Home and Away - 6-30-2012

A few days ago, Dad told me something touching. He and I were talking about my recent travels and my desire to take this year off to travel more, enjoy my life and generally just "be." I told him, perfectly truthfully, that I haven't headed out again since returning from Costa Rica in late May because I've really enjoyed being home. I've also really enjoyed catching up with friends in LA, picking up new interests locally, meeting new people, and visiting San Francisco to reconnect with some of my best friends from business school (and to reconnect with the coolest city in America...sorry LA!).




Playa Samara, Costa Rica

You'll remember that a big insight from Costa Rica was that I should love and honor my friends and family by being with them, not just by thinking about them. Being kind and loving to my parents has remained a part of that, as was visiting my friends in San Francisco...friends who never gave up on our friendship despite me putting off visiting them for over two years as I focused on my finances to the exclusion of all else. I've also just enjoyed the opportunity to relax and savor my every moment at home without the pressure of a job or a commute or the weight of a boss' or staff's...or my own...expectations. Savoring my life daily, "la dolce vita" as it's called in Italy and "pura vida" as a Costa Rican would name it, was an additional purpose behind saving hard, rejecting consumerism, turning my back on television's vapidity, getting my finances in order and taking this extended break. In short, I've been home instead of traveling because being home has felt great, it is what I've wanted to do recently and...because I can.

I told Dad all of this and he said he really liked that I felt that way. He said that he and Mom are happy to have me here and they're both happy to see me so satisfied with my life. Then he told me that he hopes I always feel welcome at home, because indeed, I am welcome here. All the time. Forever.

I thought that was beautiful. Thanks Dad!




Playa Samara, Costa Rica

Still though, the road is whispering to me again and I can feel my restlessness building. I've started thinking of the other trips I intend to take this year and early next year. I'll almost certainly set foot in Panama for an extended trip before this summer is done. I'll be visiting New York in late summer or early autumn to see more friends I ignored for years. I'm going to fly to Vancouver to visit friends I made on the road for a short trip as well. Ecuador, Peru and the Amazon, with its mysterious ayahuasca vine, whisper to me as they have for years now. Chile, and its reputably libertarian politics and burgeoning economy, calls me, as it has for a year or so now. Even Italy whispers to me sweetly across the years, like a lost lover. As much as I have seen of Italy, I never grew tired of her.

I love being home, but the road calls me back to it. So soon, I'll be abroad once more...learning, growing, and forging myself into a stronger and wiser man...fulfilling the purpose of my time away from my career. Indeed, one of the things I'm working on during this break is listening to the universe when it quietly directs me somewhere. Looking back, I've nearly always waited until the whisper was raised to a scream because I've also nearly always tried to ignore this guidance. I'm listening now, though,...and I'm trying to listen better.

What Does Financial Freedom Mean to You?

Get Rich Slowly is one of my favorite personal finance blogs. Its writer, J.D., used to be a chronic debtor who worked a job he hated. Several years ago, he committed to getting out of debt. His journey attracted so many readers, and opened his own eyes so much, that he quit his job and now blogs full time. What I like best about his blog is that many of his posts link financial freedom to personal freedom. This post is a perfect example.

J.D.'s post links financial freedom to the freedom to choose your work, the freedom to live where you want, the freedom to do what you want, the freedom to seize opportunities, and freedom from worry. In my "About Me" statement and in a previous post, I link financial freedom to several of these things as well. This is how I link financial freedom and my freedom using J.D.'s criteria:

1) Freedom to choose your work: When I had six-figures worth of student loan debt, I absolutely felt like I had to make a lot of money. In fact, I have read that graduates need to limit their student loan balances to no more than two-thirds of their first year salary. My high pay jobs were so stressful they were hurting my physical and psychological health. I paid off over $50,000 in student loans last autumn and immediately felt like I could downsize my career to something more sustainable. I am now searching for less stressful, less time-intensive employment that focuses more tightly on subject matter I like and responsibilities that I enjoy and are good at handling. This will probably entail a pay cut, but reducing my debt load gives me the financial flexibility to absorb that hit and chase satisfying work.
2) Freedom to live where you want: Ultimately, I want to live in different parts of the world during different parts of the year, but still spend decent time in California. I could achieve this by traveling and then renting housing in whatever locale I decided to stay for a while. That would certainly be cheaper than owning property every place in the world I want to li.
3) Freedom to do what you want: This is huge for me. Financial freedom means doing what I want where I want with whom I want when I want. I traveled through Costa Rica for five weeks without a job and without concern about finding one because my finances are in good order. Though I had an amazing time abroad, I do desire work that plays to my favorite skills, deals with my favorite subject matter, and that focuses on tasks I enjoy performing. I have a decent feel for what all of this entails, so I feel like I am moving towards achieving this goal.
4) Freedom to seize opportunities: My Costa Rica trip was a great opportunity for personal growth, and one that I would have passed on had I been furiously searching for a job because I was drowning in debt, or because my lifestyle was so expensive I needed constant income to support it. A friend recently approached me about investing money in a private business he found. I passed, but the fact that I seriously discussed investing felt empowering.
5) Freedom from worry: I still worry about money, my remaining student loan debt, maintaining cash flow as I age, and similar concerns. However, I don't worry about those things nearly as much as I did before I paid off over $50,000 in student loans last autumn. When my last $33,000 is gone, I know I'll worry even less about money. Also, I don't worry about car payments because my car is paid for. I don't worry about mortgage payments because I don't have a mortgage, nor do I desire to purchase a house in the foreseeable future. I don't worry about monthly, or even emergency expenses because I have ample cash.

