is forty centimes a glass.
My wife and I have an excellent meal there, equal in cooking and quality of food to the best restaurants in America, for fifty cents apiece. After dinner you can go anywhere on the subway for four cents in American money or take a bus to the farthest part of the city for the same amount. It sounds unbelievable but it is simply a case of prices not having advanced in proportion to the increased value of the dollar.
All of Paris is not so cheap, however, for the big hotels located around the Opera and the Madeline are more expensive than ever. We ran into two girls from New York the other day in the Luxembourg Gardens. All of us crossed on the same boat, and they had gone to one of the big, highly-advertised hotels. Their rooms were costing them sixty francs a day apiece, and other charges in proportion. For two days and three nights at their hotel, they received a bill for five hundred francs, or forty-two dollars. They are now located in a hotel on the left bank of the Seine, where five hundred francs will last two weeks isntead of two days, and are as comfortable as they were at the tourist hotel.
It is from tourists who stop at the large hotels that the reports come that living in Paris is very high. The big hotelkeepers charge all they think the traffic can bear. But there are several hundred small hotels in all parts of Paris where an American or Canadian can live comfortably, eat at attractive restaurants and find amusement for a total expenditure of two and one half to three dollars a day.
Using the inflation calculator found here, the $1,000 per year that Hemingway and his wife lived on on comes out to be $12,024. Not bad at all. That’s below the poverty line in the USA for two people; that number is currently $14,570.
Times have changed, and I doubt you will be able to live as comfortably in Paris as Hemingway and his wife did; however, it is possible. While it’s unlikely that you will be able to live as cheaply in Paris today, but there are definitely cities around the world which allow you to live far more cheaply than in most US cities.
At the end of this article I have provided the ranking of most expensive cities for an expat to live in, according to the March, 2009 study conducted by www.xpatulator.com. Clearly, there are a multitude of possible locations for an expatriot to move and save significant amounts of money. Ranking #269, Cape Town, South Africa, sounds like a very appealing option!
Once you identify a city, it’s pretty easy to do some research and figure out what it will cost you to live in that city. For instance, I found that it would cost me approximately 382,000 Czech koruny or $21,300 USD to live modestly in Prague for a year. To arrive at this number, I used this website and included the cost of eating out for three meals per day, a studio apartment, all utilities, a public transit pass, and a cell phone.
If you are starting a website, or already run one, and can make decent money doing so, living abroad may be a fantastic opportunity to live cheaply so that you can devote a large amount of your time to your business – and the remainder exploring a new city. There’s plenty of resources to help you explore the joint world of expatriotism and entrepreneurship. Careerbychoiceblog.com is a great place to start.
The idea sounds like a fantastic motivator to me – experience a new city and run a business! What entrepreneur doesn’t enjoy a bit of adventure? Certainly not this guy:
“Screw it, Let’s do it!”
-Richard Branson
Have you had an experience living abroad for less than you could live in the USA? Please share it in the comments!
Xpatulator.com global cost of expat living rankings by city as of April 1st, 2009:
1 Japan, Tokyo
2 China, Hong Kong
3 Nigeria, Lagos
4 Venezuela, Caracas
5 Papua New Guinea, Port Moresby
6 Switzerland, Geneva
7 United Arab Emirates, Dubai
8 Qatar, Doha
9 Denmark, Copenhagen
10 Bermuda, Hamilton
11 Angola, Luanda
12 Switzerland, Zurich
13 Russia, Moscow
14 Solomon Islands, Honiara
15 Cameroon, Douala
16 Chad, N’Djamena
17 Taiwan, Taipei
18 Liechtenstein, Vaduz
19 USA, New York NY
20 New Caledonia, Noumea
21 Greenland, Nuuk
22 Ireland, Dublin
23 United Kingdom, London
24 France, Paris
25 Norway, Oslo
26 Italy, Milan
27 San Marino, San Marino
28 USA, San Francisco Calif
29 Monaco, Monaco
30 Austria, Vienna
31 Bahamas, Nassau
