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Scott Galloway
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Scott Galloway
Welcome to Office Hours with Prof. G. This is the part of the show where we answer your questions about business, big tech, entrepreneurship and whatever else is on your mind. Today. We've got two great listener questions lined up and then after the break we've got the Reddit Hotline where we pull questions questions straight from Reddit. If you'd like to submit a question for next time, you can send a voice recording to office hoursproffetymedia.com or if you prefer to ask on Reddit, post your question on the Scott Galloway subreddit and we just might feature it in our next episode. First Question.
Listener
Hi Prof. G. I'm a solopreneur in my late 30s running a modestly successful online business. My partner and I have deep ties in the US but work independently and could live anywhere. As we consider having kids and the life we would want them to have, have we also discussed moving abroad for three main lifestyle arbitrage, a more supportive environment for children and as a hedge against US Instability. Given your recent thoughts on diversifying your investments globally and your current residency in the uk, do you think younger Americans should be diversifying their residency options when possible? If so, which countries would you look into that still offer some of the economic opportunities that the US Currently does? Thanks for all the great content and advice.
Scott Galloway
I love this question. According to a Harris poll released In March, roughly 40% of Americans have considered or are actively planning to move abroad. The number one reason? Cost of living. More than half of Americans say they believe they'd have a higher quality of life abroad. Among those that planned on leaving their top choice destinations were Canada, the UK and Australia. As for non English speaking countries, Americans indicated they were eyeing moves to countries including France, Italy, Japan, Mexico, Spain and Germany. Countries ranked among the most receptive to digital nomads are Spain, the uae, Montenegro and the Bahamas okay, so in sum, I love a lifestyle arbitrage and you want to lean into your strengths. And if your strengths are you have a career that is not location dependent or geographically dependent, then you want to do the lifestyle arbitrage. The key is to make a urban city like salary without having urban city like costs. Unless you're in love with cities. And then okay, some people I know, some people are like I am leaving New York feet first and I don't care what it costs, I don't care what sacrifices I have to make. Most people, by the time they have kids in New York, peace out. Because it just gets prohibitively expensive and the lifestyle is just tough. I remember walking around with my boys in Manhattan and thinking I always had to have their hands for fear they'd run out into the middle of traffic. So 100%, I would say really be thoughtful about the lifestyle arbitrage. My general assumption or general reductive analysis after having molested the earth for the last 30 years is that America is the best, best place to make money and Europe's the best place to spend it. So if you can make an American salary and live in Europe, that's a decent arbitrage. Also, think about different places in the US and that is there's a lot of cities in the south, quite frankly, that I think are just so. For me, arbitrage is one. I think college towns are great arbitrages. Whether it's Charlottesville or Ann Arbor or Chapel Hill. These cities typically, if you can call them cities or towns, typically bring this great peanut butter and chocolate combination of a urban sensibility with rural beauty and hopefully rural pricing. And you can have A great quality of life in a college town. I think there's a lot of cities in the south right now that offer what I think is a great lifestyle arbitrage, specifically the weather that aren't as expensive as some of the blue cities in the North. In sum, if you were to look at migration patterns in the US it's driven by two things, low taxes and sunshine. And I would also think about, you know, think about this a lot. But the tax arbitrage by moving to Florida from New York and you have to move, you can't fake it. You have to spend 183 days there and roll your kids, you really can't fake it. You legitimately have to move. The 13% swing. I reinvested purposely that entire 13% over 10 years and it helps have a bull market. But basically my cars, my housing, my kids, school were paid for in that tax swing because I make really good money. But a lot of it was current income. So 13% of that, then you invest it. If you make $300,000, you're not saving $39,000. You're saving. You have $39,000 in capital that should grow to 78 or 100, 15010 years on. And you do that every year. You wake up and you might have seven figures in additional wealth that you didn't have had you not moved. So I love a lifestyle arbitrage. Some cities that I think offer incredible