What the hell is geoarbitrage’ I said to a colleague when they said to me ’so you are geoarbitraging?’. I still think WTF! To me, it is one of those words I cannot remember without seeing it written, nor spell! But lately, it has come to the forefront of my mind because it turns out I have been geoarbitraging for quite a while. Go figure hey! And I bet many of you reading this have been a geoarbitrager too without knowing! So what the hell is geoarbitrage? Can geoabitrage help me live a better life? Let me explain.

 

What is Geoarbitrage?

 

On doing research on what geoarbitrage or geographic arbitrage is, I discovered it is a strategic financial approach to life. Wow! It is where individuals, like you and me, earning income either from an employer, being self-employed or other method like investing, relocate to a different geographic location to take advantage of lower living costs to maximise their income. The more income you have after paying for living essentials to live, the more of a better lifestyle you can afford for yourself and your family.

Having lower living costs means I can stretch my income further and achieve a higher standard of living for the same amount of income. So basically, being a digital nomad who lives and works abroad or someone taking early retirement in countries with lower living costs while earning a decent income, I have been geoarbitraging for many years – without knowing.

 

Who are Geoarbitragers?

 

Having learnt that being a digital nomad qualifies me as a geoarbitrager, I discovered others like retirees, expats, online remote workers and full-time travellers are also geoarbitragers. Thanks to the rise of remote work, geoarbitrage is popular. It is a way to unlock financial freedom in ways that were impossible pre the rise of online work. So moving to live in countries that have a lower cost of living and offer them a better life. 

 

How to Geoarbitrage

 

If you want to start geoarbitraging you can either go to a cheaper place in your home country or a country overseas. Many can live and work abroad on a digital nomad visa and/or a working holiday visa.

And when you think about it, you don’t necessarily need to move to another country. You could move to a cheaper town within your own country. For instance, I could move from expensive Melbourne, Australia to a country town such as Bendigo in the Victorian countryside. By doing this, I would save on the cost of housing, either purchasing or renting. The money saved from cheaper accommodation could then be saved or spent elsewhere.

 

What are the Benefits  and Disadvantages of Geoarbitrage?

 

Like digital nomads and remote workers, being a geoarbitrager has benefits and disadvantages. Here’s what I think they are:

 

Pros of Geoarbitrage

• Reduces living expenses. Having lower costs for housing, food, transportation and other necessities frees up economic resources that can help improve your lifestyle – and definitely the extra money can pay for a better lifestyle.
• Increases your purchasing power. Lower your outgoings to live, means your income will go further and thus you can purchase more to gain the lifestyle you want.
• Improves your quality of life. Yep, lower outgoings, spending more on lifestyle leads to a more fulfilled and relaxed lifestyle – who could ask for more!

 

Cons of Geoarbitrage

• Adapting to new cultures: adapting to life in another country can be overwhelming for some. And even though your money may be going further, you may not enjoy the new cultures.
• Visa and immigration requirements: not everyone has the opportunity to live and work in another country. Only some gain sponsorship from an overseas employer while other look into visa such as working holiday visa or digital nomad visa. 

 

Why is Geoarbitrage Popular?

 

For people who are grappling with high rent, mortgages out of control, student loans and the unpredictable job market, geoarbitrage is an appealing alternative. Instead of continuing to live in stressful financial situation, just scraping by, choosing to live in a place where your dollars stretch further, if very appealing. And why wouldn’t it be! Particularly when you could live by a beach in Bali or other cheap country locations and have a better quality of life.

 

Where are the Best Places to Geoarbitrage?

 

The best places for geoarbitraging are in certain countries in Asia, Europe and Latin America. They are the best because their cost of living is lower than other countries. 

 

Top Destinations for Georbitrage by Region

 

Every region offers a unique advantage to remote workers and digital nomads seeking geoarbitrage opportunities. It is up to you to decide what attracts you most. Are you drawn to beaches in Asia and South America, historic cities in Eastern Europe or jungles.

