Saving 5X Your Expenses by Working from Another Country

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Imagine cutting your expenses by five times while keeping your income the same. Sounds too good to be true, right? Well, it's not. It's a reality for many who have embraced working remotely from cheaper countries. Let's dive into how this works and whether it might be a fit for you.

Reinventing Remote Work

Last week, a wild idea hit me. Why not move out of the US and work from another country? Many actuaries, including me, have been working remotely for years. Post-pandemic, remote work has become the norm. It's proven that people can be more productive at home, enjoy job flexibility, and even work extra hours when needed. Sure, there's potential for some to slack off, but most have adapted well to this new work style. Going back to the office five days a week feels nearly impossible for many, given family commitments and suburban living.

The Conversation that Sparked It All

I pitched the idea to my spouse last week: What if we moved to a country where the cost of living is five times cheaper? If we want to save more, we either need to increase our income or decrease our expenses. Earning five times more isn't easy, but cutting expenses by five times is achievable by relocating to a cheaper country.

As an independent actuarial consultant and seeing other team members based internationally, I know this can work. Many companies have offshore teams in India, Hong Kong, the Philippines, and the UAE.

Inspired by Visionaries

I’m a big fan of Balaji Srinivasan, the American entrepreneur and former CTO of Coinbase. He is one of the greatest visionaries of our times, having pioneered the concept of the Network State—a revolutionary idea of online nationality that challenges traditional geographical governments. Just as we've created new companies (Google), new communities (Facebook), and new currencies (Bitcoin), Balaji envisions the creation of new countries through network states. Recently, the American government has intensified its crackdown on crypto, prompting Balaji to relocate to Singapore. 

In a recent podcast, Balaji emphasized the benefits of moving to crypto-friendly jurisdictions and advocated for achieving financial freedom as early as possible. He highlighted that while earning five times your current income is challenging, relocating to a place where the cost of living is five times lower is entirely feasible.

Many people, including myself, have been working remotely for years. Personally, I have been working remotely for the past eight years, so the transition during the Covid-19 pandemic was seamless for me as a consulting actuary.

Our Current Situation

- Location: New York, one of the most expensive places in the US
- Family: We're a couple with three kids (11, 8, and 5) in private school. We value high-quality education and a stable environment.
- Community: My wife's parents and siblings live nearby, providing a strong family support system. We're family-oriented and enjoy a multicultural lifestyle.

My Goals for Relocation

1. Cost: Move to a place five times cheaper than the US.

2.  Savings: Achieve financial freedom faster by significantly increasing savings.

3. Education and Culture: Find good schools and a vibrant culture.

4. Beauty and Accessibility: Live in a beautiful city with easy access to other attractive places.

5. Climate and Safety: Enjoy a warmer climate than New York without extreme heat and find a safer environment.

Top Contenders: Turkey, Malaysia, Indonesia

- Turkey: Beautiful but currently unstable economically and politically.
- Indonesia: Affordable and beautiful but has cultural and language barriers.
- Malaysia: Significantly cheaper, English-speaking, beautiful, with a tropical climate and convenient travel options.

While considering these options, other places crossed my mind. For instance, I have a soft spot for Dubai. I lived and worked there for two years, and my siblings are based there. However, the cost of living in Dubai has skyrocketed, now matching that of New York. This would defeat our purpose of saving more. Additionally, Dubai's summer heat can be overwhelming.

Why Malaysia Stands Out

After thorough research using ChatGPT and Claude-3, and consulting with friends living in these countries, Malaysia emerged as the best option. It offers:

- Low cost of living

- English-speaking population

- Beautiful scenery

- Great weather

- Convenient travel

The downside? Moving away from my wife's family and adjusting to a different time zone for work. But sometimes, you have to give a little to gain a lot.

Testing the Waters

One thing we're contemplating is to spend a week in each of these three countries this summer and potentially work from there to get a feel for how work would actually feel like from there. No matter how much research we do online or how many people we talk to, there's no substitute for actually being there physically and experiencing things firsthand.