Expat Finance

New Years Eve in Istanbul

2010-12-21T15:55:00.000-08:00

Hey all - I just wanted to post this in case anyone was reading about Istanbul and things to do. One of these is a great deal, the other is a super-posh club that'll still be pretty fun to go to for New Years in Istanbul. Celebrating the change from 2010 to 2011 can be done in style and cheap, if you're like my expat friends. If you're in Istanbul for New Years, come join me at Romeo & Juliet, or if you want a super-swanky night check out 360 or one of the other mega-clubs, because it'll be a great time.

Here's the information for the parties:
A Dog Day Afternoon Presents....2010: Good to the Last Drop

Celebrating New Years Eve in Istanbul, Turkey

5 Cheap European Vacation Spots

2010-11-02T06:30:00.000-07:00

I read an article on Forbes.com recently about the <a href="http://www.forbes.com/2010/10/29/countries-where-dollar-goes-furthest-exchange-rates-personal-finance-cheap-travel.html?feed=rss_finance">Eight Countries Where the Dollar Goes Furthest</a>, which got me thinking of the cheapest places to visit in Europe. Of course, it's much cheaper to visit Eastern Europe than Europe proper - and that's reflected heavily in the list. Although Portugal didn't make the list of absolutely dirt cheap European vacation spots, it is on Forbes's list as the only affordable Western European country to visit.

Without further ado, the 5 cheapest vacation spots in Europe are:

1. Turkey
While Istanbul remains expensive compared to the rest of the country, even Istanbul is cheap compared to most American, Canadian and European cities. It's quite possible to live and survive on 30 lira a day, including going out for drinks.

2. Hungary
Budapest remains a favorite of frugal travelers worldwide. With an amazing historical distriction, a vibrant clubbing and bar scene, and cheap alcohol, it's a particularly good location for travelers who want to save money.

3. Montenegro
Although I have not been here, every person I have ever met who has is deeply in love with Montenegro. It is supposed to have some of the most stunning landscape possible - and, despite being on the Euro, is supposed to be extremely affordable.

4. Slovenia
Another cheap European spot, Slovenia is nested between Italy, Croatia, Hungary and Austria and as such is an excellent country to go to if you want to visit multiple countries. Like Montenegro, Ljubljana has beautiful natural landscaping including mountains, caves and lakes, along with a lively nightlife. Of course, it's not as cheap as it used to be before adopting the Euro, but it's still an affordable European vacation destination.

5. Poland
If you don't want to go to Southeastern or Eastern Europe, why not try Poland in Central Europe? Krakow has some amazing tourist destinations. Some, like Auschwitz, focus on the horrors of the holocaust. Warsaw, too, has a large population and a number of tourist destinations. Not surprisingly, hard liquor is quite cheap here.

Picture by Jon

Thanksgiving Lemon-Pepper Peas and Onions Recipe

2010-10-20T05:07:00.000-07:00

Surprisingly, I was unable to find this recipe on the internet, so wanted to note it down. It's a cheap, tasty side dish that has an interesting and different flavor from normal pea dishes.

Ingredients:
1 medium bag frozen peas
1 jar baby onions (these may be in the vegetable aisle, or may be near the alcohol)
1 Tablespoon lemon juice
1 teaspoon pepper
2 Tablespoons salted butter

Take frozen peas and fry using only a few Tablespoons of butter. When peas are nearly ready (only a few minutes of cooking), add onions, lemon juice, pepper, and butter, and stir. Cook until peas are ready.

As with most Thanksgiving foods, these taste delicious when mixed in with mashed potatoes!

Not completely finance related, but great nonetheless

2010-04-20T01:34:00.000-07:00

I was reading one of the legal blogs in my Google Reader (Above the Law), and came across an article about why BigLaw (top firms) should get rid of their summer associate programs. For those of you not in the know, these are positions after the second year of law school that almost always translate into a job after the third year of law school. Mentioned in the article is the following sentence:
"Summering law students just had to avoid doing something epically stupid like jumping naked into the Hudson River."
The article then links to another article which details a bit more of the story.
I interned in New York in 2006 at a corporation, and let me tell you, this girl was the talk of the town. I'm not going to say every student working in the city heard about her, but I'd wager a large proportion of them did. What a great thing to be known for!

Nigerian fraudsters

2010-03-10T07:06:00.000-08:00

Things that annoy me:
Nigerian fraudsters.

I lost my Blackberry while in the US taking the bar (oh dear blog, how long it has been since I have written in you!). I bought one at the store because I felt terrible for losing it, but upon return my boss informed me she would just buy a new one, so I'm up one Blackberry (and down a few hundred bucks). I put it for sale on Craigslist to try to recoup the cost, and have gotten some wonderful responses.

