Plata

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An interesting local idiom in Argentina is plata.  When referring to money or cash, plata (silver in English) is often invoked.  Plata makes the world go round, so here is a little background on our experience thus far as it relates to financing our sabbatical and now living in Argentina.

For the past few years our lives have been dominated by saving money for our year abroad.  The path we took to build this nest egg and subsequently spend it has been fascinating, while turning my rapidly eroding hairline more gray each day.  Building a realistic budget from scratch and then watching it evolve over the past 7 months has been both stressful and satisfying.  After much research and financial planning, we established a savings level we needed to achieve by the time I quit my job.  As the weeks and months ticked by in early 2013, every paycheck and Craigslist sale became more and more critical to our goals.  Erica and I were both surprised at how quickly the savings piled up once we had actually set a firm goal and timeframe as opposed to saving with no purpose.  It was a wonderful reminder of how critical setting goals can be.

Transitioning from saving and earning to spending with no income to speak of has been an interesting psychological experiment.  One might compare the process to climbing a mountain.  The ascent was long and arduous to the summit, but descending can be just as difficult and potentially hazardous.  It was sobering to see my final paycheck and realize our savings was complete.  Of course we had rental revenue to counter our mortgage and storage costs in Portland, but I had no idea when the next time I would earn a paycheck might be.  We had spent so much time planning and being frugal, and now the time had come to actually begin spending.

After 7 months I’m happy to report we are tracking very close to our budget targets.  I’m more than a little surprised.  Despite this, Erica can attest that every few months I have a sudden panic attack and dive into our budget for an hour to reassure myself.  However, given how much initial guesswork was involved, I’m thrilled at how close we are.  I update our budget spreadsheet about once a month to account for remaining savings against anticipated future expenses, both in the States and in Argentina.   I’m constantly monitoring how we are trending against our estimates.  Our budget target continues to be impacted by changes in the exchange rates, inflation and how much work Erica manages to find teaching.

One of our biggest adjustments we encountered from the start was living solely on cash.  We needed to develop a system to manage cash and keep our budget on track.  Given fees and exchange rate issues, it’s far better to only spend cash rather than cards here.  Adjusting to a world where we don’t allow ourselves to run to the ATM or pay with a credit card was difficult initially.  An added level of complication with cash is security.  Cash is used far more extensively than credit or debit in Argentina, perhaps exacerbating theft and robberies that grab the headlines here.  We try to minimize the amount of cash we have on us or in the house at all times.

In order to track what cash we’re spending on what line items, we went with a highly sophisticated envelope system.  We have five weekly categories I refill each week: groceries, dining out, transportation, cleaning and miscellaneous.  These account for just under $300 per week.  So far we like this system so much we’re considering how we might adapt to 100% cash back in the States.  Using only cash certainly has made us more aware of how much we spend and forces us to be more prepared and thoughtful each time we leave the house.  The upside certainly comes with some inconveniences though.  Grocery shopping can be slow and tedious since it’s necessary to bring a calculator along to ensure we don’t have an embarrassing shortfall at checkout.  Trips outside of the city have been difficult to estimate exactly how much cash to bring along.

The cost of living in Cordoba has been better than we had hoped.  While a terrible thing for Argentines, the weak peso has allowed us to stretch our hard-earned dollars farther than we had planned.  We have had to adjust our way of thinking in order live on cash alone as well as store, spend and access our hard-earned dollars in a country that makes access to dollars difficult.  While it can be hard to watch the chaos that is the Argentine economy, it’s morbidly fascinating while we get a close up view of a currency crisis in progress.   Carefully managing our own plata in Argentina is just part of the adventure.

Related Links & Reference:

http://www.economist.com/news/briefing/21596582-one-hundred-years-ago-argentina-was-future-what-went-wrong-century-decline

https://www.xoom.com

http://www.bbc.co.uk/news/business-25877391

http://www.buenosairesherald.com/article/152099/the-illusion-is-over-januarys-consumer-price-index-clocks-in-at-37

http://www.afr.com/p/lifestyle/life_leisure/embrace_argentina_cash_economy_and_1PENURHZfxghwLMngOG70I

http://www.bloomberg.com/news/2014-01-23/argentina-s-peso-plunges-17-as-central-bank-scales-back-support.html

http://es.wikipedia.org/wiki/Dólar_blue

http://www.buenosairesherald.com/article/147813/2001–today’s-odyssey

http://www.preciodolarblue.com.ar/

Uncertainty

While reflecting on recent events here in Argentina and considering how I might describe them in a post, I started considering how we as a family have been dealing with varying levels of uncertainty throughout this adventure.  As many Argentines will tell you, fiscal and economic uncertainty has seemingly always existed here.  I’m not sure we will ever grasp Argentina politics or the economic upheaval, but like many times during this journey, it continues to be an education.  This is a part of the world in which most houses have a rooftop water tank, because on occasion, the water system fails.  Accepting a level of uncertainty is part of life here and was instrumental in making our dream become reality.  Adapting to life in Argentina also serves to remind us of how stable and certain our lives in the States are.

