3 ways I arbitrage life as an outlier
In my final 2024 post, I reflected on the challenges I have faced navigating financial systems across countries.
The experience is not all bad, so as promised, here is a follow-up post where I share 3 of the unexpected arbitrage and learning opportunities that have also resulted.
But first, Happy US and Canadian Black History Month!
1. Arbitraging Discrepancies Across Borders
Loyalty points programs, like most things, are not immune to inflation. In the US, the cost of redeeming rewards have risen dramatically, with flights and hotels, especially on the higher end now costing 4-5x more in points than a decade ago.
What is somewhat different however, is that unlike salaries, which have struggled to keep up (e.g. the federal minimum wage was last increased in 2009!), earning rates for loyalty points in the US have climbed drastically as well, even if not fully keeping pace with redemption rates.
This situation is somewhat unique to the US, driven by the fact that US airlines in particular often make most of their profits (if any) by selling miles to banks, rather than from us buying seats, and banks are happy to pay up given the levels of consumer engagement they drive.
As someone who is still earning loyalty points at the increased US rates, but now redeeming them for travel that often does not touch the US, I’ve unlocked exceptional travel opportunities. Outside the US, there’s much less competition for rewards redemptions, often leading to much lower costs for flights and hotels.
For example, a basic NYC hotel room can cost the same points as a pool villa in Asia. A domestic US flight on Delta can often cost more than a 12-hour flight between Europe and Asia.
This isn’t even just a loyalty hack. For example, Amazon Germany and Amazon Spain can often have different prices for the exact same product, both shipping to Portugal given they’re all EU members. Something not really discoverable unless you’ve had the joy of navigating global companies across countries.
2. MacGyvering solutions when systems fail
For those unfamiliar, MacGyvering means “making or repairing something in an inventive, improvised way, with whatever is at hand.”
When I encounter a "computer says no" situation, I dive into troubleshooting, often leading to creative solutions. For example, when a local website didn’t accept my international phone number, I examined the source code and tried different formats until the SMS came through.
Another example involved my monthly transit service. Every month, online top-ups failed with my international cards. I would try multiple cards and they all failed. One day, after the first failure, rather than try another card, I simply re-used the same card details, and it worked on the second try.
Nowadays, I just expect the first failure, and simply retry the same card. It has consistently worked, avoiding the need to go in-person each month. A bit annoying, but (currently) acceptable workaround.
3. Leveraging my newfound flexibility to do things my way
In 2015, I found a $495 roundtrip Business Class fare on American Airlines to Beijing, available for just a few hours before it was pulled. My hubby had concerns about booking a trip with short notice, but we compromised by making it a super short trip (48 hours!). It was a fun experience, and perhaps a story for another post.
Looking back, I’d likely handle it differently now—perhaps staying longer while he returned to work, or even going without him, but my interest in solo travel didn’t truly emerge until 2019.
Now, with career independence, I love the flexibility it has enabled. My mornings can be dedicated to personal passions and my burgeoning “solo-trepeneurship” efforts, while afternoons are focused on consulting and advisory work.
I can’t say I’ve figured everything out yet, but I’d rather bet on myself, rather than going back to career autopilot anytime soon.
If you’d like to hear more about anything discussed here, let me know in the comments or get in touch.