32 Central African Republic, Bangui
33 Nauru, Yaren
34 USA, Boston Mass
35 Finland, Helsinki
36 Italy, Rome
37 Kazakhstan, Almaty
38 Cote D’Ivoire, Abidjan
39 Bahrain, Manama
40 Micronesia, Palikir
41 Isle of Man, Douglas
42 Haiti, Port-au-Prince
43 USA, San Jose Calif
44 Cameroon, Yaounde
45 Djibouti, Djibouti
46 Palau, Melekeok
47 Guinea-Bissau, Bissau
48 Azerbaijan, Baku
49 Benin, Cotonou
50 Slovakia, Bratislava
51 Belgium, Brussels
52 Netherlands, Amsterdam
53 Sao Tome and Principe, Sao Tome
54 Jersey, Saint Helier
55 Mali, Bamako
56 Gabon, Libreville
57 United Arab Emirates, Abu Dhabi
58 Croatia, Zagreb
59 Singapore, Singapore
60 Ghana, Accra
61 Spain, Madrid
62 Ukraine, Kiev
63 USA, Philadelphia Pa
64 Cayman Islands, George Town
65 Sierra Leone, Freetown
66 Germany, Berlin
67 Czech Republic, Prague
68 USA, San Diego Calif
69 Jordan, Amman
70 Trinidad and Tobago, Port-of-Spain
71 USA, Los Angeles Calif
72 USA, Washington DC
73 Estonia, Tallinn
74 USA, Baltimore Md
75 Falkland Islands, Stanley
76 Saudi Arabia, Riyadh
77 Guernsey, St Peter Port
78 Comores, Moroni
79 Sudan, Khartoum
80 Germany, Bonn
81 Vatican City, Vatican City
82 Canada, Toronto
83 Timor-Leste, Dili
84 Hungary, Budapest
85 USA, Seattle Wash
86 Brazil, Brasilia
87 Lebanon, Beirut
88 USA, Miami Fla
89 Vanuatu, Port Vila
90 Luxembourg, Luxembourg
91 Jamaica, Kingston
92 Australia, Sydney
93 Kuwait, Kuwait City
94 Moldova, Chisinau
95 Congo Democratic Rep, Kinshasa
96 Germany, Frankfurt
97 Tuvalu, Funafuti
98 Iceland, Reykjavík
99 Barbados, Bridgetown
100 Portugal, Lisbon
101 Mozambique, Maputo
102 Senegal, Dakar
103 Canada, Vancouver
104 Niger, Niamey
105 China, Beijing
106 Ethiopia, Addis Ababa
107 Turkey, Ankara
108 Togo, Lome
109 Equatorial Guinea, Malabo
110 Martinique, Fort-de-France
111 Armenia, Yerevan
112 USA, Chicago Ill
113 Liberia, Monrovia
114 Gibraltar, Gibraltar
115 Sweden, Stockholm
116 Somalia, Mogadishu
117 USA, Portland Ore
118 Israel, Jerusalem
119 Malta, Velletta
120 Puerto Rico, San Juan
121 Canada, Calgary
122 Rwanda, Kigali
123 Guam, Hagatna
124 Burkina Faso, Ouagadougou
125 Zambia, Lusaka
126 Andorra, Andorra la Vella
127 Cyprus, Nicosia
128 USA, Las Vegas Nev
129 Samoa, Apia
130 Saint Helena, Jamestown
131 Tanzania, Dar es Salaam
132 Greece, Athens
133 Poland, Warsaw
134 Maldives, Male
135 Malawi, Lilongwe
136 Thailand, Bangkok
137 Indonesia, Jakarta
138 USA, Jacksonville Fla
139 Antigua and Barbuda, Saint John’s
140 Gambia, Banjul
141 United Kingdom, Glasgow
142 Lithuania, Vilnius
143 Belarus, Minsk
144 USA, Dallas Tex
145 Australia, Canberra
146 India, Mumbai
147 Australia, Melbourne
148 USA, Denver Colo
149 Algeria, Algiers
150 Georgia Republic of, Tbilisi
151 Honduras, Tegucigalpa
152 USA, Atlanta GA
153 USA, Cleveland Ohio
154 Canada, Montreal
155 USA, Milwaukee Wis
156 Congo, Brazzaville
157 Guinea, Conakry
158 Saint Kitts and Nevis, Basseterre
159 USA, Detroit Mich
160 Panama, Panama City
161 Latvia, Riga
162 Uganda, Kampala
163 Korea Republic of, Seoul
164 USA, Charlotte NC
165 Marshall Islands, Majuro
166 Australia, Perth
167 USA, Phoenix Ariz
168 USA, Columbus Ohio
169 USA, Austin Tex
170 Madagascar, Antananarivo
171 USA, Tampa Fla
172 United Kingdom, Birmingham
173 Afghanistan, Kabul
174 Grenada, Saint George’s
175 Vietnam, Hanoi
176 USA, Indianapolis Ind
177 USA, St Louis MO
178 Saint Vincent and the Grenadines, Kingstown
179 Peru, Lima
180 Syria, Damascus
181 USA, Fort Worth Tex
182 Slovenia, Ljubljana
183 Mauritania, Nouakchott
184 USA, El Paso Tex
185 Philippines, Manila
186 China, Shanghai
187 USA, Memphis Tenn
188 USA, Pittsburgh Penn
189 Belize, Belmopan
190 India, New Delhi
191 Romania, Bucharest
192 Guatemala, Guatemala City
193 Iran, Tehran
194 Cape Verde, Praia
195 India, Chennai
196 USA, Houston Tex
197 Canada, Ottawa
198 Costa Rica, San Jose
199 Dominica, Roseau
200 Nicaragua, Managua
201 Guyana, Georgetown
202 Dominican Republic, Santo Domingo
203 Bulgaria, Sofia
204 237 Suriname, Paramaribo
205 Cuba, Havana
206 Oman, Muscat
207 India, Calcutta
208 Mongolia, Ulaanbaatar
209 Tajikistan, Dushanbe
210 India, Hyderabad
211 Burundi, Bujumbura
212 USA, San Antonio Tex
213 Myanmar, Yangon
214 Uruguay, Montevideo
215 Paraguay, Asuncion
216 Albania, Tirana
217 Brunei, Bandar Seri Begawan
218 Mauritius, Port Louis
219 Fiji, Suva
220 Egypt, Cairo
221 Australia, Brisbane
