Matty's Journal

[Matty]

Hi guys, I recently introduced myself in another post so check that out if you want a bit of background on where I’m from. A journal seems like a good idea to get my thoughts out on “paper” and also to open my financials up for discussion. This isn’t a conversation I can have in much detail anywhere else. Not sure of the best approach to take here in terms of structure so I’ve just gone with it and tried to break it up into coherent sections/thoughts.

Introductory post:
viewtopic.php?f=1&t=3818

ERE Goals

I’d say I’m still in the stage of collecting some ideas and working towards developing a long-term plan. Retirement by 30 would be nice? I’ll be working on a plan over the next few months. I see the potential for part-time/seasonal work throughout ERE as I am still fairly young. Both for fun and as a way to maintain a healthy savings buffer. Some of my aspirations in life include:

• Build my own house
• Extensive hiking
• A very long road trip around Australia, surfing, fishing and just enjoying life
• Become proficient in hunting, fishing, gathering and navigating. Arguably the most important skills to man for the majority of our existence bar proving shelter covered in point one
• Spend some time learning about agriculture/permaculture either running my own farm or working on others
• Go on an Antarctic expedition (to work, study and live, not tourism).
• Avoid a mortgage
• Become enlightened
• Who knows?

Current living/travel arrangements

I’m currently living with my parents in a suburb about 20kms from the CBD. I travel to work via a 10 minute drive to the train station, 25 minute train ride and 20 minute walk to my office. I allow an hour each way depending on waiting time for train. I used to travel by bus to the train station but this added approximately 20-30 minutes to my travel each way due to no direct bus routes and unpredictable times. It is also possible for me to ride to the station along a river reserve which is quite nice in about 15 minutes, so it only adds about 10 minutes to my commute each way + free exercise. It is a nice ride however my excuses for not riding more frequently are: I like to eat as soon as I wake up but can’t manage the bike ride on a full stomach, it’s dark on the ride home and the area isn’t great, I’m trying to limit additional cardio as I’m currently underweight and trying to put on some extra kgs (pounds). These could all be managed with certain changes I imagine.

To move out of home or to stay with parents?

I have played with the idea of moving closer to work since starting at my current job 18 months ago. I could rent a room in a small house or unit with several others for maybe $130 a week, $20 for bills, and then I’d have to spend around $100 in food, I was vegetarian for several years and have found lentils and beans to cause significant discomfort so have to keep those to a minimum unfortunately, in general food seems to be a bit more expensive than in the US as well. Minus the $30 that I would save from not needing public transport and riding my bike, accommodation and living could be $220. It is therefore $120 more expensive to live out of home. I could take my commute down from 10 hours per week to 2.5, saving 7.5 hours so I am earning $16 after tax (approx. $24 pre-tax) to live at home and commute for the extra 7.5 hours. Also I haven’t considered the inherent benefits of living with parents, they cook dinner for me most weeknights, do washing etc, plus I enjoy spending time with them and would likely travel back to see them on the weekends. I’ll also mention my parents are happy to have me at home for at least a few more years.

To conclude, on face value the enticement of living closer to work is great however further analysis shows it is more economical to live at home.

Do I need a car?

Another question I have been thinking about is the need for a car. As mentioned above a car saves me some time by allowing me a direct route to the train station. I do have the option of a combination of catching the bus and riding my bike to the station however this may add approximately 2 hours per week. I have budgeted for $80 per week for car related expenses, my car is valued at approx. $15k, no debt of course, I never understood why people bought cars with debt… I could earn an extra $10 per week if I invested the money plus depreciation is probably killing off $10-20 per week when I eventually do sell the car. So say I could save $100 per week by ditching the vehicle. $100 divided by 2 hours, $50 per hour, not bad… Seems like an easy decision to ditch it. The only thing that is holding me back are social events and hobbies on weekends. Public transport isn’t the best for getting around except for direct to the CBD, I enjoy going to the hills on the weekends for hikes with my friends and often have a social gathering of some kind Saturday night. Not having a car makes it “difficult” without having to rely too much on friends/girlfriend to chauffeur me around, or spending hours on interconnecting busses for a 20 minute trip by car. I could have the option of borrowing one of my parent’s cars for weekend events in exchange for putting in a bit more petrol than I started with. Could do this for $10 per week maybe. As with accommodation and food I am subsidising my lifestyle through my parents. Also my girlfriend would not be happy if I sold my car. But that’s not a financial matter

To conclude, still unsure and looking for some thoughts. I like the idea of a car-free life. It’s sickening how wasteful the machines are and how they have become a “necessity” in everyone’s life At the same time a car provides a convenience factor to me which helps to relieve the burden of a 9-5 sentence. During ERE I can imagine being car-free would be much easier. Having an abundance of time on my side I could quite easily go for 1-2 hour bike rides to reach my destination for the day however I currently don’t have that kind of spare time. Also I wouldn’t really be car-free as I would be relying on friends/girlfriend and parents for access to their vehicles/lifts.