Asia – Taiwan, Thailand (Bangkok, Chiang Mai), Indonesia (Bali), Turkiye (Istanbul), Georgia (Tbilisi), India (Goa, Jaipur), Vietnam (Ho Chi Minh City, Da Nang), Malaysia (Kuala Lumpur, Penang), Philippines (Cebu)

Europe – Czechia, Hungary (Budapest), Bulgaria (Sofia, Plovdiv), Romania (Bucharest)

South America – Mexico (Mexico City, Cancun, Merida, Oaxaca), Colombia (Medellin), Costa Rica (San Jose)

Africa – South Africa (Cape Town), Morocco (Marrakech), Egypt (Cairo), Kenya (Nairobi)

 

So, Are You Ready to Pack Your bags and Move?

 

Geoarbitrage isn’t for everyone. Some people are happy with their current life and already live in places where the cost of living is cheaper than other countries. I suggest you sit down, crunch the numbers and weigh up the pros and cons before moving to another place or country. If you believe life will be better and it makes financial sense then go for it. 

 

I love to travel, but sometimes I just cannot afford it. Well, afford everything I want to do. No matter how much scrimping and saving I do – and I believe I am the queen of budgeting, I cannot stretch my money to cover everything I want to do, like upgrade my long flight. Sacrificing quality for my vacations isn’t an option. So instead of saving up for years to have a great holiday, I use my budgeting techniques plus travel hacking techniques I stumbled upon some years ago. Let me explain in this beginner’s guide to travel hacking.

 

What is Travel Hacking?

 

Travel hacking is the art of using points and miles earned strategically using credit cards points or miles programs. By making purchases, not necessarily on flights and accommodation, on your credit card you can build up points or miles which you can use to get cheap or free flights and accommodation. Sounds good to me!

 

The Benefits of Travel Hacking

 

The biggest pro of travel hacking is you can score cheap or free flights and accommodation. Or perhaps you can use your points to be upgraded from an economy seat to a business seat on a flight. And believe me, once you have flown business class or even first class, you will not want to fly economy again. Experiencing access to private lounges pre-flight, wider seats that lay down on the flight plus generous legroom and tasty meals is totally worth every effort of travel hacking.

 

What is the downside of Travel Hacking?

 

The downside to travel hacking is you need to spend thousands of dollars on your credit card to earn points. 

 

How to Start Travel Hacking

 

Find the Right Credit Card and Loyalty Program

 

The key to successful travel hacking is to find the right credit card or cards and loyalty programs for your needs. What are your travel needs you ask? Think about what cheap or free travel things you want. Is it cheap or free flights and accommodation or is it to be upgraded? And is it domestic travel you want or international travel? Do you want to use your points to help you work abroad on a working holiday? Are you relocating to another country to be a digital nomad? Is there a particular airline or airlines and hotel chain you want to travel hack? If there is, then find out which credit card/s they are aligned with.

 

Airline Alliances

 

Some Airline Alliances include Star Alliance, SkyTeam and Oneworld.

 

Star Alliance 

Star Alliance includes 26 airlines. Each airline remains individual but you can use your points on any one of these airlines. They include Aegean, Air Canada, Air China, Air India, Air New Zealand, ANA, Asiana Airlines, Austrian, Avianca, Brussels Airlines, Copa Airlines, Croatia Airlines, Egyptair, Ethiopian, Eva Air, Lot Polish Airlines, Lufthansa, SAS, Shenzhen Airlines, Singapore Airlines, South African Airways, Swiss, Air Portugal, Thai, Turkish Airlines and United. 

 

SkyTeam Alliance

SkyTeam includes Aerolineas Argentinas, Aeromexico, Air Europa, Air France, China Airways, China Eastern, Czech Airlines, Delta Airlines, Garuda Indonesia, Ita Airways, Kenya Airways, KLM, Korean Airways, Middles East Airlines, Saudi, Tarom, Vietnam Airlines, Virgin Atlantic and XiamenAir.

