How you can escape working 9-5 every week, living anywhere, and joining the new rich was a radical idea presented in 2007 by Tim Ferriss. He published what became a cult book, The 4-Hour Workweek (now expanded and updated), contradicting the long-held beliefs of balancing life and work, retiring well, and having a great nest egg. Instead, he advocated a plan of finding a new way of living a fulfilling life.
The essence of this involves the phrase geographic arbitrage, better known as geoarbitrage. Geoarbitrage is moving to a place with a lower cost of living while keeping your same level of income. That way your disposable income stretches further, and you are able to live the life you choose.
How is this possible? First, you must have an income that is not tied to a specific location. This might be:
- Working remotely as an employee
- Freelancing online
- Living off your passive income
- Living off retirement income or savings
Second, you should look for a desirable location. This might be:
- A new neighborhood
- A new city or state
- A new country
Third, your perfect place should include:
- Reduced taxes
- Reliable internet
- Affordable quality health care
- Good schools (if you have kids)
- Language spoken
- Food and culture
- Lifestyle and activities
- People with shared interests
Fourth, your low-cost location in the United States might be:
- Costa Rica
These criteria are subjective, of course and constantly changing (do your research). However, they can lead to a new, enriching life, and a broadening of your horizons. You will find that your identity changes – you are now a foreigner. You may find that you no longer want what you once wanted, that you have fewer regrets, and that you have the option to become the person you would like to be.
With more options, you will discover more happiness. What’s stopping you?
Fact: The Panamá Canal contributes almost 10% to Panamá’s economy
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