Stopped

This has been 72 hours fraught with nerves. On Monday morning, Husband and I stopped smoking.

And it hurts.

A lot.

The craziest thing is that we have both been here before. I smoked all through university, then quit when I moved to Scotland in 2002. I remained smoke-free for 3 years, until a bad breakup with the reason I moved to Scotland sent me scuttling for the Marlboro’s.

A few weeks before Husband and I married in 2006 (it was a short engagement, as mentioned previously), we agreed to stop again. (I think it was mainly because he was scared of his mom finding out. She’s a formidable woman.)

So stop we did, and it was a little easier as we had the excitement of a wedding, reunions with old friends, and an Italian honeymoon to take our mind off things. Incidentally, we started again almost immediately after his mother was out of earshot (or 'smell-shot' I guess would be more apropros).  So I'm not sure that time really counts as quitting at all - more of a little break.

This time is markedly more difficult. We actually decided to stop last Friday when we went on holiday. We lasted about 6 hours, which was the time it took to fly from Stavanger to Athens, check in to our hotel, and situate ourselves at an outdoor café.

We ‘stopped’ again every morning of our holiday, for approximately 5 hours, until we both got the post-lunch/ no-nicotine shakes, and went scrambling for a pack at the cruise ship bar. We finally pinky-swore that when we got on the plane to return home on Monday, that would be it. So we inhaled our last fag* at a hotel in Barcelona Monday morning.

Monday night was not too bad as we were busy travelling all day, and by the time we got home we were so exhausted all we could do was collapse into bed. Tuesday morning we both woke up feeling what I can only describe as seasick and hungover, rounded out with a touch of the swine flu. We mutually agreed speech was not necessary and both stumbled around silently, only stopping to frown or grunt at one another.

I’ll spare all the other details, but suffice to say, while it is not quite as dramatic as a detox scene from Trainspotting (oh, you know it if you’ve seen it!), it is rather unpleasant. Today I no longer want to shout at people, so I feel this could be the turning point. Onward and upward!

But why did we decide to stop?

Sure, there’s all the health reasons, and I am not minimizing them, but if they alone were enough then no one would smoke… ever… as we know cigarettes lead to bad things in your body.

We stopped due to simple economics.

In Norway, a pack of smokes costs about 80 nok. Since I smoked about a pack a day, multiply that 80 nok over 365 days. That’s 29,200 nok a year. But wait! Husband smokes the same amount, so that’s actually 58,400 nok. At today’s FX rates, that’s about $10,500.

I ask myself how likely it would be that I would set fire to $30 every morning when I woke up. I think we can all agree that just seems foolish. But I was effectively doing the same thing in the form of a cigarette. While that might not be an altruistic or health-concious reason to stop, it's my reason, and it works for me.

So, yes, kids, smoking is bad for you. But it’s not just bad for your lungs, it’s bad for your bank account as well. When I consider the entire cost of my MBA was what I spend on cigarettes in a year now, it helps put things in perspective (although smoking was decidedly more fun than the MBA, and it gave me more to talk about at parties).

So here I am, yet again a non-smoker. If we know each other in real life, it’s probably best to let the beast lie another few days before prodding its cage!
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* As a point of cultural trivia, a ‘fag’ is what some Scots call a cigarette. Imagine my surprise. It led to all kinds of confusion, some funny, some not.

Death and taxes

Only two things are certain in life... there’s little we can do about the first but wait, but for the second… well, there’s little we can do there either.

A common complaint of expatriates living in Norway is the notion that income taxes are sky high. This is true, compared to say, Qatar, where there are no personal income taxes (PIT), or Paraguay, where PIT maxes out at 10%. But is Norway really much higher than other countries? Some nifty little wizards at KPMG have compiled a report addressing just that.

According to the 2009 Individual Income Tax and Social Security Rate Survey, Norway has a PIT rate* of 40%, the UK 40%, and the US 35%**. However, these are not the highest PIT rates. Denmark has a PIT rate of 62.3%, Sweden 56.7%***, Netherlands 52%, and Austria, Belgium, and Japan 50%. But that’s only part of the story.

When you consider a combination of the highest tax rates based both on personal income tax and social security tax, the highest-taxed locations might surprise you (well, it did me, but I am easily surprised). KPMG found that “When taking both the personal income tax rate and social security rates into account for employees earning 100,000USD, the countries with the highest rates were Slovenia (54.9 percent), Croatia (53.5 percent) and Hungary (48.1 percent).”

In fact, if you consider both PIT and social security tax, on 100,000USD of gross income, one would pay 32.9% in Norway and 25.3% in the US. While a difference of more than 7% might seem quite large, it is worth noting that I am getting a lot for that 7.6% differential in Norway. I am pretty sure that difference is worth inexpensive-to-free health care, subsidized-to-free childcare and schooling, and even a gratis university education from a public institution (how I wish I would have had this kind of benefit before Sallie Mae and I met).

There’s really nothing witty or clever to joke about regarding tax rates so I won’t bother trying (although please feel free to comment if you do have some humor to share about this). However, it’s good to know that I am not being gouged by the Norsk tax system quite as badly as I thought I was. Cheers, Norge!
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For some reason a discussion of taxes requires a lot of footnotes. Of course it does.
* Note that this is the highest tax rate in countries with graduated tax systems.
** This is the federal tax rate only and does not take into account state income taxes.
***The PIT rates for Denmark and Sweden include a social security component as this is rolled into the PIT rate. They get a lot of free stuff for their tax dollars so don't feel too sorry for them.