lifestyle arbitrage is at the moment, by the way, it used to be Florida when I moved to Delray Beach. Our first home that we rented there was on the water on the Intracoastal and cost us $4,500 a month. It no longer costs $4,500 a month. Word is out about Florida that lifestyle arbitrage has been starched out, as they usually are starched out. Some cities I would consider, if you were single and male, I would think about Cape Town. I think the crime there is a factor. But if you can make a western salary in Cape Town, you're just going to have an extraordinary quality of life. I love Cape Town. I've been there several times now and I can't get over how good the food is, how deep the culture is and how inexpensive everything is. Now crime is an issue. So I wonder if it's a place for a family. I'm sure other people will weigh in, but I think in terms of just pure raw beauty colliding with an incredible city and incredible food, incredible culture at a incredibly low cost, that is really hard to beat. Madrid or somewhere in Spain. I just think the Spanish get it in terms of being able to get a great bottle of wine for eight bucks walking around, fairly safe, incredible culture, history, proximity to other great cities in Europe. I think Spain offers an incredible lifestyle arbitrage and pretty good weather. The other city I would consider is Mexico City, and I'm assuming it kind of likes cities. Maybe you just want to do a rural arbitrage, by the way, move everywhere but Connecticut or some suburb or Tiburon where it's beautiful, but it's the same. I've never understood anyone that lives in the Northeast and doesn't live in Manhattan. I just don't get it. It's like all the cold, all the bullshit and all the taxes and expenses. If you're going to live in the forest somewhere, move to a place with low taxes and low rent and low housing costs and good schools anyway. It's not easy to find. But I think Mexico City right now is an incredible lifestyle arbitrage. It's safer than people think, the food's amazing, great art scene, and I would say kind of 30 to 60% of the price of say, Los Angeles. I think it's a fantastic strategy, a lifestyle arbitrage strategy. Jesus Christ. Floripa I think Sao Paulo is incredible right now. I think there's just a ton of really interesting cities that are coming up and offer somebody with nomad or digital nomad skills the ability to arbitrage. Even a place like Tokyo with the yen, as weak as it is right now, if you like that culture, Tokyo is the most different, yet the most same place. And that is, it's capitalist, it's democratic, incredibly safe, incredibly. The thing that struck me also, though it's so similar in terms of their systems and democracy, their rights, the focus on capitalism, growth, but it's also the place that's most similar while being the most different. I went to what is the Times Square and it's entirely quiet. Everyone's just so respectful and so quiet. And no one jaywalks. And the food's incredible and the relentless pursuit of perfection is a tagline for Lexis, but it should be a tagline for Japan, because everything they do, they take such pride in the symmetry and the design and the beauty of everything. So if you really wanted something a bit off the beaten path, another great city in Asia, Bangkok. Oh my God, what a cosmopolitan city with great food, great people, and again, I would bet about a third of the cost of living in an LA or New York So where do you move? No, that's not the question. The question is where do you not move? I would look at time zones as it relates to your work. Where you think you can find human capital to scale your business, where your partner's excited about moving, if you're planning on having kids, where you can find a decent education, proximity to the people you love in terms of direct flights and where you want to kind of explore and adventure. Some people are more cut out for Europe, some people are more cut out for Asia, some people like to be more adventurous place like Latin America or South Africa. But my brother, this is what you call a good problem.
A good problem.
Email us and let us know what you decide. Thanks so much for the question. Question number two hey Scott, I've been.
Listener
Struggling with your perspective on work, life balance or the lack thereof in your 20s and 30s. You often frame those years as a time for relentless ambition, even at the cost of relationships, health and personal well being. I'm particularly curious about how you discuss your first marriage. You emphasize that meaningful relationships are the key to happiness, yet also seem to suggest that sacrificing them is necessary for success. That feels like a contradiction, no? If you could go back, would you do anything differently to preserve those relationships for context? I'm 28, putting everything into a new business and dating an incredible woman I hope to spend my life with. Should I expect to lose my partner and friends to succeed, or is there a better way? Thanks for your time and for the impact you have on young men like me.
