Geoarbitrage In Action: $1.84 Coffee And Cake In Latin America

Geoarbitrage is the idea that you can earn money in a high cost-of-living area while residing somewhere less expensive. Or in an environment more suited to your personal preferences.

This is nothing new.

Robert Louis Stevenson traveled around the Pacific, enjoying warm weather and absorbing local cultures — all while supporting himself off his writing.

As someone who likes travel and finance, I wanted to share a few examples of geoarbitrage in action.

This is my apartment (the living room at least):

I rent it for ~$450 per month and it is located in the city center.

Before writing this article, I went across the street to a local indoor market.

At the market, there’s a local café.

I ordered the coffee and cake combo, totaling $1.84 in U.S. Dollars.