 

Oneworld Alliance

Members of Oneworld Alliance include: Alaska Airlines, American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines, Malaysia Airlines, Qantas, Qatar Airways, Royal Air Maroc, Royal Jordanian, SriLankan Airlines, Fiji Airways (Oneworld Connect member), and Oman Air (set to join the alliance in 2024).

As you can see, there are many airlines who have an alliance. Meaning you could use your points to gain cheap or free flights or upgrades with them. Now you know the airlines, you need to find a credit card that aligns with the airline/s you would prefer to travel hack. And you don’t need just one card, you could have a few credit cards aligned with different airlines and accommodation.

 

Which Credit Cards are Aligned with Airlines

 

For example, QANTAS is aligned with the four big banks in Australia so you could apply for a credit card with one of these banks and use it to gain cheap or free flights on QANTAS or other airlines in the alliance it belongs to. Which is the Oneworld Alliance.

In Britain you may consider an HSBC credit card that has points with British Airways. British Airways is in the Oneworld Alliance. 

In America you may consider an American Express Card that has points with Delta that is in Skyteam Alliance. Or perhaps the Chase Sapphire Card that you can gain points for use on United Airlines.

 

Growing Your Points

 

Once you have your credit card, it’s time to build up those points. This means spend, spend, spend. I do suggest you start planning your airline or hotel purchases so you have a goal to reach. If you need 10,000 points to get a free flight, work out how much you need to spend to get those points. I use my credit cards for everyday purchases such as groceries, and this helps to build up my points.

 

Get Ready for Your Holiday

 

Now you have been planning and researching your holiday for a while and know the cost involved. So to reduce the cost, it’s time to use your points to reduce your holiday cost. Will you trade your points in for a cheap or free airfare or an upgraded seat? Maybe a better hotel room with a fabulous view! Once done, you will know how much spending money you have to take and how to take it.

 

Are You Ready to Start Travel Hacking?

 

Holidaying using points and miles is a great option to help you explore the world on the cheap. Travel hacking is a game changer when it comes to my travels. I’ve used my saving budget tips along with points a number of times to upgrade my long-haul flights. And I have not any regrets! Are you ready to start travel hacking?

 

How much money do you need to take on holiday?

It is hard to say exactly how much money you will need for your travels. It depends on where you are going and for how long. Also, it can depend on how frugal you are while travelling. Some people love to stay in hostels while others don’t and this can take up a lot of your money. Another thing to take in to consideration is how long you are travelling for. A weekend away would require less funds than a month long trip.

To work out how much you might need, you will need to crunch some numbers.

Before you even set off you need to cover the following items:

1. Airline ticket  $………….
2. Travel Insurance  $………….. (check out our Travel Insurance section)
3. Youth Hostel membership $……………..
4. 1-2 weeks short-term accommodation for your arrival   $…………….
5. Transportation in and around the country (countries) $…………..
6. Passport $………….
7. Visa/s $…………….
8. Vaccinations $………………
9. Backpack $…………….. (check out our Packing section)
10. Other items (sleeping bag, shoes, travel guides, etc.)
    _______________ $……………
    _______________ $……………
    _______________ $……………
    _______________ $……………
    _______________ $……………

On arrival at your destination you need to budget for:

1. Transport from the airport/seaport to your accommodation  $………….
2. Meals x 3  $…………………
3. Sightseeing (entrance fees)  $…………………
4. Longer term accommodation  $…………………
5. Spending money  $………………….
6. Other items
   _______________ $……………
   _______________ $……………
   _______________ $…………
   _______________ $……………
   _______________ $……………

I hope this helps you to work out how much to take with you on your travels.

 

 

About the author: Sharyn McCullum travelled the world for a number of years. She did long and short trips to a variety of places and needed to work out how much to take for each. She currently calls Melbourne, Australia home.

Keep putting money away and save for your travels. 

 

So you want to quit your job and head overseas to travel. But you are worried about how much money you will need and have asked yourself many times ‘how much money do I need to save before I go travelling?’. As you don’t want to run out half way through and come home with your tail between your legs! Right? It is hard to give an exact amount that you need to save before you head off travelling as this will depend on how much you spend each day. Having been through this many times myself my best advice is to take as much as possible. To help you save, here are my 10 top tips on how to save money for travel.