Scott Galloway
Thanks for the question. You sound awfully serious. So first off, I can't blame the dissolution of my first marriage on my ambition or my career. I say that my relentless focus on work took a toll on me physically and my relationships, and it did. But the bottom line is, without violating privacy, is my the end of my first marriage was a function of my immaturity and the fact that I was working around the clock probably didn't help in terms of stressors. But I can't just lay it at the feet of my career. I want to be clear, my way was to do nothing but pretty much work from the age of 22 to kind of my late 40s, early 50s. That was my way, but I'm not sure it's the right way. And I have some proximity bias. And that is the people I am close to are mostly other very ambitious, economically ambitious people that want to be successful and live in places like LA, NY, where you have to make a shit ton of money to have the lifestyle we want, and also MBA students. And when I survey my MBA students, about 70, 80% of them expect to be in the top 1% income earning households by the time they are 35. And what I suggest is that if you are that ambitious economically or from an influence or relevant standpoint, you just have an honest conversation around the trade offs and the sacrifices, you might decide that you want the trade off on the other end of the spectrum, that you're going to move to St. Louis and have a nice life and work, but you're going to work to live, not to live to work. And there's absolutely nothing wrong with that. And you can maintain healthy relationships, you know, coach little league, work a reasonable amount of hours, you know, have your church, your country club or whatever it is that gives you spiritual or relationship reward and have a wonderful relationship with your partner and your kids. I don't. I think that's possible. Unfortunately, I think it's less possible. What we've seen is, than it used to be. What we've seen is the majority of cities have brought up their prices because of inflation. So I think in a capitalist society, the cruel truth is you need a certain level of economic security. But if you've decided you don't want to work 40 hours a week, not 60, and that you're going to prioritize your relationships and your health and your fitness and the pursuit of other outside interests, more power to you. I get it, I get it. But you also have to recognize that means you probably aren't going to make a million, 2 million bucks a year and live in LA or Manhattan. You're just not going to get there doing, you know, an ordinary amount of sacrifice around your career. So what I would say is it's a spectrum. And that is you have to decide and get alignment with your partner around where on that spectrum you want to be. And I've always assumed that the majority of people I come in contact with, and maybe that's incorrect, but actually it's not. The majority of the young people I meet, where they fall flat is they get used to these Instagram life and the algorithms, that they're going to be on a jet and vacationing at the Almond in Utah, partying in Saint Barts or Saint Tropez, and that they're going to get there at a very young age and just, you know, they'll find a job that'll carry them there or they'll find the right cryptocurrency. They'll carry them or. No, that involves a Lot of luck and working your ass off, which comes at a sacrifice. So I think that's where the, what I'll call the dissonance is, is that people, a lot of people don't recognize the sacrifice. A lot of people on the other end say, well, you can make that sacrifice and still not get there. Which is also true because luck plays a big role. So why would I make that trade when I can just be a good citizen, work relatively hard, find a good partner and just enjoy life. I also want to acknowledge that I'm more, I wouldn't say I'm more not as materialistic, but I'm very economically driven because I didn't have money growing up and it was very stressful for me. So I've always been focused on it. So I probably over focus on it. And also the fact that I'm around people who are all very ambitious. But the thing I can't stand is very successful people when they give me this bullshit that when they're in front of a crowd. Well, I never thought much about money. Yeah, fuck you. You think about money every minute. And I think if you want to be financially very successful, you need to be somewhat financially literate and really know your budget, know how much you're making, no taxes, really understand this stuff. I don't think you can be great at tennis or anything without thinking about it a lot and talking about it a lot. And one of those conversations is to get alignment with your partner and say, where do we expect to be economically? What is the lifestyle we want to have and what are the trade offs we're willing to make and where on that spectrum are we comfortable and getting alignment with your partner? Because I think what creates a lot of tension in relationships is that sometimes one, it's not that they're not making a lot of money, it's just that they don't have alignment. One person would rather they work less hard and spend more time with each other and their kids and not be a member of the tony country club or have the fancy car. And the other does not want that, wants to work really hard and have the accoutrements of wealth and relevant. So I think the key is getting just alignment with your partner and then making sure your expectations foot to the reality of the situation in terms of where you live, your lifestyle, your spending patterns. But my brother, I'm not suggesting my way is the only way. Everyone's got to find their own route here. Thanks for the question. We have one quick break and when we're back we're diving into the depths of the ocean of Reddit.
