Ramen profitability is easier in Asia: Travel is perfect for micro-entrepreneurs

Also, some things are cheaper, some things aren't. Global commodities such as oil and food are just as expensive. Imports are more expensive. The big savings is from labor (which in turn helps drive prices for everything down) and in some cases land (some places in developing countries, especially big cities such as China have land prices which can rival big cities in the U.S.) Currency fluctuations can have a huge effect on fragile bugets, especially if your earning / holding currency is in a relatively volatile period (look at what the Austrailian dollar has done compared to the U.S. dollar in the past 12 months.)

For me, another big savings is not so much from being in a foreign country, but rather the mental shift I made. Living simple is the norm here. Most people who come to live here drop the majority of their personal possessions and move into a far smaller place than they might have had back home. At home you might feel you have to keep up with the Jones' but simplicity is accepted here. If you begin to make a shift back the other direction, then your expenses can rise to eat up your entire income, just like anywhere else.

I have only just made the decision I want to do this, so I am not sure where to start other than Odesk etc...

Anyone done this yet?