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Generation X or Ex?

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You have all heard of Generation X, right?  According to a quick Google search it reveals that Generation X is the next generation following the “Baby Boom” post WW2 generation.

After World War II, all of those returning solders came home and produced a “bumper crop” of new babies in the years that followed.  Although the years of the Baby Boom generation are not fixed, generally the Baby Boom years run from about 1945 until 1962 or so.  Generation X is often defined in even looser terms, many authoritative sites say that Gen X starts in “the early 60s” until “the early 80s”.  Given that definition, I could be at the tail end of the baby boom generation, or one of the first Gen X babies.  I was born in 1962.

I have always felt a little left out of the baby boom, feeling that my birth was a little bit late to be considered to be part of that generation.  Until I recently found the definition of the Gen X years, I never considered myself to be Gen X either.  I was more stuck in the middle, I guess.

Is it Gen X or is it Gen Ex(pat)?

GenX (eXpat)
GenX (eXpat)

Recently, I came upon an article on the net saying that Generation X is also Generation Expat.  It kind of intrigued me because I am an expat, and I am (sort of) a Gen X baby.  In fact, this article talks about Gen X Entrepreneurs.  I am most definitely an Entrepreneur.  It is not only a lifestyle for me, but almost like a hobby.  I have a lot of small businesses, and it just runs in my blood to make a business out of just about anything that interests me.

So, this article caught my attention. The article is called “5 Reasons Why Entrepreneurs flee America (and you should, too).”

Let’s have a look at some of the things they say.

Generation Expat is not defined by years

Well, I said that the years between generations are a bit fuzzy, and in this article I found out that Generation Expat (they call it Generation X-pat) is not defined by years.  Great!  That is right up my alley then. They say that Generation Expat is defined as people who have left the country and have no plans to return.  Well, lets see, I left the USA in 2000, at the age of 38, and have never been back again.  I have no plans to return.  I just don’t feel anything pulling me back that direction, in fact, I am extremely happy with my new place of residence and the lifestyle that it entails.

The article also says that many expats are entrepreneurial.  This is something that I never realized, although it doesn’t surprise me a great deal.  Let me qualify that, though.  I would say it slightly different.  I would say that most young expats are entrepreneurial.  Why do I say that? It comes to mind for me because where I live, in the Philippines, the vast majority of expats living here are older people.  Retired folks.  People who have a pension from previous employment or from the government.  For a younger person who becomes an expat, though, you still have to put food on the table!  For example, I moved here at the age of 38.  There are not many jobs where you could retire and collect a pension at that age! About the only possibility I could think of is if you were career military and got in your 20 years service starting at 18.  Certainly nothing else, at least nothing I can think of.

So, the article gives 5 reasons why entrepreneurs flee the USA.  I will list the 5 reasons and give my own observation.

1.  High Taxes

I agree and also disagree on this reason.

Why do I disagree that this is a valid reason?  Mostly because under the US system, you pay Federal Taxes no matter where in the world you live.  Live in the Philippines, like me?  If so, and if you earn money in the Philippines, you still pay US taxes.  You can’t escape it.

Why do I agree that this is a valid reason?  Well, even though you have to pay US tax on worldwide income, there is a catch.  If you are outside the USA for 330 days during the calendar year, you can get an exemption on the first $90k or so in income.  I am not an account or an attorney, so you need to check this out with a competent person, but this does shield a nice piece of income from the tax man, so that validates the reason for fleeing the USA.  In fact, in many expat locations (like where I am) this exemption on around $90k in income is great because $90k is a large, huge in come here, and in many other expat locations around the world.  You can truly live like a prince or a king with that much income.

2. A faltering economy

Well, when I left the USA in 2000, the economy was still booming there.  So, I did not leave because the economy was poor.  In fact, I gave up a good job in the USA in order to live in the Philippines.  I had big plans on how I was going to support myself while living in the Philippines.  Those plans did not exactly pan out, but I was able to see other opportunities and take advantage of them, leaving me living a nice life here.

I do see, though, how for somebody in the USA these days, the poor economy could be a real stimulus to get the heck out and forge a new life somewhere else in the world.