Things I have learned:
Nigerians say "make research", much like Turks.
"my son is in west africa making a research his birthday is coming up
soon and i want it to be shipped down to him
his name is Ekpunobi Fortune and his address is no 13 Egbonnaji
street achara layout,Enugu.Enugu state,Nigeria.and also please send me
your paypal account so i can make the payment as soon as possible"

An astounding number of members of the global commuity have sons/nephews working off the "West Coast" of Africa.

It is easy to fool Nigerian fraudsters into giving you their address and getting their hopes really high up.

Me: Yes Inquirer I do Still have This Item for Sale. Which Item was It that You wanted. Also I prefer Pay by Paypal if That works For you? (note the not so subtle sarcasm at their referencing me "seller", the phone as an "item" and, when I reply "which item", responding: "i mean the item you want to sell." That came from Janet Brown, who helpfully provided her address:
Name: janet brown
Address: Alpha photos building, apata
City: Ibadan
State: Oyo
Zip code: 23402
Country: Nigeria
Phone#: +2347037893102
so i will be waiting to hear from u

~

Sadly, when I informed Janet Brown that I also wanted a notarized copy of her passport before shipping, she stopped responding.)

And finally, there was the offer I received today, which was just spiteful (email chain below). As a note, it's generally not a good bargaining tactic to offer 100 euro and then agree to 1000 euro - totally not the sign of a scam at all!

~

it is ok by me i just want to get it for my cousine and the adress is

Felix Odiatu
D'Rovans Hotel Ring Road,
Ibadan,Oyo-State,23402
Nigeria.
Tel:2348070769699

--- On Wed, 3/10/10, I wrote:

From: Me
Subject: Re: Brand New Blackberry Curve 8900 - TRL700 (Taksim)
To: "Caco Collinz"
Date: Wednesday, March 10, 2010, 3:04 PM
- Hide quoted text -

What your cousine adress is wonders I is? Also 1000 Euro I want phone for you to have, ok? is? D o y o u t h i n k t h a t i s o k i w o n d e r ? ? ? : o )
What Pya a pal for? I want pay you me not your pay friend a.

On Wed, Mar 10, 2010 at 4:59 PM, Caco Collinz wrote:

Th
From: Me
Subject: Re: Brand New Blackberry Curve 8900 - TRL700 (Taksim)
To: "Caco Collinz"
Date: Wednesday, March 10, 2010, 2:53 PM

Thanks for the mail i said that i what i ant to offer you including shipping and handling abroad to my cousine scholling in Nigeria .
so get back to me with your paypal.email.so i can remmit the fund

are you joking? do you have any idea what the exchange rate is or did you just puke out a number you thought would be close? i said "FIRM PRICE" and you offered 100 euro?? good luck in life bro.

On Wed, Mar 10, 2010 at 4:50 PM, Caco Collinz wrote:

ok i will give you 100 euro because i di deal with euro and i want you to send me your paypal email so i can proceed with the payment or if you don't have one you can register at www.paypal.com , immidiatelly you sign up just send me you email for paymenr
Looking to read fro you soon
Collinz

--- On Wed, 3/10/10, I wrote:

From: Me
Subject: Re: Brand New Blackberry Curve 8900 - TRL700 (Taksim)
To: "Caco Collinz"
Date: Wednesday, March 10, 2010, 2:36 PM

It is for sale and the price is final.

Two for One Recipe

2009-03-20T21:04:00.000-07:00

I made cauliflower curry tonight, complete with real Thai chilis. Cauliflower is abundant in Turkey this time of year, and is relatively cheap elsewhere I've been, so I wanted to share two recipes that are cheap, delicious, and cut down on wasted vegetable scraps: Cauliflower Curry and Cauliflower Kinpira.

Cauliflower Curry
2 onions
3 tablespoons oil
5 cloves garlic
2-6 hot peppers, depending on desired kick
1 teaspoon chili powder
1 tablespoon cumin
1 tablespoon turmeric
2 tablespoons coriander
1 Cauliflower head
1/2 lemon
several cups water
yogurt and/or cooked rice, if desired

Heat oil on medium heat in saucepan large enough to hold all ingredients. Chop onions and dice garlic and add to oil. Dice peppers and add to onion mixture along with spices. Heat until onions begin to brown. While cooking, cut up cauliflower into large chunks that are about 1.5 to 2 inches long and wide. Set aside and save all leaves and any stem. Add the cut cauliflower florets to onions along with 2 cups of water. Mix and cover. Cook 20-30 minutes, stirring several times, until cauliflower is tender, adding more water as necessary. Add lemon juice from 1/2 lemon, mix, and serve, salting as desired and garnishing with cilantro. Can be served with yogurt, rice, or bread.

