If you’re looking to move overseas, you should be aware of the fact that a lot of the world is very poor. A lot of the world is so poor, as a matter of fact, that unless you are in the right place, it’s going to be pretty hard to live a good life. Generally speaking if you’re Gen Z, you’re going to want to make it into the global top 10% of asset holders in order to be comfortable. I know it sounds extreme, but trust me, that’s what it takes. Breaking into this group is tough, and it’s going to take you few years, but it’s worth it. The way things are nowadays, you simply can’t allow yourself to fall behind in life. This means that when you’re moving to an emerging market, choose one with a fairly high nominal GDP. It doesn’t matter that the purchasing power isn’t so great. If you’re under the age of about 27, all you should be focused on is being in a higher GDP jurisdiction, and hitting the correct growth targets. Don’t focus on cost of living. Focus on the overall GDP of a jurisdiction, and whether the place will grow over the next 5 years. If you focus on working hard and doing better than most, you’re bound to win over time. This is especially true if you get started in your 20s. This allows you to both wake up at a younger age and start compounding faster than your peers. Here’s why you should focus on being in a rich country.
We live in a cruel world
Basically in poor countries, hard work has limited value. People tend to suffer a lot because it’s simply too hard to live where they are. Some countries have low nominal GDPs, others have good purchasing power levels. It’s a rough world for those who are unable to make ends meet. Moving too a poor country puts you at risk of not being able to make ends meet, at least until after you make it back to the “first world” and get on your feet.
The gap between the poor countries is wider than the gap between wealthy ones
This means that generally speaking, you don’t want to be anywhere where overall GDP per capita is less than half of the global average if you’re just getting started. Things are just too unstable. Instead, you want to build online as much as you can, so that you can have as much freedom as possible during your 30s. If you fail, get a regular job, recalibrate, and pour some capital into your online business. Doing this in a cheap but not too poor country is how you speedrun your way to a good lifestyle.
Economic turmoil could come from anywhere
This is the problem with moving to countries that are a lot poorer than average. We don’t know where and when economic turmoil and losses will come about. If you’re in a super poor country, things can turn upside down almost instantaneously. Look at what happened to Sudan. You never know what will happen. This is why it’s wise to build online, and focus on money and education when you’re young. You want to be in a good position in your 30s and 40s. Stay in a stable country.
High Nominal GDP Means More Government Services
This is because government services are basically the general public getting a bundle deal. The more money your government has, the bigger and better the bundle. Don’t give that up too soon simply in exchange for a low cost of living. You want good healthcare, and a stable military. Don’t give those things up just because you want to feel like a boss.
High Nominal GDP Means a Hard Working Populace
Generally speaking, it takes effort to produce a lot of stuff. The more money is produced in your country, the more productive the people are, generally speaking. You want to be somewhere where the average person is working hard, for now. The world has a whole lot of economic growth to undergo, and the places where growth and income are happening are full of people who work very hard. Even North Americans and Europeans work hard. It’s just that a lot of the productivity comes from the top. If you go to a low GDP area, you’re likely to find a lot of people lazing about. People in the higher GDP areas who are smart see the opportunities and work hard day in day out.
The Richer the Country, The More Mediocre You Can Be
This is the paradox of a high-GDP country. As long as you don’t follow the masses and consume like a cow, you can get ahead in a high-GDP country. This is because mediocre amounts of money in a high-GDP country have a lot of power when compounded. This means you can be absolutely mediocre and go far. Just clock in for work, have a budget and a plan. This can be a double edged sword if you’re looking to move overseas. You don’t want to get too soft.
If Moving To The Developing World, Stick To The Caribbean For The Next 5 Years
This might be hard for some people to hear. But generally speaking, you don’t want to get caught in any Southeast Asian or African country. As of right now, it’s just too poor. At the current moment, it pays to be in an up-and-coming country if you’re Gen Z. That way the path to success is a lot clearer. It’ll still take a lot of hard work, but life will appear easier when there are growth opportunities in your nearby surroundings. But it’s painful when those growth opportunities are at the subsistence level. Generally speaking, you want to go to a country where the people have something. My country is about 5-7 years away from this point. That’s OK. It gives me the chance to create a lot of stuff. A lot of the countries in the Caribbean are different from where I am. I’m not sure how, but it seems like there’s opportunity. Just need to focus and work.
Build a business before getting “educated”
If you look at the purchasing power GDP of a lot of these places along with how educated the average person is, you should realize that getting over educated in a lot of these countries is a mistake. Your education has an opportunity cost, it doesn’t stay current, and you often have to go into debt to obtain it. I am currently enrolled in an educational program, but I probably won’t do a full four-year degree. Will I regret this? Who knows. But the amount of time this choice has given me to learn about business and how it works has been invaluable. I have a fighting chance of giving myself time freedom before I’m 30. School is always there, provided you have people in your corner and aren’t a criminal.
Branch off to Africa
If you can find a way to invest your money in Africa, you’re bound to become rich. You see, a lot of Africa is currently very poor in US dollar terms. A few smart investments can put you in the upper group of investors there. Diversify a large enough amount of money on that continent, you’re bound to become rich. Just don’t put too much of your money there and end up losing it. It’s a balance, and for after you’re already well off. But remember that there’s a lot of money to be made on the continent.
Invest in Latin America
You can do this online or in person, but Latin America is a growing region in the world. If you think you can build some wealth, but not enough to buy a nice house, buying in South America might be the perfect option for you. A lot of the megacities are bound to grow quite large. I think that these properties are a reasonably good store of value, even as wealth spreads to the countryside and leaves the city. This is because prices will go down and/or level off accordingly.
Know how much (or little) you need
I know I only need $1,400-$2,800 USD in income, maybe about 25-30% more as time really begins to drag on. This means that I’m good after a little over a million dollars in net worth. I moved to the right place for this to happen. When I first came, being worth $1M in my country was possible by the time you were 65. There were people with more talent and/or connections who earned more, but $1M by 65 felt like a good benchmark for an individual in the top 1% of asset holders. Now, I would say that number has gone up to $1.5M. This means it takes far less skill for me to retire young as things stand, and it’s only been about 5 years since I’ve arrived. I made a bet, and it paid off. Now it’s time to capitalize and see it all through.
If you’re young and want to escape your country, go to the richest country possible. You can make it in a lot of places, but starting in a rich country can make you a lot of money and open a lot of options for you, provided you’re smart. Sometimes your country is super rich and bonkers. But if you’re choosing between two cheap countries, pick the wealthier place. It’ll pay off in the extreme long run.
Thanks for paying attention.
