Geoarbitrage Experiment 1: Mexico
Like many of us, I was stuck at home on the couch during COVID. Also, like many of us, my industry was basically shut down. Even though I’m a healthcare staffer, most non emergency services (including “nonessential” surgeries) were on hold. My original plan was to stay in my rental room in California - where my contract had recently ended- and wait until the job market picked up. That didn’t happen.
After 2 months of paying $1,200/month rent in a house with 3 roommates, I came up with an idea “why don’t I just ride out the pandemic in Mexico until the job market comes back?” At that time, Mexico was one of the few countries allowing Americans to visit, plus an American passport holder can stay in Mexico up to 6 months. So. I put my stuff in my car, put the car in storage, and booked a flight (free with flight miles)
Even though I was in the Cancun/Playa del Carmen region- well known for tourism and party scenes- that wasn’t my purpose. It wouldn’t have mattered anyway as the beaches and bars were closed down. I'd been taking online Spanish lessons and was rated at “advanced intermediate level”, but wasn’t practiced or confident in daily use. This was the perfect excuse for a little immersion practice. For a month of the stay, I lived in Puerto Morelos, several miles from the beach, where the locals live. There I’d done all my living tasks completely in Spanish and got much more comfortable speaking the language, ate locally at local prices, got routine meds and dental checkups at serious discounts vs home. Cost examples:
Rent an Airbnb in the actual town. 2 miles from the beach and tourist drag .. $17/day (500 USD/Month) Inc ac, wifi, towels, water etc
“Colectivo” bus to town to beachfront 15 pesos ($0.60 USD)
Large bag of watermelon, piña jugo veggies from the mom and pop frutería (fruit shop) 85 peso ($3.80)
1.1 pounds bbq ribs with tortillas, frijoles, rice 100 pesos ($4.50)
10lb laundry wash, fold, ironed at mom and pop lavanderia (laundry service) 64 pesos ($2.85)
I was also paying ~300 USD back in California for car storage. I paid extra for an indoor drive in garage seeing as how my car was loaded with all of my stuff and some expensive electronics
The plan was a success. 2 months later, I was chilling on a (recently reopened beach) drinking a Margarita, when I got a phone call. They were from a home health job in Silicon Valley, that I’d honestly forgotten I applied for. As is common with travel OT jobs they asked “can you get back to Cali and start in 3 weeks?”. I finished my margarita and used the money I saved by not being in California to pay for a flight (later reimbursed by the company) and to put toward a new room.
More importantly, I was able to display a proof of concept. Geoarbitrage, living in cheaper countries, can actually work. This experience proved valuable a year later during experiment 2- Thailand.
