If I’ve been conspicuously quiet on this blog lately, there’s a solid reason: I’ve been traveling nearly nonstop.
One of the benefits of no longer Working for the Man is the ability to do whatever the heck I want, and “what I want” usually involves airfare.
Life hasn’t always been this way. There are three phases in a person’s quest for financial freedom: Start, Accelerate, and Escape.
Four years ago, when I first moved to Atlanta, I focused on building both my online business and my investment portfolio. I traveled very little. Those were the “Acceleration Years,” when I sacrificed all else for the sake of hitting Escape Velocity.
(“Escape Velocity:” The speed needed to break free from the gravitational pull of a massive body. In the context of the Afford Anything Rebellion, it’s the point at which your businesses and investments fuel your entire life, allowing you to break free from the workforce.)
Gradually, my systems locked into “Cruise Control.” (Yes, I realize I’m mixing metaphors.) My online business started running itself with less day-to-day micromanaging from me. My real estate portfolio blossomed into a completely passive enterprise (with the exception of the AirBnb unit, which I undertook as a fun experiment). Now I get to enjoy those fruits.
So this year, my life is starting to resemble the Travel Channel. Here’s a rough sketch of this year’s travel itinerary:
| Month | Destination | Time |
|---|---|---|
| January | Las Vegas | 5 days |
| February | – | — |
| March | Austin TX | 9 days |
| April | Hilton Head Island | 5 days |
| May | New York City | 14 days |
| June | San Diego | 11 days |
| July | Costa Rica (Nicoya Peninsula) | 10 days |
| July | Destin Florida | 5 days |
| August | Ireland (Dublin and Cork) | 14 days |
| August | Nevada | 9 days |
| September | San Diego (again) | 10 days |
| September | New Orleans | 5 days |
| September | Austin TX (again) | 7 days |
| October | — | — |
| November | Miami and West Palm Beach | 7 days |
| December | Hawaii | 8 days |
While some future dates are approximate (another benefit is flexibility, after all), I’m still looking at about 120 days of travel this year — almost 1/3rd of the year. I’m exhausted (but happy) just looking at it.
(BTW, I’ll be posting photos of these epic adventures on Instagram.)
Since the obvious follow-up question is “How can you afford this?,” I’ll touch on a few highlights:
– Travel slowly. This is the single most critical, game-changing piece of advice that I can give. The longer you stay in one spot, the lower the price-per-day.
Why? Two reasons: First, “transit” (airplanes, cars, etc.) is the most expensive piece of the equation, and second, the more time you spend in one place, the more you can act like a local.
Notice, for example, that I’ll be spending a full two weeks in Ireland, rather than frantically trying to country-hop over to Scotland or Wales or England. I’ll save those for a future trip. (Even that feels short; I prefer 1-2 months or more.)
The biggest bonus to “slow travel” is that you absorb the culture. You stay long enough to make friends, find your favorite grocery stalls, and take long walks to nowhere in particular.
Last year, I spent three weeks in Paris. I didn’t “do” the city in 2 days, followed by an insane train ride to Barcelona or Marseille or anywhere else. I planted myself in one spot for nearly a month, which simultaneously saved money while also allowing me to “experience” rather than just “view.” By the end, I knew my favorite bakeries, favorite public gardens, and favorite little reading nooks. I’d also met a handful of interesting people.
Which leads to my next point …
– Make friends. Stay with them when you visit. Return the favor when they come to visit you.
Don’t have any friends in a particular destination yet? Try couchsurfing.org, a website that connects travelers to hosts (for free), or rent a spot on AirBnb. Failing that, stay in a hostel or a guesthouse. Friends don’t let friends pay high-end hotel markups.
– Act like a local. Eat, drink, and recreate in the same way as the locals. In Paris, for example, I’d often see tourists at the pricey restaurants, while locals would grab bread, cheese, meat, and a bottle of wine, and picnic near the Seine.
– Run your own business. This is a double-edged sword: You’ll want to work enough that you’re on a legitimate business trip, but not so much that you’re spending all of your time in meetings or in front of a computer screen.
