They Retired to Montenegro With $145,000: How It’s Going At Year 4

Montenegro is the kind of place Americans “discover” and immediately start acting like they’ve unlocked a cheat code.

Adriatic coast. Mountain villages an hour away. A capital city that still feels human-sized. A restaurant bill that doesn’t make you regret ordering fish. A country where U.S. citizens can enter visa-free for up to 90 days, which makes scouting trips dangerously easy.

Then someone says the magic sentence: “We could do this on $145,000.”

Year four is where that sentence either becomes a quiet success story or a slow financial panic.

Because $145,000 is not retirement money. It’s runway money. It buys you time to build a new life, but only if you treat Montenegro like a real place to live, not a permanent vacation setting with cheap views.

This is a realistic year-four update based on how the math usually plays out for Americans: what $145,000 turns into in euros, where it leaks, what costs stay pleasantly low, and why some people feel fine at year four while others are already planning an exit.

The first reality check: $145,000 turns into a smaller euro pile than you think

If you’re living in Montenegro, you’re spending euros. The bank account that matters is the euro one.

What $145,000 becomes depends on when you converted, how you converted, and whether you paid a hidden spread. Americans rarely price the spread because it doesn’t show up as a line item, but it’s real.

Using IRS yearly average exchange rates as a baseline, the euro per dollar relationship has varied a lot in the last few years. That matters because people doing this plan often convert in chunks, not all at once.

Here’s a simple, usable range.

• If you converted in a year where the euro was relatively strong against the dollar, your euro pile from $145,000 could look closer to €135,000–€140,000 once you account for normal conversion friction.
• If you converted when the dollar was stronger, you might have landed closer to €125,000–€132,000.

So for a realistic year-four story, use €130,000 as the mental starting point, unless you know you caught a very favorable conversion period.

That number matters because year four is where people stop thinking “we have a lump sum” and start realizing they are living on an annual burn rate.

Your real budget is euros. Your enemy is drift. Your friend is predictability.

Montenegro is cheap until you pick the expensive Montenegro

Montenegro is not one cost of living. It’s two worlds.

World one: Podgorica, Nikšić, inland towns, quieter parts of the Bay that are not on every Instagram reel.

World two: Budva, Tivat, Kotor hotspots, summer-driven pricing, short-term rentals masquerading as “medium-term,” and any coastal area where landlords know you’re foreign and flexible.

If you’re trying to make $145,000 last, the second world will still let you live, but it will eat your runway faster than you expect.

A few current price signals help ground expectations:

• Expatistan’s Podgorica snapshot shows an 85 m² furnished rental in a normal area around €532 per month, with a studio in a normal area around €347.
• Expatistan’s Montenegro country snapshot shows an 85 m² furnished rental in a normal area around €583, and utilities for two people in an 85 m² flat around €61.
• Numbeo’s Budva snapshot suggests a higher baseline environment than Podgorica, which matches what most people experience on the coast in practice.

These are not guarantees. They’re useful anchors.

The bigger point is this: if your rent stays around €500–€800, Montenegro feels like a bargain. If your rent creeps into €900–€1,200+, you are living in the premium version and the rest of your budget needs to be tighter to compensate.

And coastal rent creep is the most common way Americans ruin their own plan while insisting Montenegro “got expensive.”

Rent is the whole game. Coastal flexibility costs money. Year four punishes denial.

The hidden budget killer: “we’re just renting for now” turns into four years

A lot of Americans arrive with a sensible plan: rent something flexible for a few months, learn the area, then lock a long-term lease.

Then three things happen:

1. Summer season hits, and pricing spikes.
2. They find a place they like and don’t want to move.
3. Paperwork and life admin fill the calendar, so moving becomes “later.”

“Later” becomes two years. Two years becomes the whole runway.

This is the classic Montenegro budget trap, especially on the coast. A flexible rental might look reasonable in winter, then you renew through summer and suddenly your annual housing cost has quietly doubled.

A year-four update where things are going well almost always includes one of these:

• They moved inland, at least for part of the year.
• They locked a real local lease early.
• They accepted a less glamorous neighborhood to protect the budget.

A year-four update where things are tense almost always includes: they stayed in a tourist-priced rental because it was “easier.”

Ease is expensive. Especially when your entire plan is built on not working locally.

What stays pleasantly affordable in Montenegro

This is why people keep trying this plan. There are real wins.

Utilities can be reasonable

Montenegro’s average household electricity bill reporting in early 2025 put the average around €46 for January, with variation by municipality. Even if your bill is higher in summer AC months, the overall utility burden can still feel lighter than many Americans expect.

