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Old January 16th, 2015 #41
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Crowe's Avatar
Join Date: Jul 2012
Posts: 6,146

They still got people homesteading land up in Alaska. Anyone with the survival skills and the desire could make it up there. Its far from a walk in the park, and it would be suicide for someone not adequately prepared. If it was easy, more people would be doing it.
Old May 15th, 2015 #42
Alex Linder
Join Date: Nov 2003
Posts: 45,297
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Alex Linder

Originally Posted by Meg Kafka View Post
`I wonder if the act of giving away formerly treasured possessions frees your mind from worrying about them.

Imagine winning 20 mill in the lotto. First response is that you are now free to live any way you want. Then you discover that it is a unique form of prison, worrying about losing things, protecting assets, and insulating yourself from beggars.

Youve basically substituted one worry for another.
You will have new worries, but if you know how to manage money, yes, you are home free. Most people who play lotteries aren't very smart, since the odds are poor. When they win big money, they don't know how to manage it. So they end up losing it. If your natural disposition is to spend, and you don't know how to manage money properly, it's likely that no amount of money will be enough. The size of a sieve doesnt matter, it still holds the same amount of water - none.
Old July 11th, 2015 #43
Bread and Circuses
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Location: Jewed Faggot States of ApemuriKa
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Escaping the Job Trap

Its a Matter of Time, NOT Money!

"Sixty percent of families have so little savings that, if they lost their jobs, they could sustain their lifestyles for only about one month. The next richest twenty percent could only hold out for three and a half months."

--Source: Rosemary Brown & Cindy Mitlo. "It Pays to Plan." Co-op America's Financial Planning Handbook. 2001 Edition. Page 8.

As someone who has successfully built a resource-efficient home and a green publishing business, people often ask me what they can do to make their own life situations more sustainable. That is a challenging question to answer, since sustainability issues tend to be tied to all aspects of the way we live and work. It can be difficult to make real change without changing everything. Creating a truly sustainable lifestyle can require a whole new approach to the way you make a living and achieve your Dreams. The key to success is in being able to escape the Job Trap.

I meet a lot of people with great Dreams. For many it is a Dream to own their own home without a mortgage. For others it is a Dream to start their own business, to be free from an existing job they are not satisfied with. Some people simply want to travel the world or be free to sit under a tree and play a guitar. Most people I meet have a million dollar idea they would love to bring to fruition, but neither the time nor the resources to make it happen. Other people have described to me their frustration with being trapped in a way of life they do not believe in and how they Dream of living a more sustainable lifestyle. Nearly everyone I meet is too busy treading water, trying to stay afloat among the bills and debt to even think about their Dreams anymore. Like a mantra, I hear people say it over and over again: "I know I could break free if I could just make a little more money." That idea is one of the grand illusions of the universe.

It is unfortunate to see wave after wave of kids graduate from school and fall into the same trap. It is the powerful allure of money. Junior is delighted to get that first job, flipping hamburgers, making the minimum wage. Its new. Its different, and he gets more money than he ever had before. So he spends it. Stereos, CDs, clothes, movies, dates, Saturday night. It doesn't take long until what seemed like a lot of money is no longer enough. But then he discovers credit cards and payment plans and pretty soon he has a nice car and quite a bit of debt, and oh what a thrill it is to have his own apartment too!

Realizing that this flipping hamburger thing won't do, Junior goes off to college, accumulates more debt for student loans and works an eight-hour shift each day after school to keep the cash flowing. All that studying and working makes him kind of crazy and reckless by the weekends, so he spends more than he should just to "loosen up and have a good time".

He goes back to the weekly grindstone, only to discover a couple months later that he on his way to becoming a Daddy. Suddenly there's another person and a baby in the picture and a whole lot more bills. But he makes it through college okay, gets a better paying job, rents a bigger house to have some "elbow room" for the family, and still can't quite make ends meet. He feels trapped, disillusioned and ultimately desensitized to his childhood Dreams, working not because he is inspired to, but because he has to keep going day in and day out to keep the trap from snapping shut and devouring him and his family completely.

The sad thing is that Junior could have gone into virtual retirement by age twenty-two, with just a little clairvoyance to avoid the usual pitfalls. Here's one simple example. Junior could have joined the military. That may not be everyone's dream job, and I sure didn't go that route, but he would be accepted without any job skills at all. Starting with absolutely nothing, he gets paid to learn, with free room and board to boot. Being wiser than your average eighteen-year-old, he saves every penny possible, buys a house for $25,000 in a quaint little country town where real estate is cheap because everyone else left looking for work. Then he invests in energy-efficiency measures to reduce the power bills, and buys a secondhand car and some used furniture. When Junior leaves the armed forces a few years later he has some decent job skills, but more importantly, no house payment, no car payment, low energy bills, and no real need to work. Junior has the freedom to do whatever he wants, to go hunting and fishing, to make a million dollars, or to raise a family while working just two or three months a year to buy basic groceries--easily supplemented by weeds out of the garden and roadkill off the highway.