A second job?

I’ve toyed with the idea of a second job. I’m not particularly fond or skilled in writing so online blogs, article writing etc are out of the question. Also I spent enough time on a computer at work so would like to limit my time on it out of hours. I could get an unskilled job for weekends or nights at approx. $21 per hour rather easily however my tax rate is 33% so that cuts it down to $14. My father runs a gardening business, there could be a possibility for work a sat or sun for him using his equipment. I could earn between $200 to $300 tax free for a hard days labour. Not bad. Could be an extra $10000 to $15000 straight into savings each year + free exercise. The trouble is I am unsure of whether this is going to wear me out over the long term. I already feel time-poor due to 40 hours in the office. My tolerance for being busy is relatively low and I enjoy plenty of down time. Perhaps this is mostly a mental attitude and I could change it by having a clear goal and working hard towards it, cultivating a hard working ethic.

Conclusion, I am unsure of how to weight the positive vs negatives for this decision. $10000-$15000 extra savings per year could bring down my retirement age significantly but could the cost be too high? Or could the additional challenge provide a new energy into my routine.

That’s enough thoughts for now I think. Feels good to get it out. I’ll pop back in soon. Happy to answer any questions or take some advice. So here we are, feel free to hack my life!


CURRENT FINANCIAL STANDING

Cash savings at 4.6%: $35,000

Shares: $6,000

Car: $15,000

Annual Income after tax and HECS withdrawl: $45,000

Annual Savings: $31,000

Savings Rate: 70%~

HECS Debt*: -$19,000

*University loan run by the government, see my intro post for details of how payback works.


PER WEEK CASH FLOW

Income

Post-tax income: $873

Expenses

Board (includes all food, bills etc): $100

Car (insurance, registration, petrol, budget for maintenance): $80

Public transport: $30

Mobile phone: $3

Other**: $60

Savings

Savings: $600

**eating out socially once per week, savings for low budget holidays, Chinese massages (healthy alternative to headache painkillers) etc.

[m741]

Hey, welcome to the forums.

Looks like you have the expenses under control right now. If you're clearing $600 per week, I think you're doing pretty well (initially I thought those were per-month income/expenses!)

Based on your analysis it sounds like you're pretty much set for 1-2 years. You could try biking even though you have the car, to see if it's reasonable to ditch it. And if your father runs a gardening business, why not try working for him just a few hours each week? Hopefully he'd be reasonable and allow you to "test-drive" that.

As an aside, I don't think avoiding activity is a healthy response to being underweight. With that approach you'll end up underweight *and* weak. You should eat more, even if it feels like you can't. Try adding something simple & healthy that you eat/drink each day to bring up your calorie count, like a glass of milk.

[KevinW]

On the car thing, since you are at a crossroads where you are deciding on a lifestyle for the next few years, I recommend pushing hard to configure things so you can live car-free. The total costs of ownership of a car-based lifestyle are humongous.

[Matty]

Wow 6 months have flown by! I have been keeping track of the forums via RSS but I have failed to really participate - INTP tendencies at work perhaps? Anyway I felt like providing an update and feel like getting a bit more involved as of late. Some basic numbers and thoughts:

I bumped my savings from $2400 (68% savings rate) a month to $2600 (72%) a month over the past 6 months. Before discovering ERE philosophy I was only saving $1600 (48%). I'm amazed by how easy it has been to save an extra $1000 a month with almost no impact on my enjoyment of life. The simple act of automating the transfer of money into savings on pay day has saved me so much! Before, that $1000 would disappear into various expenditures (some known, some unknown).

Financial situation is currently sitting at:
Cash in high interest account at 4.6%: $55,000
Shares: $6,000
Car: $15,000 (I'm counting it because I'd like to sell this over the next year)
HECS Debt: -$18,000

Overal finances have been pretty steady, still living with my parents expenditures are very fixed. I'm about to turn 24 this weekend. Going to spend it surfing with a few friends. My goal is to reach $100,000 by my 25th birthday which should be doable if I manage to stay employed consistently until then!

I currently have 5 weeks left on my graduate contract at my work. I'm trying to see if I can negotiate an extension for a few months as some new internal jobs may be opening up that I could miss out on if I leave before they are finalised. I'm also applying for a few other jobs around. I'm unsure how this will all turn out or even how I would like it to turn out.

My time with this company has been a bit unfulfilling but the people are nice and it's very flexible, low stress (government). In some ways it may be nice to try something a bit more challenging but I'm scared I may end up in a worse situation. There have also been days when I hope that I won't sort out any work and can enjoy a few months of unemployed bliss. I'm certain my old self would have done this, or perhaps I would have even quit by now to work part-time and have more time to do the things I enjoy. My discovery of ERE has been edging me on to keep on working and saving. A few months of unemployment would begin to eat in to my savings rather quick and set back my financial goals. It's sometimes tempting though as a lot of my friends are students/"starving artists", working just enough to support themselves and enjoying copious amounts of free time. I also have friends working full-time and I notice 99% of them complain about not enjoying work yet they continue to spend and borrow money. I like to think I am trying to take the best of both these lifestyles.

