Hello, new friends! – assuming you’re here because you googled my name after seeing or reading the news. Everything you’ve read and heard is true: I do, indeed, live quite happily on $1,000 USD a month – or somewhere around $1,354 CAD as of this writing.
How? Geographical arbitrage. If you’ve never heard about it, I’m happy to be the one to blow your mind with that amazing concept. I first learned about it from Tim Ferriss’s 2007 book “The 4-Hour Workweek.” That book is brilliant, it aged quite well, and it’s filled with fun ideas: setting up and outsourcing a business, or hiring a virtual assistant, or moving someplace much cheaper where you can enjoy the same (or even better) standard of living, aka geographic arbitrage. I don’t think Ferriss ever considered that one of his readers would move from Reno to Las Vegas to Fort Worth to Tampa to Seattle to Toronto to Quebec City in pursuit of that dream, but hey – that totally worked. (And yes, just typing up that list of cities took me a while.)
2008 was a bad time to be a brand new college graduate, especially in Nevada – the ground zero for the housing bubble. That’s how, after 18 months of hustling and bustling and trying to juggle broke roommates, I got a gig as a seasonal box packer at an Amazon warehouse in November 2009. I packed a lot of boxes, got my permanent badge, and eventually got promoted to a data geek in my warehouse’s quality department…
Each time I moved and launched a new warehouse for Amazon, I received a cash bonus. As their bottom-level warehouse-based analyst (level 3 out of 12, where 12 = CEO), I never made much ($15/hour or less, usually), but there was always lots of overtime, and the annual cash bonuses for moving were nice… After three years, the twice-yearly pay raises for hourly employees stop, which was the main reason I ultimately transferred to corporate in Seattle. (At that point, I was L4, aka the lowest lifeform on the corporate ladder outside the warehouse world.) That position finally got me some sizable stock options, though – once again – I never made $100K, even if you add the stock on top of my unimpressive salary.
That whole time, I lived frugally, and contributed 10% of my paycheck to 401k (a retirement account in the US) while also trying to max out my Roth IRA (another type of retirement account), cooking at home, avoiding food trucks and food delivery (I still maintain that food delivery is a profligate scam), and generally being a good little saver. There were months when I’d switch my 401k allocation to 90%, just to turbocharge my retirement account while living off my savings. There were two dirt-cheap tropical vacations to Costa Rica – staying in hostels and traveling around the country by bus… Good times.
I’d always had the idea to retire early – recently, an old college roommate confirmed I’d voiced that notion even when we were both 20. There wasn’t much to do for fun during the Great Recession, so I overdosed on personal finance blogs and books, and came up with my own motto: Earn More, Spend Less, Invest the Rest. That’s also one of the main ideas in my book on personal finance, “Let’s Retire Young: Embrace Simplicity, Escape the Rat Race, and Achieve Lean-FIRE.” (While you’re there, check out my other Kindle e-books!) “FIRE” stands for “Financial Independence, Retire Early” – and lean-FIRE is retiring early on a very lean, frugal budget. A bit like a modern-day monk, or a grad student – but permanently.
One key obstacle to FIRE fans in the United States is healthcare. That was one of the main reasons I tried getting a transfer to another, more civilized country – and after many attempts, it finally worked. (At Amazon, L4’s aren’t taken very seriously; likewise for our international transfer requests.) In March 2019, I moved from Seattle to Toronto (that was one long drive!) after the company helped prepare all the paperwork to get me a job as a financial analyst (still an L4) at a warehouse in Toronto’s suburbs.
Long story long, I worked and patiently waited for the required two years before I could get my Canadian PR (permanent residency): before that, I’d been in the country on a work permit, which meant if I lost the job, I would’ve had to go back to the US. (That would have been suboptimal.) I got my long-awaited PR in April 2021. I’d spent my 2020 selling my small stockpile of Amazon stock, investing in companies that were severely undersold during the covid market crash, and making a 193% return the following year. By April 2021, I had all the ingredients in place: just enough cash to retire early + a permanent resident status in Canada + a nice safety net in the form of my two US-based retirement accounts (they’ll keep growing for the next 22 years, till I can start withdrawing from them) and my fully funded Social Security benefits. The latter isn’t enough to live on in the US, but that alone could pay for my frugal lifestyle.
After leaving Amazon in May 2021 (ironically, right after the long-awaited promotion to L5: too little, too late), I hung out in Toronto for a bit, and then moved to Quebec City in September 2021. Why Quebec City? Well, let’s just say there was a reason I had become a financial analyst – it wasn’t just because of my seniority… I did a lot of research: the province of Quebec had the lowest rent in all of Canada. Within the province, two cities stood out: Sherbrooke had the cheapest rent of all (roughly $450-500 CAD for a studio apartment with all the utilities), while Quebec City had the second-cheapest. Quebec City was a little bigger and a lot prettier, and so…
My shiny 1-bedroom apartment is spacious and nice, on the second floor of a quiet brick building in the center of the city, within walking distance of everything. I live without roommates, and my rent is $674 CAD a month ($498 USD). The water and internet bills are included, and I pay only for electricity (or hydro, as they call it in Canada). With that sole bill and with the renter insurance, my total monthly rent is $734 CAD or $542 USD. That’s unheard of elsewhere in Canada, I know – and you might have a hard time believing it, but look it up – go on Facebook Marketplace, select Quebec City (or Lévis – the town right across the river), and search for “louer” – “rent.” You’ll find many other deals in that price range, and rental rooms for $450 CAD or thereabout.
