If you’re looking to save money, you might be surprised to find that the best geoarbitrage strategy isn’t about packing up and moving to another country or even another state—it’s actually about searching within your own city. This approach minimizes upheaval and maximizes savings. For instance, I once saved over 40% on my living costs just by moving five miles within San Francisco.
Many might question why I don’t leave San Francisco if I’m financially comfortable. The truth is, despite its high cost, there’s a lot holding me here, from community ties to family commitments like college tuitions that need funding. That said, Honolulu, with its more affordable living costs and lower stress levels, beckons as an appealing alternative.
While Honolulu’s housing is cheaper than San Francisco’s by about 20-30%, the transition isn’t straightforward. There’s the emotional weight of farewells and logistical challenges, especially with young kids. We plan to provide our children a stable environment until they’re a bit older before potentially making such a move.
The concept of moving to far-flung locations like Southeast Asia or Eastern Europe might seem a bit extreme when you can save substantially just by exploring less expensive neighborhoods in your own city. In 2014, by shifting a few miles within San Francisco, I managed to cut my housing costs significantly.
Moreover, the recent pandemic has made living on the less dense side of San Francisco far more appealing. The reduced density has brought down living costs and improved quality of life, showcasing that sometimes, the best move is not very far at all.
Ultimately, geoarbitrage isn’t just about moving; it’s about making strategic choices that align with your financial and personal well-being. It might start with a small shift within your city and, as you adapt, could lead to bigger moves either across the country or internationally. But it’s crucial to ‘try before you buy’ to avoid the costly mistake of moving somewhere only to find it unsuitable.
