BiggerPockets Money Podcast Summary

Episode: Making Six Figures While Living Abroad (NO W2!) to FI Even Faster
Release Date: November 19, 2024
Host: Mindy Jensen and Scott Trench
Guest: Brooklyn Nash

Introduction and Guest Background

In this engaging episode, hosts Mindy Jensen and Scott Trench welcome Brooklyn Nash, a successful entrepreneur from BiggerPockets.com, who shares his remarkable journey from financial instability to achieving significant income while living abroad. Brooklyn's story is a testament to breaking generational financial cycles through strategic moves like geo arbitrage and building a profitable writing business.

Mindy Jensen [00:00]:
“We are very excited to have Brooklyn Nash on the show with us today...”

Overcoming a Risky Financial Upbringing

Brooklyn opens up about his family's tumultuous relationship with money, marked by risky financial decisions and a mix of frugality and unsuccessful investments. Growing up amidst pyramid schemes and inconsistent financial advice, Brooklyn witnessed his parents’ struggles, leading to numerous cycles of financial upheaval.

Brooklyn Nash [01:19]:
“There were a lot of pyramid schemes... and on the bigger investments, they didn't... stay the program. So it just turned into 20 years of financial upheaval every few years.”

This background instilled in Brooklyn the importance of financial independence, teaching him to balance earning more with saving effectively—a lesson he contrasts sharply with his parents' approach.

Breaking Free: From College Debt to Financial Independence

Brooklyn and his wife navigated significant student debt after attending a private university in Southern California. Despite accumulating $80,000 in student loans, they focused intensely on debt repayment, adhering to a strict debt-aversion strategy inspired by Dave Ramsey's principles.

Brooklyn Nash [04:35]:
“We paid it off in about five years when really looking back we could have taken a more balanced approach and maybe should have been investing a third of that.”

Post-debt liberation in early 2018, Brooklyn and his wife shifted their focus toward increasing their income rather than solely minimizing expenses, embracing an abundance mindset to fuel their financial growth.

The Move Abroad: Leveraging Geo Arbitrage

Seeking a lower cost of living, Brooklyn and his family relocated to Guatemala after spending a year in Israel for his master's program. This move was pivotal, allowing them to live comfortably on $10,000 to $12,000 annually, significantly accelerating their path to financial independence.

Brooklyn Nash [14:18]:
“We were able to live off of $10 to $12,000 a year, which helped us achieve our goal.”

Living in a low-cost environment like Guatemala enabled them to aggressively pay off debt and invest in their burgeoning freelance business, setting a foundation for substantial financial growth.

Building a Freelance Empire

Transitioning from nonprofit work to full-time freelancing in writing and marketing, Brooklyn and his wife rapidly scaled their income. Starting with a goal of $40,000 in their first year, they surpassed expectations by earning $65,000 and eventually reaching a combined income of $300,000 through their freelance endeavors.

Brooklyn Nash [15:47]:
“By year one, our goal was $40,000... we hit more like $65,000 by the time we launched the agency... a solid six figures for each of us.”

Their success in freelancing laid the groundwork for establishing BeamContent Co., an agency that separates their time from income by building a scalable business model.

Transition to an Agency Model

Recognizing the limitations of freelance work, Brooklyn and his wife transformed their business into an agency about two and a half years ago. This strategic pivot allowed them to scale beyond their individual capacities by hiring a full-time team and numerous contractors.

Brooklyn Nash [18:21]:
“We have a full-time team of five and about 20 contractors that we work with around the U.S...”

This shift not only increased their income potential but also provided the flexibility to focus on strategic growth rather than day-to-day client management.

Achieving Geographic Arbitrage and Financial Goals

Brooklyn emphasizes the power of geographic arbitrage—earning a high income while living in a low-cost country. By operating BeamContent Co. from Guatemala, they maximize their earnings potential and stretch their income further than it would in higher-cost places like San Diego.

Brooklyn Nash [21:10]:
“That $60 to $80,000 goes a lot further here than it would in San Diego, where we're from.”

While Brooklyn acknowledges that they are not yet financially independent, they describe their current status as "Coast FI," where their investments grow without the need for additional contributions, allowing them to focus on reducing work hours for better work-life balance.

Navigating Taxes and Legalities

Operating a U.S.-registered business while residing in Guatemala offers significant tax advantages. Brooklyn leverages the Foreign Earned Income Exclusion, allowing them to exclude a substantial portion of their income from U.S. federal taxes. Additionally, their income is not subject to Guatemalan income tax due to its source being a U.S. entity.

Brooklyn Nash [32:58]:
“We don't pay federal tax on up to... it's in the six figures of income that you earn while physically out of the United States.”

This strategic tax planning ensures they retain a larger portion of their earnings, further accelerating their financial growth.

Balancing Business and Family Life

With two daughters born in Guatemala and a stable community, Brooklyn and his wife plan to remain in the country for the next decade. Their financial strategy prioritizes family time and personal goals over traditional financial independence milestones.

Brooklyn Nash [22:26]:
“Both our daughters were born here... we're here at least the next decade as they move through high school and into what comes next for them.”

Their current goal is to reduce work hours from 30-40 per week to 20-30 hours, allowing more time for family activities without fully retiring from their business endeavors.

Advice for Aspiring Geo-Arbitrage Entrepreneurs

Brooklyn advises thorough research before relocating, emphasizing the importance of understanding a country’s visa requirements and the feasibility of earning income remotely. He highlights Guatemala's compatibility with their business model due to favorable time zones and the ability to easily manage U.S.-based clients.

Brooklyn Nash [40:42]:
“It really depends on the country... you have to plan for that and that's an additional expense.”

He encourages aspiring entrepreneurs to experiment with short-term stays abroad to assess their comfort and the financial impact before committing long-term.

Conclusion and Future Plans

Brooklyn and his wife have successfully harnessed the benefits of living abroad while running a high-earning business. Their approach combines disciplined debt repayment, strategic income growth, and geographic arbitrage to build a sustainable and flexible financial future. As they continue to expand their agency, their focus remains on achieving a harmonious balance between work and family life.

Scott Trench [43:06]:
“This was a lot of fun. I enjoyed meeting you in real life...”

Their journey serves as an inspiring model for anyone looking to achieve financial independence through unconventional paths, demonstrating that with the right strategies, it’s possible to thrive financially while embracing a global lifestyle.

Notable Quotes:

• Brooklyn Nash [01:19]:
  “There were a lot of pyramid schemes... and on the bigger investments, they didn't... stay the program. So it just turned into 20 years of financial upheaval every few years.”

• Brooklyn Nash [06:51]:
  “Freelance income has been really great for us... it can be not a riskier option than full-time employment.”

• Brooklyn Nash [21:10]:
  “That $60 to $80,000 goes a lot further here than it would in San Diego, where we're from.”

• Brooklyn Nash [22:26]:
  “Both our daughters were born here... we're here at least the next decade as they move through high school and into what comes next for them.”

• Brooklyn Nash [31:56]:
  “The foreign earned income exclusion... it’s getting higher and higher every year... you have to be out of the United States for 330 days out of a 365 day calendar.”

Connect with Brooklyn Nash:

• LinkedIn: Brooklyn Nash
• Company: BeamContent Co.

For more insights on achieving financial independence through creative strategies, subscribe to the BiggerPockets Money Podcast and join Mindy and Scott each week as they explore pathways to grow wealth, save more, and spend smarter.