Geo-arbitrage is the practice of moving from an area with a high cost of living to a place with a lower cost of living. It’s one of the bits of advice some FIRE enthusiasts suggest for those looking to reach financial freedom faster. But does using geo-arbitrage always make sense?
Topics covered in this episode on geo-arbitrage
* What is geo-arbitrage?
* Is moving really just about the money?
* How to understand your lifestyle and how it fits into geo-arbitrage
* Reasons to move
* Realities of moving to a low-cost-of-living area and some of the challenges
* Understanding taxes—it’s not just about income taxes
* Living in a high-cost-of-living area can be the right choice to save your sanity
Sources used for this episode on LCOL vs. HCOL area
* Our rant episode that includes info from Eric Rosenberg about choosing a HCOL area
* Our episode on choosing whether to have kids
* Cost of moving information from HireAHelper and Nerd Wallet
* Find information on state and local taxes and property taxes from the Tax Foundation and Bankrate
* CNN Money’s cost of living calculator that can help you compare salary needs in different areas
* Cost of childcare by state according to World Population Review
* Home insurance cost by state from Insurance.com
Our financial resource
If you want to learn more about geo-arbitrage and how to make it work, check out this article from Smart Asset.
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