Oh man, if only I didn’t have to work
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Have you ever wondered what it would be like to wake up tomorrow and decide to go on a trip somewhere exotic? And then actually go? If that appeals to you, what’s stopping you?
If you’re like most people, it’s probably one of two things. Either you:
Have kids in school, and don’t want to interrupt their schooling.
or
You can’t afford to be without a job.
Overcoming both of those obstacles just requires a little planning. Let’s talk about the second one here.
What’s the easiest way to be able to afford to be without a job? It’s NOT winning the lottery or saving up a couple of million so that you can live off interest.
No, it’s reducing your expenses.
Add up all of your “required payments” for things, and see what percentage of your income that totals. If you didn’t have a car payment, student loan payment, credit card payments, a home equity line of credit, and a mortgage, how much money would you really need to live on?
The answer is: not a whole heck of a lot, especially if you want to bum around someplace like Thailand or South America for a few months.
If you don’t have payments, you have flexibility. (And either more money, or significantly less need for money in the first place. After all, fewer monetary obligations equals the ability to keep more of your money.)
If traveling the world on a whim doesn’t appeal to you, the basic principal of not acquiring unnecessary payments is still good to keep in mind when you’re thinking about retirement. People who are comfortably retired generally have very few financial obligations. They often live in paid-for houses, and drive low-mileage paid-for cars. Insurance is often their biggest obligation.
Both of these reason are exactly why I’ve never liked “stuff” all that much. I’ve always felt that stuff weighs me down. I want to limit the amount of stuff I work for. I’d prefer to work for interesting experiences and the ability to be flexible.
April 15th, 2008 at 8:19 am
This is my dad’s theory on life. That is why even when he was making excellent money in the corporate world he still lived in a tiny one bedroom apartment with no cable. But he was always jet-setting off to some random place.
April 15th, 2008 at 8:03 pm
Oh girl, this post is exactly what I’m feeling right now. Literally, right this second I’m trying to find someplace I can just pack up and go to for the weekend …. and maybe not come back!! Ok, I have to come back, but at least for the weekend. And being that I’m not in debt and am *only* saving for several goals, it’s getting harder to talk myself out of it.
April 16th, 2008 at 7:19 am
Even if you don’t have a mortgage, you still have to live somewhere–you have to pay rent or taxes + insurance + upkeep. And even if you don’t have car payments, if you want a car, you will likely have to buy a newer one sometime (unless you’re already 90 years old), so you need to be saving for that. Same with other stuff, like computers, TVs, etc., that don’t last forever.
At least I have a job with plenty of vacation, so given enough notice, I can still leave periodically. Meanwhile, I’m trying to minimize my financial commitments and maximize my savings so that the two will work together ASAP.
April 16th, 2008 at 11:30 am
@ Debbie: Yes, you have to live somewhere. But that somewhere could be Thailand on a tiny bit of money per month. Or you could have your house paid off and pay $160 per month for taxes and insurance instead of $960 per month for the mortgage + taxes & insurance. I could do a lot with an extra $800 a month…
My point is that you don’t have to have these things, especially not cars, TVs and computers. I might want them, but if I’d rather travel, not having them makes it a lot more doable.
April 16th, 2008 at 7:15 pm
Next month I’m meeting some buddies in SFO, then we’re all off to attend Warren Buffetts Annual General Meeting in Omaha, before jetting off to New York for a few days.
My wife’s ‘paying me back’ by flying to Europe to meet a couple of her ‘buddies’ on a two week cruise.
And, last night I booked a two week family vacation to Las Vegas, Grand Canyon, Sedona, and Scottsdale.
… now, saving might help me back-pack, but the only way we could travel the way that we intend to travel was by INCREASING INCOME and investing the proceeds in real-estate and stocks.
April 16th, 2008 at 11:35 pm
$800 a month for a mortgage? Wow if I could have that payment, and HAVE a home, I could do sooo much more than have to pay $1200 + where we are. I would be HAP HAP HAPPY to pay that amount.
April 18th, 2008 at 11:40 pm
Great post! This is exactly what we are working towards. Living in the sun, with minimal expenses.
May 7th, 2008 at 8:44 pm
this sounds great in theory, but having done it myself, it is actually quite complicated. i recommend everyone doing it at least once in their life for the experience, but when you consider the massive upheaval of picking up and leaving, i wouldn’t want to do it more than that. you don’t realize all the minute details that are involved. you’d have to get rid of all of your belongings, find a place to store them, or take them with you. finding a new place to live, even in thailand where i was, can be expensive, especially because they know you’re a foreigner. Traveling itself is expensive because while you’re there you’re going to want to take advantage of the things to do there. then the transition back to the u.s. (or wherever “home” is) holds even more problems because you have to find a new job, new place to live, etc. etc. i don’t want to sound discouraging because i definitely think it is doable and worth the trouble! :)