Ohh and @m741 you're right! I've managed to put on almost 10kgs in the last 6 months through a combination of eating crazy amounts and weightlifting. Pretty happy with that achievement.

Anyway I look forward to contributing a bit more! We will see...

[BattlaP]

A second job?

I’ve toyed with the idea of a second job. I’m not particularly fond or skilled in writing so online blogs, article writing etc are out of the question. Also I spent enough time on a computer at work so would like to limit my time on it out of hours. I could get an unskilled job for weekends or nights at approx. $21 per hour rather easily however my tax rate is 33% so that cuts it down to $14. My father runs a gardening business, there could be a possibility for work a sat or sun for him using his equipment. I could earn between $200 to $300 tax free for a hard days labour. Not bad. Could be an extra $10000 to $15000 straight into savings each year + free exercise. The trouble is I am unsure of whether this is going to wear me out over the long term. I already feel time-poor due to 40 hours in the office. My tolerance for being busy is relatively low and I enjoy plenty of down time. Perhaps this is mostly a mental attitude and I could change it by having a clear goal and working hard towards it, cultivating a hard working ethic.

Just wanted to comment on this.. I would have said much like you at 23-25 that I enjoyed a lot of downtime. I'm 29 now and work 6-7 days a week, and I couldn't be happier. People think I'm insane running a business and full time working, but with the right mindset (and career I guess) work is not something that 'drains'. Anyway I don't know what it was that changed about me exactly, but if you think working more could help you reach your goals sooner, I'd say give it a go. Who knows, it might be a win-win all around, more time outdoors working hard could help you to recover from sitting at a desk.

Good job kicking goals so young. You're better off than most.

[Matty]

Hi guys,

@BattlaP - Thanks for the comment. It's good to hear that things can change. It's something I'd like to work on as I feel that I use my "need for downtime" as an excuse to avoid things that are hard/uncomfortable.

Another burst of motivation for a journal update. This year has been a difficult one for me. Originally my contract was set to end in March but I managed to get it extended till the end of May. I have been to half a dozen interviews recently which has been quite stressful. So for most of the year I have been quite detached from work, knowing that my current role was coming to an end but not knowing what was in store for me next. Thankfully this period should be over quite soon as looks like there are a few opportunities for me.

I've also booked myself in for some counselling next week (paid by employer). I'd like to improve my satisfaction, motivation and work ethic at work especially in whatever new role I manage to secure in the next month. A fresh start. The detached approach I have developed to work isn't doing anything for my happiness and I've made a habit of blaming my dissatisfaction with work on external factors (The Man). I'd like to start focusing on internal factors within my control to increase satisfaction with work i.e. seeking out challenges, taking initiative with my own workload.

Financials are cruising along, I've managed to bump my savings up to $3000 a month (80%~ savings rate). I realise this is only possible due to living with family but it's working quite well and we all get along. Cash savings (4.3%) are around $68,000. I'm beginning to think about investing. The Intelligent Investor has been on request at the library for about 6 months and I don't think it's coming so looks like I may have to make a purchase.

On to more interesting things. I have been having a bit of fun with some DIY projects. I made some panniers for my bike out of some matching luggage bags that I picked up from the thrift store. I have been perfecting a compact tin camping stove that uses twigs and bark instead of liquid fuel. I've also made a greenhouse out of a couple of untreated pallets.

Most of my time has been spent working in the garden however. It's pretty much in it's final stage now which has taken about 4 years. We've planted 16 fruit trees, plus some berries and extensive vegetable growing areas. Over summer I got a nice surplus of tomatoes and experimented with canning some pasta sauce; several months later and still making some epicly tasty Bolognese! I've also introduced 8 chickens into a run through the orchard. They have provided a lot of entertainment so far and I'm expecting them to provide some tasty eggs soon too! This is all at my parents 800 sqm suburban block by the way. It took a bit of convincing but they now see the light...

I'll leave it there for now but might come back with some more thoughts in a few weeks after working out the employment situation. Thanks for listening guys.

[Pronoid]

Don't leave us hanging for another 5-6 months

[Matty]

Hello all. So I have plenty of updates and thoughts. I expect this entry to be quite long so feel free to skim. This journal is mainly for myself to summarise some of my thoughts.

Work
Work has been a mental struggle for the majority of this year. I started off the year with a few months left of my contract, managed to stay around until now through several month long extensions and have just now secured a further 12 month contract. Although it’s been quite difficult I have taken advantage of some employer sponsored counseling and think I am well on my way to developing a more positive outlook towards work. That’s all I’ll say for now. I think I will post a separate topic on my journey with this at another time.