What does financial freedom mean to you?

Why Do We Work?

I have been unemployed for six months now and I am OK with it. Why? Because I have achieved financial freedom. Not true financial freedom because I lack the funds to be unemployed forever, but I have achieved enough financial freedom to be unemployed for six months, so far, without worrying about money.

I achieved my temporary freedom by saving aggressively, living frugally, and avoiding debt. For example, I've been crashing with my parents for over a year because they don't charge me for rent or food. Because of their graciousness, I saved 70% of my after-tax salary at my last job. I paid off most of my student loans, dropping my monthly cash outflow by nearly $650. I drive a seven year old car I paid off years five years ago. I haven't bought new clothes in months. I rarely eat out.

It sounds like I live a crappy life, right? I don't see it that way because I don't feel as though I am depriving myself of anything. Drastically reducing my cash outflow means I can get by on less money going forward. This means that I can work less stressful, less intense jobs than the jobs I previously worked at. More imporantly, drastically reducing my cash flow means instead of working, I can spend my time doing things I enjoy like traveling abroad or catching live music shows. For a while, anyway. And that's what I really want these days...the time do what I enjoy.

So if work means swapping our time for something, what is that something? Why do we work? I used to work at high-pay/high-stress jobs 1) for the social status that comes with making a lot of money and having an office, a staff, and heavy responsibility, 2) because I desired material things like expensive clothes and luxurious housing, 3) to pay my student loans, and 4) because I believed that responsibility, power, and hierarchical progression would eventually provide an intangible benefit like happiness.

My values have since changed. I don't desire social status anymore because I would rather spend my money buying my free time back than impressing strangers with a $40,000 car and a pricey condo. In fact, I barely desire material things at all anymore because everything I own is something I have to purchase, store, maintain, think about, and take with me when I move. I am happier spending that money and energy on fun things like this. I have paid off most of my student loans and I feel great about having fewer financial obligations. And I see now that the stress, heavy obligations, and intense pressure of previous jobs were destroying my physical and psychological health.

So tell me...what keeps you going into work for 50, 60, or more hours a week? Do you enjoy what you do? Are you good at it? What trade-offs or compromises have you made to keep on your career path?

On the Sixth Day, I Rested - Wednesday 3-25-2009

The wind blew like a hurricane last night, which is so weird because the daytime wind is so gentle. I woke up during the night and had to make sure no one tried to open my door because the wind blew against the door so strongly it sounded as felt as though someone pushed and pulled against the handle. But it was just the wind. I spent all day today writing about the last several days. I also sent out a few emails.

This blog is about freedom. It’s a travel blog right now because I currently am expressing my freedom by traveling around Costa Rica. Today, I exercised my freedom by not doing anything active. I enjoy writing, so that is what I did. I also find that writing is good for me. Writing has been easy the last several days because the last several days have been so unlike my routine at home.

There is more to freedom than travel. Non-stop traveling would be as limiting for me as non-stop working used to be, so clearly there’s a balance to be found. Ultimately, I am aiming to design my life such that I do what I enjoy as much as possible and do what I dislike as little as possible. Debt-freedom and spending money in accordance with my desire to be free is a big part of this lifestyle design. Paying off my remaining student loans means either that I’ll have a couple hundred more dollars a month to spend on whatever I wish (including travel), or that I can take a job that pays several hundred dollars a month less without negatively impacting my standard of living. Smart spending is critical to my freedom. The less money I spend on things which chain me to an expensive lifestyle (high rent, a crushing mortgage, large student loans, big car payments, needlessly expensive clothing, etc.), the less I need to work highly paying but highly stressful jobs. This means I can have more of the experiences I truly enjoy like the time to write, or a goodnight’s sleep uninterrupted with worry for the next day’s obligations, time with my family, time with my friends, and time traveling in the world.

In short, prioritizing exactly what I want out of life and then spending my money, time, and energy on those things and experiences instead of on things and experiences which do not support my priorities will be an important part of being free.