Cauliflower Kinpira
I got this idea from Just Bento as a way to use all parts of the cauliflower.

Ingredients:
Cauliflower stem and leaves
Sesame oil (the original recipe recommends dark, but I use light since I already have it)
1/4 teaspoon red pepper flakes
1 tablespoon soy sauce
1 teaspoon sesame seeds, white or black

Heat sesame oil over medium heat in a frying pan. Remove the very base of the cauliflower stem if it is hard, discolored, or very tough. Slice the remainder of the base along with the leaves into very thin matchsticks. While cooking, add red pepper. Cook until soft - I've found it generally takes about 10 minutes, but depending on how thinly you cut the cauliflower it may take less time. Add soy sauce and sesame seeds, mix, and remove from heat.

I will say that the first time I had kinpira, I wasn't sure how I felt about it, but by the second and third times I tried it I loved the taste. It has a unique flavor, so don't give up right away if you aren't sure about it!

Curry picture by sassyradish, Kimpira by MwaO

Friday News Roundup

2009-03-20T06:45:00.001-07:00

This is the first installment of my weekly news roundup. Let me know if there are any articles you think are important for expats or personal finance!

Suze Orman's Save Yourself Promotion with TD Ameritrade - from Barganeering

extra $100

reviews of paid survey websites

The US Dollar is getting weaker

commentaries

desperate attempts to get a job

According to the Bureau of Labor Statistics, an unemployed person in this recession will remain jobless for about five months. Competition for the few available jobs is rough; every position is met with hundreds or thousands of applications. Stearns is just an extreme example of what's become a mantra for employment consultants these days: When you're looking for a job, do whatever you can to make yourself stand out.

Kiplinger's 10 Financial Commandments for your 20s

or 30s

Get Rich Slowly

Working Abroad

2009-03-19T10:00:00.000-07:00

There was an interesting post on Get Rich Slowly recently about finding a good job in a bad economy.

The question that prompted the post is one that a lot of people around my age are facing: a recent graduate accepted full time employment at a job that makes her unhappy and isn't in the field she wants to be in. She's sticking it out for the time being because it's a full time job.

I understand where she is coming from: I've certainly had my share of jobs that were less than ideal. I do think, though, that sticking with a job merely because you have it won't get you much in the long term and is also hard on your mind and body in the short term.

Even in an uncertain economy, there is no point in staying at a job that really does make you unhappy. Yes, everyone who has a job is lucky to have it; but people staying in unhappy situations won't have good experiences to show for their next job. I have to be pretty happy at a job to give it my all, to work above and beyond expectations. If I dislike a job, I'll do the minimum required, which is fine for maintaining but not for advancing.

Other people recommended going to graduate school to ride out the economic downturn. The idea of going to school to get additional qualifications to ride out the downturn is not a bad one - but there are so many caveats to this plan it's hard to list them all. For starters: school is expensive; an additional degree may not result in salary increases; scholarship funding for schools are going down; tuition prices are rising; it's difficult to commit to work and school at the same time; and degrees might not advance your professional skills as much as a few year's experience can.

As someone who left their country for an opportunity for steady employment, I am obviously less tied down to my location than some other people. However, one option that I think too many people miss is this: An easy, lucrative way to ride out an economic downturn is to get a job abroad.

● It's easy to get a job teaching English in most of the world - and with most countries having pretty low costs of living, even if you have debts to pay off it's a viable option. Student loans can be deferred if necessary.

● If you don't want to be an English teacher, it's not difficult to find a comparably, or higher, paying job in another field. Most large businesses need someone who is an expert at English to work with documents, reports, public interactions, and so on. These jobs can be found in the country you want to work in or even as a transfer if your company has international offices.

● Leaving open the option of moving to another country opens up literally millions of jobs that you would not otherwise have access to.

● Living abroad can give you an incredibly valuable skill: the ability to communicate, and with effort, work, in another language. No matter what your field, there will be more options for a primary job and for freelancing if you can work in two languages.

● Working abroad gives you an easy resume talking point. An unrelated, but analogous example is that I have a cousin who applied to medical school, didn't get in, and became a mechanic in the year he had off. When he applied to medical schools the next year, with no other changes in his resume, he always had something to talk about: not many mechanics apply to med school! Now, there are probably more people living abroad than there are mechanic doctors, but the point is the same - having a truly unique experience on your resume will never hurt you in interviews.

In short, if you can't find a job or find yourself in a situation you hate, it's worth it to look beyond the confines of your town, region, state, and even country for a better fitting job that will open up more doors for your future career choices.