Assets
I am setting myself the goal to have $100k in cash by my 25th birthday, which is the end of January 2015. I’m currently sitting on $74k. A recent pay rise allows me to bump up my savings rate to about 80%, which is $1600 a fortnight. Accounting for estimated savings plus a small return of bank interest I need to raise an extra $2000 in the next 6 months.

Raising $2000 should be no worries. More recently I have been selling off some unused items online and have made about $1000. I reckon I can make another $2000 from selling further items. It’s quite fun making money from things you have lying around which will never be used.

Still toying with the idea of picking up some landscaping work this spring to bring in some extra money but it won’t be essential to reach my goal.

Investing
I recently read “The Intelligent Investor” by B Graham as my introduction to this field. I plan to spend the next 6 months doing some further reading and research before making a commitment to an investing approach for the long term. I am setting myself a goal of initiating my investment plan at the end of January to coincide with my $100k milestone.

Army Reserves
I’ve been toying with the idea of joining the Australian Army Reserves for over a year now. I have some hesitations but the fact that I keep coming back to the idea makes me think that it’s something I should at least give a go. There are no ongoing commitments required of Australian Reservists and deployment is 100% optional. To summarise my motivations for joining:
• A good opportunity to meet some new people outside of my current social group. It’d be great to know some more people interested in camping, hunting, fishing, climbing and other outdoor activities.
• The chance to learn a bunch of interesting skills
• An opportunity to say FU to some moderate anxiety issues that I have going on and face my fears head on. The chance to face some real physical and mental challenges especially during recruit training. I guess you could say: “step out of my comfort zone”.
• The pay isn’t great for the time investment and but it’s not terrible. I’ll be viewing my time with the reserves as a hobby rather than a part-time job, but it will be a hobby that generates rather than drains money. I’d expect $5-$15k tax free per year, which is a significant boost to savings. Also my employer (government) will continue to pay me while I’m away on training so I’ll effectively be paid twice.

Again I’d like to submit my application on my 25th birthday at the end of next January. I’d like to allocate the next 6 months to improving my health, both physically and mentally. I’m designing myself a program for the next 6 months. It will be interesting to see how I go with this as I now have a clear goal to guide my weekly routines.

In addition I’m planning to join up as a volunteer for either my local fire brigade or emergency services for similar reasons to above and to get some of the experience which will hopefully assist my application. I’ll give myself a week to make a decision between these two groups. Learning the technical aspects of bush firefighting would be quite interesting and has some application to my job but search and rescue activities also sound quite appealing. There’s also a bit of crossover between these groups.

Other hobbies
I’ve been rock climbing regularly lately which is good. I’m slowly improving my ability and getting back to where I was a few years ago. Climbing puts me into an extreme state of flow which I love and really makes me happy. I’ve joined up with a climbing club and hope to get to know some more people there and spend some more time climbing as spring hits in a few months.

My winter gardening efforts have been moderately successful. Plenty of broccoli, cauliflower and kale and the alliums are coming along nicely. I’ve been building up my skills and knowledge over the last few years and I’m quite happy with my progress. I’ve now got a good understanding of what to plant when in our local climate. Also my chickens have started laying! Almost an egg a day! This summer I plan to plant extensively, including experimenting with some plant guilds. I will be planting a significant crop of tomatoes to make sauce. Last summer I made a reasonable amount, which I froze, and we had pasta sauce for maybe 4 months after summer. This year I will try to make a 9 month supply and will be jarring them, which will be a first.

Summary
So to summarise this entry is really about setting some medium term goals for myself as I come up to a quarter century. They are:
• Maintain and develop a positive approach towards my work which I have been working on for the last few months
• Save $100k in cash by January 31st 2015
• Develop an investing approach, which I am happy to commit to for the long term by January 31st 2015
• Apply for the Army Reserves by January 31st 2015 after spending the next 6 months preparing myself physically and mentally, including joining up as a volunteer for either the local fire brigade or emergency services (decide in the next week).
• Continue climbing, get to know some more climbers and spend some time outdoors over the spring and summer.
• Design and establish an abundant garden over the summer; continue to experiment with companion planting, guilds and preservation methods.

That should keep me busy! Don’t get me started on long-term goals... That will be another post! Thanks for reading if you made it this far. I’d appreciate any comments or questions.

[Dusty]

Hi Matty,

Thanks for your Journal.

It's nice to see the perspectives of other Australian's.

In relation to joining the reserves I would encourage you to do it. I joined the Reserves as a gun number in the artillery when I was 19 and stayed for 5 years before transferring to the regular army as a Military Policeman. I became an Investigator for a few years then transferred to the navy for a change of pace and am now working on Patrol Boats out of Darwin.