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Welcome back. Let's bust right into it. Our question today comes from Captain Athens. They ask Prof. G, what gives you hope? Huh? Okay. I just interviewed the historian Timothy Snyder, and he's really inspired by some of these protests or marches in the United States. I like that you see hundreds of thousands of people protesting. That makes me feel, makes me feel hopeful. There's this wonderful graph showing that not in the US but globally, people are spending more time volunteering time to help people they will never meet. So more people are planting trees, the shade of which they will never sit under. That's very hopeful. I'm hopeful that the EU binds together to push back on Ukraine. I think we're starting to pay more attention to the struggles of young men, mostly led by the concerns and recognition of these struggles by their mothers. I love that we're beating back Putin. I love that. There's a lot of things I'm excited about, certain amount of drug discovery. I'm, you know, I am fairly hopeful. It sounds very passe. My boys give me hope. I just think they're funny and nice and interesting and, you know, and beautiful. Everyone thinks their boys are the most beautiful thing in the world. And I like seeing life through the lens of what they see. My youngest son is starting to get into fashion. I just think it's hilarious what he finds fashionable. And he wants me to buy him a chain. And we were looking at chains together. And just what he finds interesting and cool. And I just did a college tour with my oldest, and we got to this one university. We did eight universities in six days. And then we got to this one university, and it was like a dog off a leash running ahead of me. And I'm just trying to figure out what is it about this university or this environment that all of a sudden he's decided this is the college he wants to go to. So, kids give me hope, but I think there's a lot to be hopeful around, so. Also, dogs. Dogs give me hope. Anyways, hope. That's enough. Thanks for the question.
Listener
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Scott Galloway
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The Prof G Pod with Scott Galloway: Episode Summary
Episode: Lifestyle Arbitrage, Balancing Ambition and Relationships, and What Gives Scott Hope
Release Date: May 7, 2025
In this insightful episode of The Prof G Pod, Scott Galloway delves deep into the intricate balance between professional ambition and personal relationships, explores the concept of lifestyle arbitrage, and shares what fuels his optimism for the future. Structured around listener questions, Scott provides actionable advice grounded in his extensive experience as a professor, entrepreneur, and bestselling author.
Listener's Query [02:23]: A solopreneur in his late 30s contemplates relocating abroad with his partner to achieve lifestyle arbitrage—seeking a more supportive environment for raising children and hedging against potential instability in the U.S. He inquires about the viability of such a move for younger Americans and seeks recommendations for countries that maintain economic opportunities similar to the U.S.
Scott's Response [03:06 - 09:56]: Scott enthusiastically embraces the concept of lifestyle arbitrage, emphasizing the importance of leveraging career flexibility to enhance quality of life. He references a Harris Poll indicating that 40% of Americans are considering or planning to move abroad, primarily driven by the cost of living and the allure of a higher quality of life elsewhere.
Key Insights:
Top Destination Choices: Canada, the UK, and Australia are favored for their robust economic opportunities and familiar cultural landscapes. Non-English-speaking countries like France, Italy, Japan, Mexico, Spain, and Germany also attract Americans seeking diverse experiences.
Digital Nomad-Friendly Countries: Spain, the UAE, Montenegro, and the Bahamas are highlighted as receptive to digital nomads, offering conducive environments for remote work.
Economic Arbitrage: Scott posits that “America is the best place to make money and Europe’s the best place to spend it.” This economic disparity presents a lucrative arbitrage opportunity for those who can earn a U.S.-level income while enjoying European living standards.
Domestic Alternatives: Within the U.S., Scott suggests exploring southern cities and college towns like Charlottesville, Ann Arbor, and Chapel Hill, which offer a blend of urban amenities and rural affordability.
Tax Benefits: Relocating to states with favorable tax regimes, such as Florida, can yield significant financial advantages. Scott underscores the importance of “spending 183 days there” to legitimately benefit from tax arbitrage.
Notable Quotes:
Scott's Recommendations:
Conclusion on Lifestyle Arbitrage: Scott advocates for a thoughtful approach to lifestyle arbitrage, weighing factors like time zones, business scalability, partner alignment, and educational opportunities for children. He encourages listeners to thoroughly assess their personal and professional priorities before making such a significant move.
