Welcome to my new monthly series tracking the real cost of living in Bali and Southeast Asia during early retirement. Every first Friday, I’ll break down exactly what the cost of living in Bali (and other locations) looks like on a $3,000 monthly budget and what I learned about managing expenses while living abroad. After years of healthcare burnout and unfair treatment, I finally achieved the freedom to live anywhere.
The Real Cost of Living in Bali: August Numbers
Monthly Budget: $3,000
August Spending: $2,880 (96% of budget)
Remaining: $120
I stayed comfortably within my planned spending limit while living well in Bali. September will be my 6th month in Bali and my visa will end, meaning I’ll be heading somewhere else for a bit.
Here’s where the money went:
Housing – $1,587.89 Villa rental including all utilities, Wi-Fi, private pool, cleaning 3 times per week, and laundry once per week. Bali offers incredible value for accommodation compared to major US cities.
Food – $545.15 Mix of local warungs, grocery shopping, and western restaurants. Local food is incredibly cheap and delicious (and vegetarian friendly!).
Transportation – $45.70 Scooter rental, fuel, and occasional ride shares. A scooter transforms daily life here and costs almost nothing to operate.
Entertainment – $21.10 Beach clubs, day trips to waterfalls, drinks with friends. Entertainment here focuses more on experiences than expensive venues.
Healthcare – $44.31 Prescription medications. Affordable and reliable medications.
Miscellaneous – $635.85 Visa fees, random purchases, and unexpected expenses.
What I Learned
The 96% utilization was intentional. I’m not cutting corners or living paycheck to paycheck. My $3,000 budget represents what I’m comfortable spending from my safe withdrawal rate. Using most of it means I’m actually living my life instead of hoarding money I’ve already earmarked for expenses.
Local vs. tourist prices matter. Learning basic Indonesian and developing relationships with local folks saves significant money while creating genuine connections. Understanding the true cost of living in Bali requires separating tourist prices from local prices.
Flexibility reduces costs. Without work obligations, I can take advantage of deals, avoid peak pricing, and make cost-effective choices about everything from housing to transportation. My favorite time of year to travel is during shoulder seasons: Just before or just after peak seasons when the weather is still nice, costs are a bit lower, and fewer crowds.
The Reality Check: Is Bali’s Cost of Living Worth It?
This isn’t poverty tourism or extreme frugality. $3,000/month in Bali provides a very comfortable lifestyle that would cost $6,000+ in major US cities. The goal isn’t to live as cheaply as possible but to live well within sustainable parameters.
For comparison, when I was working in healthcare and living in Nevada, my living expenses averaged $2,400/month. Now I have a better quality of life for slightly more money, with no work stress destroying my mental health.
Looking Ahead
September will include some one-time expenses as I prepare for a move to another country. The extra costs will be cusioned a little bit by the $120 I had left over for this month.
The beauty of having a sustainable withdrawal rate is that occasional months over budget don’t derail the plan. Some months I’ll spend $2,500, others might hit $3,200. The average keeps me on track for indefinite financial sustainability.
Questions for readers: What surprises you most about these costs? What would you want to know about living abroad on a fixed budget?
Next month: Cost of living breakdown for the Philippines.