 

TIP: Get a backpacker job or work online as you travel.

 

My Best 10 Tips To Save Money For Travel

 

The following 10 ways helped me save $1000 a month for travel. It is not the exact blueprint you should follow. Everyone is unique and what works for me, might not work for you. My aim with the following tips is to give you some ideas you could implement into your life to help you save money for your travel abroad.

 

1. Start A Travel Savings Account and Give Yourself A Goal

 

The first thing I suggest you do to save money for travel is to open a special travel savings account. This is what I did. I worked out when I planned to leave and then gave myself time to save. Six months to save $6,000. I believed this would be enough because I planned to go on a working holiday in the UK and I was expecting to work once I got there.

To qualify for the working holiday I had to prove I had $4,000 to support myself during my initial stay. I thought having another $2,000 on top of that would stand me in good stead. And it did, for a while! Lucky I was able to work. So save as much as you can and do some research on living costs in where you might be. If you budget living costs at say, $2,500 per month, this is just an estimate for accommodation, food and incidentals you would hope the $6,000 goal would last you 2.5 months. I would suggest you save as much as possible.

TIP: Save as much as possible. The more you have helps you to travel better and longer. However, you can make money on the road by getting a travel job or work online.

 

2. Track Your Expenses

 

To help you reach your savings goal for your travels, make a list of your current expenses. Then see what you can eliminate from your spending so your savings will grow quicker. Ask yourself, do I need that coffee every morning? Do I need that pair of shoes? Track your spending in a spreadsheet or an app – whatever suits. As long as you are tracking your expenses and not wasting your money, you should see your savings for travelling grow. List and work out your weekly and monthly budget of essential items you need to pay and stick to only paying for these items. Items to put on your list include rent, mortgage, bills, food and whatever else you spend your money on. Even though it is great to live frugally you still need to enjoy yourself so treat yourself now and then.

 

3. Move Home or Rent Out Your Spare Room

 

I know we can’t all do this, but to save money on paying rent, move to a cheaper place. This could be back home with your parents or a family member. Don’t expect to not pay any rent or board, but as long as it is cheaper to help you save for your travels abroad. And if you have your own home, consider renting out the spare room. It may mean you lose your privacy, but the rent you earn from your renters will help to increase your money for travel.

 

4. See What Things You Can Reduce

 

As well as tracking your expenses see what expenses you can reduce. Do you really need pay TV? Maybe get a cheaper package. Do you need that expensive phone deal? See if it can be reduced by going on a pre-paid deal. Do you need the car? Maybe use public transport instead. Turn off the air conditioning or heating for a while! Buy budget-friendly groceries like home brands rather than the most expensive brands. There are lots of ways to reduce your spending to help you save money for your travels. But if you can’t go without these things, don’t.

 

5. Start Cooking and Take Your Own Meals To Work

 

Not only is it cheaper, but it can be a whole lot healthier to cook your own meals. I am talking about buying fresh groceries and cooking things from scratch. If you don’t know how you better learn, cause even when you are travelling, you can’t eat out every night. Apart from over indulging it really hurts your hip pocket. So learn to cook some meals. And utilise any leftovers by taking them to work for your lunch the next day. So instead of spending $10-15 on your lunch every day, save it and see that by saving this money you could save some $1,300 for your your travels in a six month period. But don’t take this to the extreme, as you still need to spoil yourself sometimes with a nice meal out. To get some inspiration for fast and fabulous recipe ideas for meals check out Travellers-Fare, fast and fabulous meals for travellers.

 

6. Do Free Things To Help You Save For Travel

 

Cut down on going out at night to bars and clubs and the movies and do free things. Maybe do more things during the day like visiting places that are free to enter. Every town and city has things going on that are free to attend. Keep a look out for them. And if all your friends are going out why not bring the party to you. Host a game night, a dinner party or a movie night. Enjoy having a budget night in. Doing this will definitely help you save for travel and some great experiences abroad.

