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39

You don't consume enough of any one good to make hedging with futures economical. I'll present an alternate method - you hedge against risk in household expenses by setting a budget and sticking to it. You may not be able to fully control the cost of toothpaste, but you can set an overall budget that includes some discretionary items, and adjust if prices ...


37

You've got two or three factors jacking up the price from what you'd pay for peanut butter in the US, which is probably where most of those cheap meal suggestions come from. First, Skippy is a highly-advertised brand name, so you if you buy it, you are paying for all the advertising. Second, it's probably not made in Sweden but imported from the US, so you ...


22

You careened out of your way to pick a bad product on several levels. It’s an American name and taste. Its target market is American expats and others with strong desire for the American “taste”, and so it commands a premium price. USA Skippy substitutes cheap oils for the peanut oil, uses HFCS instead of sugar, and uses GMO strains not yet certified in ...


11

The largest personal cost you have is probably housing - and you can hedge the risk of real estate fluctuations without use of financial instruments. ie: you can buy your home. You might not consider this 'using the financial markets', but if your goal is actual just 'a stable cost of living' as you say, then this can help with that. Of course, it adds on ...


9

This site gives a cost-of-living index for major cities around the world. Cleveland scores 149, Boston scores 211 and Seattle scores 198. So dividing the salary on offer by the index, you'd be getting an adjusted $43,600 in Cleveland, $42,400 in Seattle or $35,100 in Boston. Boston is out, but there's not much to choose between Cleveland and Seattle, and you ...


9

In theory (but not practical in reality), you could hedge each of those expenses with various inflation swaps, futures, and other OTC products. Housing costs can be hedged by exposing to REITs returns through LEAP Call options Utility costs can be hedged by exposure to natural gas futures and call options on utility companies. Gas can be hedged using an oil ...


7

I got some peanut butter recently and it was not nearly this expensive, so I took at look at what Walmart had. I found what looks like the exact sort you got for 2.36 USD: https://www.walmart.com/ip/Skippy-Creamy-Peanut-Butter-12-oz-Jar/191560633 You can find this brand cheaper by weight if you get larger jars or packs with more at a time. I would say 3.7 ...


6

Others have established that peanut butter is in fact less expensive in the US than in Sweden, and that is the question you explicitly asked. However, the context for your question was advice for eating cheaply. In order for peanut butter to be good advice in the US but not Sweden, the price of peanut butter relative to what it replaces would have to be less ...


5

This is almost exactly the situation my partner & I are currently in. There are a few things we took into consideration. Who is responsible for house repairs/improvements? What is the plan after the mortgage is paid off? Does the renter get any benefits if the house is sold off? Do you want a formal renter's contract? (We made one.) What are the ...


5

Taking the BTC out of the equation, the normal way to deal with this kind of situation when people retire (and hence don't have any further expected income, but don't know how long they will live or what their elderly care needs / expenses will be) is to use your lump sum of assets to purchase an annuity. This is a product that will pay out a guaranteed ...


4

My wife and I just had our first child and we did not have anything "saved" due to other major expenses right before, but we had a good amount of extra money each month. Giving you an amount of money to save is highly subjective (and thus off-topic for this site), because essentially every parent would buy different things for their child. Are you going to ...


4

Google tells me that 340g of peanut butter has eactly 2,000 calories. At 3.7 USD, this would be 540 calories per $. As a comparison, for a 15.5 oz can of beans, there is about 682 calories. Per this Swedish grocery store website, it looks like you can get a can like this for between 8kr-12kr, (https://www.coop.se/globalt-sok/?query=b%C3%B6nor), which is ...


4

The key term you're looking for is "purchasing power parity", which considers the local prices of goods and services when making comparisons between countries. For example, you can look up the GDP by PPP per capita to get a sense of much people on average incomes can buy in each country. Of course, average incomes may not be too relevant to your own ...


4

The terms you have set are on the edge of possibility with luck and much sacrifice, but definitely not recommended. You will have a meager existence at best. The MIT-estimated poverty wage (not living wage, that's hopeless) for a single adult bottoms out in states like SD, AR, and KY at $5.84/hr or about $12k/yr. If you stretch to the upper savings amount ...


4

One huge problem with those "cost of living comparison" lists is, they are just political. Because you simply have to price different factors in different ways. For example, anyone would agree that Sweden has a much better medical system than the US; but "how much" better? Is it "$5000 a month better" or "$1000 a month better"? Same for every other ...