Photo by Balakov

Student Loans: an Argument for Repayment

2009-03-13T14:27:00.000-07:00

I paid my first student loan bill today!

Although my student loans now make up a significant chunk of my monthly income, there are a lot of reasons I'm paying at least the minimum - and hopefully will be able to start paying down more than that after April.

I was having a bit of difficulty getting my money into my account back in the US in time to begin payments, and was starting to get pretty anxious. I talked with a friend about it, and he asked why I wasn't deferring payments, as so many I know have done. In terms of straight up income, I would probably qualify for a deferment - especially with the weakening Turkish lira.

For me, financially, it just doesn't make sense. Right now, over 20% of my income is going towards paying student loans, which seems like an incredibly high number given that I don't really have significant debt. Even with that fairly insignificant number, the interest that I accrued while in school kills me. Every month that I deferred, or every month that I had to pay less, would end up costing me thousands of dollars over the course of my student loans.

I know there are times when it would make sense to defer, but I think it's best to look at student loans as only a tiny step up from consumer debt. It's good debt, sure, and I had an amazing experience at law school, but it's still debt. That being said, paying off student loans isn't my primary focus right now - instead, I'm trying to save as much for my 2008 IRA as possible. After that, I can think about what else I can be doing. For now, though, I'm glad that I can pay the minimum balance, and grateful that I'm able to do it.

Photo by Strevo

Earn More While Abroad

2009-03-10T01:47:00.000-07:00

I haven't posted in a while, for a variety of reasons - most of them fun, but a few annoying. A little over a week ago, my apartment got broken into and my old, worn, trusty dell laptop got stolen, along with quite a bit of my jewelry, my camera, and iPod, and with them a friend's possessions including her computer. Most of my things I don't care too much about, but my computer is how I talk to my family. Luckily, I was able to get a computer within a few days of the original theft.

Since then, I've been spending a lot of my free time earning extra money to help cover the cost so I don't feel like I've wasted my savings buying a new computer. With the economy how it is, it's getting more difficult to get extra work. At the same time, the dollar keeps rising, making that extra work abroad worth less. On that note, I thought I would share some websites, some of which I have used and some of which I have heard good things about, to earn extra money back in the US.

1. Demand Studios - A content writing website. To join, you have to submit an application with a writing sample. After approval, you can pick articles to write that generally pay between $5-15. You can also submit your own articles to write. I've been doing this for a few weeks and have found that it's becoming easier to knock out one or two articles in an hour. I've been making about $100 per week on this, though I'll probably settle into just writing a few articles a week. Payment is by Paypal.

2. GlobalTestMarket is a survey website I have had a lot of good experience with. It's a simple application and I get surveys an average of a few times a week. Each survey is worth between 30-150 points. Points are redeemable for cash at $.05 a point, with a minimum cash-out of 1000 points. It sounds confusing, but I've made $250 on this from taking surveys about once a week. I've also gotten to see some cool movie previews (such as 300) way before they came out. Payment is by check to your address.

3. ChaCha is a website serving a texting service. You will need to complete a test before you can work there. The test is not easy, but is doable if you can use Google searches effectively. Once in, you get between $.10 to $.20 per search. Searches range from topics requiring no research ("does Johnny like me") to ones that could test your quick-physics-solving-ability. You get to pick which questions to take. It costs $2 to get paid instantly or you can get a free online payment when you've made $100 - I haven't gotten to either point yet.

4. Caio is a website that won't get you rich, but will earn you a bit of passive money. It's a review site where people earn money based on the ratings and pageviews of their reviews. I wrote about 20 reviews for products that I loved, liked, or hated over a period of about a week and haven't touched it since. I've been earning about a dollar a week from it. Payment is by Paypal.

5. Shutterstock is a website that I have not had much success with given my inability to a good photograph. However, I have heard good things from people who use this as another passive income. If photography's your thing, it will be worth the effort. To apply you need to submit 10 photos, of which 7 have to be approved. I don't know much about payment through here, as I haven't earned anything but have heard good things about it.

To find a job that's in your field, try googling freelance [and your job interest here]. For instance, by searching "freelance writing", I found this site, where I've managed to get three small jobs - better than no small jobs - and have made $100 in three weeks. As a caveat, Paypal may charge some fees to get paid, but it's better than not getting paid at all!

Photo by Luismi1985

Make friends by saving money on books

2009-02-24T05:11:00.001-08:00

One of my favorite hobbies is reading. Even when I was little, I preferred to have my nose in a book rather than pressed up against a television. For the last few years, I haven't been able to indulge this hobby as much as I otherwise would have wanted to; my heavy course load and busy study-job schedule kept me from reading much more than the occasional quick read or a daily to weekly check of Google Reader.