Travel for meetings or conferences, but keep your schedule light and build abundant free days. One good rule of thumb: Schedule one “free day” for each “full day” of work.
Of course, there’s the classic advice that forms the backbone of this blog:
– Afford anything, but not everything. Ruthlessly slash the costs that don’t matter, so you can spend lavishly on things you love.
It’s no secret that I’m passionate about travel, which is why I’ve been diligent about saving between 50 to 77 percent of my income over the past few years. I invest most of this into index funds and rental properties, which turns into passive income, which fuels more investments … and more travel.
The Rebellion
I realize many of you will have a HUGE objection to most of the advice above: “But Paula, I only get 10 vacation days per year!”
I feel your pain. I used to have that problem, too. It drove me nuts.
Once upon a time, I accepted those shackles as part of “the adult world.” “Enjoy your childhood, kids — it’s all downhill from here!”
But life doesn’t need to be this way.
Slow Travel
Almost a decade ago, I read a magazine article that changed my ideas about career and life.
I know, I know. That sounds dramatic. But just hear me out:
This article, which ran in Ski Magazine, explored the difference between recreational American vs. European skiers. The U.S. skiers wake up early, catch the first lift, spend the entire day on the slopes, eat a quick lunch, and go to bed early so that they can repeat their feat the following day.
In short: They’re hell-bent on maximizing their time on the mountain.
European skiers, by contrast, ate leisurely dinners, stayed up too late, slept in. They’d enjoy a few good runs down the mountain in the late morning and afternoon, followed by happy hour.
Yes, these are broad generalizations — but stick with me for a second.
The author of this article concluded that the reason these differences exist is largely due to vacation time. Americans tend to have far fewer vacation days than Europeans; 10 days per year is normal. If an American loses a single day on the mountain — say, due to a hangover — they’ve lost 10 percent of their possible ski time for the year. Efficiency, therefore, is essential.
Europeans, by contrast, often enjoy 20 to 35 vacation days per year. Losing a day on the mountain is no big deal. They can afford to relax; take it slow.
Now, I’m not an expert in the Sociology of Skiing, so I’m not going to debate the specific merits of this article. Instead, I’d like to focus on the broader premise: When you’re rich in time, you can embrace a laid-back approach to life.
This laid-back approach creates bigger savings, less stress, and an all-around more awesome experience.
And if your boss won’t grant you that time, you have two options: accept it … or fire your boss.
Fire Your Boss
“Firing your boss” can take many forms:
- Work for a different company.
- Career-shift into a field that gives you more freedom.
- Work for yourself, from your laptop, anywhere on earth.
- Create enough passive income that you reach Escape Velocity.
Here’s the irony:
You need freedom just to pursue these options.
If you’re struggling with debt, living paycheck-to-paycheck, or locked in an endless cycle of graduate-school-diploma-after-useless-graduate-school-diploma in a futile attempt to delay adulthood (you know who you are), your options are limited.
If you want the freedom to fire your boss, try this:
Quit Buying Crap. You don’t need J. Crew; you need thrift stores. You don’t need Chipotle; you need rice-and-beans at home. You don’t need the nice apartment; you can live with 4 roommates in a hovel. (If you own your home, rent your spare rooms.)
This lifestyle doesn’t need to last forever, but persist until you’re out-of-debt and saving at least 20 percent of your income. Split these savings between retirement accounts and creating a cash cushion. (Save 50+ percent if you want to hit Escape Velocity.)
Build a Cash Cushion. Nothing will lower your stress levels like a nice pile of cash in the bank. If you really want to fire your boss, you’ll need to stockpile at least 6 to 9 months of cash. (I had enough to support myself for 2+ years when I handed my boss a resignation letter, but that’s an extreme. You don’t need to go that far.)
Hustle. You can find an extra 10 hours per week. (That’s just one hour per day, Monday through Friday, plus 5 hours each weekend.) At $25/hr, this creates an extra $13,000 per year for your Fire Your Boss fund.
I’ve heard people say that they don’t want to hustle. They want to work only at their day jobs, without even temporarily pressing the accelerator. That’s a choice, but accept that this choice has consequences. You can either take it easy or create self-sustained freedom, but not both. You can afford anything, but not everything.
