The ‘Money Theory of Location’ argues that calculating 4x the average salary in the place you choose to live, whether that’s Mexico City, or Bangkok, or New York is a good indication for the amount of money you’ll need to achieve a great standard of living there, and a lot of potential for freedom in your life..

On this week’s show Dan and Ian talk location arbitrage, including their regrets about moving to San Diego and not San Francisco when they were straight out of college:

“There's a little bit of naivete, a lot of naivete, in a 21-year old Dan saying, ‘Just because California is a state with opportunities, because there's a lot of big houses there and stuff, that that means that that has anything to do with you’. You have to decide what you're doing, and how that would align up with that small tribe of people that are doing those things, and where those people are”.

They also offer some thoughts to a listener who has moved his freelancers to full time contracts. He’s seeing some decrease in productivity and is wondering what to do about it.