For the first time in my life, I actually have enough time to read for leisure. The only downside, of course, is that for the first time in my life I am living in a place where most people do not speak English natively. Although the experience is wonderful overall, there are of course downfalls: one big one is the cost of books.

If you live in a non-English speaking country, you know exactly what I mean. New books are expensive. New books written in a foreign language can easily cost three times more.

With that in mind, I've found that one of the best ways to get new books is to trade them with other people. My friends and I are always exchanging books we loved, hated, or anything in between. Scarcity of cheap books has also meant that I step outside the genre boundaries I would normally tend to prefer. I've discovered new authors and styles that I never would have without book swaps.

If you're new to an area, or don't know people who like to read, try looking on social networking sites for book exchanges. Some great resources are couchsurfing and meetup. You could also try facebook or any other website that you feel comfortable with. Another great place to look at is local hostels - where there are bound to be a few travelers who would like trade books. If you can't find any, think about starting your own!

Book exchanges are great. They're really a way of killing three birds with one stone: get books, save money, make friends.

Photo by Faeryan

Money overcharges: criminal actions

2009-02-21T09:10:00.000-08:00

Besides the two obvious types of credit card overcharges -- when you notice it right away, or when you don't notice until much later -- there is a third type of overcharge that is equally important to know about, think about, and plan about before and while you live in a new area. This is particularly prevalent in Turkey - though I've read recent stories about its rise in more developed areas. Note, of course, that this advice is particular only to Turkey, where violent crime is relatively rare and the chance that a situation like this will become actually dangerous is quite small.

Situation Three: Criminal actions
A guy I know came to visit Istanbul for a short period of time. A common scam in tourist areas is for a local guy to come up to a foreigner and start a conversation. Eventually, they go to a bar that the local guy suggests. A few drinks later when the foreigner goes to leave, the bill comes - for a few thousand lira. It sounds too outrageous to be true, but I have met a number of people who fell for this - and I am sure there are even more who are ashamed to come forth with their woeful tales. Unlike typical overcharges, where my other friends did not realize they were being charged too much until after the transaction had been completed, the overcharge is readily apparent; so too is the fact that unless payment is received, the foreigner is going to be hurt.

What happens if you find yourself in a situation like this - or any other - where you are afraid? It's not enough, like so many blogs, to merely say 'Avoid that type of situation!' Whether it's becoming the victim of a crime or of an elaborate scheme like the one described above, many times, people were targeted by savvy con artists who make their living determining how to trick smart people.

So what can you do in such a situation? What my friend did - paying the several thousand lira, is one way to get out and get out fast. This is a particularly important route if you are confronted with extreme danger: guns, knives, etc. He resolved danger, but in a costly way. If he had been here longer, he might have heard about the way the scam usually played out and realized that the "I will take you to a bar" trick is not actually a very dangerous situation, and there are ways to get away without paying as much.

Aside, then, from paying the exorbitant fee, what else could he have done? There are two main solutions that have worked for people I know:

First: if told they had to pay a ridiculous amount of money, they got to an ATM in any was possible. They said they needed a PIN, or their bank only accepted ATM withdrawals - whatever they thought would get them outside. They even had people accompany them to the ATM. After that, they either showed they had no money in their accounts, or they made a scene and don't stop until people noticed. These scams are most popular in Turkey in a very crowded area - called Taksim - where there are countless people walking in the streets. Never underestimate the power of a public scene.

Second: barter the amount down. Not shockingly, most people, when confronted with a bill for a few thousand lira for a few glasses of beer, will refuse to pay. Does the bar really want that thousand lira? Sure - but they'll settle for a few hundred. It's not a perfect solution, but it certainly minimizes the risk. They said whatever they had to to reduce this amount - that transactions over a few hundred of dollars required a call to the bank by someone else, that their card just didn't accept amounts that high, that they were near their credit limit. As with all bargaining, they were firm and stuck to their goal of minimizing the cost.

When it's all done, file a police report! It may come to nothing, but at least you will have evidence of a crime. Note, however, that most credit card companies will not waive the charges, even if they were made under duress. Crazy but true. I called several companies - MasterCard and Visa - and learned that their policy is that no matter the situation, if the cardholder 'approved' the charges, they were stuck with the amount billed. Because of that, your best bet is to minimize as much as possible before paying.

Photo by Ned Kelly

Travel credit charge and cash overcharges - the public forum remedy

2009-02-18T08:03:00.000-08:00

Photo by Andres Rueda

Three years ago, several of my friends and I visited another friend in Istanbul, Turkey. We came during the summer at the beginning of the huge tourist-season rush. We knew that we would be charged more for tourist type items than locals would have, but what we had not realized was how important it was to scrutinize every single transaction - particularly when using a credit card.