Second vs. Thirteenth (COLA... and not the Coke kind)

As any expat worth their salt knows, complaining about the high cost of living in Norway is a favorite topic. We relish commiserating about how ridiculously overpriced everything seems, and cries of ‘I could buy ten sofas for the cost of this beer!” ring out from expat homes across Stavanger. However, there is always the slight annoying issue of fact. So today I present you with the latest cost of living indicators so we can really see how bad off we poor expats are… or not.

According to Xpatulater.com, “The cost of living indexes are based on pricing the same basket of goods in local currency and comparing them in US Dollars using exchange rates with New York as the base (New York = 100).” Get your head round that, and come with me…

Oslo used to be the second most expensive city in the world in which to live. Not anymore, peeps! Oslo dropped in the rankings from 2nd in 2008 to 13th in 2009. Why? Because the kroner has weakened against the US dollar, and because cost of living adjustment (COLA) indices are measured with a USD base, so currency fluctuations force locations up and down the rankings accordingly.

COLA is based on an index of 13 different ‘baskets’ of goods. By choosing similar products in each country and grouping them into categories, an ‘apples to apples’ comparison is possible. So let’s see where Norway falls in those baskets.

1. Alcohol & Tobacco: 2 out of 276The good news here is you will probably be too cheap or too poor to be able to afford a heavy drink habit. But do prepare yourself for sticker shock when the nice bartender slides a Guinness across the bar and requests you pay him 70 nok (approx. $11). No, he is not demanding a sum for the entire keg. Alcohol is just crazy expensive here. It has primarily to do with the alcohol laws, but that rant is saved for another time.

2. Clothing costs: 104 out of 276Truth is you can get some decent togs here for a slightly inflated price, but you’re really not that bad off. What I find, though, is I am paying J. Crew prices for Wal-mart quality. Note this and stock up on clothes at home.

3. Communication costs: 19 out of 276
It costs a boatload more for internet and phone calls. However, beat the system by electing for a phone box like Telio and making good use of Skype.

4. Education costs: 109 out of 276
You can live with this. Part of the reason this rank is high is because most expatriates do not take advantage of free public schooling. Sure, you can send your kid to an international school, but prepare to ante up for the annual tuition. One of the international schools here costs more per year than the private university I went to in Texas.

5. Furniture & Appliance: 48 out of 276The furniture here is pricey, but you can get some beautiful pieces. In Stavanger, I recommend Slettvoll, Living, and Helgø Møbler in particular. You can get great mid-priced goods at stores like Skeidar and Bohus. And there’s always Ikea, which comes with the bonus of enjoying an ice cream after paying for your coffee table. Appliances are actually about the same as the US if you get a sale. Check out Lefdal, Elkjøp, and Expert for appliances.*

6. Grocery costs: 19 out of 276
Food is expensive here. The same caprese that cost about $5 in Italy to make is about $10 in ingredients here. Norway has strict import laws on food, with general preference going to local products. The good news is that you can find almost everything you need, but at a cost.

7. Healthcare costs: 86 out of 276
Because the rankings are based on averages of costs from both the public and private sector, I think this figure can be a little misleading. If you take advantage of the public health system, cost is much, much lower than the US. However, private care is also available for some specialties, and this causes the ranking to be a little higher.

8. Household costs (housing, water, electricity, etc): 91 out of 276
Rents are basically in line with many large American cities, but the cost to buy can be a little shocking. However, if you are willing to do some work yourself, you can purchase a gem and spend a little elbow grease on getting it up to snuff. This is the route Husband and I have taken, and it means we can have a home exactly how we want it without the (as) frightening price tag.

9. Miscellaneous costs: 3 out of 276
This includes items like linens and general goods and services such as domestic help, dry cleaning, office supplies, newspapers and magazines, and postage stamps. The cost of some of these items beggars belief. Dry cleaning, for example, is shocking. Don’t expect a 99 cent per shirt special in these parts. Buy some Dryel, lose the housecleaner (or suck up the cost and use the time saved elsewhere - it is what it is).

10. Personal Care costs: 159 out of 276
Your toothpaste and shampoo will not be as expensive here as you think. However, luxury brands are a pretty penny, so stock up on salon goods and expensive makeup at home or at duty-free.

11. Recreation and Culture: 32 out of 276
Husband and I went to the cinema last week and coughed up 95 nok (about $15) per ticket. It makes you a little choosier about the films you see. Wait for the DVD, my friend.

12. Restaurants, Meals Out and Hotel costs: 11 out of 276
One of the sources of my greatest discontent, a meal out is nothing to be taken lightly. Expect to pay fancy prices for Chili’s quality food. There are some great restaurants in Stavanger, but they are dear. This one is a mixed bag for me, as I come from a land where we eat out at least once per day usually. But the cost here means I spend more time socializing at home, which can be equally rewarding without the high price tag. Another one of those 'it is what it is' conundrums.

13. Transport costs: 5 out of 276
My car here in Stavanger cost more than my first flat in Houston. Not because one is exceptionally great or one was exceptionally rubbish. It’s down again to import restrictions. An interesting thing is that the car market here is not terribly varied in price, meaning that a good mid-level model sedan is not that much less than a higher spec car. If the car prices cause a nosebleed, there is always an excellent public transportation system of which you can take advantage.

So that’s the skinny on how COLA breaks down for Norway. I still plan to moan about the high cost of this and that, but at least now I can focus on the things that actually are more expensive, and I can have cause to remember there’s always somewhere where I could be worse off!
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* If you can't read Norsk, no worries! You can use Google Translate as a web page reader. Not perfect, but it definitely helps. Just enter the web address and off you go.