Couple Cuts Cost of Living by 60-70% In This Little-Known European Town

Above: Julie and Warren Knox in Tivat, Montenegro.

Social media is awash with envy-inducing imagery and videos of expats chronicling their new lives abroad in hot spots like Portugal, Italy and Spain. However, in 2023, early retirees Warren and Julie Knox chose a lesser-known place to call home: Montenegro.

The tiny country is in the Balkans region, dotting the Adriatic coast. Montenegro attracted the couple due to its more leisurely pace, old-world beauty, mix of affluence and affordability, and easy access to the rest of the continent. After bouncing around a few spots early on in their retirement, the couple bought their current condo in Tivat, Montenegro, in 2023, using it as a home base when they aren’t exploring new countries with their two dogs.

Image credit: Google Maps

“It was something we planned for over a decade,” says Warren Knox, 56. “We slow travel, and we use our home there as a point of leverage to be able to do home swaps or to rent it out to offset our Airbnb costs when we're traveling. Affordability-wise, we're living on 30% or 40% of what we budgeted for retirement.”

The Knoxes have a YouTube channel about how to retire early and cut living costs, and experiencing the expat life.

While moving abroad may seem glamorous, it's not for everyone, and there are many financial and practical considerations to factor into this life-changing decision.

Julie and Warren Knox "slow travel" Europe with their two dogs, using Montenegro as a home base.

Take Exploratory Trips Before You Commit

Taking a few exploratory trips to the country you want to settle down in is crucial before making a permanent (and costly) move you might regret, Julie Knox, 49, says.

“We've seen people decide to go slow travel like us and then they get homesick for their children,” she says. “They end up investing a lot of money to make these life changes, but they're just not emotionally or mentally prepared; they haven't done the groundwork of actually going to a location. Vacationing and living in another country are two entirely different things. They are apples and oranges.”

Simon agrees. “Many people start by buying a vacation rental property first, and then Airbnb it with a property management here, and come back and forth for a couple years and really get a feel for the area,” Simon says. “And then they sell everything and they move.”

Above: Sea Promenade at Tivat, Montenegro, Kotor bay, Adriatic sea.

Keep an Open Mind

Americans are used to convenience in most aspects of life. In other countries, be prepared for cultural norms and ways of living to be dramatically different than what you’re used to.

In many European countries, for instance, homes are typically much smaller and don’t have as many modern conveniences (like air conditioning in older buildings) as U.S. homes. Unlike large swaths of the U.S., Europe has a well-developed public transportation system. Warren Knox says moving abroad will also broaden your views of places you had no desire to visit or had negative misconceptions about.

Research the Laws, Requirements

Although they’re slow traveling across Europe, the Knoxes come back to their home every 90 days and leave every 90 days. They also registered their car under a limited liability company in Bulgaria and are required to go to the country once a year, Warren Knox says.

There’s a lot of misinformation on social media about emigrating to other countries, so do your research through your destination country’s government website to learn about its visa and residency requirements.

Some companies have done this legwork for you, including Expatsi, an online community that helps U.S. citizens learn their options for moving abroad. The company offers group scouting tours of other countries, in-depth country guides and other educational resources for Americans looking to emigrate.

It’s also worth connecting with a local real estate agent who can explain local market conditions and how to buy property in your destination country.

Understand How Currency Fluctuations Work

One thing that has surprised the Knoxes is the currency fluctuations. Although they use credit cards for many of their purchases, having liquid cash is key if geopolitical issues (such as the Ukraine/Russia conflict, for instance) impacts the currency exchange rate, Julie Knox points out.

Retirees, in particular, should have more than 80% of their money available, “because you have currency fluctuations you need to be able to absorb,” she says.

“Look for the worst exchange rate that you've seen in the last five years, and then go ahead and add on another 10% to that” for extra cushion, recommends Warren Knox.