Geoarbitrage is an interesting concept, often closely related to the definition of lifestyle design. It basically means relocating in order to take advantage of the lower costs of a city/country.
There are different ways you can go about this. It might be quitting your job in the US and moving to South East Asia (that was a popular scenario back in the days). Or to enjoy the low-standard of living in a tropical country, but still make money in the US, either by working remotely, or building an online business.
Why Geoarbitrage Is Not for Everyone?
Obviously, there are some characteristics of such a lifestyle that make it possible only for certain individuals.
For a start, if you’re pretty comfortable with your 9-to-5 job and really don’t want to take any risks and try new stuff (not to mention that you don’t want to work even harder to become self-employed), then you’re not location independent because of the job.
Then, there are the people in your life. Leaving your country means you’re either single and not too attached to anyone, or that you can take your family with you. Be it by building a business together with your partner and homeschooling your kids while traveling the world. Or escaping reality with a girlfriend/boyfriend or friends with the same goal.
Giving geoarbitrage a try means that you can let go of your family, at least physically. There are some cases, like having to take care of a relative, in which this simply isn’t an option.
Such an independent and unconventional lifestyle also isn’t for those who don’t set goals.
Who don’t wonder whether there’s more to life than the mundane lifestyle. Geoarbitrage is not for the ones who listen to others and want to be accepted by society. If that sounds familiar, you’d better stay where you are forever.
But in case you want to travel and are curious to see how you’ll make it in an unfamiliar environment, this is the way to do it.
If you’re interested in giving your business ideas a try, don’t want to work for someone else, and want to make more money but also enjoy your life more, then this is the cheapest solution for you.
It might look like this: moving to Chiang Mai, Thailand and leaving corporate America behind.
Making The Most of Geoarbitrage
You can never be fully prepared to do this, so just give it a few weeks and go.
Moving itself is nothing more than getting a plane ticket and finding accommodation. Even if it’s a temporary Airbnb place with the goal to find a permanent one once you get there.
It’s good if you have saved some money before you leave, of course, but don’t let that be a barrier to actually leaving.
Stuck in a regular job?
Now’s the time to start doing your research on how you can make money online, do it on the side first, and quit your job when the income is decent.
When you get to the cheap and beautiful country of your choice, you can then turn it into a business by working hard. You’ll also be trying until you succeed, studying your market and the competition, and creating something meaningful, that you’re passionate about, and which people will be willing to pay for.
The good thing is that you can also outsource most of the work to virtual staff from low-cost countries. Even if you’re on a tight budget.
To make the most of geoarbitrage, you also need to make some changes.
Forget what you know about the world already, and prepare to see its real face.
I’m talking about becoming a citizen of the world, accepting a new culture, learning to live like the locals. Be able to enjoy the view when waking up near the ocean every morning, try the food there, explore the area, and don’t think about home.
Traveling is a spiritual experience, before anything else. So even though you’ll be spending a big portion of your time on your laptop, you’ll be in a tropical country and that itself is enough to reduce your stress, make you happier and more productive.
Don’t take too much stuff with you when you move. Pack light and be more about the experiences and the growth.
Also, geoarbitrage may mean going to such a country for a month or two, then coming back for some time, and repeating the cycle. Whatever works for you, as long as you’re keeping the expenses low and the income high.
What do you think about that concept? Are you a lifestyle designer?