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.
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!)
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.