Seriously considering Aliyah- help with finances, budget que

amother

Cyan

Sun, Aug 07 2016, 2:03 pm

We are seriously considering aliyah in the near future- but we have to figure out if the finances will work out. We would be taking a pay cut, but wondering if we could still work it out based on differences in tuition, health insurance and aliyah benefits?

I am pretty frugal and have gotten good at shopping sales for food and clothing (I currently live in the tri-state area)- would I be able to continue that in Israel? I would love to get an idea of how much the basics cost/ what people usually spend on food in Israel.

can you get milk, chicken, fruits, veg, on sale/inexpensive?

and especially for people who made aliyah- were you able to adapt to using new kind of money and figuring out prices, etc

Thank you for any info and advice!!

shabbatiscoming

Sun, Aug 07 2016, 2:29 pm

amother wrote:

can you get milk, chicken, fruits, veg, on sale/inexpensive?

and especially for people who made aliyah- were you able to adapt to using new kind of money and figuring out prices, etc

In terms of food shopping, there are no coupons like there are in america. Also, certain foods are regulated prices, meaning, no matter where you buy them, they will always be the same price.
As for figuring out the shekel, its not so hard. Once you start using it, it just becomes regular for you.

water_bear88

Sun, Aug 07 2016, 2:29 pm

I've been here pretty much my whole adult life, so I can't help so much with the adjustment issue.

As for prices, milk and certain other staples are price-controlled by the government. 3% milk is currently 5 shekels per bag, or 5.80 per carton. Things don't go on amazing sales here, but you can make a dent in your budget if you can adapt your recipes to use price-controlled ingredients. (E.g., both 32%- and 38%-fat whipping cream are available, but only the latter is price-controlled.)

For chicken, fruits, and vegetables, where you can shop makes a big difference. While plain 1% or 3% milk are the same price whether you shop at a makolet in Tel Aviv or a Rami Levi/Osher Ad in Yerushalayim, the same is not true of the other foods you asked about. In addition, buying produce in season is much cheaper than insisting on the same fruits year-round- I wouldn't think of buying grapes in the winter, even if they were theoretically available, even though I grew up eating them year-round.

MyUsername

Sun, Aug 07 2016, 3:13 pm

It also depends on whether you eat only mehadrin or not. Chicken can sometimes be found much more cheaply if you don't eat only mehadrin. This is true for some other types of food, but not many.

Also, my husband had a friend who worked behind the chicken counter, who told us that it that chicken prices vary throughout the week.

Additionally, frozen chicken is usually cheaper than fresh chicken.

In general, since there are no coupons here and sales seem random, I stock up on things in bulk when they are on sale and put them in a cabinet or in the freezer.

ora_43

Sun, Aug 07 2016, 5:16 pm

Clothes are similar in price. There are cheaper stores and more expensive stores, but overall my experience is that it's about the same. (which means higher here as a percentage of salary)

Kids' shoes are more expensive here, adults shoes are around the same.

Food is cheaper here if you're doing a direct comparison; more expensive as a percent of salary. Fruits, vegetables, rice, oil, and other staples are reasonably priced IMO. Dairy is more expensive. Kosher meat and chicken - like previous posters said, it depends what you're buying.

Given the housing shortage, I think cost of housing might be the biggest budget issue.

Depending where you live (both there and here), there might also be less pressure here to do expensive activities.

Marion

Sun, Aug 07 2016, 11:24 pm

Keep in mind that the price-controls in place on things like butter, milk, and bread represent the MAXIMUM that can be charged for that item. My Rami Levi (Mishor Adumim) often undercuts the price-control price and the 20ag'/bag difference really adds up when you go through 6-8L/week! Same with the 2NIS/loaf difference in the sliced bread for a family that goes through 3 loaves/week... I have NEVER found frozen chicken to be cheaper than fresh, except when there was a shortage of fresh.

DrMom

Mon, Aug 08 2016, 1:44 am

amother wrote:

I find these skills difficult to use here, es for clothing. Clothing is more expensive here, IMO, for similar quality, and sales are lame (buy 1 item, get the 2nd (of lower or equal cost) at 1/2 price!... meh). Many people who have occasion to travel to the US find it worthwhile to stock up on sales while abroad rather than buying here. Of course, many people manage fine with local offerings.
O

Of course, homes are smaller here, and storage space is more limited, so I suspect my kids and I have fewer items of clothing than we'd have in the US. But we keep them in constant rotation because the washing machines are smaller. Smile

amother

Mustard

Mon, Aug 08 2016, 2:18 am

The biggest financial mistake I've seen people who've made aliyah is spending to much of their budget on housing because they counted on shopping frugally like they have in the states. You can shop frugally but your savings won't be as drastic as they are in the states.

The banks here will only approve a mortgage that is 1/3 of your combined income. Even if you are renting try to follow that rule even if it means moving into a home much smaller then you originally expected.

Also realize that the upkeep of a car is a lot more expensive here then in the us (gas and insurance)....

Aliya benefits are great for the transitional period when you have a lot of starting over / moving expenses, but make sure your budget works without them.

m in Israel

Mon, Aug 08 2016, 2:55 am

I think all the answers so far have been very good. Getting used to a new system of money/measurements (kilos vs. pounds/oz) may take getting used to but should not be a big deal. But the amount you can save by shopping sales, etc. is less than in the U.S. for most basic items. Of course comparison shopping helps, and some stores are better than others. As an earlier poster said, it is worth getting used to buying fruits/vegetables according to what's in season, and being flexible in your eating habits according to what's on sale.

I just want to mention that you included Aliyah benefits as a source of income -- DON'T! It is a pretty small amount of money for a relatively short period of time and there will be so many unexpected expenses that come up over the course of the move. You will be lucky if your Aliyah benefits cover that!

amother

Peach

Mon, Aug 08 2016, 6:27 am

Many people are able to succeed as olim because they change their lifestyle. Even financially comfortable Israelis will tremp/hitchhike or take busses rather than driving. They also eat out much less and just don't buy expensive ingredients. I don't buy any clothing in Israel for my kids - I shop end of season sales in the US and find people to bring it. If you can do that it saves a lot of money. People also cut down on electricity and water use by not overusing heat and air conditioning and turning off the water between dishes when washing. Personally I live in a smaller apartment in a yishuv rather than a city to save money on rent.