| If you've got a digital business that really only | | | | the US), and for lots more information read our |
| requires a connection to the net to do business, | | | | article on buying a vehicle on Margarita. The cost |
| your concerns boil down to having a cost | | | | of everything associated with owning a vehicle is |
| structure that maximizes your profit while | | | | cheap. We just had a water pump replaced, and |
| providing you with a high quality of life. Being | | | | the cost was $74.00: parts were $45.00, labor |
| productive is difficult in an environment where | | | | $29.00. Gasoline is about 12 cents per gallon, so |
| you're miserable. Having a high quality of life isn't a | | | | get used to filling your tank with pocket |
| guarantee of success, but it sure makes it easier | | | | change.Food: Food costs are highly variable |
| to be productive.The problem is that most of the | | | | compared to the US, based on what you want to |
| really enjoyable places aren't exactly what we'd | | | | eat and whether you can eat the local products |
| call "low-cost" and in order to live in a nice place | | | | or whether you're brand-loyal to an imported |
| you're business will have to really produce, or you'll | | | | brand. We see our food costs hovering around 1 |
| have to hold down a job while you try to build | | | | 2 of what we spent in rural Kentucky, but we |
| your internet business. At some point this juggling | | | | don't buy a lot of processed food.Entertainment: |
| act gets out of hand and your business will | | | | This is a highly variable expense. Going out to eat |
| demand enough time that you can no longer hold | | | | is cheap, with a 4 to 5 star restaurant costing |
| down a job to pay the bills. If your internet | | | | $30.00 to $40.00 for two, including a few drinks |
| business isn't producing enough to pay the bills, | | | | per person. Buying a bottle of wine will adjust the |
| your only options are to downsize and cut | | | | price according to your tastes in wine (wine is also |
| expenses, burn capital in hopes that your business | | | | cheap). Dinner and coffee for 2 at a nice |
| will produce more later on or give up on the | | | | restaurant will cost less than $20.00, and you can |
| business altogether.Those can be hard choices. | | | | eat a full meal at a lot of places for about $5.00 |
| Our vote is to minimize expenses and save as | | | | to $6.00. Movie tickets cost about $2.00 and going |
| much money as long as possible. The lower your | | | | to the beach can cost anything from nothing |
| burn rate the longer you last, and thus the better | | | | (bring your own umbrella, drinks and food) to |
| your chances of success.For many people, this | | | | $20.00 to $30.00, depending on whether you rent |
| means trying to find a low-cost location that still | | | | an umbrella and chair and eat at one of the |
| provides high-quality infrastructure, and that | | | | beachfront restaurants. Going to an internet cafe |
| usually means living somewhere that isn't that | | | | costs about 50 cents per hour, and sitting at the |
| desireable and doesn't offer a very high quality of | | | | mall people watching doesn't cost anything.Phone: |
| life. Sure, there are places in Kansas where | | | | Plan on spending about $40.00 to $60.00 a month |
| they're practically giving away houses, but who | | | | for combined home phone and cellular phone, and |
| wants to live in Kansas? The people who want to | | | | if your area can get DSL, you can look up the |
| live in Kansas are already there, but the state has | | | | charges on CanTV's webpage to see what you'd |
| a declining population because of all the people | | | | have to pay.Electric: Depends on your |
| who are moving out. Same goes for North and | | | | accomodations and usage. We have friends who |
| South Dakota. Just think "40 degrees below zero" | | | | pay about $15.00 a month, and we've paid about |
| and you'll get an idea why.Most entrepreneurs | | | | $100.00 a month running the AC 24/7 in a large |
| agree that they are more productive in a pleasant | | | | apartment. Some people bribe a power company |
| environment.Radically Lower Your Costs By | | | | guy to "fix" their meter so that it's somewhat |
| Moving OffshoreOne of the best solutions to the | | | | slow, and some people just hook up a wire to the |
| dilemma is to move abroad to a low-cost location | | | | power line (an illegal hookup). It's common.Water: |