Joining the reserves really opened my eyes up to the world. I made a heap of mates (now I know people in every state and always have somewhere to stay / friends to do things with), being fitter (physically and mentally), really expanded my acceptable range of physical discomfit and one weekend a month I was paid to head bush and blow things up with a 105mm howitzer (a nice break from daily civilian work in the city). Working in this environment helps you generate a lot of confidence which helps you stand out amongst your peers. Espically helpful with civilian employment.

As you said deployments are 100% volunteer only but you also have the opportunity to deploy on exercises around the country. Also, you may get the opportunity to deploy on OP Resolute (working with us on Patrol Boats) our current rotation is made up with a bunch of reservists from Melbourne and Adelaide at the moment. So quite a number of positives.

I think that when I retire (10 years) I wont return to the reserves (my days of running around the bush with a rifle wearing cam. paint are over) I will look to join my local volunteer fire brigade for the opportunity to develop another set of skills.

Anyway, if you have any questions regarding the enlistment process or what to expect at Kapooka, during recruit training yell out.

[Matty]

@Dusty - Thanks for the comments! It's good to hear that your experience with the ARes was good. It's something I've wanted to do for awhile. The main issue I now face is whether I am able to commit to staying in one place for long enough to make it worthwhile joining. I'll see how I go and might have some questions for you at a later date!

Anyway on to my post.

I’ve been doing a lot of thinking lately.

I estimate that I could live a basic car-free lifestyle in Australia for:
$100 per week renting a room in a sharehouse
$75 per week for a balanced diet cooking all meals at home
$25 per week for utilities
$50 per week for miscellaneous costs including public transport, healthcare, hobbies etc.

So $250 per week (pretty much equal to Australian unemployment benefits). This equates to $13,000 per year and $435k of capital required at a SWR of 3%.

I’m currently sitting at $85k net worth. Living with parents I am able to save $40k per year.

$435k - $85k = $350k
$350k / $40k = 8.75 (say I can do it in 7 thanks to pay rises and some investment gains)

So 7 years to FI if I keep working at a job I hate and living at home. I will be 31. I don’t think this is a viable option.

So what else can I do? Well, I’m full of vision, but I don’t have a plan. I need to make some decisions regarding what I will do next. This post is the beginning of my decision making process. I’m not one to normally write my thoughts down. My approach will be to list all the options I have had floating around for the past year or two and then analyse each one further and eliminate the bad ones. Warning this will be long.

Here’s what I’ve come up with:

1. Try harder to enjoy my job or a similar job through positive thinking, counselling, enjoying evenings and weekends more. This has been my current strategy. I’ve changed roles within the company I’m at several times but it’s all boring to me. I haven’t really been able to sustain a positive attitude at work for more than a month at a time. Also, the more fun I have outside of work the worse it becomes because I realise what I am missing out on. I’m beginning to accept that I can’t change myself enough to be happy here.

2. Earn an extra $15-20k per year and reach FI in 5 years. This would involve working 6-7 days per week or working most weekday evenings for 5 years. I don’t think I want to do this.

3. Increase primary income by $15-20k net per year to reduce FI horizon to 5 years. This would require an increase of $25-$33k gross. Currently on $69k so that would be $94-102k. Pretty unlikely for an early career environmental scientist unless I get lucky with a mining job.

4. Work part-time either where I am now or find another job. Could save a small amount and enjoy my free time. The question I ask here is what else? It doesn’t seem enough to just want to work part-time to escape working full time. I would need to think of something I’d really love to spend my time doing. Possibly some of 6.

5. Try to find a more interesting job in my field. It could be possible. I could work as a park ranger or for an environmental consultancy specialising in ecological surveys (I do some similar work to this already and it’s not as fun as it sounds). I would likely need to move out of my city and/or take a pay cut to make this happen. The negatives to this include I might hate the new job just as much, FI horizon could be extended, could be far away from everyone who I know and currently enjoy spending time with.

6. Similar to 5 I could try to get a job in my field in England. I have a lot of family there including aging grandparents and it would be good to spend more time with them. It could be a good base to explore the UK/Western Europe. Wages for my field are a lot lower in England and expenses are likely to be higher. I might end up in the same situation I am in now: spending too much time at a mediocre job when I want to spend my time doing other things (expenses $15k p.a.; income $22-33k net; savings $7-18k).

7. Return to study or training to learn a new skill. This could be a few things which I will expand on:
a. Back to uni to do a post-grad in surveying. I like maths, “spatial things” and working outdoors mixed with some office work. I don’t think I could justify the additional costs for something that I don’t think I’m passionate about though. It’s still a job; OR
b. Teaching. It’s pretty popular option for dissatisfied corporate workers/scientists to transition into teaching. I like the idea of having a marketable skill across the country and also in rural areas and the ability to do relief work but I’m not sure If I would be able to handle all the regulations, curriculum and structure, plus annoying students enough to justify it.
c. Learn a trade. I would be interested to learn a barter-able skill to provide ERE income if needed. I like the idea of carpentry or cabinetmaking but think that electrician would be a more useful and marketable. Could manage to save a reasonable amount while doing my apprenticeship and then manage to be on a similar wage I am on now.

