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Financial independence is more attainable overseas due to reduced stress spending, less susceptibility to advertising, lower pharmaceutical costs, potential tax advantages, and an escape from status-driven social pressures.
Living overseas can significantly simplify the path to financial independence by reducing common sources of overspending and financial stress prevalent in Western countries. One major factor is the reduction in 'stress spending,' where individuals in high-stress jobs often spend impulsively to cope. Overseas, the cost of living is generally lower, meaning even occasional stress spending incurs less financial damage. For instance, a meal or a movie ticket can cost a fraction of what it would in the US, mitigating the impact of impulse purchases.
Another significant advantage is the diminished influence of advertising. In many Western nations, advertising plays on insecurities to drive consumption, particularly for pharmaceuticals, which are heavily advertised and expensive. In countries like Thailand, where such advertising is less common or even illegal, individuals are less likely to be swayed by marketing tactics that encourage unnecessary purchases. This reduced exposure helps maintain focus on financial goals rather than succumbing to consumerist pressures.
Furthermore, relocating overseas can offer tax advantages and a reprieve from expensive social expectations. While taxes still apply, opportunities exist to pay less, especially on investment income or by opting out of costly necessities like personal vehicles. Socially, the pressure to spend large amounts of money to participate in activities or maintain friendships is often lower. This allows for a more equitable social life where financial status is less of a determinant in relationships, and individuals can enjoy their time without the constant financial burden associated with social engagement in wealthier nations.
Finally, living abroad can help individuals exit the 'status hierarchy game.' In many Western societies, social standing and personal relationships are often tied to income and possessions, leading to pressure to display wealth. Overseas, particularly as a foreigner, one may not fit neatly into local hierarchies, reducing the pressure to conform to expensive lifestyle expectations. This allows for a greater focus on personal freedom and control over one's time, which are often the core motivations for pursuing financial independence.
Financial independence is often easier overseas due to reduced stress spending, less exposure to advertising, and lower pharmaceutical costs. These factors mean your money goes further, and you're less likely to overspend on impulse buys or unnecessary items.
Living abroad reduces stress spending by offering a less expensive and less stressful environment. Even occasional impulse purchases cost less, and the overall lower cost of living means financial setbacks from stress spending are less impactful.
Living overseas can minimize the impact of advertising, especially for pharmaceuticals, which are heavily marketed in Western countries. In many overseas locations, such advertising is less prevalent or even illegal, reducing pressure to make unnecessary purchases.
Yes, relocating overseas can offer potential tax advantages. Opportunities may exist to pay lower tax rates on investment income or opt out of costly necessities like personal vehicles, contributing to faster financial independence.
Overseas living often lowers the financial burden of social obligations. The pressure to spend large amounts to participate in activities or maintain friendships is typically reduced, allowing for more equitable social interactions.
Thailand is often cited as a place where financial independence can be easier due to its lower cost of living and reduced consumerist pressures. This allows individuals to achieve their financial goals more rapidly compared to more expensive Western nations.
Living overseas can significantly simplify the path to financial independence by reducing common sources of overspending and financial stress prevalent in Western countries. Lower costs of living and reduced exposure to advertising can mitigate impulse purchases and consumerist pressures. Additionally, opportunities for tax advantages and a reprieve from expensive social expectations further contribute to easier financial independence.
In many Western nations, advertising plays on insecurities to drive consumption, particularly for pharmaceuticals. In countries like Thailand, where such advertising is less common or even illegal, individuals are less likely to be swayed by marketing tactics that encourage unnecessary purchases. This reduced exposure helps maintain focus on financial goals rather than succumbing to consumerist pressures.
Relocating overseas can offer a reprieve from expensive social expectations. The pressure to spend large amounts of money to participate in activities or maintain friendships is often lower in many countries. This allows for a more equitable social life where financial status is less of a determinant in relationships, and individuals can enjoy their time without the constant financial burden associated with social engagement in wealthier nations.
Living abroad can help individuals exit the 'status hierarchy game.' In many Western societies, social standing and personal relationships are often tied to income and possessions, leading to pressure to display wealth. Overseas, particularly as a foreigner, one may not fit neatly into local hierarchies, reducing the pressure to conform to expensive lifestyle expectations.
