Thursday, 30 July 2015

Financial independence for people working in Central London

I just heard about some rumors like commuting from Madrid is cheaper than living in London. Is that true? Let's see. As Homes&Property of Evening Standard is saying, an average one bedroom flat in Camden costs 1893 a month to rent, council tax is 111,40 and a zone 1-2 travel card is 123,30, resulting the basic cost of living in London 2128 pounds. A fully furnished air-conditioned apartment (Yes, we got sunny days in Spain) in the heart of Madrid is 532 per month, with no council tax to pay. Booking the flight with budget airlines like Ryanair will cost you on average 900 per month. That is 1725 pounds a month including train travel. 403 pounds less every month, or 4836 extra money in one year. And we are talking about Madrid. Good football, nice food, good exchange rate pound/euro, 6 months of proper summer and Latin women. What would you want more?

P.S. IF you want to move i can tell you this:
Best websites to find a home are Idealista and Fotocasa.
Best budget airlines are Easyjet and Ryanair.

And in just 5 years you will save 38.688 pounds on average 4% return. In 10 years is no less than 74.958. Living in Spain. Working in London. Any thoughts?

(Of course it will be much easier to move to a small city like Bedford,one hour to Central London by train. Where you will pay 500 for rent for a 2 bedroom flat, 55 of council tax and 367 for train (4404 for an yearly train pass) on a monthly basis, making your expenses 922 pounds. This way we will have a whooping 1206 saving per month or 14472 per year. For 5 years is 115.776 pounds (on average 4% return), for 10 years is an incredible 463.104 pounds, more than enough for your early retirement, financial independence, FIRE or whatever is your strategy called. Sometimes is just as easier as that. And 4% return means that you will learn to live with 18524 pounds per year, or 1543 per month. We can go even further. Imagine that your partner is doing the same thing as you. 3086 per month. Add 10 years from now and you can be the one of the few living the dream.)

***Don't forget to buy me a drink when you get there. Ha ha!

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