Frugal Living in Switzerland Interview 1 – Janet

1. Tell us about yourself?

My name is Janet, and I am 30 years old. I have been living in Lausanne for three years now. For the first two years, I was a Master’s student, and now I’m a Ph.D. student. My hobbies include reading, blogging, playing piano, snowboarding, dancing, and doing yoga.

2. How much of your income do you save each month?

On average, I spend about 2,000-2,500 CHF per month. Most months, I save about 60-70% of my after-tax income. My best month was July 2019 because I was doing an exchange in Asia, and all of my living expenses were covered by the program. My worst months were back when I was a Master’s student, making very little money, but spending about the same amount as I spend now.

3. How do you compute your savings rate?

I compute my savings rate by subtracting my expenses from my after-tax income and then dividing that by my after-tax income. I use after-tax income because taxes get deducted from my paycheque, and I never see that money anyway.

4. Do you consider yourself a frugal person?

Yes, I do consider myself a frugal person. I like to save money. I don’t like to live extravagantly. I also don’t like having a lot of material possessions.

However, that doesn’t mean that I don’t spend money at all. I do enjoy splurging once in a while on things that make me happy – vacations, etc. When I do splurge, it’s usually on very expensive, high-quality products that will last years.

Even though I do like to buy luxury items sometimes, when you look at my savings rate, you can already tell that I’m generally a pretty frugal person.

5. Can you give us the breakdown of your expenses?

• 10% – Food
• 40% – Rent
• 15% – Health Insurance
• 10% – Travel
• 15% – Hobbies and Entertainment
• 10% – Other (phone plan, tuition, etc.)

I mostly cook my own food, so my food expenses are quite low. I eat out maybe once or twice a week. The reason I don’t eat out often is mainly that I have a strong preference for Asian food and I can’t find really good Asian food near where I live. My standards are quite high since I’m from Toronto and the food there is amazing :)

My rent is pretty cheap because I live in a studio and it’s quite small. I don’t mind it – it’s perfect for one person. The location is really central, so I can’t complain.

Health insurance is a huge expense, and I hate thinking about it! In Switzerland, health insurance is very expensive, and it doesn’t cover very much. My health insurance plan is the most basic one you can get, and it still costs me over 340 francs a month.

Travelling is one of my favorite hobbies, and I have visited over 50 countries. I usually take at least 2-3 big trips every year. This year, I went to Morocco, Spain, the UK, and a bunch of countries in South East Asia. I also take a trip back to Canada to see my family once a year, and that adds up.

I have quite expensive hobbies – I like to sail, snowboard, and do ballet. These hobbies cost me a couple of hundred francs per month. It’s worth it though, it’s exercise and helps me stay healthy and in shape.

6. Which expense category are you the proudest of?

I would say I’m most proud of my “Other” category because I actually don’t spend a whole lot of money on anything besides the bare necessities, travel, and hobbies. I consider traveling and hobbies essential to my well-being. I almost never go shopping for new clothes, new gadgets, etc. because it’s not what interests me.

7. What is the main difficulty for living frugally in Switzerland?

I find the taxes in Switzerland quite low, so I can’t complain about that aspect. One thing that bothers me is health insurance. It is too expensive, and it is quite an unnecessary expense for me because I’m still young and healthy. It’s just a waste of money for me. Coming from Canada where healthcare is free, I can’t justify paying over 340 francs a month for nothing.

Another thing I don’t like about Switzerland is how expensive bottled water is. I don’t drink alcohol or soft drinks, so when I eat out, I have to pay for water, and it’s not cheap. Sometimes as much as 5 francs a bottle. And even when I ask for tap water, some places charge for it. The waiters also make you feel ashamed of asking for tap water, so sometimes I just don’t do it.

8. What is your best tip for frugal living in Switzerland?

If I need to buy something, I always check anibis or Facebook groups to see if I can buy it off someone else. Usually, you can find pretty great deals! I bought skis this year and paid less than 100 francs for them, including poles and boots! They’re in really good condition too!

9. Why are you saving so much money?

I’ve been naturally wired to save money from as long as I can remember. I remember as a kid, my parents would give me red pockets (for new years, birthdays, etc.), and I never spent any of it. Every year I would give all of it back to my mom and tell her to put it into my savings account. Frugality is in my blood.

I hope to save enough money, so I don’t have to return to a “normal” 9-5 job once I finish my Ph.D. Although I like the idea of FIRE, I don’t think it’s for me. I like to keep myself busy, so I will still “work” even if I achieve financial independence. My parents retired in their 40s, and I saw how boring their lives were after retirement. I don’t want to be like that!

10. If you had more income would you spend more?

If my income doubled, I wouldn’t be spending any more than what I’m spending now. Maybe the only thing that would change is that I might move into a bigger apartment. And might go on an extra vacation here and there.

When I went from being a Master student to a Ph.D. student, my income more than doubled. Then my side hustle income started picking up, and my income more than tripled. I’m still spending the same amount as I did when I was a Master student.

11. Do you ever feel you are sacrificing something by living like that?

No, I don’t feel like I’m sacrificing anything by living frugally. I enjoy it, and as mentioned before, I also splurge once in a while. Little things make me happy, so I don’t have to splurge a lot.

When I travel, most trips cost less than 500 francs. Snowboarding costs me about 500 francs a year for a ski pass. And my other hobbies cost me about 200 francs a month.

This is all I need. I don’t need anything more to make me happy. I don’t need the latest iPhone or the fanciest clothes.

12. Do you splurge on anything?

I’m addicted to buying luxury jewelry and handbags, so I splurge once in a while on that. Last year I bought a Hermes bag, a wallet, and a coin purse. I know this sounds excessive and totally contradictory, and I agree with you.

However, in just a year, the prices for the same products rose by about 20% for the bag and 50% for the wallet. So if you look at it, I didn’t really splurge but rather made a smart investment ;) That’s how I justify these purchases anyway!

13. Do you have a budget?

Yes, I have a budget and update it every single day. I never miss a day. I am not even joking. I just use a plain Excel spreadsheet that I set up a few years ago. It’s fun to be able to look back at all my spending habits from years ago and see what’s changed (and what hasn’t)!

14. Are you setting aside some “fun money” each month?

Yes, I set aside 100 francs every month as “Entertainment” money, but I almost never use any of it! I guess I just have really good self-discipline. I don’t actually like going out much unless it’s to do something active (like hiking), and that doesn’t cost a lot of money.

Thanks a lot to Janet for answering my questions! Saving more than 60% of your income during Ph.D. is absolutely incredible! I wish I was so frugal as you are! Congratulations.

If you want to learn more about Janet, she is blogging at My Twenty Cents. She has some really good articles I would encourage to check out!

There are other frugal people in Switzerland! You can read about the Frugality of Mr. Mustachian Post for instance.

If you are living a frugal life in Switzerland, I would love to interview you! Let me know in the comments below or via the Contact page. It is not only for bloggers!

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