Geographic arbitrage is a strategy that involves earning income in a strong economy while living in a low-cost area, resulting in significant savings. The concept is becoming increasingly popular as remote work opportunities continue to grow. To successfully implement geographic arbitrage, it is important to have a good understanding of your current expenses and identify areas where you can save. Creating a budget and tracking your spending habits can help establish a baseline for potential savings. It is also crucial to stick to your financial plan and prioritize your goals. Additionally, using creativity and imagination to explore different financial opportunities in various locations can maximize savings. Seeking advice from experts and staying connected with your home country can also be beneficial. Overall, geographic arbitrage offers a unique way to save money and achieve financial goals.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Geographic arbitrage growing in popularity | From living and earning in high-cost areas to earning in strong economies while living in low-cost areas | More people will be earning income in strong economies while living in affordable areas | Desire to save money and lower cost of living |