8. Leave at the end of this contract (June next year – if I can last that long without going crazy) with approx. $115-125k in capital to pursue semi-ERE/passions/hobbies. I can think of a lot of things I’d like to do. Most likely it would be a mix of several. Some would require a small amount money to maintain and others would allow savings. My main concerns would be: getting tired of doing these things and wanting a more stable lifestyle (which will happen eventually), eating away at my capital by enjoying the fun activities more than the ones producing income, returning to the “real world” and possibly getting another full-time job after having the ultimate freedom could be a real challenge! Also a lot of this stuff might not be as fun for me >30 so it might be important to do it now.
a. Travel around the world (or parts of it) with a bicycle and a tent (expenses $3-12k p.a.)
b. Move on to a family owned 87 acre property an hour out of town and have a go at some permaculture (expenses $5k p.a.; potential income of $5k+)
c. Do some WWOOFing in Oz or overseas to pick up some new farming/construction skills and make connections with likeminded individuals around the world (expenses $0 while working, $0-3k for transport p.a.)
d. Pursue work in the outdoor adventure area i.e. climbing/kayaking/trekking guide, wilderness therapy, school camp/expedition guide (living in a van expenses $5-10k p.a.; income $20-35k net; savings $15-30k)
e. Other adventurous expeditions in line with a. Some ideas include kayaking the length of Australia’s longest river (River Murray), thru-hiking the Appalachian Trail. There’s really an unlimited amount of options here (expenses $3-15k p.a.)
f. Buy a van, spend a few months fixing it up and decking it out for camping and then hit the road around Oz for a year, heaps of surfing and fishing (expenses $10-15k).

9. Start a small business. I’d be interested in helping people with self-sufficiency, vegetable gardens, fruit trees, rainwater collection, permaculture design. I could supplement this work with some general gardening and lawn mowing. Issues are: I’m still pretty young and don’t feel confident in my level of knowledge to start selling it. This kind of business would take a while to build up and it wouldn’t be easy to leave to pursue other activities.

Hmm… So I think they are the main ones I’ve seriously thought about. It’s good to set them all out like this. I’ll let them sit for a bit and maybe add any I’ve missed. Next step is to discuss these options further and to cut out some of the more obvious ones. I’ll probably end up doing several of these things so there’s almost an unlimited number of combinations!

The Paradox of Choice hey…

Comments welcome

[henrik]

Did you decide on the plan to join a voluntary fire brigade? I'd be interested to know how that works in Australia. Good luck with all the decisions!

[Matty]

@henrik – No I didn’t. I’m having the same issue as with the Reserves. Joining works well if I am planning to keep working for several more years in the same area but if I move then I won’t be able to commit for very long.

So it’s pretty obvious I want to do Option 8. Option 1, 2 and 3 all seem like miserable paths to me at the moment. Option 4, 5, 6 and 7 have potential for the future but I don’t feel as though I am in the right frame of mind to choose something to provide anything more than short-term escape from what I’m currently doing. To put it another way: Option 8 feels like something I am drawn towards whereas 4, 5, 6 and 7 seem like ways to escape 1, 2 and 3. Option 9 seem good and could tie in nicely with Option 8.

Pros of 8:
- Maximum skill development in shortest time: agriculture, frugality/minimalism, survival skills, fitness
- Pursuit of interests may open up new opportunities for fulfilling work, small-business etc.
- Avoid risks associated with maintaining a large capital base i.e. focus on skills, flexibility and frugality rather than wealth accumulation and investment performance (unpredictable).
- Built in flexibility with the ability to scale part-time/seasonal work up or down to meet lifestyle needs.
- Starting with $100k+ net worth which can compound over time provides significant stability compared with living a similar lifestyle with assets of $0.

Cons of 8:
- Getting tired of the lifestyle and craving more stability (which is likely inevitable) – Solution: Options 5, 6, 7, 4, 9 all still viable options in the future if change is desired.
- Eating away at capital and ending up in a financial position equivalent to finishing uni again – Solution: maintain frugality, part-time work to supplement income, outdoor adventure work, farming income, build on capital base each year.
- TSHTF and I realise I missed out on the opportunity to make hay while the sun was shining… If this happens maybe the assets I would have accumulated are impacted anyway so this could be negligible…
- Opportunity for romantic relationships reduced further… Maybe?

What else am I missing here?

[Gilberto de Piento]

Good luck with your decision. You're ahead of the game by thinking about it and putting it down here.

I haven't done it myself but I've never met anyone who regretted bike touring, through hiking, or working in the outdoors as a guide. You probably should have an exit plan though so you know how to reenter your career.

[nacho]

Hi Matty, are you still considering Option 8?