Step on the accelerator today; enjoy “cruise control” tomorrow.
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Another great article!
We just got back from a two-week trip around Europe with friends… on a bus tour. No, it wasn’t the cheaper, slow-travel route, but we wanted to get an overview so we could decide where we wanted to visit again in the future. We stayed in 7 different cities in 5 countries, and visited a couple others along the way. I’m hoping that when we go back we’ll do a two-week stay in one place (either Florence or Paris), for the reasons you mentioned above. We did a 6-week stay in Antigua, Guatemala, back in 2008 and loved it, so we know the advantages. It’s much more relaxing than a whirlwind tour! But whirlwind tours can be fun, too. 🙂
Thanks for the article. I plan to share it with my wife…
@Rich — Thank you! Hey, every “ying” needs a “yang” — sometimes the whirlwinds can be fun, as well.
If people are traveling on a shoestring budget, they may need to stay in one spot. But the great thing about expanding your budget — earning, investing, saving — is that you have the discretionary funds to travel in any style you choose: slow, fast, a combination of the two. Money yields greater choices, and choices are awesome.
So good for you!! It sounds like you planned well, your budget is on-track, and you’re spending in a way that brings you joy. And at the end of the day, that’s what this is all about. 🙂
Love this post, Paula. I can totally relate about spending more time in one place to really get a feel for the place and save a bit of cash. I just got back from a trip to NYC (third time this year!) and since I stay with friends every time, it’s really not too pricey. Transportation is definitely the biggest money suck but otherwise, totally manageable! I’d like to think I’m doing the “Afford Anything” way — prioritize travel and visits with friends over the latest clothes & restaurants.
Good luck with the rest of your travels!
@Charlotte — That’s fantastic! NYC is one of my favorite cities, and you’re absolutely right in that it can be very affordable, especially if you stay with friends. You can find cheap food in the city, and just walking around is entertainment enough. I sometimes will just pick a neighborhood, like the East Village or Williamsburg, and just devote a full day to strolling through it, pausing at parks to read, write or take photos. I’ll return home feeling like I’ve had fresh air, exercise, and chance to meet random people, and a stronger feel for the city. You’re totally living it the Afford Anything way.
Love this post! Your traveling plans for 2014 sound amazing. We are starting to travel more and more now that we are self-employed. It’s really a wonderful thing.
@Michelle — Congrats on traveling more! Self-employment is incredible for allowing the flexibility for these kinds of things. 🙂
February and October look like sad months. I hope you can make it through okay ;-).
I would be saving roughly 50% of my income if it weren’t for my pesky student loans. I wrote out a 5-year plan last week and its so exciting to see all the fun things I’ll be able to see and do once that loan money shifts to travel and savings. Just 18 more months…. I know I can, I know I can, I know I can.
@Kate — Man oh man, it’ll be hard to survive those two months, but hopefully I’ll manage … 🙂 j/k
If you’re putting your money towards repaying your student loans, you’re putting your cash towards AWESOMENESS. First, you’ll avoid a heap of future interest charges — which means more cash in your pocket down the road. Second, you’ll free yourself from the stress. And finally, of course, if you’re using that degree, you’re hopefully making a good “return” on your investment. So good for you! 🙂
Congrats on all of your travel! I haven’t reached escape velocity yet, but well on my way. We still travel quite a bit each year – several domestic trips and 1 or 2 international trips a year by effectively using our vacation days and taking advantage of long weekends. The only way we make it happen without breaking the bank is by using airline miles, hotel points, and our timeshares.
That’s awesome, Lee!! It’s great that you’re making the most of your time. Too many people just sit on the couch and do nothing … good for you for getting out there and embracing the world!
I have a long way to go in order to fire my boss… but I am dreaming! I need to become an internet millionaire – no big deal, right? 😉
It’s a slow trickle for now, but hopefully my plans coalesce into a bigger, better velocity!
@Anne — I like where your mind is at! Keep testing and trying different hustles, and you just might become an internet millionaire after all! 🙂
In my experience, a few ventures flop; most “flatline” or stay stagnant; but then you get that ONE that really makes it …
Paula,
I’m certainly in the hustle phase, like you were 4 years ago: rental income, side hustle(ebay), and coming one day in the future blog income. I’ll enjoy my 15 days of vacation with a trip to Nicaragua soon, travel slow and enjoy it.
