First, let me clarify that semi-retiring does not mean just
golfing and traveling. It means that I can choose work that satisfies me
because I am working because I want
to, not because I have to. For you, it
might mean that with such little financial obligation, you can work part time
at any job you choose. This can take the form of self-employment, part-time
employment or full-time employment. The key for me is that I can leave a job at
any time, which makes it more enjoyable to work. I am not stuck anymore.
How do we do this? It is simple: reduce consumption.
Our current consumption patterns are unsustainable. Over-consuming
undermines our health, wealth and pursuit of happiness, not to mention it is
detrimental to the environment. If you want to learn more about how consumerism
breeds discontent and about the negative consequences to the environment, I
have listed several resources at the bottom of this post. However, this post is
intended to stay positive and highlight how to optimize health, wealth and
happiness first, and then the
environmental benefits will follow.
Reducing consumption does not mean depravation, but rather
freedom: time freedom, intellectual freedom and emotional freedom.
- Time freedom: when we cut our expenses and don’t
over-consume, then we have the opportunity to cut back on working hours, or
stop working altogether with enough residual income or savings. We don’t need
nearly as much in the bank if we don’t have an expensive lifestyle. Even if we
love our jobs and don’t want to cut back now, we can create a safety net for
the future, just in case.
- Intellectual freedom: When we practice conscious consumerism, our entertainment can actually be higher quality. We can take up stimulating
pursuits such as writing, learning a language/subject or playing a musical
instrument; join peer groups for intellectual conversation; start a garden and
learn to cook.
- Emotional freedom: When we free ourselves from
all the clutter, and adopt a minimalist lifestyle, we have the time to focus on
what is truly important in life and we gain back emotional balance. The focus
is on family, friends, volunteering and community.
HOW TO SLASH EXPENSES
I recommend everyone seek out minimalism. Regardless of how
much money is being made, or whether a person loves their job, this will provide
an opportunity to build an investment fund, eliminate debt and enjoy the
benefits of a simpler lifestyle.
The first place I started was to get rid of cable. It is not
just an unnecessary expense, but an unhealthy expense. Regardless of the money,
I am better off without it. (See my previous post on TV)
Second, I started looking at all my monthly expenses to
determine which ones were really necessary for true health and happiness. Some
were outright bad for me. I asked myself some simple questions. Do you need
both a land line and a cell phone? Do you really need internet access at home
when you can go to a coffee shop or the library for free? Is it wise to get
manicures and highlights with all the chemicals? Do you really need the latest gadgets? Can
you donate clothes that need to be dry-cleaned? Do you eat out too much? Can
you move to a smaller, cheaper house/apt or get a roommate? Can you use your
car less or sell it completely? (See previous post about going car-free)
Try to go without buying anything new for 6 months. Go to
the library to borrow free books, movies and music CDs. Try to be satisfied
with clothes and shoes that you have already purchased.
I know this may appear
harsh at first and maybe even like being deprived, but in reality, wealth
aside, many of these things are standing in the way of achieving true health
and happiness. Once you dive in, you will feel a tremendous sense of freedom
and content. As for wealth, each person needs to really contemplate and decide
if they want ‘stuff’ or freedom from wage slavery.
I made my choice. I chose freedom.
Now, I know that I will be working because I want to be working, not because I have to be working.
This is how I got there…
I made a list of all my expenses and then put them into
these categories: (1) Necessities (food, clothing, transportation, housing); (2)
Entertainment and recreation; (3) Expenses that are necessary for work (dry-cleaning,
owning a car, parking); (4) Expenses incurred because of lack of time (gardener,
maid service, convenience food).
I started cutting costs wherever I could while working and then
I planned on the additional costs that could be cut once I quit my job. I
realized that to live a prosperous and better
life, I should actually eliminate most of the costs associated with items 2-4.
In addition, I was able to keep costs in item #1 within the amount of money
that I was getting from rental properties. So… I decided I could quit my job.
What a freeing feeling!
Now, the wealth benefits to cost cutting are obvious, but there
are some areas where my simple lifestyle added
to my health and happiness. I want to re-emphasize that this is not
depravation, but rather an increase in my quality of life!
- I started eating cleaner, which means less
eating out and packaged food. I lost weight, gained energy, and have radiant
skin.
- I have a closet full of clothes and shoes, so I
don’t need to go shopping. I donated most of my clothes that need to be dry
cleaned. Even before I quit, I did the majority of my shopping at thrift stores
and always got compliments on my clothes.
- My favorite entertainment has always been
reading, watching movies and writing. I also find free yoga, meditation and
other classes at the library. There are many free days at museums and free
outdoor concerts that I seek out.
- My favorite recreation has always consisted of
walking, running, biking, hiking and swimming. All free to me with minimal
equipment needed. These simple activities can really have a hypnotic effect,
like meditation. Plus, it gets me outdoors.
- I started going car-lite while working to save
on gas and parking and then I sold my car after I quit my job. I have lost
weight, increased muscle tone and have bounds of energy. I now get up to two
hours (sometimes more) of physical exercise every day. I love it!
- I still donate money to good causes especially
when a friend is fund-raising, but I found volunteering my time to be much more
fulfilling. Plus, conscious consumerism minimizes or eliminates harm to other
people and the planet, which is much more effective than philanthropy.
- Now that I have freedom, I don’t have the
burning desire to travel four times a year like I did in the past. I still like
to travel, but I intend to find opportunities to go places for 6 months at a
time and do this only once every 2 years or so. That will greatly cut down on
the stress of constant travel and it will allow me to slow down and really
experience the cultures that I intend to visit, not to mention, cut down on the
pollution from travel!
With these strategies, I was able to minimize my costs to under $1,000 per month. There is nothing
that I am lacking. In fact, I have a more fulfilling and abundant life than before. I am
more content than I have ever been. Even though I have enough rental income to
cover my expenses at this time, I am still working on creative pursuits to
build more residual income so that my partner can semi-retire and travel with
me. I still love to work, but now work is on my terms.
Recommended resources:
“Your Money or Your Life”, by Vicky Robin and Joe Dominguez
“Affluenza”, by John DeGraf and David Wann
“The Overspent American”, by Juliet Schor
“I AM” documentary, by Tom Shadyac
No comments:
Post a Comment