When you ask people what stops them from pursuing their Dreams to write a book, start a business, or spend a month watching polar bears in the arctic, it all comes down to the same mantra, "I know I could break free if I could just make a little more money..." The funny thing is, it isn't actually money that most people need. It's time.

Have you ever heard someone say: "I know I could make a million dollars, if I just had 250 grand to invest in my ideas." They may be joking, but they are also telling the truth. I bet you could invest 250 grand and make a million too. But where do you come up with the dough to start with? Well, if you had 50 grand and a few years of free time to pursue your ideas, I'll bet you could make that 250 grand. Simple enough. We can play this game backwards until you only need a thousand dollars and some free time to make the 10k you need to make the 50k to make the 250k you need to make a million. From that standpoint, you could make a million with the money you have, but not right now because you've got to go to work to pay the bills before the landlord bumps your family out on the street--or worse--the cable company disconnects your Show Time channels. Most people are so busy treading water trying to stay afloat, that they never have the Time to make a million dollars or to pursue any of their other Dreams.

So you see, the key to success is simply Time, having the freedom to do pursue your Dreams without worry of being dragged under in a sea of bills. True, more money would sure help to eliminate those bills, so here's a suggestion: Go ask your boss to quadruple your hourly wage. But if you don't think that will work, then stay here and let's consider some alternative means.

I am frequently asked for financial advice, usually from people who earn a lot more than I do. Together we can review their life and work situation, but its not like we can just punch some numbers into a calculator, spin it around and come up with enough additional money to solve all their worldly problems. Real results require real change. It's not about working harder. The key is in conserving materials, energy, money and time to get more out of what you have. Since all things are connected, saving some of one tends to lead to savings of the others in a positive feedback loop that just gets better and better. Conserving energy conserves money which conserves time since you don't have to work quite as much. And if you have time to spare then you can achieve your greatest Dreams. The opposite is also true, wasting resources encourages a negative feedback cycle, encouraging more and more waste.

Consider a lightbulb. An incandescent bulb is cheap up front, but costs more to operate and burns out quickly. A compact fluorescent bulb, on the other hand - or better yet, an L.E.D. light bulb costs more up front but lasts longer and uses much less electricity. In the long run you can realize a net savings of up to $40 for each energy saving bulb you use. The trouble is that most people are already strapped for cash, and it is difficult to justify spending $120 on a dozen new fangled light bulbs, especially when there are a dozen incandescent bulbs sitting on the same shelf for only $12. So you buy the cheaper bulbs and pay the cost for more electricity, and guess what? When they burn out and need replacing, you are still strapped for cash, so again you go for the incandescent bulbs, virtually guaranteeing that you will be broke when those burn out too. It is a negative feedback cycle where poor choices lead to further poor choices. Wasted energy translates to wasted money, which translates to wasted time. And if you are short on time then you probably won't get around to weather stripping a leaky door either, in which case you will waste more energy, money, and time, and so forth. Follow this line of reasoning and eventually you discover that the whole reason that you are stuck in a meaningless job in a world where you cannot get ahead is simply because you bought the wrong bulb! Switch bulbs and you will be able to quit your job. Sound far-fetched? It may not by the time we get through examining these cycles of waste.

Let's take a look at the home mortgage, since that is typically the biggest investment as well as the biggest loss that you will ever make. Normally you buy the largest house you can possibly afford payments on without starving your family for more than a few days each month. Let's say the purchase price is $100,000 with payments of $665 a month at 7% interest for thirty years. In the beginning, most of the payment is lost towards interest. Only $81 actually goes towards the principle the first month. You might as well take a match and burn the other $584 spent on interest. It's gone! Twelve and a half years later, you've paid the bank $100,000 for the house, yet only $20,000 went towards the principle. By the time you actually own the building, you've paid out about 2.3 times it's value. Is that a bad investment or what?

Just think about how much you are paying for rent or a mortgage now. Imagine if your home was all paid off and you could spend that money any way you wanted to, or simply quit your job. Sound impossible? Not really. Regardless of their income level, most people make enough money to pay off a house in just a few years, but waste nearly 100% of their income on things like interest payments, unnecessarily high energy bills, and really bizarre things such as garbage bags which are purchased for the lofty purpose of throwing them away!