I wanted to PM you but they system won't let me send PM's as a new user. I'm 25 and have very similar interests to you - I've done a number of bike tours and have worked as an outdoor guide. I live in the US and now work in the corporate world.

If you are looking for a lifestyle change you might really enjoy guiding with an organization called Quetzaltrekkers (http://www.quetzaltrekkers.com/xela/about/) which runs backpacking and rock-climbing trips in the Guatemalan highlands. The organization is entirely volunteer-run and supports a school and dormitory that serve more than 200 kids. I worked there in 2009 and there were some Aussie guides. It's a cool set-up: challenge/adventure (guiding on 8-14,000 foot peaks), cultural learning (22+ distinct Mayan languages in Guatemala), social (living and working in a tight-knit group), NGO (a truly 'sustainable' non-profit , with its own self-funding). AND it embodies many ERE principles -- living costs are ~$100/month for volunteers, simple/fresh diet, living with like-minded people, learning to fix things on the fly. Even with expensive airfare from Oz, with $100k in savings you could live on ~3% SWR while volunteering!

OK, proselytizing over. Feel free to PM me for more info!

P.S. NY Times write-up: http://www.nytimes.com/2011/03/27/trave ... wanted=all
P.P.S. I never expected but the experience made for great interview/resume fodder. Something to keep in mind if you ever decide to re-enter the office world...

[Matty]

Hey guys, it’s time for an update.

A few important changes since my last posting.

Firstly: I hit my goal of $100k by my 25th birthday about a month ago!

Secondly: I’m going part-time! A lady at work is having another baby so I’ve secured her part-time (50%) role starting July this year and continuing for a 12 month contract until she gets back. Originally I was planning to leave at the end of my current contract in 4 months with about $120k in savings to become a dirtbag and permaculture enthusiast, but this option will allow me to work part-time for another year and end up with about $150k. This should be a pretty sweet setup which will allow me to pursue my own business ideas and work on my interests in outdoor skills and self-sufficiency see: viewtopic.php?f=7&t=5729&p=83422#p83422

I know that the next 16 months will go quick. I want to make the most I can of this opportunity.

I’ve started thinking about what I hope to achieve over the next 16 months. Here’s some of my top priorities:

- Business
o I’ve been listening to lots of Tim Ferriss podcasts… He interviews a lot of people who are living their passion and I’ve been getting inspired. Combined with an initial nest egg and frugality I want to see if I can make this work. So a big focus for the next 16 months will be seeing how much money I can make.
o My primary concept at this point is an urban edible/sustainable landscaping business.
o Other ideas include starting up a market garden, teaching guitar lessons, hiring out my PA system from my old band for parties/weddings etc, lawn mowing.

- The great outdoors
o Continue climbing locally and do a couple of climbing trips
o Join up with my local orienteering club.
o Go on at least one ‘big’ adventure (3-4 weeks). This could tie in with a climbing trip or it could be a bike/hiking trip. I want a reasonable challenge. Also needs to be cheap. I’m thinking of doing this in June this year just before I start part-time work as a nice way to wind down from the last 3 and a half years of full-time work. At this stage I don’t know what to do, any ideas?

- Self sufficiency
o Learn the necessary skills to maintain and use a gun + hunt and process animals for meat. There’s plenty of pest animals (rabbits) at the farm. This will be a big one as I’ve only ever killed and gutted fish.
o Installing some contour swales and first round of fruit tree planting at the family’s property this autumn. Followed by propagating some additional trees, shrubs and groundcovers for planting the following year.
o Other tasks on the farm including some dam improvements, setting up a chicken coop, harvest and pressing of olives
o Aquaponics! I’ve been setting up a small trial aquaponics system at home over the past few months. I’ll update this in a separate thread another time
o General expansion of knowledge – this ties in with my business aspirations above.
o Building a small dwelling on the farm – this could take a while and not sure if I’ll have enough time with all the other activities, will have to see about this.

@nacho – That organisation looks really interesting, thanks! I will have to keep it in mind for the future!

Feedback and comments welcome as always!

[theanimal]

That's great news! I love your goals too. It's somewhat eerie how many of our goals are so aligned.

How is the urban edible/sustainable landscaping business different than the market garden? I'd be interested to hear how this works out.

With regards to the big adventure. Can't say I'm too familiar with Australia, but how about New Zealand? Not as cheap as staying in Australia but there is definitely potential there for some big stuff. Maybe hike part of the Te Araroa trail? I'd like to go myself someday. Though I don't think I could justify the expensive flight from the US, so I'd have to find a position as a crew member on a sailboat. An adventure in itself!

Edit: Just remembered.. I know someone from Australia that's recommended the Australian Alps Walking Track. Maybe part of that? I also just came across info on the Larapinta Walk in Central Aus. That' looks pretty interesting as well. Probably would take less than 3-4 weeks though.

