Millionaire Librarian

Geo-Arbitrage has become a popular term in the post Covid world. In its simplest form it is living in a low cost of living area while having the benefit of a higher cost of living job. With the rise of remote work this generally means remote work. However, I have been benefiting from geo-arbitrage in another way for almost ten years.

I have a federal position in a low cost of living area. Federal positions pay slight more locality pay to be in a HCOL area, but I don’t believe it is worth it. As a GS-11 step 1 you can expect to make $69,106 in 2023 in any LCOL area in the U.S. In the highest cost of living area as a federal employee you make $78,591. In my small town in rural America the median house costs $175k, while in Washington D.C. the average house is $630k. That extra $9000 doesn’t come close to filling the gap when comparing housing costs. Other needs will likely be higher in a HCOL due to everyone needing a higher salary for the same standard of living elsewhere.

If you are the type of person who needs to live in a giant city, then know that unless you have an extremely high wage it will be very hard to save any money much less become financially independent or retire early.

Remember it doesn’t matter how much you make, but how much you keep when saving money. Finding a unicorn job where you have a better than average salary and pay very little in housing is one of the best ways to do it.

I am sitting here with less than a week left of my 12 weeks of parental leave from working as a federal librarian. My newborn daughter is in her automatic swing sleeping in front of me, while my three dogs sleep around my small house located in rural middle America. My job is very comfortable and my salary is moderately higher than median. One of the reasons I chose the librarian profession, though requiring a master’s degree and generally not paying very well, is because it should be low-stress and I can perform this job well into my old age. I am extremely grateful of the life I live.

So why am I interested in finance and more specifically FIRE (Financial Independence, Retiring Early)? I want to provide a good life for my wife and family. I want my newborn to be able to attend college without going into debt. Finding a new job as a librarian can be extremely time-intensive so if I get a new boss and am miserable I want what JL Collins calls FU money. This is money to separate from my employer and go my own way for as long as it takes. That is the true power that money can bring. The ability to have the exact life you want.