GLOSSARY · FIRE & EARLY RETIREMENT

Geographic arbitrage

Earning or saving in a high-cost place and spending in a lower-cost one, which lowers the spending your portfolio must cover and therefore your FIRE number. The saving depends on real price differences, taxes, healthcare and exchange rates, not just rent.

Also called: geo-arbitrage, geoarbitrage, moving to a cheaper country

COMPUTE IT WITH YOUR NUMBERS

Geo-arbitrage FIRE →What salary do I need in city B, and does a remote move speed up my FI date?Return home vs stay in the US →Should I move back home or stay in the US, and when could I stop working in each?

LEARN IT PROPERLY

CHAPTER · TAX PLANNING FUNDAMENTALS · FOUNDATIONSState and Federal Taxes: How the Two Layers Fit CHAPTER · EXPENSE REDUCTION & COST AUDITING · STRATEGIESLowering Your Housing Costs

RELATED TERMS

FIRE number Tax treaty

SOURCES

Purchasing power parities (PPP). OECD Data.

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