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Category: Frugality

Winning at disposable income

So over the past two weeks I’ve discussed how geoarbitrage can give you the disposable income of a richer person, as can general frugal common sense. None of this comes close to depriving yourself of anything really important to your happiness or wellbeing. I want to round things up this week by trying to bring it all together.

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How frugality gives you the income of a richer person

Last week I wrote about how moving to a place with a cheaper cost of living (specifically accommodation costs) such as a smaller city or town, can give you similar disposable income to a richer person in a big city. This week I want to show you how simple being more frugal can achieve the same thing (of course for maximum effect, do both!)

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How geoarbitrage gives you the income of a richer person

There are lots of ways to measure wealth. Net worth is a very common one. Income is another. But it could be argued that disposable income is an accurate measure of how wealthy someone feels in their day-to-day life.

Disposable income is basically the money you have left each pay check after you’ve covered off all your essentials. How much of it you have can make a huge difference to how stressed or relaxed you feel about your financial situation. And where you live can have a huge impact on how much disposable income you have.

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