My crazy financial plan to get out of debt

Summary

In this video, the speaker outlines a bold financial plan to move to Thailand using a Thai Elite Visa. By selling assets like their car, furniture, and using stock money, they aim to fund the visa and relocation costs. Despite taking on some additional credit card debt, the speaker believes that living in Thailand will help save money due to lower living costs. The move is motivated by both financial necessity and the desire for a fresh start after a difficult chapter in the UK. The speaker also reflects on the freedom from material possessions and the expensive burden of car ownership.

Takeaways

• 😀 The individual is considering moving to Thailand by obtaining a Thai Elite Visa, specifically the Bronze tier, which costs approximately £15,000.
• 😀 The Thai Elite Visa will allow the individual to live in Thailand for 5 years without needing to worry about re-entering the country, offering long-term stability.
• 😀 The individual plans to raise the £15,000 for the visa by selling assets, including a car, furniture, and stocks, as well as using a portion of credit card debt.
• 😀 The car, currently valued at £7,000 due to wear and tear, will be sold to contribute to the visa cost.
• 😀 A maxed-out Amazon credit card with a £5,000 balance will be kept and only paid at the minimum monthly interest rate, which amounts to £120/month, allowing more cash for the visa.
• 😀 The individual estimates being able to save approximately £1,000/month by moving to Thailand, where living expenses (rent, food, etc.) will be significantly lower than in the UK.
• 😀 The cost of living in Thailand will be around £600/month, whereas in the UK, the monthly living expenses are closer to £1,700, leading to potential savings of nearly £1,000/month.
• 😀 The individual plans to pay off the £19,000 debt owed to their mom within 2 years by saving money more efficiently in Thailand, compared to the slower pace in the UK.
• 😀 A major motivation for the move is the high cost of living in the UK, which makes it difficult to save money, alongside a desire for a fresh start after a relationship breakdown.
• 😀 Despite the initial debt burden, the individual believes that the long-term financial benefits of living in Thailand (lower expenses, better savings potential) outweigh the risks of taking on more debt upfront.

Q & A

What is the Thai Elite Visa, and how much does it cost?

The Thai Elite Visa is a long-term residency visa for Thailand. The bronze tier, which is the cheapest option, costs approximately 650,000 Thai Baht (around £15,000). This tier is only available until December of the current year.

What strategy does the speaker plan to use to gather the money for the Thai Elite Visa?

The speaker plans to sell their car (valued at around £7,000), liquidate stocks worth £4,500, and sell other items like furniture and a computer monitor, which could generate an additional £1,000. This brings the total to approximately £13,000.

Why does the speaker choose to pay only the minimum payment on their Amazon credit card instead of paying it off immediately?

The speaker chooses to make the minimum payments on their Amazon credit card because they need the available funds to cover the Thai Elite Visa. The interest on the card is high, but the speaker feels that the financial benefits of moving to Thailand outweigh the costs of the interest.

How much does the speaker expect to save monthly once they move to Thailand, and what are their expected expenses?

Once in Thailand, the speaker expects to save around £1,000 per month. Monthly expenses, including rent and living costs, are estimated to be £500-£600, which is much lower than their current monthly expenses in the UK.

What are the speaker's monthly expenses in the UK, and how does this compare to their expected expenses in Thailand?

In the UK, the speaker's monthly expenses amount to around £1,700, including rent, utilities, taxes, and insurance. This is significantly higher than the £500-£600 they expect to spend in Thailand, allowing for greater savings potential.

How long does the speaker believe it will take to pay off their debt after moving to Thailand?

The speaker estimates that it will take approximately 7 to 8 months to pay off their accumulated credit card debt after moving to Thailand, thanks to their ability to save £1,000 per month.

Why does the speaker consider moving to Thailand instead of staying in the UK?

The speaker considers moving to Thailand primarily because it offers a much cheaper cost of living, which would allow them to save more money. Additionally, they want a fresh start, away from past personal and financial struggles tied to their life in the UK.

What personal factors influence the speaker's decision to leave the UK and move to Thailand?

The speaker is motivated by a desire for a fresh start, especially after experiencing personal difficulties tied to their past relationship. They feel their current life in the UK is 'tainted' and that Thailand offers an opportunity for adventure, a new chapter, and greater financial freedom.

What are some of the logistical steps the speaker plans to take before moving to Thailand?

Before moving, the speaker plans to sell their car, liquidate their furniture, and start the process of moving out of their current residence by notifying their landlord. They will also need to apply for the Thai Elite Visa and secure the necessary funds before making the move.

How does the speaker feel about owning a car, and how does this influence their decision to leave the UK?

The speaker reflects on how owning a car, which once seemed like an exciting milestone, has turned out to be an expensive burden. They no longer see the need for a car and find that living in a city like Bangkok, where public transport is available, is a more efficient and cost-effective lifestyle.