I'm not talking about nickles and dimes here: I'm referencing those outrageous overcharges that can really affect your travel or financial situation. No amount of planning with a personal finance budgeting in mind can truly prevent this, but it is the sort of thing that can break your budget.

Situation One: The overcharge is noticed right away
One day, while we were walking around Istanbul looking at a beautiful mosque, two young Turkish men came up to talk to my friends and I. Hoping for romance, they settled for a laborious but engrossing conversation at a tea shop. As we left and paid, we gave cash to our friend who was using a check card. To our surprise, when we received the credit card receipt, the original had been charged with one too many zeros to the end of it. That small mistake meant the price of our teas was off by a hundred lira, a huge impact on a broke, traveling college student's budget.

Situation Two: The overcharge is not discovered until later
Another overcharge happened to one of my good friends who lived in Israel for the summer of 2008. His trip was pretty uneventful in terms of money, in large part due to his extensive financial planning. However, he was overcharged at a major hotel to the tune of over US $300. He didn't notice the overcharge until he checked his statement online the following week. Upon calling the hotel, he was consistently told that no one - save the hotel's accountant - could resolve the issue; inconveniently, the accountant was apparently on a permanent vacation.

What did these two individuals do? Because the situations were different, they required drastically different solutions.

In situation one, we were able to have our new Turkish friends express extreme outrage at the overcharge, which was corrected right away. Even if we had not had native speakers with us, it would have been fairly easy for us to communicate the problem with the bill. Of course, the transaction cancelation took a few days to process, but it did go through.

In situation two, my friend was presented with a very different set of facts. He was no longer at the hotel and had lost the ability to immediately make a public scene. This, along with the (albeit short) passage of time dramatically diminished his power in talking to the hotel. He finally resolved it in a rather dramatic fashion - but it worked. He told the hotel that if they did not return the overcharge, he was going to write about his difficult experience with the hotel and submit it to every travel blog and review website possible.

What does this mean?

● Particularly in tourist areas, do not underestimate the power of making a public scene.
● It's easiest to correct a problem at the scene, immediately after the overcharge occurs. Waiting can necessitate more drastic, more frustrating, interactions with the store, company, or service that overcharged you. But, if you don't discover the overcharge until later and can't come to a resolution, the internet does allow for a vast public forum.
● If you don't keep track of your spending - at least a little - you will never know when an overcharge has occurred; likewise, if you don't check receipts after you pay, you may not realize an overcharge has ocurred.

Relative costs to cut costs

2009-02-16T10:49:00.000-08:00

Before I moved to Turkey, one of my friends told me the thing she would miss most when she left was cheap food.

How cheap is it?

There's no one answer. Some people only eat out - for them, living in Turkey is about as expensive as anywhere else in absolute terms.

Take an average meal at a restaurant here. You could go to a middling restaurant and get a meal for 8 lira. With water and a small tip, your meal would run between 8-10 lira. Add alcohol, an expensive product in Turkey, or a soda, and the meal will run to about 15 lira. You can find cheaper, you can definately find more expensive, but consistently getting a 10-15 lira meal with a drink would be a pretty good deal.

In the US, a dinner or lunch would be comparatively priced. You may find cheaper, you may find more expensive, but getting a full meal, with tips and a drink for $15 would be a pretty good deal.

So, the food price seems the same, right? It does seem like that - until you look at relative costs. As with many countries or areas with lower standards of living, the cost of eating out is actually much, much, higher than the relative cost of groceries for a week. Why is that? The answer lies somewhere in the differences of restaurant cultures and demand - here, if people are eating out, they can afford to. Even in other countries with lower costs of living than Turkey, and cheaper restaurant tabs, it's clear that eating at home is significantly less costly relative to eating out.

It's a lot easier for me to reign in spending when I think about costs this way. For instance, for groceries last week I bought 8 tomatoes, 2 zucchinis, a bag of carrots, a bag of potatoes, a loaf of bread, 2 bags of pasta, a thing of yogurt, a thing of Nutella, a thing of cream cheese, a small container of milk, a Toblerone chocolate bar, 6 red peppers, 6 green peppers, 10 small green peppers, 3 pears, 3 bananas, a head of red cabbage, a thing of juice and a 1 litre of coke - for 27 lira. 27!

If you can't tell from the food I buy, I'm not living on a pauper's diet. I'm eating well - but eating frugally. In the US, I would have spent between 50-100 dollars a week on a similar shopping cart full of food. Looking at the relative cost - both time and money - of eating out versus cooking a meal in the US, it was only a little more expensive to eat out. Here, it is an entirely different story. That doesn't mean I never eat out. It does mean I put my spending into perspective.