@Even Steven — Ah, I know the hustle phase quite well! It’s a necessary phase, but don’t worry … you’ll look back on it and realize, with some degree of astonishment, just how much you accomplished in a relatively short timespan. Congrats on making progress!
I have been in the rental property business for 18 years I sure could have used your blog when I started out – I would have avoided some major headaches!
Now I am trying to teach my own kids how to take control of their financial destiny. I love your advice that leads to becoming rich in time and how to live with a financial purpose.
Just wanted to point out that so many people rob themselves of options by taking on too much student loan debt. An excessive amount of college debt imprisons you at the outset of your adult life. It may force you to make short-sighted decisions that give up on your dreams in order to make your student loan payments.
@C.K. — Thank you for the compliment!
That’s a great point (re: student loans) and worthy of its own blog post. The fundamental question: When should you take out student loans? When should you not? What’s “reasonable” and what’s excessive?
I’ll be writing about that soon (I actually started drafting a post about that yesterday, oddly enough). The answer depends on factors such as: your major, your school, average starting salary, job placement rates, and your degree of certainty that you’re committed to a particular career.
But beyond all of that, the fact remains: A lot of people take out student loans blindly, without thinking about the future. And that’s a mistake. I’m not totally “anti-debt,” but I am ultra-cautious-about-debt, and if people take out any student loans (or housing loans), it should be uber-strategic.
Excellent post. I drove across the country for 2 weeks last year. Ever since that trip I have realized that I have to make things happen. I’m currently working 2 jobs and paying off debt so that I can travel more.
@Jason — That’s awesome! I’m super happy that you’re working 2 jobs … you’ll blast through your debt in no time!
Great article! I have a question: are you single? I would love to have your lifestyle but I am in a committed relationship with a man who works 9-5 with a very cushy salary, and no matter how much I try to get him interested in financial independence, he doesn’t seem to get it. This is tragic because we both LOVE to travel overseas! What is your suggestion for getting a partner on board with a F.I. action plan?
Cheers!
@Christina — My circumstances are identical: I’m in a relationship with a man who has a professional 9-to-5 job with a fantastic salary.
He also loves the idea of not NEEDING to work. He’s totally down with ‘choosing’ to work — he thinks he’ll always make that choice — but he loves the idea that he’s free to walk away at a moment’s notice, without his job loss imposing the slightest interruption on his lifestyle.
In fact, his job satisfaction actually increases because he knows that he goes to the office each day based on choice, not on necessity.
So if I were you, I’d frame it to your significant other in that context. After all, “traveling” isn’t really the ultimate goal. (It’s a nice perk.) The ultimate “Why” behind all of this is having the freedom to do whatever you want, whenever you want. If you want to keep your job, keep your job. That’s the great thing about freedom — You’re free to make the choice to keep working.
Paula it seems that anything I’ve got a thought I’m processing through, I come on and see you’ve written a post about it. Your timing is impeccable! That “escape velocity” is such a great way to phrase it. The tipping point that we need to reach.
I’m glad to hear that! Thanks Steve. (I’ve been thinking about the concept of “escape velocity” a lot lately, as well … )
With all of the “productivity” gains technology has given us, most of the world glosses over the biggest gain of all from all of this innovation. The internet gives anyone with a mobile computing device the opportunity to earn a living from virtually any civilized area. That is more amazing than any productivity gain.
This is a great article! I am a workaholic and took my first vacation day recently for the first time in a long time. Felt really nice! Your vacation plans for 2014 looks awesome. Please refer a nice spot when you get to Ireland!
Great Article! We fired our bosses in January, and have been traveling full-time ever since. Traveling slowly (and in places with a lower cost of living), we spend far less than we did when we were “stationary.” Everyone tells us we’re “so lucky” to be able to do it — but, just as you said, it takes some hustle, planning, and hard work to make it happen. I have clients I consult with that apologize for “interrupting my vacation” — it’s not vacation, really — it’s just a different lifestyle. And it’s totally achievable.
