How I Live Abroad On Passive Income WITHOUT Being Rich

Summary

In this video, the concept of geo-arbitrage is explored, demonstrating how moving to a lower-cost Muslim-majority country can offer financial freedom without needing a fortune. By earning remote income, individuals can live in comfort and luxury on a fraction of what they’d spend in high-cost countries. The video explains how even modest salaries can make someone wealthy abroad and provides practical steps for securing passive, location-independent income. The message encourages viewers to rethink their financial goals and consider making hijra to achieve a richer, more fulfilling life, both financially and spiritually.

Takeaways

• 😀 You’re already rich; you just need to live in the right place. Geo arbitrage can make you wealthier by moving to low-cost countries while earning from high-cost countries.
• 😀 The Western mindset of needing a large income to retire is keeping you stuck. Instead, focus on purchasing power in different countries.
• 😀 In Egypt, $500 per month is more than enough to live comfortably and places you above many local workers, including entry-level engineers.
• 😀 Earning $1,000 a month in Egypt makes you upper-middle class, allowing you to afford dining out, taxis, and living in a decent area.
• 😀 Earning $2,000 a month in Egypt places you in the top 5% of earners, allowing you to live in a gated community with luxury amenities.
• 😀 With $5,000 per month, you become part of the top 1% in Egypt and achieve financial freedom, saving significant amounts due to low living costs.
• 😀 The same income that may feel inadequate in Western countries makes you wealthy in Muslim countries, thanks to geo arbitrage.
• 😀 You can achieve financial independence abroad without needing a huge lump sum by focusing on location-independent income sources like passive income.
• 😀 There are three main ways to generate location-independent income: through entrepreneurship, investments (like rental properties), and retirement benefits.
• 😀 Securing remote work or starting a side hustle is essential for moving abroad and thriving financially in a lower-cost Muslim country, leading to a richer life overall.

Q & A

What is the main concept discussed in the video?

The video discusses the concept of 'geo arbitrage,' which refers to the strategy of living in a lower-cost country while earning an income from a higher-cost country, allowing individuals to live more comfortably and affordably.

What is geo arbitrage and how does it work?

Geo arbitrage is the practice of earning money in a higher-cost country, like the US or UK, and spending it in a lower-cost country, such as Egypt, Malaysia, or Turkey. This allows people to live better lives with less income due to the lower cost of living in these countries.

How do income levels differ between the US and Egypt in the context of geo arbitrage?

In the US, earning $500 to $5,000 a month may leave someone struggling, but in Egypt, these same amounts of money can place an individual in the middle or upper-middle class, enabling them to live comfortably and afford luxuries like a maid, international schooling, or even a gated community.

Why do many people fail to make the move abroad for hijra?

Many people believe they need a large sum of money, such as $500,000, to make the move. They often base their calculations on the high cost of living in cities like New York or London, rather than considering the local purchasing power in lower-cost countries.

What is the mistake people make when planning their move abroad?

The mistake is calculating how much money they need to move based on expenses in high-cost countries. Instead, they should focus on purchasing power and how much their income will stretch in a more affordable location.

What role does passive income play in making geo arbitrage feasible?

Passive income, especially location-independent income, is key to geo arbitrage. It allows individuals to earn money without having to work traditional hours in the country where they live, making it possible to support themselves while living abroad.

How does the concept of geo arbitrage apply to someone earning $1,000 or $2,000 a month?

In the US, earning $1,000 or $2,000 a month might mean struggling to get by, but in Egypt, these amounts can place someone in the upper-middle class or even among the top 5% of earners, enabling a much higher standard of living.

What are the three main ways people achieve location-independent income?

The three main ways are: 1) The 'systems approach' where entrepreneurs build businesses that can run without their constant presence. 2) Investment income, such as rental properties that generate passive income. 3) Retirement benefits, such as social security or pensions that go further in lower-cost countries.

How can someone without skills or experience start working remotely?

They can start by exploring remote work opportunities, learning digital skills such as coding or online business management, or starting a side hustle. These efforts will help them secure a remote income source, making it possible to live abroad with financial stability.

What is the advantage of securing remote income before making the move?

Securing remote income before making the move allows individuals to live on a fraction of what they would spend in high-cost countries, giving them the freedom to live in a Muslim-majority country and invest their extra income in assets like gold, stocks, or property.