So here is one alternative: Buy a house that costs half as much ($50,000), but pay the same $665 a month that you would for a $100,000 house. At that rate you will have the house completely paid off in less than nine years and you will have $50,000 in equity, which you can still put towards a bigger house if you want.

Some people are forced into a situation where they have to pay a premium for rent - or so they say - because they have to live close to work. They have a great paying job, but they have to pay such high rent to stay in the area that they remain trapped, having absolutely nothing to show for it. A $64,000 income and they can barely scrape by from paycheck to paycheck. That's bull! Buy a house for the family in a small country town for next to nothing. You can keep your fancy, schmancy high paying job in the city and pay off the house in less than a year while you live in a camper parked alongside all the other truckers at the travel station. Then you won't need the high paying job and you will have the freedom to pursue other avenues that could ultimately bring you much greater rewards. Sound a little extreme? Not at all! A year of discomfort versus a lifetime of slave labor? I'll take the short cut any time.

I had one marketable skill when I graduated from high-school: I could start a fire with a bowdrill set, basically rubbing two sticks together. At the age of twenty I got a job as an instructor in a wilderness therapy program, taking troubled teens on backcountry expeditions. I earned $1100 for three week segments of hiking around the desert with kids that were only a few years younger than I was. The food was free, even if it was only rice and lentils and ashcakes. The rent was free too, since we each carried a wool blanket and poncho and slept on the ground. Soon my partner was leading these trips too, and our incomes went up with experience. In the summer we quit, bought land, moved into a tent and started building our Dream home. That was in 1989.

With a combined income averaging $10,000 to $12,000 a year we lived simply and invested everything we could in building materials. Building the house more than doubled the value of our income. Avoiding interest on a home loan doubled our money again. Construction proceeded slowly throughout the process, due to our chronic lack of money. We moved into the house after the second summer, with no doors, few windows, and no insulation in the roof. Winter stopped about three feet from the stove. That might sound a little rough, but I later realized that we saved at least $150,000 in interest payments by eliminating the need for a loan. That is not a bad wage for a couple years of camping out!

If you averaged our total income over several years, combining our wages, plus home improvements, plus avoided interest payments, we were squeezing at least $50,000 a year from our marginal income. Given that all things are connected, how much do you think we paid towards income taxes? Practically nothing. Our W-2's said we were only making ten to twelve grand a year! Eventually, we even installed solar panels to generate electricity and run the utility meter backwards. We could readily afford this investment because we had so few other living expenses.

I have given these different examples for paying off a home mortgage quickly and efficiently because that is usually one of the biggest expenses people ever face, and because it is a limiting factor that governs so many other decisions. For example, as long as you are obligated to make a $1,000/month house payment then you are less likely to do something risky like quit your job and start your own business. But if you first find a way to eliminate the mortgage, then you can easily afford to make $1,000 less each month, for as long as it takes to get your business up and running. That alone can make the difference between success and failure in a new enterprise.

I know with certainty that I would not have made it as an author and publisher if we had to make mortgage payments through all the years that I stared at the computer learning to write, but not having much to show for my efforts. Nor would we have been able to afford to start a family or to buy a fancy canoe and spend a couple weeks each year as a family paddling down scenic rivers.

With mortgage payments we would have been dependent on a regular income instead of our own resourcefulness. We would have been forced to take lower paying local jobs, only because they were steady and dependable, unlike the higher paying opportunities that come and go on short notice. We would have spent more time commuting back and forth each day, and we may have frittered away more funds just because we were in town and tired of working. We could have gotten stuck in the machine, supporting an unsustainable way of life because there seemed to be no other way out. Treading water in a sea of bills, we would have bought those incandescent bulbs because the compact flourescents were way to expensive up front. One decision limits another, and it is difficult to make real change without changing everything.

When you do successfully eliminate mortgage payments, high energy bills, and other similar limiting factors, then you will find that the world is a new and exciting place full of grand opportunities. You can continue to be idealistic and optimistic because you have a unique freedom to pursue your Dreams, whatever they might be. If you want to spend a season photographing polar bears in the arctic, then go get a job for a couple months and save up your money. It doesn't take long to save up a pile of money when you have few other expenses. This is true financial freedom--or should we call it freedom from finances?

Admittedly, the path we took was not always easy, nor is it the solution to everyone's problems. For years, while struggling to launch my writing career, we often felt both immensely wealthy and desperately poor. Our house is the sort that people look at and exclaim, "Those people must be loaded!" Yet we could rarely scrape up enough change to go to the movies.