I don't advocate cutting everything out of your life that's not dirt cheap. There are some things I love, and are worth it to me to pay more for. But try looking at your costs in a relational sense to figure out whether you really want those costs to stay the same. Make sure to pick a product that's in the same field - whether it's transportation, food, entertainment, drinks, coffee, or anything else so you can actually compare what their utility, costs, and value are to you.

Money Matters: Before (or while) you go

2009-02-16T06:38:00.000-08:00

Photo by Piazza del Popolo

I cannot overstate the importance of notifying your bank of your travels abroad and having multiple ways to access money.

Three stories:

I have a friend who came to Turkey with her credit card. Turns out, her credit card company stopped accepting charges from Turkey a month into her three month stay. She didn’t bring another card and didn’t have access to another account. She ended up having to pay exorbitant fees to get money wired to her and was incredibly lucky she had all the documentation required to access the transferred funds.

My second friend had her card here in Istanbul, and after using it for a year discovered that her charges were suddenly being denied. Neglecting to tell the bank she was abroad, they allowed the charges go through until she bought a large-ticket item from abroad.

I have another friend who brought his card to Barcelona but attempted to enter the PIN too many times. The third try, the card locked up and there was no way to resolve the issue without him presenting the card to the bank. It turned out the machine he was entering the PIN into was reading the card as a credit card – so his entering the unnecessary PIN ended up putting the ancient machine on the fritz and blocked his card. His bank could have mailed a new card to him, which is useful while in the States – not so useful when abroad.

What is the theme of these three?

All situations could have been better, or were better, by planning ahead. The first could have brought multiple credit cards, opened an account domestically, or have brought enough cash with her to cover her costs. While it feels risky – at least to me – to carry huge sums of cash, if she had brought multiple credit cards, she could have stored them in different locations. This goes for anyone, regardless of time spent in a country. It’s better to be overprepared than caught in a terrible situation. It’s also a hassle, but well worth it, to set up a savings account if staying in a country for any period of time. Local laws will differ in their requirements for a bank account: in Turkey, all that is required is a Passport and a Turkish tax card which may be obtained with a US Passport (though many banks will tell you different requirements, if you persist, that is all that’s needed). Also, make sure to check with your bank before you go to ensure you can use your ATM card or credit card abroad – there are a surprising number of countries that have restricted use policies; some block all use.

My second friend’s experience highlights an incredibly important thing to do before – or while – you go abroad. Notify your bank! It is amazing how many people fail to notify their bank and come to find, after a week or two of use, that their card has been blocked. Notice alone may not be enough: though I notified my bank, sure enough, a week after I got here, I had a message on my cell phone requesting that I call the bank regarding ‘suspicious activity’ on my card. An emailed message to them requesting they review my travel notifications cleared that up and took less than 30 second of my time. My friend had to spend nearly 30 minutes on the phone to clear something up that would have taken only a few minutes had she done it herself. What is scarier, though, is that the bank didn’t put a stop on her account after the first few charges in a foreign country. For all she knew, the card was being used by another person. An explicit notice to the bank of your travel plans will help to stop any unauthorized use; my friend was lucky, though I know others who have had worse luck.

The third was prudent – he brought multiple forms of payment. With a spare credit card and adequate cash, he continued to have access to money as he needed it and had no problem continuing his trip. He was also able to use a credit card and ATM card whenever he needed (or wanted) to. He did still have to deal with the locked card when he went home – but it never interfered with his trip.

What's lessons can be taken from their stories?
• Check with your bank before you go to any country to make sure your card will be accepted at all parts of the trip.
• If you have not done so already, notify your bank you will be travelling, including which countries and which dates.
• Bring multiple forms of payment! Try to at least bring a credit card and an ATM card, and bring them from different banks, if possible. Store them in separate locations.
• Bring other forms of payments that you feel comfortable with - cash is accepted pretty much anywere (apparently, not Russia, but pretty much anywhere else).
• If you are going to be in a country for any length of time - say, over a few weeks - see what it takes to set up an account there before you go. When you get there, set one up and deposit your cash or transfer funds from the US. Dealing with pretty much any problem involving frozen cards or accounts is going to be easier from within the country.

Foreign financial crises - job loss abroad

2009-02-13T09:41:00.000-08:00

There was an interesting international news article in the New York Times yesterday about the droves of foreign workers leaving Dubai, which, like many other countries, is in the midst of an economic depression. Abandoning their cars and mortgaged houses, these unemployed or underemployed workers have been fleeing the country to escape from their massive, criminal debt that they have no way to pay off.