 

7. Cut Back on Treats

 

Cutting back on treats is my least favourite thing to reduce when I save for travelling, but it must be done! Start looking at everything you buy as an experience overseas. What I mean by this is reduce (or stop) purchasing little items such as coffees, magazines, chocolate bars, clothes, books, cigarettes, etc. You will be amazed how much you will save for travel if for instance you give up buying a morning coffee at $4 each time. If you work 5 days per week and buy one coffee per day you will save $20 a week to put towards a fabulous experience overseas. If you save for 6 months that will be 26 weeks of saving $20 which would give you an extra $520. This could mean you could bungee jump in New Zealand, ski for the day in Austria, learn to scuba dive in Australia to name a few activities. Calculate savings for all the extra items you could cut back on and allocate the savings towards an overseas experience.

 

8. Sell Stuff

 

A month or two before you head overseas on your travels see if you need to keep all your stuff. Clothes, sport equipment, kitchen utensils, your car – anything really. And do you have somewhere to store it while you are away if you want to keep it. If you don’t need the things, why not sell them. Use websites such as Gumtree, eBay and Facebook Marketplace to sell your stuff. With the extra cash you could get for your stuff you could put towards a wonderful overseas travel experience.

 

9. Get a Second Job

 

You may or may not want to do this but you can seriously achieve your goal of saving for travel faster. Even it you only get a couple of hours per week or on the weekends, every little bit of extra money helps. You might want to look for something flexible like walking dogs, house cleaning, babysitting, bar tending. Even if you don’t like this type of work, just think of your travels. And the extra work may give you skills and experience so while travelling you could pick up this type of work and make extra money to further your travels.

 

10. Work During Your Travels

 

Many travellers pick up work while they travel the world. They physically work in a bar as a bartending, in a coffee shop as a barista or waiting tables, pick fruit and vegetables on farms, Au Pair and look after children in their home or get administration work in an office. Many even work online as digital nomads. What ever work you can find that will help save money for your travels.

 

Bonus Tip – Travel Hacking

 

Many savvy travellers leverage travel credit cards to use reward points to pay for flights and even accommodation, known as travel hacking. Apply for a credit card offering reward points, using one or more, to build up your points could see you travelling for free or for less than the usual fare. Credit cards are one of the ways to carry your money overseas. Use them while travelling also to pay for things and you will build up your points to help you travel further.

 

Wrapping Up on How to Save Money for Your Travels

 

So these are my 10 best tips to save money for travel. Very importantly, allow yourself to enjoy this time while you are saving for your overseas trip. Trust me, once you are travelling and experience other cultures and are having a fantastic time you won’t be disappointed that you gave up a coffee everyday or sold your car or hosted fun nights in. If after reading this you can think of other ways to save money for travelling please comment below.

 

No matter how long you are going on holiday for, overnight, weekend escape, staycation, 1 month country itinerary or indefinitely, you will need access to money to pay for things. And you have probably asked yourself how much money to take overseas? And, how you will carry your money overseas? So you don’t get caught short, in this post I will explain the best options of how to take and carry your money abroad.

TIP: Carry your money in a combination of different ways. This is because if for some unfortunate reason you lose your money or it is stolen you have a back up source to get you through you holiday without too much disruption. Here are the best ways to take and carry money overseas.

 

5 Popular Ways To Take Money Overseas

 

When I first started travelling, Travellers’ Cheques were the best way to take money abroad. Most of you reading this will probably not know what they were because like most things, things change and progress over time. Nowadays, some of the best ways to take your money overseas are:

 

1. Cash

 

Cash is always good to have. This is because some countries aren’t as tech savvy or have the infrastructure as others and prefer to deal in cash. Organise to have the some of the currency of the country you are heading to before you leave home. The equivalent of a couple of hundred dollars of your currency should be enough to last you for your first few days. During this time you can get your bearings and find out where you might be able to get some more if needed. Take some small denominations of local currency with you for your arrival. You may need small change to buy a ticket on public transport from the airport. Also for tips and possibly to buy a drink or for other small incidentals when you arrive.

