Johnny and Derek discuss one of the best strategies to escape inflation: Location Arbitrage. For those of you that can work remotely or do not need to work, living in a cheaper place is the easiest way to get the most bang for your buck. Johnny explains where he has decided to spend the winter at and they compare prices to where Derek is at in Los Angeles, a notoriously expensive place to live.
 
Discussed: 
⁠Big Mac Index
⁠⁠Numbeo Cost of Living
⁠⁠$16 Big Mac Story⁠

Where we are:
Johnny FD – Kyiv, Ukraine / IG ⁠@johnnyfdj⁠Sam Marks – Bangkok / IG ⁠@sammarks12⁠Derek – Los Angeles / IG ⁠@DerekRadio⁠

Sponsor:
⁠MasterClass⁠
Boost your confidence and find practical takeaways you can apply to your life and at work with MasterClass. Our listeners will get an additional 15% off an annual membership at ⁠MasterClass.com/ILAB⁠⁠ILAB Patreon⁠

Join the Invest Like a Boss Patreon now and get tons of bonus content, including additional episodes, full quarterly updates including account screenshots and more for as low as $5/month at ⁠Patreon.com/InvestLikeaBoss⁠

Time Stamp:
02:32 – Johnny & Derek Intro
12:20 – $16 Big Mac Controversy
17:15 – Big Mac Index
20:10 – Cost of Living Resources
32:44 – Why is Thailand Still Cheap?

If you enjoyed this episode, do us a favor and share it! If you haven’t already, please take a minute to leave us a 5-star review on Apple Podcasts and Spotify.
Copyright 2023. All rights reserved….(read more)

LEARN ABOUT: Investing During Inflation

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

Inflation is an economic concept that affects the value of money and the prices of goods and services. When inflation rises, the purchasing power of money decreases, leading to higher prices for everyday items. In some cases, inflation can be so severe that it can erode the value of savings and investments, making it difficult for individuals and businesses to maintain their financial stability.

One strategy for escaping the negative effects of inflation is through location arbitrage, which involves taking advantage of price differences in different geographic locations. This can be a particularly effective strategy for individuals and businesses in countries with high inflation rates, as they can benefit from purchasing goods and services in regions with lower inflation or even deflation.

One example of location arbitrage in action is found in the case of 284, a popular practice among Argentines looking to escape the high inflation rates in their home country. The term “284” refers to the price difference between products in Uruguay and Argentina, particularly when it comes to electronic goods, clothing, and other consumer items.

Due to the significant inflation in Argentina, many people have opted to travel to Uruguay to purchase these items at a lower cost. By taking advantage of the lower prices in Uruguay, they are able to protect the value of their money and maintain their purchasing power in the face of inflation.

Location arbitrage can also be applied to a larger scale, with businesses seeking to establish operations in countries with lower inflation rates in order to mitigate the effects of inflation on their costs and profitability. By diversifying their operations and taking advantage of price differences between different locations, businesses can insulate themselves from the negative impact of inflation and maintain their competitiveness in the market.

In addition to protecting against inflation, location arbitrage can also lead to increased economic activity and development in regions with stable or lower inflation rates. As individuals and businesses seek out opportunities in these areas, it can contribute to job creation, investment, and overall economic growth.

While location arbitrage can be an effective strategy for escaping inflation, it is important to consider the potential risks and challenges associated with this approach. Currency fluctuations, logistical issues, and regulatory differences between regions can all impact the success of location arbitrage efforts. Additionally, businesses and individuals must comply with relevant laws and regulations when conducting cross-border transactions and operations.

In conclusion, 284 and location arbitrage serve as an innovative approach to escaping the negative effects of inflation. By taking advantage of price differences between different geographic locations, individuals and businesses can protect the value of their money and maintain their financial stability in the face of inflation. However, it is important to carefully consider the potential risks and challenges associated with this strategy in order to ensure its effectiveness.