First, as a caveat and bit of a personal story: this article highlights how lucky I feel to have stable employment. In my last semester at law school when I was planning to practice in Michigan, I started applying to hundreds of jobs. Each job, hundreds of other highly qualified candidates would apply as well (I am not exaggerating these numbers - after a while, the whole process became too defeating to continue). I soon realized that with many law students and seasoned attorneys in the same predicament, I would be better off looking in a jurisdictions where my skills would be a unique asset. I applied for a job in Istanbul and here I am, while many of my classmates struggle, nine months after graduation, to find a job. In a way, my flight was from Michigan, where my being a native English, US-trained, jobless just-graduated-law-student would never set me apart from the hundreds of others vying for the same job.

But this article raises unique questions and challenges that I have little experience with for the expatriate employee. How deep are your ties to a country? How deep is your debt? It also highlights one of the benefits (and more unethical aspects) of expatriate living: sometimes, it’s easier to just cut and run and go back home, or somewhere else, than dealing with the impacts of your financial woes. This is obviously not to advocate that, but is certainly how many have reacted to the deepening global financial crisis.

If you are thinking of taking on debt in a foreign country, do you know the debtors’ laws? In Dubai, for instance, failure to pay bills is punishable by jail. I’m not planning on acquiring any large debt like a mortgage or house payment any time soon, but this really does highlight the need to speak to a qualified, educated individual before taking on any sort of major debt in the country. I would never have guessed not paying bills could land me in jail, and I would hate to have to face the book-it or be-booked dilemma that many in Dubai are now facing.

Finally, it also, of course, highlights the need to have an adequate financial cushion to help ride out the bad times. This is something that I myself am still working on, thinking that problems like this will never happen to me. It’s easy for me to think my job is secure; I could go anywhere. And, though the people in this story were in the wrong place at the wrong time, hopefully other workers, foreign or domestic, can learn from their unfortunate stories. I've always planned to build up a safety net sometime in the 'future', but articles like this drive home that future should be now.

International Banking - Get online

2009-02-11T14:28:00.001-08:00

If you live abroad, or are planning on living abroad, one major financial hurdle to clear is how to deal with banks across international lines.

One of the most important tools that I have used to effectively bank is using the full potential of their online services. By doing that, I am able to handle the vast majority of my banking, investing, and payment of student loans and credit cards using only the power of the interet.

By learning how to adequately utilize my bank's online resources, I've saved time, money, and a ton of effort.

Three different ways to use online banking
• Bulletin Board Messaging: My credit union allows me to leave messages on the message board and they’ll complete the transactions. It sounds like a such a small thing, but the impact was clear when my sister entered the wrong PIN number for my ATM card too many times and it locked. I was able to leave a message, have a new card with the PIN that I requested sent to her address, all within the span of a few days, just by leaving a message.
• Instant Message Communication: I also have an IRA that I just activated to automatically withdraw money every month. Unfortunately, the IRA was set to deposit into 2009’s account – I wanted 2008. A few quick words with the helpful Fidelity Investments representative, and the money was transferred - no problem. What's even better is they let me know that though I can't change the settings to avoid contacting them in the future, I don't have to ask them every month to change it over; though they can't change the setting, they can just transfer it all in April.
• Online money transfers: I also routinely transfer money between my accounts. By using online banking, I can do many things myself, including transfer to my credit card, put money into a CD, and set up automatic bill payments. Those that I can’t do, I can ask to be done for me via instant messaging or online board messaging.

Of course, these represent a small fraction of what you could do with online banking - I just haven't found a need for much more in my life.

If you need a good summary of what online banking is, or feel lost in the process, try looking through this website. The best way to figure out what to do, though, is to jump in and just start doing it. If you haven’t signed up for the service at your bank, I recommend doing so today.

Personal finance for foreigners - Opening day!

2009-02-10T23:30:00.000-08:00

Hello reading world,

After years of enjoying some truly wonderful personal finance blogs, I have decided to start my own. This blog will be devoted to personal finance from an international perspective.

As an expatriate for the last several months and for at least the next two years, I have found there is just not enough readily available information applicable to my banking, my finances, and my life. There isn’t the kind of information that I want and need all wrapped up in a single site.

This blog will explore topics that are particularly important to those living abroad but still financing, in some way, at home. I will explore strategies for dealing with student loans, credit cards, money transfers, 401(k) management, IRAs, savings, spending, and more, all while living away from (at least some of ) your banking tools.

My hope is that although this blog will be relevant to those who find themselves banking cross-nationally, there will be discussions that are germane for those who are not. I hope that these tips, strategies, and discussions can help anyone, expatriate or not, with their finances.

Many thanks, and I hope to post my first ‘real’ post soon!