222 El Salvador, San Salvador
223 Korea Democratic Republic of, Pyongyang
224 Laos, Vientiane
225 Mexico, Mexico City
226 Morocco, Rabat
227 India, Bangalore
228 Saint Lucia, Castries
229 New Zealand, Auckland
230 Kiribati, South Tarawa
231 Kosovo, Pristina
232 Kenya, Nairobi
233 Serbia, Belgrade
234 Bangladesh, Dhaka
235 Pakistan, Lahore
236 Bolivia, La Paz
237 Colombia, Bogota
238 Botswana, Gaberone
239 Sri Lanka, Colombo
240 Pakistan, Islamabad
241 Turkmenistan, Ashgabat
242 Kyrgyzstan, Bishkek
243 Macedonia, Skopje
244 Pakistan, Karachi
245 Australia, Adelaide
246 Montenegro, Podgorica
247 Chile, Santiago
248 Malaysia, Kuala Lumpur
249 China, Macao
250 Eritrea, Asmara
251 Iraq, Baghdad
252 Argentina, Buenos Aires
253 Bosnia and Herzegovina, Sarajevo
254 Uzbekistan, Tashkent
255 Ecuador, Quito
256 Nepal, Kathmandu
257 Tunisia, Tunis
258 Yemen, Sanaa
259 Bhutan, Thimphu
260 South Africa, Johannesburg
261 China, Shenzhen
262 Tonga, Nuku’Alofa
263 China, Dalian
264 South Africa, Pretoria
265 Lesotho, Maseru
266 China, Wuhan
267 Namibia, Windhoek
268 Libya, Tripoli
269 South Africa, Cape Town
270 China, Guangzhou
271 Seychelles, Victoria
272 South Africa, Durban
273 Cambodia, Phnom Penh
274 Swaziland, Mbabane
275 China, Tianjin
276 Zimbabwe, Harare
{ 2 comments… read them below or add one }
As an expat (#7 on the list), living overseas is a lot more difficult than it sounds. Consider visa options. In most of these nations – if not all – you must have some type of visa for long-term stay. For example, an American can stay for 30 days in the UAE with their passport. Then, you must leave. Renting a proper apartment requires a residence visa (only obtained after having an employment visa which is only obtained after having a job and sponsor). Same with Internet service – free wifi is very difficult to find here. So, let’s say you come for 30 days, leave, come back, etc. You are wasting at minimum 6 hours (and gas/car rental) every 30 days to go across the border and back. BTW – you can’t buy a car without a residence visa either. So, you are wasting time and money trying to get outside the lines. This is pretty common across the globe (and in america for foreign nationals!).
Let us expand this discussion further. As an entrepreneur, you want to start a business here. Hold on! Different, restrictive rules. To start one in most areas – you have to have cash on hand, a local sponsor that owns 51% of your business, and arabic documentation to start the business. In the free zones, you need more money, a required annual rental fee and much more.
Living overseas is not cake.
as an aside, you should check out http://www.noboundaries.org a friend from undergrad who is…writing, traveling etc. for a couple of years.
I don’t doubt for one second the difficulty of living overseas. However, the point of the post is too look for a location necessarily cheaper (and often times with more lenient laws) than the United States or, in your case, the UAE.
Dubai, being the 7th most expensive city, doesn’t make much sense for the average start-up entrepreneur:
This list, although slightly different than that from Xpatulator, uses a baseline of New York City as a cost estimate (100). I currently live in Denver, which is #146 and has an index of 79.74, so the cost of living differential for me to move to Dubai, with an index of 103.36, would be a 29.6% increase in my cost of living. On the other hand, Cape Town, South Africa, has an index of 58.99, which means I would be saving 26.0% per year.
I am advocating starting a web-based business. Most web-based businesses will not necessarily operate in the country where the entrepreneur is living, therefore the laws are not an issue. However, be it a coincidence, or not, South Africa is much easier to start a business in than the UAE. I would imagine the other locations ranked 200 or higher will also be much easier to start a business in.
If a person is looking to live temporarily overseas, say less than a year, it may make more sense to live somewhere where a car is not necessary or to do their best to live without one. Cars are a HUGE sunk cost.
Lastly, if it was easy, it wouldn’t be adventurous. My point was that entrepreneurs, like Hemingway, have an adventurous spirit and welcome a challenge, such as living abroad.
Cool website, btw.
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