Four challenges of Geo-Arbitrage
Why it is important to balance spontaneity with a good strategy
Living in a different country or hopping between multiple countries is a dream many people aspire to have.
And with geo-arbitrage fast becoming a strategy for young people to get ahead financially while living a great life at the same time, it is important to understand that the dream can become a nightmare very fast. Luckily it doesn’t have too.
There is a big difference between experiencing the world in scarcity vs abundance.
As I walk down the streets, and stop in at different cafes, whether it be in Paris, Bangkok, Auckland or Cesky Krumlov (look it up, chances are you’ll add it to the bucketlist), I do my very best to remain present.
I always say to myself, you may never see this place again, soak it in!
And by being present I can observe so much. For my girlfriend and I, people watching is one of our most fun things to do, we can learn a lot from people.
Firstly, it is difficult to be present at all when stressed or in scarcity. The mind can tend to be stuck in the future and feeling worried or anxious, or it could be dwelling on the past, feeling depressed. If you are travelling in this state of mind, chances are you’re missing so much of the beauty of what is really happening around.
I’ve battled mental health in my twenties when working at the bank, and it is no joke and there are so many variables to why it happens. I know it isn’t as simple as being present.
However I do know that emotions can be amplified when travelling abroad, both happy and sad. To remain as balanced as possible and nullify this potential amplification can come down to decision making and education.
So how about we dive into some of the challenges that nomads can encounter and some ways to overcome them.
Social and friendships:
Moving to a new country can mean leaving behind your friends, family and everything that was once familiar to you. This can be a big deal. Especially to those brave souls on a solo journey. Meeting new people is important, we’re social beings at heart, even introverts require some kind of human interaction, and friendship is important.
Sadly, as a nomad, people are often moving around, so friendships can be fleeting and just as you feel you’re making a great new friend they could be on the next plane out of there to the other side of the world. This can be difficult.
The backbone for me has been my girlfriend (of course) and my family back home. I ring my grandparents, parents, sister often, to the point it has become a habit and i’m in more contact with them now than when I was living close by. If you are lucky enough to have a family, what a great opportunity to strengthen that relationship from a distance and truly treasure it.
Another important consideration when choosing your first country to spend some time in is the access to activities that you are passionate about.
For example, if yoga is important to you, would you prefer to move to a yoga friendly environment full of like minded individuals, or a place where yoga centres do not exist?
Or maybe your passion is Web3 and cryptocurrency. Would you prefer to be in a world leading tech hub, or in a rural country town where no one has heard of bitcoin?
Or are you seeking nature and to be around animals. Would it be better to search for a community full of nice land and animal friendly people, or a big city where it is chaotic and animals are non existent?
Establishing your country based on your values, passions and things that light you up is a very good idea.
Setting clear boundaries. Learning when to say yes and no based on your values.
When you first move overseas it can be exhilarating. Maybe you are used to being tucked in bed at 10pm, reading a novel, or watching youtube. However in your new country you get invited for dinner at 9pm at the local Italian restaurant and there is a wine bar next door, your evening is only beginning at 10pm.
This can be such great fun, and i’m certainly not the fun police.
However your freedom can seem amplified when in a new country, especially if you have a leveraged income or if you’ve dropped your work hours.
So although saying YES to social events and new experiences can be healthy it can also begin to have a destructive impact over time if it isn’t balanced.
So before you move abroad, maybe it is a great idea to practice being okay with transparency and deciding when to say YES or NO based on your values, not on peer pressure or self pressure.
My girlfriend and I have discovered that an honest ‘NO, not tonight’ answer can actually enhance a friendship, and it is a great tester to see who honours others boundaries. Being strong on saying NO is equally as important as saying YES.
The fine art is knowing yourself well enough to make the right decision for you.
Too many YES decisions can see productivity cease, goals move further away, energy and health output down and a loss of direction.
Too many NO decisions can see people getting lonely, depressed, lacking experiences, and this can equally impact physical health and energy.
Good luck with mastering these boundaries.
Financial and business education
I’ll never forget the story my grandfather shared with me about working away in the mines (for those who don’t know, working in the mines in Australia is a way to generate larger than normal income, and build wealth). He said to me, Boy, when I worked in the mines I watched all of my co workers go to the pub and drink and gamble all night, spending and wasting all of their money. However I had a plan for your grandmother and I, and I stuck to it rather than blowing all of my money. I sacrificed and it paid off.
I always refer back to that story, and I feel like in 2022, we have more options than he did. And a more glamorous ‘sacrifice’ to move ahead, is to move abroad for a much lower cost of living, to learn more skills, to live a great life, and build for the future all at the same time.
The easiest way to be in scarcity when abroad is to be broke!
There are a few ways to avoid this from happening.
The first one is to break the ties with consumerism, and any desire to need to impress people with material assets. I come from Australia and it is common to compare cars, boats, houses, fashion etc.
One amazing thing I learned in multiple countries I visited is that doesn’t exist. And hey, even if you choose a country where it does, no one knows you, so what a great way to release this pressure and simply be you.
Trading in a materialistic life for freedom is a great way to ensure you stay away from financial scarcity. That isn’t to say you never buy nice clothing or items when overseas, but it can come from a place within and not an endless consumer binge, and of course as your value builds, and your income and investments build, you can begin to spend that little more.
Second, make a commitment to yourself that you will have an emergency savings that you are comfortable with. For some people, this will be $10,000, for others $20,000 or $50,000. This isn’t your investing or spending money. It is your peace of mind money.
If you lose a big contract, or if you desperately need a flight home, or your travel insurance doesn’t cover an event, having this emergency money always there ensures that there is peace of mind. This is important for keeping people out of scarcity.
Third, choose a country and create a lifestyle that you love, for less than you currently spend in your home country and make use of that extra money you save wisely.
Fourth, take this extra time you have to really explore what lights you up and what you are passionate about. Plan your future. Become the master of your own destiny, and fast track your path to abundance. Become more valuable and as a result your income will grow.
I am about to read a book named the sovereign individual. If you like reading, maybe you can join me, i’ve heard great reviews.
Embrace the uncertainty
At the end of the day, you’ve chosen a life path very different to the majority of the population. And when living abroad or travelling there is always uncertainty. Each country has different rules and regulations. Airports, flights, visas can be frustrating and challenging.
Embracing the ups and the downs, the uncertainty and the challenges is a skill. It is a skill that when mastered will bring with it vulnerability, resilience and strength.
I’ve seen thousands of people absolutely thriving abroad. Giving themselves a second chance at life, and I have seen people completely fall apart.
Hopefully these 4 little tips can give you as my audience some value, some points to reflect on and maybe you have your very own to share too.
Thank you so much for reading today.
Best wishes,
Brendo