Thanks to the Internet, many jobs can now be completed remotely. This allows remote workers to work from anywhere in the world, including countries that are much cheaper than Australia, to engage in so-called “standard of living arbitrage”.
The work environment is changing thanks to the growing use of technology in the workplace. Today, a fair share of companies allow their employees to work remotely and no longer require them to come to an office. Furthermore, a growing number of Australians are working in a freelance capacity rather than full-time and most of these freelancing jobs can also be done remotely.
The work environment is changing thanks to the growing use of technology.
What is standard of living arbitrage?
The ability to work remotely, therefore, not only enables individuals to work from the comfort of their own homes, which saves money on commuting and eating out, but it also allows them to work from different countries that provide a comparatively higher standard of living at a much lower cost than back home in Australia. This is what is known as standard of living arbitrage.
The ability to have a higher standard of living in a low-cost country by being paid Western rates but spending at local prices is something an increasing number of so-called “digital nomads” have chosen.
Common professions that allow for this lifestyle include graphic designer, developer, freelance writers, digital marketer, social media manager, and most jobs that can be completed on a freelance basis. Furthermore, there is an increasing number of remote full-time jobs, usually offered by innovative tech companies.
The prices for essentials such as rent, food, drink, and transport are much cheaper in countries such as Thailand, Malaysia, Vietnam, and on Bali, which are some of the most popular hotspots for “digital nomads”.
Spending several months each year in one or more of the above-mentioned destinations is an excellent way to save money while enjoying a fun and exciting lifestyle.
Moreover, if you have investment properties back in Australia generating rental income, you could use that income to supplement your life abroad.
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