| with excellent infrastructure, and in this article we'll | | | | Water is pumped over from the mainland, and it's |
| discuss the relative advantages of Margarita | | | | unbelievably cheap: maybe $2.00 to $5.00 per |
| Island.Margarita is an island off the coast of | | | | month. Garbage pickup is included in the water bill. |
| Venezuela, and it's the largest of the three islands | | | | If you have an apartment you'll probably see this |
| that make up the Venezuelan State of Nueva | | | | expense covered in your condo fees.Getting |
| Esparta. Margarita is the lowest-cost island in the | | | | ResidencyAmericans are hung up on the idea of |
| Caribbean, but it has the added advantage of not | | | | doing things "by the book" but Latin America isn't |
| being an independent country. If you've been to | | | | like that: in most cases there is a solution to your |
| other Caribbean islands, you already know what | | | | problem that involves paying an official to take a |
| we're talking about: Island nations have to be | | | | special interest in getting your problem solved. It's |
| self-supporting, and they usually do this through | | | | possible to live on Margarita as a tourist, going to |
| the mechanism of sky-high customs fees, so | | | | the airport every three months and paying |
| everything on the island is very | | | | someone at Immigration about $40.00 to stamp |
| expensive.Margarita has excellent infrastructure, | | | | your passport with an exit and entry stamp, |
| with DSL available in the major cities of the island. | | | | extending your stay another 3 months. You're |
| Margarita is also known as a "free port" which | | | | only supposed to be able to do this once, but |
| doesn't mean that there are no customs duties, | | | | they don't care. You're spending money on their |
| but rather that the national sales tax (14.6%) | | | | island and you aren't causing problems, so what's |
| doesn't apply there. It has an airport with direct | | | | the problem? You want to stay? You have |
| flights to Frankfort and Toronto (but not to the | | | | money? No problem.It's also possible to get a |
| US- for that you have to transfer at Caracas), so | | | | permanent residency visa without too much |
| travel isn't that difficult. It isn't like other island | | | | trouble, and there are lawyers on the Island who |
| locations where "you can't get there from here- | | | | can help "expedite" this issue for a fee. You're |
| you have to go someplace else first."Cost Of | | | | paying them for their help and what they do to |
| Living On MargaritaWhere Margarita Island really | | | | get you taken care of is their business. The |
| shines is the low cost of living. A single person or | | | | permanent residency visa is good for 5 years and |
| a couple can live comfortably on less than $1000 | | | | you can get a Cedula (national ID card) so you |
| a month (if they own their own home or | | | | won't have to carry your passport around with |
| apartment), and that includes having a | | | | you. This makes you legal, and you won't have to |
| housekeeper and going out to eat at nice | | | | worry about your immigration status.Permanent |
| restaurants several times a week. The low cost | | | | residency status qualifies you for citizenship after |
| of living is combined with tropical island living- you | | | | a while (the amount of time depends on when |
| only need a single wardrobe, and formal dress is | | | | the next election is- it seems Señor Chavez |
| practically unheard of down here.Housing: Housing | | | | has been allowing people to become citizens if |
| costs are reasonable. If you're looking for an | | | | they'll vote for him). This is a great deal because |
| apartment in a nice area, plan on spending | | | | Venezuela is issuing Andean Community passports |
| somewhere between $40k and $70k for a nice 2 | | | | that meet all the security requirements for travel |
| bedroom 2 bath (quite often you can find fully | | | | in the modern world, and it's good for visa-free |
| furnished apartments for sale). Rental apartments | | | | travel to 56 countries, including almost all of |
| can be had for anywhere from $400.00 to | | | | Europe. In today's world having a second passport |
| $800.00 a month for really nice places: ocean | | | | is an extremely wise idea: you don't know what |
| view, secure building, nicely furnished, nice | | | | the future holds.Doing BusinessThe ideal situation is |
