Money and Expenses In Italy

Now that Marito and I have moved out of the Hotel (TLA), I decided it would be a good idea to keep track of our expenses. What we have spent on gas, electric, water and even home improvements- like hanging shelves and etc.

Having stayed in TLA for the maximum amount of time was really nice. The Navy pays $123 per diem a day if you stay in a hotel room with no kitchen (unless you have more than one dependent), so you do the math. Every ten days, you turn in your hotel receipt, the Navy pays for your hotel room plus ten days worth of per diem- and you normally get it the next week (not having to wait until pay day). It's a really nice deal if you think about it.

I strongly advise you to save as much money as possible. It is so easy to spend money on touristy things, and shopping. A lot of people don't know how much money they need to save before they PCS overseas, well I am about to give you an inside look so you can judge for yourself.

We moved into our home on October 10th. Had to buy gas because our tank was 25% full- you NEED gas for hot showers, cleaning your dishes, washing your clothes, running your radiator, and cooking on the gas stove. That was $400 bucks for 400 liters. Before you finish at the contract signing you have to make a security deposit that is equivalent to first months rent. BAM! 1400 Euro ($1850) then you also have to transfer money into your landlords bank account within the week you sign your contract- another 1400 Euros. On top of that you have to apply for electricity, internet, potable water delivery and anything else you need from Residential Services- where again you have to pay security deposits.

By the end of the day, you need to apply for MIHA (Move In Housing Allowance) and DLA (Dislocation Allowance), both of which are allowances and do not need to be paid back. As of right now MIHA is worth 902 Euros ($1,200) and DLA is worth $2,011 as well as OHA (Overseas Housing Allowance) which for an E-5 is 1,400 Euros (with dependents).

A month into our rental agreement and we have just now received our 50 and 60 day TLA payment (apparently the last two take some time to get). But we have not received MIHA, DLA, Octobers' OHA and Utilites nor Novembers' OHA and Utilities. If you do the math we have paid two months rent, a months rent worth in security deposits plus the cost of gas and all that fun stuff. We are owed $9,000 from the Navy. You know as well as I do that when it comes to you owing the military they will take their money in 5 seconds, but when they owe you they will take their time.

Fortunately, Marito and I are good with money, and are ok in the mean time.

We have not received a meter reading for our electricty yet, but we are being so frugal with our appliances. We unlug everything! The TV, our cellphone charges, the microwave. EVERYTHING but the fridge and stove.

Electricty is so expensive here in Italy. Our power here is bought from France, so it's costs a pretty penny to draw power from so far away. If I am not mistaken it is 0.14-0.15 euro per kilowatt hour. And the way the power comapany works, is they will estimate your power usage for a month or two at a time (normally guessing low, making your payment low) and then six or eight months later you get a massive catch up bill. A friend of ours had an 800 euro bill! So keep track of your meter. Read it monthly, multiply the kilowatts used by 15 cents and that is how much your bill should be. If your bill is lower- put the money aside to help pay for your catch up bill.

This is why we are being so frugal with our electricty. I'd rather pay 40 euros because I open my shutters instead of using lights, or keep the heat off in the rooms I am not using, instead of paying 200 euros. Electricity IS cheaper at night, between 7pm and 7 am.

You can't pocket your OHA money, but you can be frugal and pocket your left over Utilities Allowance.

I advise anyone coming to Europe to save at least $5,000 before the move, and to keep saving with the TLA money. The longer you stay in TLA the more money you can profit.

 

Of course you can always live on base and pay pretty much for just your cellphone and internet, since OHA and Utilites are automatically withdrawn from your paycheck. We all have different reasons to choosing where we want to live, and if this post helps you determine what is best for you and your family, I am just glad that I can help!