Geo Arbitrage for us semi retirees.

I just saw the term recently on a blog I have followed for years.  I don't know how 'linking' is done properly so I'm not going to link, but the blog is titled "Early Retirement Extreme".  Anyways, that was the term and this is the following description...

4. Geo-Arbitrage

Geo-Arbitrage, loosely, is when you generate income in a country with a high-value currency and spend it somewhere with a low-value currency. To the business tycoon, this might mean purchasing goods in China to sell in America or setting up an Indian call centre to serve clients in England. My experience in geo-arbitrage was far more modest: I simply generated money in Scotland (through work) and moved to Canada, where British money goes a little further than the Canadian dollar. The C$450 I spend from savings per month took me only a week to earn in Scotland. I’d advise anyone to do the same thing: work somewhere lucrative for a while and relocate to somewhere vibrant and cheap, while maintaining a minimalist and frugal lifestyle.

Now if you want to see an extreme example of this I highly recommend George and Tioga. Again, google and you shall find.. but George lived in the high dollar state of California, and retired with very little income and means to support himself, so he bought Ms Tioga, his RV, and went on his vagabonding adventures.  He now mostly lives in Mexico, and blogs fully of his lifestyle.. right down to his income and expenses.  What a life he lives now, compared to retired and near destitute to maintain a 'life' in California.

But back to me.. because really, this IS all about me, right?  :)  I live in what is probably the most expensive part of the state of Kansas. But don't get me wrong, in most cities there are still affordable places to live.  And forget for a moment that I own my "building" and rent pays most of my overhead.  Even assuming it did not, with my room mate, and the going "rent" I would still be able to live here fully for under 600 per month.

So my "geo arbitrage" was more of a Situational arbitrage.  I created a situation where I already was that I could live how I wanted.  My formula works more in the way that I've created a VERY inexpensive way of living, and I make a VERY high income relative to my expenses.  Would my income cover your expenses or be considered high to you?  That doesn't really matter, it more than covers mine, even if I only work 4 or 5 days a month.  Was it easy?  No way.  In fact, in certain ways it was forced. (which I shall touch on very soon in a new post)  But it can be done, and it can be done about anywhere.  But if you can really take advantage of the GEO part... and why couldn't you in this world of the far reaching internet..  how bad would it be to sit on the beach in Mexico every winter spending dollars made in the US or some other high overhead country?  Ask George, american money still goes a long way in Mexico.