Keep in mind that some countries have the US dollar as an official or unofficial currency. Therefore, it is a good idea to carry some greenbacks on your journeys. I suggest you do a little research on what currency is best to use in the country or countries you are visiting.

 

2. Access Your Current Bank Account

 

Accessing your current bank account electronically is very easy. Sign into your bank’s website or banking app and away you go. This is one of my favourite ways to access money and keep in control of it while travelling. You can monitor your account from your phone or electronic device from anywhere in the world, as long as you have wifi! And you can transfer money to yourself or be paid into accounts such as PayPal, Payoneer and Wise.

 

3. Open a Bank Account in Another Country

 

When you are working in another country you sometimes need a bank account in the local country. If you plan to work you will need one to be paid into. Your current bank should be able to help you there. They have relationships with other banks and can help you with the paperwork for you to open an account. Or you can wait until you arrive and see whether or not you will need one. For example, when I went on my working holiday to the UK my local bank in Sydney helped me open an account with a UK bank. When I arrived in the UK I identified myself at a branch and claimed my account. I did need an address though for the bank to send my new ATM card to you. Or there are electronic bank accounts such as with Revolut.

 

4. Credit Card and / or Debit Card

 

After cash, using a credit or debit card are my favourite ways to take money abroad. I’m sure you already know, but in case you are not sure of the difference between a credit card and a debit card, here is a quick rundown on the differences.

A debit card allows you to debit your account. Basically you are using your own money. While a credit card gives you access to money provided by a card organisation. When you use this money there is a fee and interest to pay back on the money you spend. Personally, I try to use my own money but have used my credit card to pay for some things while travelling. Particularly the big items like an airfare, accommodation and some entrance fees. And if you travel hack, like me, continue to use your credit card to pay for things while travelling to continue collecting points to further your travels.

Many people travel with a credit card and or debit card, and use them, for the ease and convenience they provide. Visa and MasterCard are widely accepted around the world. You can use your cards in local ATMs to access your money. Check with your bank about any fees that may apply while accessing your account when travelling. Ensure you have contact numbers available if your card/s is lost or stolen so you can make that call so no-one else can access your account.

 

5. Travel Money Card

 

A travel money card is a prepaid card that can be loaded with different currencies to make purchases while travelling overseas. You can decide how much and which currency to load the card with. It is used similar to a credit and or debit card but with a specific limit. You can also request re-loads while travelling to top up the card. Banks and some travel agencies can issue these cards. Visit your nearest bank or search on-line for information.

 

Popular Ways to Carry Your Money Overseas

 

A money pouch is a good option to carry your money overseas

 

TIP – If you have all your money in one spot, it only takes one incident to loose it all. Whenever possible, divvy up your cash and cards into multiple safe spots. 

Yep, it is best to carry your money and other valuables in different ways. Here are some the possibilities:

Travel Wallet/Purse – I have used a travel wallet that holds my passport, credit cards and other important documents in the one place. 

On-body Storage can include money belts that can be warn around your waist or neck.

You can hide your money in clothing that has a secret compartment. These can include in ties, in secret pockets, scarfs, pant belts and boots with zippered hideaways. Or a hidden compartment in your luggage.

Carry an Anti-Theft Bag. Luggage nowadays is quite savvy. There are many on the market made of slash-proof fabric, locking zippers and steel cable reinforced shoulder straps. All pretty useful to help stop potential robbers. I love my cross body messenger bag.

TIP: Have a decoy wallet. This means you will have two wallets. One used as a decoy and might have a small amount of money in it for the day.

 

Final Words on how to take and carry your money overseas

 

You have worked hard for your money so you need to know how to protect it when you travel. Those mentioned in this blog post are the most popular ways to take and carry your money overseas while travelling and even while travelling around your own country. As you have read you have a choice available to you. You could take your money in one form or a few but as long as you have continued access there is no right or wrong way how to take and carry your money. If you know of any other options please let me know in the comments.