0:06 Good morning, Alex here, and I'm in Thailand. In today's video, I want to discuss with you some surprising reasons why Financial Independence is easier overseas. First reason is that you aren't stress spending. And if you do, you're not stress spending as much as you would back home. What do I mean by you're not stress spending as much? Well, in the US, when we're working our corporate jobs, maybe we work in a trade, we're dealing with a lot of stress. There are deadlines that are ever-present, there are expectations that are ever-present. And if we don't meet those on a long enough timeline, we can get canned. So we feel like in the short term, we're constantly sacrificing today for tomorrow. We have this tendency to want to let off steam. It makes sense. I've had stressful sales jobs, it's very common for salespeople to engage in unhealthy activities to deal with the stress of trying to meet deadlines and trying to do everything that we can to land the sale. We tend to want to reward ourselves, at least if you're anything like me, by blowing off steam and spending money on different things to take our minds off the stress. I know some people like to go to the bar, some people like to travel in country. Sometimes do stations. The problem with this is that it can set us back from our financial goals. I've heard of some people saying, 'Oh, I always try to convince my new sales reps, they need to go buy a fancy car so that they're more motivated to go sell.' The problem with that is if we're working toward Financial Independence, we have to be especially careful about our spending. We have to track things very carefully. We have to avoid overspending on convenience and comfort. You get trapped in this situation, and I've gone through this, I know some people have as well, where you want to save your money, but you're so stressed in the moment that you go and stress spend. That's less of an issue if you're financially independent overseas because one, you can pick an area that's less stressful for you. I find Southeast Asia to be generally less stressful for myself. But also, if I do get stressed out and I do go do a little bit of stress spending, typically it's much less than what I would spend back home. I can go out and have a great meal with a smoothie for three or four bucks, where in the states, that's more like $20, $30, maybe more depending on where you are. Like if you're in Manhattan, would certainly be around that. Of San Francisco, that might even be lowballing it. Last time I went to Jamba Juice in SF, it was $11. If I want to go to a movie here in Thailand, it's 4 bucks for a ticket for me. If I wanted to take a date, be 8 bucks, maybe 10 bucks if I was in a hot area of Bangkok. Smoothies and nice meals are small when you compare this to in the ball and chain that is having a big car payment or a big house payment. People get into these status games where they're trying to show off, 'Oh, look at this success.' But what they're trading for that is they're trading their freedom, they're trading their personal time. And I think that's what people who are pursuing FI are really looking to attain: is control over their time.
3:14 Number two is that you aren't as affected by advertising, if at all. If you can't speak the language, this is something that I picked up from one of Brett Deb's videos. If you haven't checked him out, I recommend it. And I wanted to expand on his thoughts about this, or his statement on this. When I am walking around here in Thailand, I do see advertisements, I do see ads for different things, but I have no idea what they're trying to advertise. I don't know what they're trying to sell, unless it's obvious, like it's a McDonald's ad where I'm familiar with McDonald's from growing up back in the West. And I have no idea what they're trying to sell. I can't really dig into it. When I think of advertising in the West, I think of ads that I do know they are trying to sell, and they're often trying to play on an insecurity, something that we don't like about ourselves, making us feel like we're inadequate if we don't purchase a certain product to feel whole or to feel complete. We need to consume. And this is especially true in a consumer-driven economy like the United States. 'If you don't buy this car, you're nobody.' 'If you don't buy this food, you're going to be alone.' Like that's one of the things that ads seem to prey on a lot in the West is people's feelings of loneliness. 'Hey, if you spend money, you're not going to be lonely.' I don't have that experience here in Thailand. I have no idea what most of the ads are saying. I have no idea what they're talking about. I'm not going to comment on whether they're good or bad, rather that they just don't affect me. I can't read Thai, even after going on close to nine months here in Thailand, I still can't read Thai any more than I could when I first got here. I've taken classes, I've tried to learn, it's just not clicking for me. It's just so far from what I'm used to. Being in my early 30s, it's harder for me to learn. Like if I came here 10 years ago, I'd probably have an easier time learning it. Of course, the other factor is the pharmaceutical ads. America is one of two countries, the other being New Zealand, that allows for companies to advertise pharmaceuticals. And these are some of the largest advertisers in the United States. They have some of the largest ad budgets. So if you're somebody that's struggled with mental health, these pharmaceutical companies will target you. They will put ads up, they will run ads, they get all kinds of data on consumers, they're able to push this stuff on you. That kind of thing is not legal here in Thailand. I don't see pharmaceutical ads here. It's actually against the law. Pharmaceuticals, similar to software in the US, have a high markup. It's a very high margin business. It's kind of this cycle where they make a lot of money, then in turn, they can spend a lot on advertising. And I really like that that it's not allowed here in Thailand to advertise those things to make people feel just taking a pill is going to fix their problems. This is not medical advice. I'm not suggesting you should or shouldn't take medication, but I suggest you speak to a licensed doctor in your country.
