Geo-arbitrage is the practice of moving from an area with a high cost of living to a place with a lower cost of living. It’s one of the bits of advice some FIRE enthusiasts suggest for those looking to reach financial freedom faster. But does using geo-arbitrage always make sense?

Topics covered in this episode on geo-arbitrage

* What is geo-arbitrage?

* Is moving really just about the money?

* How to understand your lifestyle and how it fits into geo-arbitrage

* Reasons to move

* Realities of moving to a low-cost-of-living area and some of the challenges

* Understanding taxes—it’s not just about income taxes

* Living in a high-cost-of-living area can be the right choice to save your sanity

Sources used for this episode on LCOL vs. HCOL area

* Our rant episode that includes info from Eric Rosenberg about choosing a HCOL area

* Our episode on choosing whether to have kids

* Cost of moving information from HireAHelper and Nerd Wallet

* Find information on state and local taxes and property taxes from the Tax Foundation and Bankrate

* CNN Money’s cost of living calculator that can help you compare salary needs in different areas

* Cost of childcare by state according to World Population Review

* Home insurance cost by state from Insurance.com

Our financial resource

If you want to learn more about geo-arbitrage and how to make it work, check out this article from Smart Asset.

* Sarah Li-Cain

* Miranda Marquit