When we stopped dreaming and started acting, the level of risk and uncertainty we needed to accept exponentially increased.  I believe that the biggest obstacle holding others back from a sabbatical or long-term travel is fear of the unknown.  Deciding to quit a good, stable job with 3 kids and one income and forsake our financial security was no small matter.  While Erica and I had dreamed of dropping our safe, consistent American lives for many years in order to live abroad with the kids, it was not until we accepted that we could not plan or foresee every detail.  As the consummate planner, this was exceptionally difficult for me.  The number of questions that loomed were endless and remain so.  How long will it take to get another job?  Will it pay as well and will I like it?  Will a gap year hurt my career?  Will we have to move to a different city when we return to the States?  Will we run out of money?  Do we have enough budgeted for when we return?  Are we jeopardizing college for our kids?  Will the kids fall behind in school here? What grade do the boys go into when we return?  Are we hurting their development?  Will we like Argentina?  How will the kids adapt?  Will we be lonely and isolated?  How safe will we be?  Eventually, Erica and I decided that we had an opportunity before us that we could not pass by and that the risk was acceptable.  I could not plan every detail and know for certain that everything would be all right as much as I wanted to.

Now that we are here, life in Argentina continues to be an exercise in both patience and uncertainty.  When we left we had neither rented our house in Portland nor had we found a rental in Cordoba.  We were not certain the boys could enter the local school.  It has been a challenging year even by Argentine standards.  Earlier in the spring a police strike here in Cordoba initiated a nationwide strike and subsequent looting.  December and January have been the hottest months in 50 years, causing electrical outages in parts of the country.  President Cristina Fernandez de Kirchner and her administration seem to revel in uncertainty.  Recently she made her first public statement in 40 days.  Currency control policies seem to change week-to-week, inflation is rampant, and no one seems to have any idea how far the peso will fall or what the government will do next.  A major devaluation occurred several weeks ago, with the peso destined to fall further against the dollar.  Changes in the peso and currency regulations mean that we are never quite sure how reliable our supply to pesos is.  The rate we change dollars into pesos has undergone tremendous change in the course of our time here, as has inflation, impacting our budget.   For example, today Erica bought Ben’s asthma medication as a local pharmacy.  Last month it cost $180 pesos, today it costs $360.  The school year ended for the boys 2 weeks early unexpectedly, and we have very little idea when school will resume due to a teacher strike.  Despite all of this uncertainty, we have tried to mirror the Argentines we have met, and simply roll with it over the course of the year.

One of the aspects that we enjoy most about living abroad for an extended period of time and total immersion is the window that opens to a whole new world.  We try to treat each difference between Portland and Cordoba as a learning experience rather than complain about it.  While our time here is limited, we find ourselves wondering how Argentines manage to live indefinitely with constant change and uncertainty.  Here in Argentina, on the eve of my 40th birthday, there are very few things that I’m certain of.  I hope it all turns out, that the kids thank us someday, and that we are doing the right thing.  I do know that I could not be more excited by the uncertain future that waits for myself and my family in the next 40 years.

Patagonia Greatest Hits

Travels in Patagonia with los abuelos

Travels in Patagonia with los abuelos

All things considered, our kids travelled like pros for three weeks as we explored Patagonia, Buenos Aires and Colonia de Sacramento in Uruguay with Erica’s parents.  Much to the kids’ dismay we managed to squeeze in some study time along the way, but the best part was watching them learn simply by seeing new and amazing sights along the way.  At times it can difficult to appreciate how wonderful this time together has been for all of us when Ben is squealing, Elliott’s yelling or Molly’s screaming about how her clothes are too tight.  It sometimes takes just a deep breath and a look out the window at the gorgeous lakes of Bariloche to gain perspective (terrific wine doesn’t hurt either).

This segment of our year abroad marked 6 months since we left Portland, Molly’s 4th birthday, a long anticipated trip to Patagonia, a visit from grandparents and our 2nd border crossing to renew our 90 day tourist stamp.  We thought it would be fun to share some of the kids’ favorite experiences from the trip south.  Needless to say the best part for all of them was seeing Grandma and Grandpa.

Elliott

  1. Bariloche chocolate (check this out!)
  2. Seeing all the glaciers (Parque Nacional Los Glaciares near El Calafate)
  3. Hanging out with Grandma and Grandpa and the boat captain on the glacier boat ride

Ben

  1. Our house in Bariloche was awesome
  2. Seeing the lake monster and playing in the fort (Lago Nahuel Huapi)

    Playing in a driftwood shelter on the beach near Llao Llao

    Playing in a driftwood shelter on the beach near Llao Llao

  3. Eating lots of hamburguesas and drinking Fanta

Molly

  1. My birthday cake

    Molly's 4th birthday cake in Bariloche

    Molly’s 4th birthday cake in Bariloche

  2. My smoothie at the hotel in Bariloche

    Savoring a smoothie at Hotel Llao Llao

    Savoring a smoothie at Hotel Llao Llao

  3. Seeing the glaciers

A few other good times captured on film include:

Being tourists in Bariloche

Being tourists in Bariloche

Elliott on the Cerro Catedral chairlift

Elliott on the Cerro Catedral chairlift

Taking a bet to swim in Lago Gutierrez

Taking a bet to swim in Lago Gutierrez