Electricity pricing is not the whole utility story, but it’s a useful reality check. Montenegro has historically had comparatively low household electricity prices versus many EU countries, which helps in older apartments that aren’t perfectly insulated.

Daily food life can be calm

If you eat like a resident, groceries and everyday meals can stay reasonable. The coast will always have tourist pricing pockets, but Montenegro still offers a lot of normal local life that doesn’t punish you for wanting a simple lunch.

Transportation can be low if you choose your housing right

If you’re in a walkable area, you can keep transport costs low. If you recreate American sprawl and need a car for everything, the budget shifts. Montenegro is not “car-free Europe” by default. The country is compact, but infrastructure and daily needs still vary by town.

The people who feel good at year four usually made one boring decision early: they chose housing that reduced daily transport friction.

Walkability is a savings plan. Local habits protect the budget. Montenegro rewards boring routines.

Residency and paperwork: the stuff that doesn’t bankrupt you, but will exhaust you

Americans can enter Montenegro visa-free for up to 90 days, but staying longer requires a temporary residence permit, and the U.S. State Department notes you should apply at least one month before the 90-day period ends.

This matters because a lot of “cheap Montenegro” stories leave out the administrative side. Not because it’s terrifying, but because it’s annoying, and annoyance changes spending behavior. When people are tired, they buy convenience.

Also, Montenegro has been adjusting aspects of its foreigners law framework, including changes affecting how certain residence permits are handled. You do not need to memorize every amendment to plan your budget, but you do need to accept the reality: your legal status is not a one-time checkbox. It’s a repeating season.

The practical budget implication is simple:

• You need an annual buffer for residency renewals and admin fees.
• You need private health insurance proof for many pathways, at least for the application stage.
• You need document hygiene, like apostilles and police clearances, that can create one-time costs and time pressure.

For a couple living on a runway fund, a realistic planning line is often €1,000–€3,000 per year for admin and compliance friction, depending on how much professional help you use and how often you need certified documents.

The money is not the whole cost. The time cost matters too.

Paperwork is a recurring expense. Time pressure causes spending mistakes. Year four is where sloppiness gets expensive.

Healthcare: cheap public access is not automatic, so people build a private plan

Montenegro’s public system is accessible through legal residence and contributions in many cases, but Americans living on a non-working plan often rely on private insurance and private clinics for peace of mind.

You do not need a luxury international plan to make this work, but you do need to budget for some kind of coverage and out-of-pocket care.

Several expat insurance comparisons and local market discussions describe private health insurance premiums commonly falling in a broad range like €50–€200 per person per month, depending on age and coverage choices.

If you’re 62 and managing chronic conditions, you will want a higher comfort buffer. If you’re 52 and healthy, you can often keep this line item lower, but you should still plan for dental, vision, and occasional private visits.

This is one of the quiet year-four tipping points. In the early years, people say “healthcare is cheap here.” By year four, they’ve had at least one medical situation and learned what “cheap” actually means in their specific context.

A grown-up budget includes:

• insurance premiums
• a monthly out-of-pocket buffer
• a plan for where you go for higher-level care if needed

Montenegro can absolutely work here. It just won’t work on the fantasy budget of “€0.”

Insurance is not optional in real life. Out-of-pocket costs still exist. Aging makes planning mandatory.

So what’s it like at year four, financially

Now the part people actually want: what’s left.

I’m going to show this as three realistic spending styles, because Montenegro is a country where lifestyle choices swing the outcome hard.

Assume a starting pot of €130,000 after conversion and initial setup.

Also assume modest setup costs in year one, even if you arrived light: deposits, basic home items, admin, a few “we didn’t expect that” expenses. A reasonable year-one setup allowance is €4,000–€8,000. Let’s call it €6,000.

That leaves €124,000 for four years of living.

Scenario A: The calm resident plan

This is the version where people say “it’s going great” and mean it.

Monthly burn: €1,900–€2,300
Annual: €22,800–€27,600
Four-year burn at €25,200 per year: €100,800

Left at year four: about €23,200

How they did it:

• Rent: €550–€800
• Utilities and internet: €90–€170
• Groceries and basics: €400–€600
• Healthcare and insurance: €180–€450 for a couple, depending on age
• Transport: €80–€200
• Eating out and misc: €250–€450

This is the sustainable version. It requires one major thing: stable housing that’s priced like a resident, not a tourist.

Scenario B: The coastal drift plan

This is the version where people say “we’re fine,” but the runway is shrinking.