4

If your costs are in US dollars, I-Bonds adjust yield and TIPS adjust principal periodically using the US government's CPI-U measure of consumer price inflation, including food and energy. Whether the CPI-U national aggregate average market basket corresponds well with yours is a separate question to review.


3

A cost of living index is used to compare the cost of living in different locations. These lists are compiled by city or by country. You can find them by searching Google. For example, if you search “European cost of living index,” one of the top results is this page on Expatistan.com. According to this page, your list of countries would be ranked as follows ...


3

According to the NerdWallet, an income of $65,000 a year in Cleveland equates to about $97,000 in Boston and $94,000 in Seattle. Housing will be your biggest cost - take a look at some rental sites to determine if what is there meets your expectations. You could definitely use the calculator to help you decide. If it were me, I would ask friends or family ...


3

This is NOT a financial decision. I repeat this is not a financial decision. It is a beliefs and values decision. Therefore I will answer based on straight opinion, not math. Short answer: this is a good idea in the short term, bad idea in the long term. Long Answer: what is your long term plan? You guys seem to be tippy-toeing into a committed ...


3

Yep... you could buy in bulk. If you think the price of toothpaste will go up in the next week, bulk buy 50 tubes now. If they go up, you've won, if they stay the same, you haven't lost anything. Household goods like that don't usually drop in value, so it'd be hard to lose, but they do go on sale, so buy in bulk when there is a sale or from a wholesale ...


3

But what then if the Bitcoin price doesn't go up, or even goes down? Or happens to be low each time I sell them on my schedule? but I've determined that all "lending" options are either just not available to me, or way too risky. I don't know how these statements match each other: you fear that relying only on BTC is too risky, but want to rely ...


2

Your plan seems fair - one partner is saving $500 in rent with nothing in return (financially, at least) AND getting a bigger (presumably) home. The other is saving $500 on the mortgage and keeping all of the equity. So you both are equally better off than you were before. Whatever your final arrangement is, I would strongly suggest putting the terms in ...


2

I think you should consider the opportunity cost the person with the mortgage on the home may be subjecting themselves to in offering the rent-ee to pay half of what they used to pay at their previous residence - which likely has a substantially lower value than a $2000/mo mortgaged home - and split the utilities at the new residence, compared to the actual ...


2

For once I agree with @fattie, at least in principle. The "best place to live" depends on a million factors, many of them hard to quantity. Let me add a few more: As Fattie notes, a better education system may be very important if you have children or plan to have children. Not so important if you have no plans to have children or if your children are all ...


2

Head for Alaska. Assuming you have access to some kind of training and common sense, you could purchase a small plot of land and build a small cabin for very little out there and live off the land. Even if you allocate up to $35k for the initial purchase, move, and supplies, you could conceivably establish a homestead and operate off survival skills, ...


2

$3.70 for an 11.9 oz jar is expensive. Where I live in the USA, a 16 oz jar costs a bit under $3.00 For most of my life I didn't care much for peanut butter. Then about 8 years ago a switch flipped and now, honey roasted creamy peanut butter is one of my biggest food vices. I like it in my protein shakes, on top of a protein bar, even straight up. The ...


2

There's no futures market for most retail consumer products to support individuals hedging. As others have mentioned, housing is one of the biggest expenses you have, so buying a home or having a long-term lease is a way of stabilizing this cost. Utilities may offer long-term contracts. This gives you predictable expenses now, but you could get a shock when ...


2

There's the idea of living somewhere very cheap. Note that many folks are incredibly out of date on "where" it's cheap to live. Yesterday's third-world PT-Paradises are now as expensive as Shanghai or Aspen. Very importantly, as soon as you can, strongly suggest go live in one of those places - perhaps for a few months - as a trial. Of every ...


1

At a bulk store such as Costco 2x 48oz (total 2.72kg) Jif or Skippy cheap brands cost about USD 10 so about 37 cents/100g, less on sale. No particular difference in price for creamy vs chunky. Your price is 1.09/100g, so about 3x in nominal terms. Comparing the Big Mac Index, seems it is also similarly expensive in purchasing power terms. That said, I don’t ...


1

Perhaps you assumed wrong that the price was 15 dollars a night, maybe it was 15 dollars a hour. After all the guy in your movie was using the hotel room not to sleep but to meet someone.


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