Geoarbitrage Case Studies | Diving into the Numbers with Cody & Justin | The Financial Independence Show Podcast
Today's episode rounds out our series on utilizing your location as a tool to financial independence and is led by just thew of us hosts.
You may hear this idea called geo-arbitrage. We wanted to pick two locations where we would actually like to take a test run of financial independence in a foreign country.
Cody picked Santiago, Chile and Justin picked Porto, Portugal.
This episode covers an honest and holistic look at what it would cost for a couple to live in these countries while still really exploring and enjoying them.
Take a listen and consider where you'd move if you had the freedom.
Santiago, Chile
Housing
- $500 for a one BR apartment
- Comes with parking, laundry, gym, BBQ and pool
Utilities (Electricity, Heat, Cooling, Water, Garbage)
$135 per month
Cost of Flights to Other Locations
- Flights around South America starting as low as $35.
- $385 to get back to Cody's home in New England
Restaurant Samplings
- Simple meal at inexpensive restaurant costs $5
Grocery Samplings
- $30-35 per week. With mostly fish, vegetables, beans, eggs, “healthy” pasta, fruits, and smoothies
Phone/Internet
- $45 per month
Public Transportation
- Taxis will take you anywhere for less than $10
- Average of $150 per month (per expat survey)
Healthcare
- Ranked 33 out of 190 countries (similar to Australia and Denmark and many of the doctors speak english)
- $100-120 for healthy adult expat insurance
Visa Requirements (how long can I stay?)
- 90 days (plus can pay $100 for another 90 day extension)
Weather
- Coldest months are June and July with average highs of 61 degrees Fahrenheit
- Only downside is that it rains 4-5 days per week
Total cost = $1650/month
500 housing
135 utilities
120 groceries
250 restaurants
45 phone/internet
100 transport
120 healthcare
400 entertainment
$19,800 per year
Porto, Portugal
Housing
- $833 for a one BR apartment in heart of the city
- Comes with parking, laundry, wifi, all utilities
Utilities (Electricity, Heat, Cooling, Water, Garbage)
Included
Cost of Flights to Other Locations
- Flights around Europe starting as low as $25.
Paris: $25
Barcelona $49
Milan $53
- $670 to get back to Justin's home in Austin
Restaurant Samplings
- Simple meal at inexpensive restaurant costs $6
- Anthony Bordain visited restaurant also serves $1.80 martinis
Grocery Samplings
- $40 per week.
$2.60/lb chicken, $1.30/lb pork, $0.75 fresh bread, $0.90 apples, $2.50 bottle of wine as examples
Phone/Internet
- Wifi is free, 22gb data and unlimited call cell phone for $18
Public Transportation
-Amazing train system for very cheap which I factor into "Travel"
Healthcare
- Emergency room visits are free
- Research shows ~$40 per month for plans
Visa Requirements (how long can I stay?)
- 90 days with just the passport
- Full citizenship appears attainable if you can prove you have healthcare as well as stable income source to fund your retirement
Weather
- Lowest highs are 57 degrees December/January
- Highest highs are 77 degrees in July/August
Total cost = $1770/month (for a couple)
833 housing
140 groceries
300 restaurants
18 phone/internet
80 healthcare
400 entertainment (includes transportation)
$21,240 per year
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