December 19th, 2008
The Geographical Arbitrage Lifestyle
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Paul Carr in The Guardian (via Rithwik) –
In Tim Ferris’s book, The Four Hour Work Week, he discusses a concept called “Geographic Arbitrage”, or Geo-arbitrage. In a nutshell, the concept explains how you can achieve a significant real-terms increase in your earnings by being paid in one currency, say US dollars, but spending that money on goods and services from a much cheaper foreign country. The concept has become more and more realistic in recent years as advances in technology mean it’s possible to work from anywhere in the world with a laptop, a mobile and a broadband connection.
Sure, it wouldn’t work for everyone – if you work in a shop or have to manage people in an office then you’ll struggle to do that from a South American beach. But if your work primarily involves computers, telephones or “creativity” – if you’re, say, a writer – then it’s ideal.
