Would you like to retire decades before most people? Tired of the grind? No longer want to spend most of your waking hours at a job you’re not thrilled with?
It’s possible to retire much earlier than most people think, but you have to be thoughtful about your lifestyle, investments, and even where you live. Want to know about a powerful strategy that could allow you to retire in your 30s? Keep reading below, or check out today’s video here:
I went from growing up on welfare in Detroit to financially independent and retired at only 33 years old. Going from the lowest lows to the highest highs in life is easy. But nothing in life worth having is easy.
If you’re chasing after something amazing, it’s probably going to be super difficult to attain it. Believe me, financial independence and early retirement are both amazing AND worth all of the effort. It’s worth the so-called sacrifices.
Because there’s nothing more of a sacrifice, in my mind, than spending most of my finite and dwindling time at a job I don’t thoroughly love. Life’s way too short to peddle away your precious hours and repeatedly perform tasks you don’t enjoy.
But achieving financial independence at a young age requires us to save and invest a LOT of money. And even if we have a large chunk of assets producing pretty decent passive income, life in places like the United States can be super expensive.
This is why you might want to seriously think about taking advantage of geographic arbitrage.
This is a strategy whereby you relocate to a cheaper (but still nice) country, where your purchasing power goes much further.
Simply up and moving could shave DECADES off of your timeline to retirement. And it could add YEARS to your life.
For example, my passive income is about $1,500 per month.
That’s not bad for someone who grew up poor, doesn’t have a college degree, never had a high-paying job, is still in his 30s, and stopped throwing crazy amounts of money into investments years ago.
And while $1,500/month doesn’t go terribly far in the States, it can positively buy an AMAZING lifestyle in many parts of the world.
I’d know. I moved abroad in 2017. And I’m living the life of my DREAMS on a FRACTION of the money you’d think it costs.
So keep in mind, this video is coming from someone who ACTUALLY moved abroad and took advantage of geographic arbitrage. I did a lot of research before I moved, and I now want to share some of my research and firsthand experience with you today.
Here are three countries in different parts of the world where $1,500/month can allow for a great lifestyle and very early retirement.
1. THAILAND
The first country I’d like to tell you about is Thailand. This is where I moved to back in 2017. Thailand is, in my opinion, the best “bang for buck” in the whole world.
You get modern development and amenities at a fraction of the price you’d find in places like the United States. I spend only $400/month on a luxury one-bedroom apartment. It’s beautiful. It’s located in a great part of town.
Comes with a guarded gate, swimming pool, gym, and the whole nine yards. And it’s furnished. I’ve lived in apartments in numerous cities in the States, and I can tell you for sure that this furnished apartment would run AT LEAST three times more money in any desirable American city.
It’s cheap in Thailand. But more importantly, the VALUE FOR MONEY is exceptional. You don’t want to JUST go somewhere that’s cheap.
You want to live in a place where your money goes far and you can live the lifestyle you like without spending too much money on it. It’s about VALUE, not only PRICE.
English is widely spoken, medical care is excellent, the food is delicious, warm weather is everywhere, the beaches are some of the best in the world, and the people are really kind.
You can get the big-city excitement of Bangkok. Or you can chill out in a small beach or mountain town. It’s up to you.
I’ve found that my purchasing power here is about THREE TIMES higher than it is in the States.
So my $1,500/month buys a lifestyle similar to what $4,500/month would in the States. That’s the power of geographic arbitrage for you.
Since housing and food are usually your two biggest monthly costs, Thailand is great because both housing and food is so cheap.
In addition to the cheap apartment I just mentioned, I can eat a delicious lunch here for less than $2.
Thailand’s ever-changing visa policies are difficult to navigate. But if you have a reasonable visa option, Thailand is very attractive.
2. GEORGIA
The second country of interest is Georgia.
Not the US state. I’m talking about the country.
Georgia is in the Caucasus region of Eurasia.
If you want that European VIBE at a fraction of the European PRICE, Georgia might just fit the bill.
The capital, Tbilisi, is super cheap.
You can find nice apartments in the city center for $400/month. Food is plentiful and affordable. The core of Tbilisi is super walkable. And there are modern amenities like the recently-built Galleria Tbilisi which features a bowling alley and movie theater.
Another neat thing about Tbilisi is the fact that it has a relatively mild microclimate for its latitude. It gets seasons. But they’re fairly mild.
One of the best aspects of Georgia, though, is the visa and tax policies.
Georgia offers a one-year visa to citizens from dozens of different countries, including the USA.
So that means you can waltz in and stay for a year, no questions asked. No other country offers this.
Of course, the current lockdowns are affecting this policy, but Georgia’s visa policy will be world-class when things return to normal.
The other great thing about Georgia is the fact that they have a territorial tax policy.
Money brought into Georgia from income sources abroad isn’t taxed. This means that as long as you don’t earn income locally, you shouldn’t face a local tax from Georgia.
Easy visa, low taxes, cheap cost of living, and a Eurasian location should put Georgia on your radar.
One issue with Georgia is that it’s a pretty small country. Your choices in terms of cities are limited. Other than perhaps the seaside resort town Batumi, Tbilisi is really the only viable option.
3. MEXICO
The third country I want to talk about is Mexico.
If you’re retiring from the States and want to stay geographically close to the US, Mexico is interesting.
Mexico could allow you to experience the cheaper cost of living and greater purchasing power that geographic arbitrage offers, without having to relocate somewhere very far away. Mexico is close to the US, and it’s a place that’s familiar enough to many people. So the culture shock won’t be too extreme.
The cuisine is obviously delicious, the climate in most cities is fantastic, the beaches are beautiful, the cost of living is low, and the atmosphere is generally pretty laid-back and fun. Plus, you get your choice of a giant city like Mexico City or, say, a smaller beach town like Puerto Vallarta.
A visitor’s permit gives Americans six month in the country, which can apparently be renewed by simply leaving and coming back. Of course, again, this is being currently impacted by the border lockdowns related to coronavirus. Once the world gets back on track, most visa policies will likely return to their pre-pandemic state.
Crime can be an issue in certain Mexican cities. And Mexico has a residence-based tax system. This could affect how your worldwide income is taxed.
But if you want to retire decades faster and still be close to the US, Mexico might give you a “best of both worlds” solution.
Thanks so much for reading. I hope you enjoyed today’s article.