Geoarbitrage: Our Escape from New Jersey
Okay, buckle up folks, because I’m about to tell you how my husband Jeff and I escaped a seriously un-fun retirement scenario with a little thing called geoarbitrage. Never heard of it? Basically, it’s using the power of different living costs around the world to make your money go WAY further. In our case, it meant ditching our soul-crushing New Jersey property taxes and becoming part-time expats in sunny Mexico!
Our Pre-Geoarbitrage Nightmare
Let’s rewind. We lived in a way too big for us house in New Jersey, and those property taxes? Huge! Yikes. Even with decent retirement savings, we crunched the numbers and realized at least one of us would be working until we dropped. Forget relaxing with a margarita; we’d be stressing over spreadsheets forever!
Jeff, bless his heart, loves a good internet rabbit hole. One night, he stumbled upon this “geoarbitrage” thing. People were living in beautiful places for a fraction of what they spent back home, all while still earning the same income. It sounded too good to be true…and honestly, a little crazy.
Mazatlán: Paradise…with a Learning Curve
After tons of research, we landed on Mazatlán, Mexico. Beachy vibes, affordable living, and a great expat community. What could go wrong? Well, let’s just say our first attempt to track down our rental apartment involved a confused taxi driver, Google Translate, and miming like we were lost tourists in a bad comedy.
Turns out, learning to navigate a new country has its hiccups. There was the time I accidentally bought what I thought was laundry detergent but was actually fabric softener (our clothes smelled amazing but…not so clean). Don’t even ask about the toilet paper incident – let’s just say Mexican plumbing has a different idea of “flushable.”
The Financial Payoff (And the Fun Stuff!)
But here’s the thing: amidst the mishaps, those financial worries started to melt away. That insane property tax bill? Now it’s $120 a year. Our grocery budget is wonderfully low, and don’t get me started on the price of massages or getting my hair done!
Suddenly, all that money we were throwing away on just existing is funding adventures we never dreamed possible. We’ve hiked ancient Mayan ruins, swam in hidden cenotes, and eaten our weight in the best tacos imaginable.
Plus, our new “slow living” pace in Mazatlán has been amazing. No more rushing around. We have time for beach walks, volunteering, trying new things pickelball anyone? Honestly, I feel younger now than I did back in the daily grind.
Our Hybrid Retirement Twist
But here’s where our geoarbitrage story gets even better. After a few months in Mazatlán, that familiar wanderlust kicks in. See, we both still crave exploring NEW places. That’s why we do the hybrid retirement thing: six months as expats in Mexico, and the other six traveling the world, still leveraging those lower Mazatlán costs.
We airbnb our Mazatlan condo during our travels and our expenses in Europe or Southeast Asia are covered by our rental income. Each time we come “home” to our Mazatlán condo, it’s with fresh eyes and an even deeper appreciation for the life we’ve built.
Is Geoarbitrage Right for You?
Look, it’s not all sunshine and margaritas. Moving abroad has its challenges – language barriers, bureaucracy, the occasional case of Montezuma’s Revenge. You’ve gotta be adaptable, a bit adventurous, and okay with the fact that things won’t always run as smoothly as they did back home.
But if you’re staring down a retirement that feels more like financial suffocation than freedom, geoarbitrage might be your escape hatch. Here’s the thing: it’s not about becoming an Instagram influencer living in luxury. It’s about designing a life where your money supports YOU, not the other way around.
