How a Bay Area family raised enough money to buy a house in Portugal.

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Buying a home

This is a significant step that can be both scary and fun. Getting a mortgage can be challenging, but owning your own home brings a lot of joy. However, buying a home in another country brings the experience to a whole new level as you will have to deal with a new financial system, different laws and real estate customs.

Expats Amon and Christina Browning know the challenges and joys of the experience for themselves. In July 2019, the couple moved from''s children to Lisbon, Portugal, to enjoy premature retirement and life abroad, and a year later they bought a house there.

The Brownings rented an apartment for a year while searching for a suitable home and learning the ins and outs of getting residency in a new country.

This summer, they found what they were looking for: a two-story move-in ready home on 1 acre of land with a garden and covered terrace.

On their blog and YouTube channel, the Brownings share videos and a step-by-step course on how they bought their new home in Portugal. Here are some of the highlights:

Step 1: They committed to a long-term goal

For many, the Brownings' lives seem idyllic. However, the couple emphasizes that they were only able to achieve their dreams because they didn't try''meet other people's expectations.

Instead of trying to keep up with the "Neighbor Joneses," the couple wrote a fictional letter about ending their relationship to these non-existent neighbors. "The Brownings will no longer be following you," reads the letter, which they posted on their blog. "We have more important things ahead of us, like financial independence and premature retirement. "

The couple hasn't bought expensive cars or designer clothes over the past decade, despite their increased income. Instead, they have accumulated $2 million, which they have placed in a variety of accounts, including Ally's online savings account, a money market and various brokerage accounts.

By the time they were 40, they had saved enough money to support themselves for''abroad without having to take out a mortgage or use credit cards (except for rewards credit cards). This was their definition of financial freedom.

For eight years, the couple made decisions that others might consider sacrifices in order to reduce their living expenses. In hindsight, the Brownings don't see their choices as hardships, but as decisions that fit their goals.

Step 2: They increased their income with extra income.

Although the Brownings had a stable government position with a good salary and good benefits, they found additional ways to increase their monthly income. They lived in the Bay Area, where the rental market was lucrative, and, because they enjoyed''renovate homes, the couple got into home restoration and renting out rooms through Airbnb.

They also created a blog and YouTube channel to document their process, then sold investment courses so others could learn from them.

Step 3: They cut expenses so they could set aside up to 70% of their income

Most Americans carry some form of debt, such as a car loan, mortgage or student loans. Then there are the typical monthly expenses like rent, groceries and fuel. Not to mention additional expenses such as clothing, entertainment, going out to restaurants and socializing.

But while the typical consumer allocates a significant portion of their money to said''s expenses, the Brownings found ways to set aside up to 70 percent of their income. First, they used profits from their home restoration business to pay off their mortgage. Then they avoided new loans to continue saving. They even drove an $800 car. The Brownings also found clever ways to cut housing costs by renting out extra rooms in their home.

By cutting expenses they didn't care about, the Brownings saved $2 million dollars to accomplish the goals that were most important to them.

Step 4: They saved and invested in a variety of accounts

With all their extra income, the Brownings had to make educated decisions about where to invest their money.

The Brownings kept an amount equal to two years of expenses in their emergency fund. However, you don't have to accumulate that amount before you start investing (consider this 3-step checklist to see if you're ready to invest). In the process of setting up an emergency fund, they also placed money in money market, long-term deposits, and brokerage accounts.

You don't have to become an aggressive saver to start investing. Transferring as little as $40 a week from your current account to a high-yield savings account can earn you $2,000 a year. Over time, you can increase the amount you save.''The Brownings recommend increasing your savings percentage by 1% every month or every year. Focus on incremental progress, and soon you may be motivated to make big changes to your budget, such as reducing your closet or forgoing a loan to buy a new car.

When you're ready, choose a high-interest, no-fee account, such as the Marcus High-Yield Online Savings Account from Goldman Sachs. It's easy to use and has mobile access.

Marcus by Goldman Sachs high-yield online savings account
Annual Percentage Rate (APR) 4.40% APR
Minimum balance No
Monthly fee No
Maximum number of transactions Not currently limited''the number of withdrawals or transfers you can make from your online savings account.
Frequent transaction fee No
Overdraft fee No
Is it possible to open a checking account? No
Is it possible to get a bank card? No
Terms and conditions apply.

If you want a higher GSS, the Varo Savingc Account is a good option. However, it has more requirements than the Marcus account:Earn up to 5% GPG by making at least five purchases using your Varo Visa® Debit Card, receiving direct deposits totaling $1,000 or more each month, and maintaining a savings account balance of $10,000 or less during the same month. Minimum balance is $0.01, monthly fee''absent.

Varo Savingc Account
Bank account services are provided by Varo Bank, N.A., a member of the FDIC.
Annual Percentage Rate (APR) Start earning 3.00% APR, become a member earning 5.00% APR when requirements are met
Minimum balance $0.01 for interest accrual
Monthly fee No monthly fee
Maximum number of transactions Up to 6 free withdrawals or transfers per reporting period
Frequent transaction fee No
Overdraft fee No
Is it possible to open a checking account? Yes
Is it possible to get a bank card? Yes, if you have an account with Varo Bank.
Terms and conditions apply.

Step 5: Put your financial affairs in order

Before the Brownings could own'. 'real estate in Portugal, they had to establish residence permits. To do this, they each obtained a NIF (tax identification number in Portugal), opened bank accounts, and applied for a work visa with permanent residency.

Portugal offers a "golden visa" which is granted to people who purchase real estate and/or invest a certain amount of money in a new country. So while you may not need to establish a credit history when moving abroad (different countries have different rules), it's helpful to have your financial affairs in order. Having enough assets and the ability to invest money and/or create jobs in the new country makes you more desirable for a visa.

For 2019''Year 20 of the 27 European Union countries offered "golden visas," although the practice is under strict scrutiny.

Besides the legal work, the Brownings also had to get used to daily life in Portugal. They researched health insurance options, found private schools for the children and enrolled the whole family in Portuguese language classes.

They also budgeted for new living expenses and got used to spending the new currency.

Photograph of the Brownings in Portugal. Photo courtesy of Christina and Amon Browning.

Step 6: They rented for a year and studied the market

The Brownings planned to rent in Lisbon for a year before finding the right home. This gave them the opportunity to pitch