The point that I want you to take home from this is simply a different way of looking for solutions. Sure, making more money is definitely helpful, but not always something you can control. If you find yourself chanting the mantra, "I know I could break free if I could just make a little more money." then maybe it is time to look for another way out.

One question that must be faced is how do you change your life situation from where you are? I know my wife and I had a pretty idyllic situation when we started out. No debts, no payments, no kids. Just the two of us and an old, but very reliable car. Other people I talk to have big credit card debts, or student loans left to pay, and dependents. Certainly, these factors make it more challenging to pay down a mortgage and quit a job, but also probably more worthwhile to really go for it.

The reward for your efforts is directly proportional to the amount of change you decide to make in your life. Switching lightbulbs, riding a bicycle to work, or eating weeds from the garden will make small, yet positive differences in your financial situation while also helping to make the world a slightly better place. But, if you want to make real change--to be out of debt and successfully unemployed--then you need to stack up as many changes as you can. You need to step outside the cycles of waste and create a whole new lifestyle, conserving energy, resources, money, and time whereever you reasonably can. It is almost like creating a whole new identity--you as a person who is free from the treadmill of waste, free to do whatever you want for the rest of your life. Let me give you an idea of what can be achieved, based on the success stories of people who are making real change in their lives.

The first is of a school teacher who read the early draft versions of my book Direct Pointing to Real Wealth. He wrote to say how he was deeply in debt, but very inspired by my book. In fact, he moved out of his apartment and into an old chickenhouse on a neighbor's property! Now, I wasn't quite sure what to make of this. I found it a bit alarming that this otherwise rational person "flew the coop" after reading my book. But later he sent pictures of a small log cabin he was building. He did not own the land, but had permission to build the cabin and live there for twenty years. The last time I heard from him he had just been fired--or at least forced to quit--his teaching job. Apparently he left work without permission to audition as a candidate for the Survivor show. He wasn't selected for the program, but didn't mind losing his job either. In our three or four years of correspondence he went from being deeply in debt to being debt-free, with enough money left over in the bank to live on for the next two years without working. More importantly, he had Time on his hands to pursue all of his Dreams. So I consider that a true success story and I hope to inspire many more people to get fired from their jobs!

Another man I know is losing his job in phases. He works as an environmental economist for the state. I met him while I was working on the current edition of Direct Pointing to Real Wealth, and I asked for his help editing the book. In the process he became sufficiently inspired that he has since undertaken several projects to increase the energy-efficiency of his home, plus he paid off the rest of his home mortgage in short order. He wasn't 100 percent satisfied with his job, but not ready to lose the pay and benefits, either. I understand that completely. It took me about eight years of tinkering at my own business before it finally produced a sustainable income. So, he asked to have his job cut to a four day work week, and he got it! Now he has three-day weekends to go play, or to work at other jobs. Suddenly he is exploring all kinds of new frontiers, learning nature awareness skills, working with disabled people, editing other books, and working part-time for an energy-conservation company. He even took fire-fighting training just for the experience of it. He has opportunities "coming out of his ears," as my grandmother would have said.

A third success story-in-progress was a family I met while on a business trip to Saint George, Utah. Being a thrifty kind of guy, I drove around looking for a quiet and safe place where my son and I could roll out our sleeping bags on the ground for the night. We found a good spot early in the day, then didn't make it back to camp until well after dark. I was surprised upon our return to find that the place had become a kind of transient subdivision. But our neighbors were not in sleeping bags. These were landless families who lived in motor homes and just drove out to park on this piece of state land each night after work. The family I camped next to actually owned land farther away and were getting ready to build their own home, but for now they were minimizing expenses where they could, raising their kids in a motor home. They also had a small commuter car, but basically they drove their house to work each day, successfully avoiding rent payments to save up for their own home.

In other words, where there is a will, there is always a way. The key to success is in being able to escape the job trap. Having great debts or being straddled with dependents will not make the path to freedom and sustainability any easier, but there is always a way out, if you commit to finding and achieving it. When you successfully eliminate most of your expenses and the need for a regular income, then you will find clear sailing ahead, and a freedom that you probably have not experienced in a long, long time.
Only force rules. Force is the first law - Adolf H. Man has become great through struggle - Adolf H. Strength lies not in defense but in attack - Adolf H.
Old February 18th, 2017 #44
Robbie Key
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Robbie Key

These guys have a podcast nowadays:

#1, minimalism


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