3. Internet = Freedom

Absolutely!  I could not agree more.  I got involved in the Internet in the early 90s.  By the time that we moved to the Philippines I was already making significant income via the Internet.  It was just a natural that the Internet would play a big role in my ability to make such a move and to be able to earn an income while living in an “unconventional” place.  Like I said in #2, the plans I had for how to earn an income did not exactly work out, but I was still able to use the Internet in other ways to produce income while living in the Philippines.

Being able to live in the Philippines, or any other developing country, spending Pesos but earning Dollars is just great.  Because of the Internet, the entire world is your workplace!

Truth is, in the 15 years since I left the USA, the ability to use the Internet to make money has only grown.  In fact, it has grown tremendously.  Today, there are just so many ways to make money on the Internet!  It is truly amazing.

4. Escape from Suburbia

This was truly not even a consideration for me.  However, I did have a desire that was somewhat along the same lines.  I wanted to escape America.  I wanted out of the rat race.  I wanted away from the constant pressure.  I wanted to live in a place that was much more peaceful and relaxing.  You know what?  It worked for me!  That is the life I am living today.

5. A Desire to Go

Desire to go?  Yep, I had a strong desire to get away and start a new life.  I decided in around 1995 that I wanted to move abroad.  I had to convince my wife, that took a couple years.  I had to try to convince my extended family – a Mother and a Brother.  Well, truth is I never was able to convince them that I was doing the right thing, so I just decided to do it anyway.  Over time, my extended family has become more understanding, and at times less understanding.  Even after all of these years, their opinions still vary.  But, what it comes down to for me is that you have to do what is best for you and your immediate family.  You have to do what is good for you, your spouse and your children.  I took the route that I felt was best for us.  In the end, I believe that I took the turn that was indeed best for us, and I have not looked back.

What Generation are you?

I used to think I was (sort of) a baby boomer.  I have had some thought that I was Generation X.  I am somewhere between those two generations.  But, now I am certain.  I am Generation Expat!  How about you?

Reader Interactions

Comments

  1. Well said, Bob. Back in 2000, I expected a pension with cost of living increases, coupled with a really nice 401K before I was 60. Things have changed a lot since then and I really think Americans younger than us need to keep their options open.

  2. So true, Jerry O’Bryan. I am 52, soon to be 53. I do not even count on Social Security. If I get it… great, but I don’t make my plans based on it being a sure thing. I am thankful that the type of work that I do is something I can keep doing even into old age, provided that I remain sane and able to reason. 🙂

  4. I really don’t consider what I do to be work. I enjoy what I am doing, and have no problem continuing it. A few years back, Jerry, my wife and I were considering building a house on Samal Island. I thought to myself that I would retire. Then I thought that to keep busy, I would still do these few things… as I thought more and more about it, I realized that the things I wanted to continue doing into retirement were the things that I was already doing! That’s a good position to be in! 🙂

    • Absolutely, that’s the real key, Bob. “Retirement Redefined”. Either I am already “retired” (I am, officially, pension-wise, I actually predate most official definitions of the Boomer gen, I was born in 1945 though), or I am never going to retire.

      There are so many things I am doing already or could get into via the freedom of the Internet, and I receive so much satisfaction (as well as a few dollars) from what I am doing, I will never retire to the “rocking chair on the porch” definition of retirement.

      I just has a (mercifully) brief hospital stay and OMG, lying in bed, watching mindless TV and trying to follow doctor’s orders to basically do nothing? Horrible, I think I’d become suicidal after a few days of that.

      It’s interesting that you noticed the wide age gap in the “entrepreneurial Expat” side of things. A lot of my friends and readers who contact me seem to think they are “too old” to do anything entrepreneurial, I recommend they read this:

      http://www.telegraph.co.uk/news/science/science-news/6395627/Internet-use-may-improve-brain-function-in-adults-says-UCLA-study.

      Not only can an “Old Dog Learn New Tricks”, but the learning may well improve longevity and life style.

  5. I understand, you are doing what you love anyway. You really can’t beat that. Its poor me having to work 30 more years, considering the state of our pension, the markets, and Social Security. I’m joking a bit, but just a bit! I’m staying in the U.S. until I theoretically can retire, and until our elderly kitty isn’t with us… then I hope I’m brave enough to try the R.P. if our economy doesn’t improve. My wife really doesn’t like the day to day stress.