I’m really fortunate that I get lots of vacation time as a teacher. However, I don’t really travel all that much (Mr. LH hates traveling). Instead, I use my time to explore other side hustles to save for a house (California is expensive!) Some day, I intend to take advantage of my vacation time and travel around a bit.
Digging your travel plans! I am so inspired by your journey and what you have done with your life. I hope to one day travel a lot more and work from home. My first step is getting rid of debt, which I’m working hard on. I think you can make big changes in your life, but you have to want it.
I would not recommend anyone quit even with 2yrs of expenses if they a) like or can tolerate their job and it’s great pay or b) don’t have a backup plan to continue building their portfolio.
Also, you’re proposing I give up up Chipotle?! In all seriousness, it’s literally almost the healthiest fast food you can get for a decent price. There are much worse options. Applebee’s *cringe* to name just one. If you factor in all of their ingredients then you’re really not saving a ton. Steak isn’t cheap if that’s your thing. Well neither is chicken really. But don’t worry I see your point about just sticking to cheap staples for a while and I agree that is best for someone not yet with a sizable stash.
I am so with you on slow travel. I don’t travel for beaches or museums or landmarks…I travel to explore the city and culture. I do this because I do plan on moving someday and would like to get an impression of as many different places I can. There are tons of great places in America though so it’s hard to choose!
Great plans for leaving the rat race, if the desire is greater it will be possible to make a change. I know you prefer index funds, can you reveal which index fund pays you the most dividend cash flow per 1K invested? Im looking to find the best invesments.
I was with you until you tried to tell me I didn’t need Chipotle 😛
One thing that’s really bugged me in this age of job hopping is the way companies use vacation time as one of the last hard benefits to encourage employee loyalty. Aside from the the soft benefits of a network and such, with pensions gone you’re still often stuck giving up “vacation seniority” if you start anew. Super frustrating…
@Alex — LOL! I definitely love Chipotle, too. 🙂
Ugh, “vacation seniority.” Don’t even get me started. Of the many things that bother me about the traditional workforce, I’m most annoyed by the notion that someone else has authority over each day of your life. That was really the nail-in-the-coffin, straw-that-broke-the-camels-back for me …
This is increasingly becoming the Baby Boomer way. Too bad most of us waited so long. But, better late than never! Cut the crap and start really living. The clock is ticking…
Absolutely, Jan!! Better late than never, for sure! You’ll probably enjoy this blog post about my parents retirement … http://affordanything.com/2013/06/19/party-like-youre-72-and-retired/
I think the biggest thing, for me, is focusing on cutting costs and putting any money possible into getting rid of debt. Student loans that go on for years are a real drain. Thanks for the motivational reminder of what I should be doing.
Thanks Paula, you’ve helped me decide something. At the fine young age of 32 I’m still under traveled. I’ve hardly stepped outside the Maritime provinces here in Canada. For the past few years the idea of a backpacking trip to somewhere in Europe or the UK has rolled around my mind. I was thinking the typical England, Ireland, Scotland circle. This may be my only chance for a long time to travel so I’d better pack as much as I can in two to three week trip was my thought. Something wasn’t quite sitting with that so planning hasn’t left my head.
Travel slowly, immerse yourself in an area.
I like that. Now my thought is a couple weeks in Ireland. This suits me, if I go somewhere I want to soak it in.
The picture of where I want my life to lead is slowly becoming clearer. 🙂 At this stage a two week vacation is enough. There’s a family dairy farm I want to invest my time and creativity in. There seems to be a mindset among farmers that we are poor and over worked. I want to shatter that mindset. We may have to work hard but buy no means do we have to be poor. 🙂
I also believe couch surfing is a great way to travel for real cheap. You can also make tons of friends this way as well. They also have events around the world where you can meet people that also couch surf.
@Alexis — I love Couchsurfing!! I’ve met some incredible people in Portugal, Spain, Western Australia, across the U.S. …. all thanks to Couchsurfing.org. I’ve also hosted some people who I still keep in touch with, even years later. It’s a great way to meet people, make friends across the world, and it’s 100% free.