[Rural Kiwi]

With regards to the big adventure. Can't say I'm too familiar with Australia, but how about New Zealand? Not as cheap as staying in Australia but there is definitely potential there for some big stuff. Maybe hike part of the Te Araroa trail? I'd like to go myself someday. Though I don't think I could justify the expensive flight from the US, so I'd have to find a position as a crew member on a sailboat. An adventure in itself!

The Te Araroa trail runs just behind my place and I have met some amazing trampers (hikers). I plan on doing it in sections and the bits I have done already were beautiful. To quote someone who has walked the whole way and can write more eloquently than myself...

Te Araroa was a fantastic showcase of the exceptional diversity of New Zealand. I will not claim we have the best mountains in the world, or the best beaches, or mountains but what we have is fantastic and so close together and taking everything into account I do think New Zealand is the most beautiful country in the world. Te Araroa has taken me along beaches, through jungle, through native forests, through pine and eucalyptus forests, through farmland, through desert, through alpine meadows and into the mountains. We have walked on roads, sand, dirt, mud (lots of mud), swamps, tussock, rock, snow, through rivers and oceans. We have been isolated for long periods and we have walked through cities and even through a city mall on the official trail. I have kayaked for 4 days on a river and crossed over active volcanoes. I do not think there are many trails in the world that can offer all of that in trail through one country. - http://restless-kiwi.blogspot.co.nz/

[Matty]

Here’s my idea for the edible landscaping business. Three of the biggest barriers to people growing their own food are:

1. Time and maintenance requirements
2. Aesthetic concerns
3. Lack of knowledge

The concept is to provide design, installation and maintenance of low-maintenance perennial edible landscapes to solve all these issues.

The focus would be on aesthetic perennials i.e. standard fruit trees, some lesser known rare fruits, berries, shrubs, perennial groundcovers etc. Things that look great and all that is required is to head out the back door and harvest. I would offer to prune and fertilise as necessary. I have lots of additional services in my mind as well. I could install raised veggie beds and rainwater tanks, maybe even ‘organic/carbon neutral’ lawn care if people wanted to keep their lawns. Chicken coops (also thinking about breeding chickens). Still working on my aquaponics knowledge.

My biggest pet peeve is seeing people plant non-productive trees and lawns when they could make that area productive for less money and maintenance! Lawns take a lot of work!

Regarding the adventure. I spent 3 weeks van camping on the South Island of NZ last summer which was great! Unfortunately if I’m looking at doing something in June it will be winter there so a bit treacherous. Heading to the desert might be a good option!

[Matty]

I've been thinking about planning a small adventure in a couple of months as a way to wind down from the full-time work I’ve been doing for the past 3 and a half years.

Originally I was looking at some kind of hiking/bike trip but now I’m thinking of something quite different. I’ve discovered that there Is a Vipassana meditation centre that runs 10-day retreats just out of town. This is the same course that MBGI documented in his journal last year. For those who are unfamiliar I would basically be waking up at 4am, meditating for 10+ hours a day, not eating after lunch, taking a vow of silence and not consuming any form of entertainment for the entire period.

This could be pretty cool. Much harder than any physical challenge that I could come up with! Is this crazy? I think it might be just what I was looking for. A way to refresh my mind and reassess all of the negative thought patterns I have developed during my time in the 9-5.

Actually now that I think about it, it’s only 80kms away, maybe I could bike there!

[Matty]

Lately I’ve been reading a book called “Finding Your Own North Star” by Martha Beck. To summarise very briefly, it’s a book about how to get in touch with your “essential self” to guide you in the actions you take in your life. I’d encourage anyone who feels they need a major change in their life to read it.

As I get closer to taking a big step towards following my “essential self” (working part-time and spending more time playing outdoors and building skills) I’m finding it more and more difficult to bear going to work each day.

The proximity to freedom and reading this book has removed any last remaining willpower I have to go against my true desires. Basically, my heart has never been present in the office but now my mind has left too, all that remains here is a shell. Luckily for me, the shell still gets paid! Haha…

This brings up a major concern that I have. So far in my life, every step I have taken towards living the life I want, whether that’s spending a weekend hiking or climbing, working on the farm or absorbing inspiring books/podcasts has made going to work HARDER not easier. Come July when I gain this additional time to spend as I wish, will I keep wanting even more freedom? Will it be harder to go to the office 2.5 days a week than go 5? It sounds silly. Does anyone have any experience with this or tips on how I can manage this potential issue?

In other news, I have decided not to adventure this May/June. I realised that the 4 weeks leave I currently have will actually be 8 weeks leave when I am part-time. That’s a potential 2 months off for a big trip later this year! I do have some paid sick leave planned for wisdom teeth removal (strategically booked before going part-time) and some smaller camping trips to keep me going.

Finances are looking good. Net worth is sitting at approx. $115k. I registered for an online broker and am planning to purchase a small amount of index fund ETFs once it’s all set up.