Remote work lets you save money by giving you the freedom to move. You can earn a high salary while working in a lower cost of living city. Or you could move to a state with lower taxes. Even if you can't move, remote work still knocks off transportation costs and commuting time.
In More Details
Planning a Career — Remote work is getting more popular, especially as a software engineer. It will be more competitive finding a remote job, since you'll be competing with a larger pool of candidates. A common career strategy is to start out at a technology hub (Silicon Valley, San Francisco, New York, Seattle, etc...), where your starting salary is high to reflect cost of living and competition. Then after a few years, finding remote work (with a comparable salary) and moving to a lower cost of living city.
Geoarbitrage — This involves moving to a city with lower cost of living while retaining your high income. This significantly increases your savings rate and accelerates time to financial independence. It's especially useful to avoid high property costs of cities like San Francisco or New York. Note that what matters most is net savings. It may not be worth moving if your income decreases more than the amount you'll save.
Further Reading
- We Work Remotely — a popular job board for remote work
- Buffer's State of Remote Work — annual report on remote work
- Ultimate Geoarbitrage Strategy — a short guide on geoarbitrage
Related Tips
-
Negotiate Your Salary Negotiate your base, equity, bonus, and benefits
-
Become an Effective Engineer Progress in your career by mastering your craft
-
Save on Housing Buying vs Renting and the importance of avoiding lifestyle inflation
-
Save on Transportation Used cars and alternative methods of transportation
-
Save on Taxes What can you do to save on taxes?