Monthly burn: €2,500–€3,000
Annual: €30,000–€36,000
Four-year burn at €33,000 per year: €132,000

Result: the pot is basically gone by year four, unless they had supplemental income.

How it happens:

• Rent creeps up.
• Car costs creep in.
• Summer spending becomes normal.
• “It’s still cheaper than America” becomes the justification for drift.

This is the most common way people accidentally fail the runway plan. Not through one big mistake, through a thousand small comforts.

Scenario C: The permanent vacation setting

This is the version where people are already planning to leave.

Monthly burn: €3,200–€3,900
Annual: €38,400–€46,800
Four-year burn at €42,000 per year: €168,000

You run out well before year four unless you have other income sources.

How it happens:

• Short-term style rentals
• Restaurant-heavy living
• Frequent travel
• A coastal lifestyle with high season pricing baked in
• Spending to cure boredom or loneliness

Montenegro is affordable. It is not affordable if you live like you’re still scouting it.

Your burn rate decides your future. Coastal drift eats runway. Stable rent creates calm.

The real year-four question: what do you do when the runway becomes obvious

Year four is when the couple usually has a moment of financial clarity. It can be triggered by anything:

• a renewal cycle
• a rent increase
• a car repair
• a family trip back to the U.S.
• a medical bill
• an exchange rate swing

And then the conversation becomes adult:

Are we living here because we love the life, or because we love the idea?

If the answer is “we love the life,” they make one of these moves:

• lock a cheaper long-term lease
• move inland or to a less touristy area
• simplify travel and eating out
• build a real monthly budget in euros

If the answer is “we love the idea,” they often cling to the expensive version and then act shocked when the money ends.

Montenegro can be a long-term play for some people, but not on a lump sum alone unless your spending is controlled or you have ongoing income.

A runway fund is not a pension. It’s time to build a sustainable system.

The first 7 days to stabilize year four without hating your life

This is the practical week that separates “we’re fine” from “we’re spiraling,” and it’s doable without turning your retirement into a spreadsheet job.

Day 1: Write your real monthly burn in euros

Look at the last two months, average them, and write the number down. No rounding down to be polite.

Day 2: Separate fixed costs from lifestyle costs

Rent, utilities, insurance, and admin are fixed. Eating out, travel, taxis, and “treat spending” are lifestyle.

If you can’t separate them, you can’t control them.

Day 3: Renegotiate housing like your life depends on it

Because it might.

If you’re on a flexible rental, price what a real long-term lease would cost. If you can’t get one where you are, price a move to a less touristy neighborhood.

This is the lever that matters most.

Day 4: Build a health and admin buffer

Pick one monthly number, even if it’s small, and treat it as non-negotiable.

People don’t fail because of big medical catastrophes most of the time. They fail because they budgeted zero and then got angry at normal life.

Day 5: Cap travel spending for the next 12 months

If you do not cap it, it will expand. Montenegro is full of tempting “quick trips.” Quick trips are how runway money disappears.

Day 6: Decide your car strategy

Either you need one, and you budget it properly, or you choose housing that lets you live without it. Half-committing is the expensive path.

Day 7: Choose your year-five plan

Only three options exist:

• You add income.
• You reduce burn.
• You leave.

Pretending there’s a fourth option is how people hit panic mode.

How it’s going at year four, emotionally

Here’s the honest emotional update you don’t get from cost breakdowns.

If the money is stable, year four in Montenegro can feel fantastic. It stops feeling like an experiment and starts feeling like a real life. You know your cafés. You know your neighbors. You’re not constantly translating the place in your head.

If the money is tight, year four gets weird. You start resenting tourists. You start resenting prices that used to feel cheap. You start resenting each other’s spending choices. You start asking whether the country “changed.”

Most of the time, the country didn’t change. Your runway became visible.

And visibility changes psychology.

The healthiest year-four couples do not cling to the fantasy. They adjust the system. They choose the Montenegro that fits their budget and temperament.

Where this lands in real life

Retiring to Montenegro with $145,000 can work for four years. The question is whether it sets you up for year five and beyond.

If you lived on €2,000-ish a month, locked stable housing, and treated the coast like a treat instead of a default, you can plausibly reach year four with a meaningful cushion still intact.

If your life drifted into €2,800+ a month, the runway probably feels thin by now unless you have other income.

So how’s it going at year four?

For the people who treated Montenegro like a real life, it’s often going well.

For the people who treated Montenegro like a cheaper version of vacation, it’s usually going “fine” right up until the money forces honesty.

Montenegro rewards people who like simple routines, stable costs, and a slower day. It punishes people who want coastal glamour on a limited runway.

That’s not judgment. That’s just the math.