I just realized that I'm going to be earning six figures in Chile. (This is likely to be the only time in my life I will be able to say that, given that my life's work is in public library service.)
I've been casually working on (
er...meaning to work on) being able to say numbers in the hundreds and thousands in Spanish as most prices in Chile are in the hundred thousands. Chile has the highest cost of living in South America (also one of the most stable economies), and the
prices of some goods are equivalent to what they are in the US. The
exchange rate (one US Dollar is equal to 543 Chilean Pesos), though, means that while I might pay $2.50 for a dozen eggs in the US, I would pay $1,420 in Chile. I'm looking at rent prices of 120,000 (if I'm lucky).
Before giving a green light to this project, I did a lot of calculations to determine whether we could forgo my salary for five months, researched what a leave of absence would mean in terms of suspending employer benefits (insurance, vacation/sick time, flex spending account, PERA contribution, etc.), and created a few scenarios in which I would be able to make ends meet in Chile without having to draw (too much) on savings. Oh, how I do love a good spreadsheet.
Making my own way in another country has been a goal of mine for a long time, but I couldn't go into it without considering security, backup options and insurance. There's no guarantee to complete financial security, but since I wanted to get a credit card with no foreign transaction fees, I also looked into extra security measures such as
EMV chips (t
urns out it is a bigger deal for travel through Europe) and took care to look for zero liability.
Consumer Reports rates some of the best ways to send money abroad (some will work, others -like PayPal- aren't used in Chile).
Insure My Trip is a very helpful starting point for comparing medical travel insurance plans or packages, and in explaining what is and is not covered.
I thought about writing a
how-to-finance-your-sabbatical type post, but realize that this post is more a reminder to my future self that I did some work to figure out how to afford this adventure if something happens. I won't know how the planning will or will not pay off until I actually do it, and may not know how well my plans work until well after I return.
Oh, and I stumbled upon this tip, don't flash your cash, from the state department. Very helpful! (But really, I should give a thought to how I prefer to carry cash, since it has been a long time since I've carried anything more than a twenty dollar bill.)