Listener's Query [10:04]: A 28-year-old individual grapples with maintaining work-life balance amidst the pursuit of a new business venture. The listener is concerned about the potential strain on personal relationships, drawing from Scott’s discussions on the sacrifices required for success. They seek advice on preserving meaningful relationships without compromising professional aspirations.
Scott's Response [10:59 - 16:22]: Scott approaches this deeply personal question with candor, reflecting on his own experiences and the broader societal pressures surrounding ambition and relationships.
Key Insights:
Personal Accountability: Scott acknowledges that his first marriage's dissolution was influenced by his relentless work focus and personal immaturity, not solely his career ambitions.
Spectrum of Ambition: He presents the idea of a spectrum where individuals must decide where they stand between extreme professional focus and prioritizing personal relationships. Scott advocates for alignment with one's partner to navigate this balance effectively.
Economic Realities: Highlighting the current economic climate, Scott notes that inflation has driven up city prices, making high-earning lifestyles less attainable without significant sacrifices.
Redefining Success: He encourages listeners to have honest conversations about their aspirations and the trade-offs they're willing to make, suggesting that a fulfilling life doesn't necessarily require reaching the top 1% income bracket.
Cultural Influences: Scott critiques the pervasive "Instagram life" mentality, where young individuals expect early success and lavish lifestyles without recognizing the necessary sacrifices and luck involved.
Notable Quotes:
Scott's Recommendations:
Alignment with Partners: Ensuring both partners share similar visions and expectations regarding career and personal life.
Realistic Goal Setting: Understanding that achieving extraordinary financial success often comes with significant personal sacrifices.
Diverse Definitions of Success: Recognizing that a fulfilling life can be achieved through various paths, not solely by accumulating wealth.
Conclusion on Balancing Ambition and Relationships: Scott emphasizes the importance of self-awareness and open communication in maintaining healthy relationships while pursuing professional goals. He urges listeners to define their own success metrics and ensure their personal lives are harmoniously aligned with their careers.
Listener's Query [19:51]: A listener expresses inspiration drawn from historical insights and societal movements, seeking to understand what currently instills hope in Scott amidst global challenges.
Scott's Response [20:00 - 21:59]: Scott offers a multifaceted view of hope, intertwining personal anecdotes with observations of global and societal trends.
Key Insights:
Generational Resilience: Scott finds hope in the protests and marches, highlighting the collective action and awareness among youth.
Global Volunteerism: He is encouraged by the increasing global engagement in volunteer activities, such as tree planting, signifying a commitment to sustainable and communal efforts.
Geopolitical Stability: Positive developments in the EU's stance on Ukraine and the broader resistance against authoritarianism bolster his optimism.
Personal Joys: On a personal level, Scott cites his children’s growth and unique interests, such as his youngest son's foray into fashion, as significant sources of hope and happiness.
Cultural Appreciation: Experiences like touring universities with his oldest son and observing his enthusiasm for certain environments reinforce Scott's belief in future generations' potential.
Companionship with Pets: He also humorously notes that dogs contribute to his sense of hope and well-being.
Notable Quotes:
Conclusion on Hope: Scott underscores a balanced perspective, acknowledging global strides toward positive change and drawing strength from personal relationships and everyday joys. His reflections highlight the interplay between societal progress and personal fulfillment in fostering hope.
In this episode, Scott Galloway masterfully navigates complex topics that resonate deeply with his audience. From the strategic advantages of lifestyle arbitrage to the delicate balance between career ambitions and personal relationships, Scott provides nuanced insights that encourage listeners to make informed and authentic life choices. Additionally, his reflections on what sustains his hope offer a comforting reminder of the importance of personal joy amidst global uncertainties.
Notable Episode Highlights:
For listeners seeking to enhance their economic strategies while nurturing meaningful relationships, and those yearning for a beacon of hope in tumultuous times, this episode serves as a valuable guide.
Thank you for tuning into The Prof G Pod with Scott Galloway. For more insights and actionable advice, be sure to subscribe and join the conversation.