6:09 Number three is that you can opt to spend less in terms of taxes or taxation. If I look at a place like California, I know some people say, 'Oh, California has got such high taxes.' Regardless of where you live in the United States, you're paying federal income tax. That federal income tax applies regardless of local taxes. So you're not getting this magic tax-free situation by moving to a red state. I really don't like that line of thinking. And so anyway, you can opt out of certain kinds of taxes or pay less in taxes even in the US. Let's just talk about outside California because that's going to be helpful. You still have sales tax. Where I'm from in Tennessee, you've got like a 10% sales tax. And so everything you buy, you're going to pay an additional 10%. That would be fine if the prices were low, but the prices are particularly low, especially not recently in Tennessee, where things have become a lot more expensive. And nobody believes the prices are coming down. Not just that, you also have to pay vehicle taxes. You have to pay registration taxes. In effect, you're paying property tax. If you're a renter, you're not going to see it where it's almost like they don't want you to know how much taxes you're paying. I'm not an accountant. I recommend talking to an accountant if you have specific tax questions. But dividends are taxed at a lower rate than you would from earned income. In fact, the people who are most heavily taxed are high earners in the US. People who earn a lot from a salary are paying the most taxes. Business owners are actually paying much lower rates. So if you pivot to where you're living from investment income, real estate income, you're going to pay less taxes on what you bring in. And then if you go to a cheaper country, you're going to pay less on what's going out. One final example about taxes you can opt out of by living overseas is if you move overseas and choose not to own a personal vehicle. In the US, owning a vehicle subjects you to a ton of taxes. You got to pay to register it, you got to have mandatory insurance, oil change, which is tax. All the services for the car are tax. I opt out of all that by living overseas by not owning a car. I don't have to pay that. Also, with food and rent being cheaper, the taxes that are built into those aren't as expensive either. So there's just a lot of inflation of taxes that people have to pay due to high cost of living in the West that you can opt out of by living overseas to some extent. I'm not suggesting don't pay your taxes. I'm not suggesting you won't have any taxes, that they will be much less, and in some cases, not apply.
8:34 The fourth reason, this may be inconsequential to some people, but that is that you're less likely to be invited to expensive, high-cost events in some other countries, just due to the fact that the average person has a lower income than say, in the US. I remember back in the US, people are always inviting me to expensive events. 'Would you like to go out to this restaurant? Oh, by the way, it's going to be 50 bucks.' Or, 'Oh, hey, I want you to go with me to the concert. By the way, 100 bucks.' That kind of thing doesn't happen over here. My friends over here always kind of warn me or let me know, 'Hey, in Thailand, for us locals, this thing is going to be free or cheap. For you, it's going to cost like 20, 30 bucks. Is that something you're open to?' If not, that's okay. But in the US, there's an expectation that you have money, and not only that, but that if you want to have a social life, you also be willing to spend money. So it's just really expensive to have an enjoyable life in the West. Over here, socially speaking, you're not going to feel excluded if you're not looking to go spend a lot of money. There's this general attitude back home that if you don't spend a lot of money, then you must be poor or you must not value your.
9:44 Be poor or you must not value your friendship. That's something that's not an issue here. If I want to just have a cheap month and not spend a lot, that's very doable here. Back home, that's going to be a real lonely month. I can pick up the phone and call people, but most people don't want to talk on the phone. So yeah, you just generally feel excluded after a while.
10:01 Some people would say my real friends will be willing to be friends with me regardless of my station in life. People want to be around people that are like them. So naturally, if you have people with more disposable income, they're going to want to be around other people with disposable income. They're going to want to go do fun stuff.
10:16 You just don't have as much pressure here to do that. I have meals with local friends, and we're just as happy spending $150 on dinner as we are spending $15 on dinner. You feel more equal in some way.
10:31 The fifth and final reason that you may find financial independence easier overseas is that you exist outside of the hierarchy status game. Now, I know a lot of people will suggest that status is a thing in all countries, and I'd agree with that. I'm not going to sit here and disagree with you.
10:50 However, you don't have the same pressure. Just like with the advertising I mentioned earlier, you're not going to be subjected to the same pressure necessarily of being high status over here. Now, if you want a date, is it going to come into question to some extent? Yes, they're going to want to know you can afford basic bills, and you can pay your rent, and you can pay for food and transportation. But they're not looking for a CEO or an actor.
11:15 As a foreigner, you just don't really fit in neatly into the hierarchy. Will there be presumption about your economics? Sure, there will be some people know international flights ain't cheap. Paying for a lifestyle when you don't have a job over here is also not cheap. There's going to be some level of assumption, but it's not to the same extent.
11:32 Where in America, you go on a date, one of the first questions you're going to get asked is, what do you do for a living? I mean, even women that I've had short flings with, I run into them a few years later, they're not asking how are you doing or what have you been up to. No, like, what are you doing for work? How are you making money? They make a determination based on that answer as to whether or not they want to have anything to do with you.
11:55 In my opinion, sales, my career path, is not the most high-status or luxurious-sounding position. But that's totally fine to a lot of the women I've dated in Thailand and other Southeast Asian countries. Like, 'Oh wow, you're gainfully employed and you earn a decent income.' And I know some of that, of course, is that I specifically focus on technical sales where there's a high margin.
12:15 But yeah, I've never had a woman over here ask me, what kind of car do you drive? What neighborhood do you live in? So, I hope this video has been helpful for you. This has been five surprising reasons that financial independence can be easier overseas. Let me know what you think down in the comments. Have you found any of these to be true? Do any of these make sense to you? Do you disagree with any of these? We'll see you next time. Appreciate you watching.
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