| neighborhood. Housing in less desireable | | | | to sell to the US or Europe (charging US or |
| neighborhoods will run anywhere from $200.00 to | | | | European prices) while living in a really low-cost |
| $300.00 a month, but your Spanish had better be | | | | place area that provides a high quality of life. |
| pretty good.Medical Insurance and Medical Costs: | | | | Margarita is perfect for a digital entrepreneur who |
| Medical insurance for an individual will cost about | | | | wants to do this. The money you make will go a |
| $150.00 to $200.00 per month, although if you're | | | | lot further than you'd believe, and what you don't |
| young and healthy you can do without and just | | | | spend you can either save and invest or put back |
| go to the public clinic if you get sick (they're free). | | | | into your business.Regulation of digital businesses |
| Your Spanish needs to be good enough for basic | | | | on Margarita is non-existent. There are no |
| communication, and if you're hospitalized you must | | | | licenses, permits or other issues involved. You can |
| have someone who isn't sick who can help care | | | | pretty much do what you want- and it isn't a |
| for you (the public hospitals don't provide linens, | | | | matter of hiding, there's nothing to hide from. |
| blankets or meals). Medical costs for dental work | | | | Because your status is essentially that of a |
| are really cheap (typically 10% to 15% of what | | | | tourist, you're handled with kid-gloves: the |
| you'd get charged in the US), and just about any | | | | authorities don't want to annoy the goose that |
| medical procedure you can imagine is available on | | | | lays the golden eggs, so tourists are pretty much |
| Margarita for 15% to 20% of what you'd pay in | | | | left alone to play and spend money.Taxation is |
| the US. If you've got a young family, you'll really | | | | another interesting issue. As a US citizen, if you |
| see your costs drop.Having a baby by C-section | | | | reside outside the US you've got an $86,000.00 |
| will cost about $2500.00 (all inclusive) for a 2 day | | | | tax exemption (your wife can also make |
| stay at a good private hospital.Having a baby | | | | $86,000.00), so you've got tax-free income |
| naturally would cost about $1000.00 (all inclusive) | | | | between $86,000.00 and $172,000.00. Venezuela |
| for a 2 to 3 day stay at a good private | | | | doesn't tax you on money you make outside the |
| hospital.Getting braces with a good orthodontist | | | | country, so in effect you've got the best of all |
| will cost about $900.00 to $1600.00, depending on | | | | worlds: an extremely low cost of living, high |
| how much work is required.Minor liposuction is a | | | | quality of life and no taxes.What it comes down |
| hundred dollars or so, major liposuction will go | | | | to is having a business model that works, and |
| upwards of $300.00 to $600.00.A major cosmetic | | | | having the time to do business. A business model |
| overhaul, combining liposuction with a facelift and a | | | | that wouldn't support you in the US might very |
| breast-job will be less than $3000.00.Chelation | | | | well give you a lifestyle on Margarita that you |
| therapy (IV with Sodium EDTA) is about $20.00 | | | | couldn't ever have in the US. If you put the time |
| per session.Basic doctor visits cost about $20.00 | | | | and effort into your business you might eventually |
| to see a good private physician. | | | | see it grow into a really nice income producer. |
| Vehicle Insurance: Getting insurance for vehicles | | | | While it's growing you'll avoid taxes and have a |
| offers you two choices: Full coverage or liability | | | | really low cost of living. At such a time as your |
| only. The full coverage costs about 15% of the | | | | income is high enough, you can take your |
| book value of your vehicle annually. Liability | | | | business anywhere in the world that has a 'net |
| insurance costs about $130.00 annually. It doesn't | | | | connection.We don't know of any place in the US |
| matter what kind of vehicle, they don't care if | | | | where you can have such a low cost of living and |
| you have a drivers license or not, and there is | | | | high quality of life as Margarita, and with its |
| very little paperwork if you're in an accident and | | | | excellent infrastructure it's a perfect place for a |
| they have to pay.Vehicles: Used vehicles are | | | | digital entrepreneur. |
| expensive, new vehicles are cheap (compared to | | | | |