  10. Pay raise for all? I don’t think so, Michael Boo. I don’t get any money from the government for anything. I get ZERO. So, I get an extra 1.7% of zero? That doesn’t add up to much! 🙂

  16. Do you think that it is a simple life when you have to keep writing articles, promoting them, answering hundreds of emails every day, etc? I get about 200 FB messages each day asking for help. Up to 800 emails. How simple does that sound? 🙂 This past weekend, I went out of town with my wife. I had no internet for 2 days. Can you imagine how long it took me to catch up? I am not complaining, just telling you how my life is. 🙂

  20. You are right, I have to work hard for those weekends away. It was nice, but that sort of thing doesn’t happen very often. You probably do that kind of thing more often than I do! 🙂

  21. Hi Bob

    Like you I am almost not in any “Gen” as I technically was born just before the semi-official start of the Baby Boom. But it was in 1945 and my dad had just returned from WWII so I really am a Baby Boomer … a very “early model” LoL

    By far the biggest reason for leaving the US and for staying away more than 8 years now (like you I currently have no intention if moving back) is the freedom that the Internet offers me to do “Geographic Arbitrage”. I can live in the Philippines, pay my bills in Pesos, and earn income in Dollars from the “Rest of the World”.

    And if some event happened that caused me to leave the Philippines, I could move to another desirable overseas location virtually overnight. My mailing address, my phone number, my US bank account, my PayPal account, etc. wouldn’t change and there would be no disruption to any of my income streams at all.

    Perhaps with the freedom afforded by the Internet I am part of a sub-class of the ExPat world … I keep one foot firmly planted back in the USA, while the rest of me “roams the globe'”

    • Hi Dave – Yes! Exactly. The whole “geographic arbitrage” thing is something very important. We have talked about this before, and I know that you understand well that so many expats just don’t seem to understand that it is possible to live in country a, but earn a living from other countries where you don’t live. When you explain that to many people their eyes just glaze over and they turn off and don’t even listen. It is a super important point, though.

      When you talk about being able to move from one country to another easily, I am in the same boat on all of the points that you raise. it is a good feeling to live that way!

      For those interested in Geographic Arbitrage, I have a book series about that, which you can find here.

    • Godfree, I, like you always thought that:

      This is America no one should starve.
      This is America no one should be homeless.
      This is America everyone should be treated for common illness and injury.

      I also am aware that every one of these things needs to be paid for so I think:

      This is America everyone should have a JOB.
      This is America all immigration should be legal.
      This is America why should I pay for killing your child.

      I am also aware that:

      This is America and you may burn the flag.
      This is America and other than inciting the forceful overthrow, you may say or write what you wish.
      This is America, you may be sued for what you make, say, or due.
      This is America and I disagree with almost everything represented in that article.

  25. Great article. I’m 56 and have some real estate that I hope allows me to retire abroad. Anyhow, I worked overseas for several years and the exemption of $90,000 applies to being outside the USA for 330 days out of any consecutive 365 days. Not just in a calendar year. I did it 2 or 3 times.

    • Hi Scott – I thought that the exemption was based on calendar years. Thanks for letting me know that it is actually based on consecutive days! That is good information.

    • Hi AJ – I must have been living a sheltered life. I was unfamiliar with “Generation X” the band, although I have certainly known of Billy Idol over the years.

      • Being born in 1963 and a Baby Boomer by all definitions, I will stick with Billy Idol thanks LOL.

        Cheers

        AJ UK

        • Hi AJ – I was born in 62, so I am older than you. I really don’t see myself as a boomer… I feel that generation ended just as I was being born. You being a year younger? Hmm… that latest definition I have been able to find of baby boomer generation is ending in 62.

          • 1946 – 1964 is the only definition that I can see on many websites. I just squeak in by that definition.

            Not sure how I can identify with people form 17 years earlier than me though and to be honest I haven’t given it much thought until your article.

