I’m no economist, but I have received a few pieces of advice from people much smarter than me that has allowed me to obtain a lifestyle that many would call a dream. It consists of world travel, parties, wild adventures, and no shortage of romance. Here’s my top five economic tips that may help you with your lifestyle design:
1. Take advantage of currency inequality
Did you know you the minimum wage in Australia is approximately $18-$21 per hour? Did you also know that you can live in a waterfront apartment and eat fresh seafood and go kite surfing in Indonesia for $18 a day? Nations have massive inequalities of currency. Attempting to even live with basic necessities (food, shelter, some form of entertainment) in some nations is extremely expensive. Meanwhile, in other parts of the world you can live like an absolute king for next to nothing. So if you live in an expensive country than work hard, save up, and get the heck out of there!
2. Don’t confuse assets with liabilities
Your car, house, boat, and phone may be considered assets on paper, but they are truly liabilities that are taking money out of your pocket every month. Worst of all, they are keeping you immobile and stressed out.
You must stop the financial bleeding by either renting out (or sub leasing if you rent and don’t own), and trying to sell these things while they still have any value. And who would you rather be on a date with a guy who has never left home and drives a hot black sports car, or a guy who just travelled to 35 countries and can small talk in 12 different languages? I’ll let the ladies be the judge 😉
3. You don’t need to be rich to travel the world
My favourite experiment is asking people “what would you do if I gave you 10 million dollars right now?” After their mind gets going, they start unloading all of these awesome things (which ALWAYS involves travel). Then once they are done telling me the life of their dreams, we look at the true cost of doing all the things they mentioned, and its always super cheap! Most of the time, the person could already afford this lifestyle without realizing it. #lifehack
4. Understand the difference between absolute and relative income
Jenny makes $100,000 per year, but works intensive 80 hours per week on average, and has no vacations. She makes $24 an hour. This is her absolute income.
John only makes $50,000 per year, but only works 20 hours per week on average. He makes $48 an hour, which is double what Jenny makes. On top of that, he has the majority of the year to travel, and most locations would strengthen his dollar further.
This style of relative income can be obtained by having your own business, working hard at a job for only a small portion of the year and getting away, or owning passive income assets (like real-estate or low risk stocks or mutual funds). Sure Jenny could work like a dog all year for 10 years, become a millionaire and retire. But unfortunately, the responsibility of work and family may limit her from ever getting away.
5. Buy Second-Hand
Everything’s for sale on second hand websites like Craigslist. From car lease takeovers, to cell phone plan takeovers, to room shares, any virtually ever accessory you can think of. Take advantage of consumerism at its finest, and let somebody else give profits to the businesses, while you can buy items for their true worth.
Hope this helps you save a few bucks! Happy Travels.