Feel free to call me a liar. I know, these numbers look ridiculously low, but hey – Quebec is an awesome province with very strong rent control, and geographic arbitrage is a beautiful thing. You’ll have to learn French if you want to live here, but it’s not too hard: I speak passably decent pidgin French after just a couple of years here. You can too, eh. (The local francisation program will pay you $200 CAD a week to attend a community college – cégep – full time for a year to learn the language and the customs of your new home. It’s not perfect, but it’s much better than DuoLingo.)
And so, $734 CAD for rent. My cellphone bill is $64 CAD, but I can probably lower it a bit if I try. My grocery budget is $300 CAD a month, and even that is too much: I cook at home, take advantage of sales, and live healthily yet simply. (Yes, I eat meat.) I also brew my own red wine, which is ridiculously cheap and fun. My budget also includes $100 CAD a month (or $25 CAD a week) on going out to eat. If/when I spend less than planned on groceries, that $95 CAD weekly budget ($70 + $25) goes into more trips to local diners and bakeries. The total so far is $734 + $64 + $300 + $100 = $1,198 CAD, or $884 USD. That leaves a whopping $156 CAD for random, non-going-out, non-grocery expenses, and that’s plenty enough.
It helps when you deliberately choose not to have a car: I sold mine shortly after leaving Amazon, and I never looked back. The cost of insurance + gas + parking + maintenance + the low-key stress the car might get stolen… I don’t miss any of that. Quebec City is remarkably pedestrian-friendly, and there are buses all over the place. (I use up one $3.40 CAD bus pass per week to get my groceries.)
For entertainment, I use public libraries, YouTube, and my book collection. For exercise, I walk around town and do body weight and dumbbell exercises at home. And yes, I do have a girlfriend – I’m not some chronically single weirdo living in a basement. The two of us are happy.
A few weeks ago, a journalist from Business Insider found one of my old Reddit posts (where I detailed my $1K/month plan) and asked for an interview, and I happily obliged. You can read it over here. In a matter of days, MSN reposted the article, then Yahoo Finance reshuffled a few words and reposted it too (that was quite funny), and then a local news channel based out of Montreal reached out for an interview too… Here it is – they mispronounced my name, but they got the story across, and that’s all that matters!
I genuinely hope that others will look into these concepts – FIRE, lean-FIRE, geographic arbitrage, and so many others – and will take steps to at least simplify their finances, if not move to an exotic new town/country/continent and retire early, a few decades ahead of the arbitrary schedule we’re supposed to follow for some reason.
My plans for the next couple of years include, in no particular order:
- finding and agent to sell my newly finished science fiction novel, “Time Traveler’s Etiquette Guide”
- writing my second science fiction novel! (See the blog post just before this one.)
- hiking the Continental Divide Trail (my Pacific Crest Trail adventure in 2022 was glorious, and now I’m hooked)
- joining the Canadian Army Reserves to help my new country fight natural disasters
- joining a huge local community garden to level up my gardening skill and get a share of their vegetable harvest when it’s done
- and much, much more…
There will, of course, be those who refuse to believe me, or – as the meme goes – will not be stopped by this blog post because they can’t read. Nonetheless… A very quick FAQ:
Q: Aha! You worked for Amazon, you rich tech-bro, you! That’s how yo managed to retire at 34!
A: Technically, that’s not a question… But no, like I said above, I never made $100K USD even if you add up my salary and stock grants. In fact, I’m pretty sure I never even made the median salary in any city I ever lived and worked in.
Q: You got lucky with your apartment, and you’re grandfathered in, and you’ll never find that deal again! Why are you bragging about this?
A: My apartment is, admittedly, cheaper than average, but you can find many others in this price range. And I moved here just 2.5 years ago: it’s not like I’ve been renting it since the 1960s. In fact, the rent has already gone up, technically: electricity (hydro) used to be included in the rent when I first moved in. There are many other deals like this.
Q: I can’t read, and squiggly characters confuse me! Where the hell do you live on $1K a month, Nunavut?
A: Nope – in the beautiful Quebec City. Sherbrooke is even cheaper! Also, that’s $1K USD, or $1,354 CAD – not $1K CAD.
Q: You lie! You got a huge inheritance, didn’t you? Didn’t you?
A: I did not, my cynical friend. Despite having buried my biological father and two stepfathers, the most I ever received from any of them was a collection of cool gems (not diamonds, no) and a beaten-up old bicycle. Also, a couple of worn white T-shirts. No riches or deeds to abandoned farms, sorry to disappoint.
Q: What the hell do you even do on that kind of budget? Sit around and watch the paint dry?
A: I do quite a lot, actually! I’m in the best physical shape of my life now, I do a lot of reading and listen to tons of fun podcasts (we live in the golden age of podcasting), I practice my photography and tinker with a couple of musical instruments, I play video games (classics are cheap, if not free), I volunteer at a local non-profit, and so much more… There’s a lot of fun stuff you can do without spending a penny. I hope someday you’ll find it too.
And with that, I’ll probably wrap up this novella. If you have any other questions, comments, or concerns, please feel free to comment here or use the “Contact me” form!
Good luck on your financial journey, y’all.
Grigory Lukin.com 