  27. Bob,
    Like you I feel no connection with any generation. I was born in 1965 and feel kind of lost. I do not identify with neither the Baby Boomers or Gen X. Some websites say I belong to the last of the Baby Boomers and others say Gen X. I think I fit in more with Generation Independent.
    Our move to the Philippines hopefully will take place this year. The date is flexible because things come up to move it back and then something else happens and it moves forward. I am so excited at the prospects and opportunities there. The wife is having her Oath Ceremony to become a US citizen Monday. Big step forward in our plans to move. Next will be her dual citizenship and my Visa.
    Some of my friends think I am crazy for seeing opportunity there. I feel they have little or no insight into possibilities.

    • Hi Scott – Nice to hear from you again. You are right, we are very much alike in that we seem to be without a generation! 🙂 Kind of in those middle years.

      I have been having a conversation with my son and a close friend of mine about opportunity in the Philippines. It has been a pretty interesting conversation. I think I will write an article about it soon, I think it would interest you.

  28. I wonder if the generation coming up now will become known as Generation cp ” The Cell Phone Generation ” or possibly Gen-TXT . I sometimes get the impression that maybe some peoples lives are centered on their cell phone and texting.

  29. Last year, a record breaking 150000 (worried) Americans left their country and that number is rapidly increasing.
    There is a total of about 5 millions US citizens living outside of USA, mostly depending on pension money.
    These are very scary numbers considering that there are only about 100 millions tax payers.
    While the number of expats are increasing, the money numbers seem to be diminishing in importance these days.
    The debt is rapidly approaching one QUADRILLION and nobody seem to know what that means any more.
    I certainly have no idea what that number represents but I do have an idea of how many zeros are behind number one (1).
    Actually, it has so many zeros that number one (1) becomes meaningless.
    Yes folks, I am afraid that soon all of this will be one long string of zeros and no numbers;… while the number of expats just keeps on increasing.
    This is a scary scenario to say the least.

  30. I had always heard that it was 1946 – 1964. I was born in 1961, but never felt like a baby boomer. I also didn’t feel like a Gen Xer. Always figured I was somewhere in-between. I’m not sure, retirement-wise, that it’s a good thing to be at the tail-end of the Baby Boomer generation.

    • Hi Tom – We were born just one year apart, and it seems that we feel the same in regards to generations. I just don’t feel part of any generation.

      I know what you mean about coming at the tail end of the baby boom. Those guys might just clean out the Social Security system!

  31. This is a good read.
    Hi Bob!
    I was researching for something about Gen-Xs and all the labels main stream writers have been writing about the generations and I stumble upon your site. Born in the later years of the Generation X (1978), I think I was groomed by my early Baby Boom parents to the thinking that to become successful one should study hard, earn a degree or so, to have a stable job. Well, the world has already changed. Most of the rich people nowadays are college drop outs (Mr. Gates – is one).
    I did what they (my parents) told me to do. Finished a degree in the Philippines and looked for job opportunities. The sad part is, as years go by the cost of living also increases. Got married to a millennial (with an ex U.S. navy dad; Filipina mother). Perhaps we just got very ambitious and try to make things better for our immediate family… better than what we had in our youth. So, right now I am an OFW (Overseas Filipino Worker) here in Saudi Arabia. I know the salary is 40% more than what I used to have in my employment in the Philippines but it seems quite not enough. It was our (me and my wife) target/goal, to acquire a house we can call our own. I loaned from PAGIBIG fund to make the first step. Right now we are paying about Php 8,000 a month for that property.
    Then the Middle East economy tanked.
    You mentioned about income streams that you enjoy. That’s what caught my interest. For now I was hoping to find a mentor who knows or have gone how to take leap of faiths and make it through. Being away from family is very lonely out here. As for now I am worried if this recession continues to tank, we might suffer some blows. Worst case, I’ll be going back in the Philippines with shattered dreams.
    This maybe a long shot, but I’ll take this opportunity to ask you for advises about internet income streams.
    Thank you for posting articles like this. It’s inspiring

    • Hi Francisco – Thank you for your comment, and thank you for reading my article.

      I would like to get in touch with you through private email! I am willing to do some mentoring with you to help you get started with developing your own streams of income! Please use the “Contact us” page here on LiP and send me a message. I will get back to you and we can start getting to know each other!

      I am going through some health issues right now, and hope to have some medical procedures in the coming weeks, so my response might be a bit slow, but I am committed to doing this with you!