Liberty · Where to live · lesson 11.6 open
Cost of living and hard currency
Budgeting one month in each destination in local currency and in reais using the monthly exchange rate, and seeing how much time your hard currency income buys.
Promise: a comparable monthly budget for three destinations, and the calculation of how many months your income and your reserve sustain in each one.
Why it matters
Earning in hard currency and spending in a weaker currency is what makes freedom affordable. The reverse also happens: an expensive destination eats away that advantage in a few weeks.
The one-month budget
| Item | Local currency | Source and date |
|---|---|---|
| Housing (monthly rent, not daily rate) | ||
| Groceries | ||
| Transportation | ||
| Internet and SIM card | ||
| Coworking (if used) | ||
| Health insurance | ||
| Leisure | ||
| Total |
Convert using the month's exchange rate (PTAX from the Central Bank of Brazil) and note the date.
The author's real example (Sydney, Jun 2026)
Weekly groceries around AUD 60–70 in a single trip per week; a day trip train to the Blue Mountains around AUD 8; ferry from Circular Quay to Manly around AUD 5. These are prices from a specific period, recorded on the spot, meant to show the method, not to serve as a price guide.
Two rules
- Monthly rent is usually cheaper than paying per night. Staying longer (lesson 11.7) lowers costs.
- Compare in hourly income: how many hours of work does a month cost in each destination?
Build the budget for the three destinations in your matrix (lesson 11.3) and enter the total into your Income per free hour tool.
Budgeting based on daily hotel rates; forgetting insurance and SIM cards; converting with an exchange rate from another month; using a generic "cost of living" figure without a source or date.
Checklist
- Does each value have a source and date?
- Do I know how many months my reserve lasts in each destination?
Sources: PTAX exchange rate (Central Bank of Brazil, bcb.gov.br). Example: author's notes from Jun 2026.
Checked on 09/10/2026. Educational content; tax and legal: confirm with a professional.