Small Intro

Hate it or love it but YouTube has become a tool for many people to share there lives and teach other.

One of the videos that I mostly watch on YouTube are that of travel vlogs (I just simply love it) and most of these Travel YouTubers are working on there channel full time.

Some of them have settled in some exotic foreign location,

One of the things that most of these videos have in common is how they explain there spending and how cheap the cost of living is at that particular place.

They would say, 'Oh I got this thing for only $30', 'I ate that for $10' or 'I stayed there for just $50'. Which bugs me a bit because while it may be cheap for someone earning in US Dollar but for many of us that are earning in Pesos or Rupees that's not cheap.

Please note: I am not calling out these YouTubers and I still love there content, its not there fault that they earn in US Dollar or that fact that they have audience in different demographics. In fact its a good thing as it bridge communities and promotes internationalism.

This I feel where some of us are don't have the advantage that our western counterparts have, to earn in a stronger currency and enjoy what can be understood as Geo Arbitrage.

What is Geo Arbitrage:

In simple terms the advantage from the difference of prices in different geographical locations.

Here's a quote:

Fun things happen when you earn dollars, live on pesos, and compensate in rupees.

~ Tim Ferriss

What if you don't earn in Dollars?

Now that's the question that many of us ask? But is it the right question!

If you don't earn in Dollars than start earning in Dollars.

The real question is Why don't you earn in Dollars?

Now some of you will say that I don't live in the US, I live in my country.

And that is true, even for me. I also earn most of my income in a currency that is significantly weaker than that of US Dollar.

What we majorly consider to be our income?

Well that's our salary, and yes there is no way to convert that into US Dollar salary until you migrate to the US.

And I agree that is not the easiest thing in the world or that feasible if you also consider the cost of living in the US.

Secondary source of income

Apart from salary we should strive towards generating different sources of income and in present day and age there are many online options many of which are denominated inn US Dollars.

Think:

• YouTubing

• Freelancing

• Publishing books

• Drop shipping

• Selling digital products

• and many more...

For example let's take YouTube, if you are able to earn from it then the payment you get from it would be in USD and when it will hit your bank account most likely it would be converted to your local currency.

Taking Advantage of the Arbitrage

If you look at it from this way than you can see that if you can generate a few side income streams that would be more cash flows towards you and if you are earning in USD than you'll have more in you local currency

Suppose you earn around $100 from YouTube every month, now that is not a big amount and someone living in a big city in US may just be able to get one taxi ride from it while you may be able to pay your monthly electricity bill with that.

Which would mean a less burden on your monthly salary

This way people living on Pesos and Rupees can also take advantage of the Geo Arbitrage

Now I know it is less not as good as someone who had lived and earned in the US but we have to work with the hand that we are dealt with and make the best for us.

Importance of secondary income

It is of paramount important that one should have a side income and if possible passive income, with everything happening in the world right now we just simply cannot afford to put all of our eggs in one basket.

No matter if you live in the Philippines, Malaysia or USA you are putting yourself at risk by relying on a single source of income.

I myself am trying to set something up to get that second income and I learnt it the hard way when I was fed up at my previous job.

Having a second income even if that is only good enough to just pay your bills is a huge thing and could mean that you have the freedom to quit your regular job if it is affecting you badly or in situation where you are laid off due to any issue like economic slowdown or pandemic.