Feature photo by nattu.
In June, a new blogger on the lifestyle design scene sent me a great email seeking “some real world insight from people who have gone before me and are still trekking on the path to financial freedom.” Rob Granholm has built up his freelance web design and tech support business, and at The Life Design Project he has set upon a fantastic mission to document his journey implementing Tim Ferriss’ principles in The 4-Hour Workweek, trying to find avenues to create passive income from what he knows so he can be fully self-employed and get “a little of that dream living” going on.
I’ve watched him make a ton of progress, and in the last few months we’ve become friends, but in June he asked me:
What was the single catalyzing product, idea, or venture that took you from driving a beat up old car with hopes, ideas, and willpower…to making thousands a month to free your lifestyle?
The short answer is that—truth be told—I don’t have thousands coming in each month!
I’m still very much in the early stages of this lifestyle design journey just like Rob. Figuring out what your purpose is, building a business you’re passionate about, and consciously living and pursuing your ideal lifestyle is a journey, not a destination. It’s an ongoing trip where you never stop learning, you never quite get there, because your interests will always be changing and you’re always growing. People like us will always have new goals to attain, every time we achieve the last one.
The long answer: you have to re-frame the problem.
I too read The 4-Hour Workweek, and it just blew my mind. It changed my outlook on work and how we spend our time.
What really sparked my “success,” or my ability to have the live-anywhere lifestyle was actually the realization that I didn’t need thousands of dollars per month to live the way I truly wanted to! It was realizing that I don’t have to play the game like most people do, “keeping up with the Joneses” as they say. I scaled back the stuff I own, got it to the point where I can easily move around with a backpack and a carry-on bag, and started only putting money into things that I really want. If you are into the location-independence thing, or the “mini-retirement” as Tim calls it, you can find tons of places around the world where you can live fairly luxuriously for $1000 or less per month.
At least in my experience, rather than play by the same rules most people are playing by, I looked at what kind of lifestyle I wanted, what kind of place I wanted to live in, and realized that it could easily be had for much less than you’d think if you look in the right places (obviously, for me, Thailand is where I chose to live for at least a year or so).
When I first read 4HWW, I was doing a little bit of freelance WordPress work on the side while I was employed full-time as assistant to the Dean at my university’s College of Business. (It was a great job, but I just didn’t want to work for someone else for long.) I started really leveraging the freelance business and, thanks to my mentors and a few really fantastic early clients, turned it into something that could support me. It was my realization that there was a need to be filled with all these businesses jumping into the blogosphere and social networks. I knew a ton of designers, but no one who knew how to code for WordPress at the time. So I started Thrilling Heroics Consulting.
And then it was getting over myself and realizing that I had actual marketable skills that people would pay for if I communicated them effectively and packaged them properly. Now I’m making a transition from a programmer to a consultant, coaching non-profit organizations and innovative social entrepreneurs on how to build their tribe with social media, and turning my one-time project work into ongoing service plans that can provide a more consistent income each month.
There was no single catalyzing change! Entrepreneurship and lifestyle design are a series of experiments and failed attempts, but if you have the persistence to keep pursuing your goals, eventually you’ll get there.
What does your ideal lifestyle look like? Can you achieve it by bending the rules? Changing the game?
How much money do you really need to do the things you want to do? If you’re willing to stop keeping up with the Joneses, it’s likely much less than you think.
What are you good at that provides value for others? Do you have some marketable expertise or skills that others will be willing to pay you for?
Thank you for food for thought and link to a great site!
I have question. I am about to jump into this live for yourself lifestyle, but I am also thinking about getting a mba in entrepreneurship. Do you think its worth while? I really enjoy your Blog. Thanks for putting this up. I know it will help me into the future.
Great post! Thinking about it, there probably IS one big change – and it´s exactly the act of re-framing you describe, the change of your MINDSET! It´s understanding that you do not have to play by the usual rules, and that you do not have to adheir to the status symbols of other people, but that you just can live YOUR life the way YOU want to.
For me, thinking about what it was that I wanted was really an eye-opener. Because once you have this vision, it gets a lot easier to move towards it, to live it, to make it real!
That’s the way I’ve decided to look at a lot of things in my life.
Rather than decide that I want particular circumstances I’ve decided to commit myself to certain paths that I want to follow. It takes away the stress of having to have conditions just right before I give myself a pat on the back. The trick of course is to keep myself moving forward.
Making a location independent income is a path I’m commited to. However long it takes, whatever I have to do, I’ll make it happen.
This is actually what I’ve been wondering for a while now. My conclusion was that I’ve already had a major breakthourough: simply put, the realisation that there are more ways to live your life than the 9-5 and that by being frugal you really don’t need millions…
Shortly after the realisation I started thinking about how to set up that illusive “passive income” (Although why they call it passive is beside me… it’s HARD work)
My latest breakthrough was my very first sale (okay, an affiliate sale) the very first dollar’s I’ve ever made through internet (if we don’t count selling stuff on eBay, which was never a business) This is what I’m currently fueled by. If I can make one sale, I can make two… four, eight.. etc..
Sure, failure is always an option and sometimes preferred so you can learn from your mistakes. In the end some people will get there. There being “being able to live free through the means of a passive income” and it’s my biggest goal for 2010.
step zero: live
step one: realisation of the posibilities of life
step two: believing in yourself
step three: make it so
step four: grow, grow, grow
Thanks for a great blogpost Cody, I hope to join you in the #LIP lifestyle soon.
Ah, the beauty of failing! Or moving, or learning, or growing, or whatever the word may be. It’s what life is about, period.
Also, THERE IS NO RUSH. all these young people should get that. Life is not about reaching all your dreams by the time your 30. It’s about reaching some of them by the time you are 30, some at 40, and so on.
Loved this one my friend.
Hi Cody, I appreciate your honest post. Truth be told, when I read the 4 Hour Work Week my NuNomad partner, Richard and I were already location independent and had been writing about it for several years. I was irritated at Ferriss’ tone in his writing and felt that he was setting people up for something that really isn’t very reasonable in most cases. I think now there are plenty of people living out the dream of location independence and reporting back on the realities. Is it great to live wherever you want? Yes! Is it great to be able to continue your income source from where you choose? Yes! Is it easy? No – and it takes a damn lot of work and preparation for most people. I’m glad to see more balanced writing on the topic now so that more people can decide whether this is for them.
Thanks for providing some information on your personal situation. It is good to hear some real facts.
The 4HWW was a great book with many great ideas to change your life. However, Tim Ferriss repeatedly says that the title and content were chosen in order to sell books. Tim is an amazing self-promoter and he gave the market what they wanted.
People want the easy way out. They want to earn a full-time income from part-time hours. They want to live like the rich and famous. They want to quit their jobs. Tim sold us what we wanted to hear. Even he doesn’t really follow those principles. Tim Ferris works his ass off at everything he does. That part of the story is missing from the book and is probably overlooked by many readers.
I love Gary Vaynerchuk’s philosophy on all this: he is all about the WORK! If you are willing to put in the effort you can do anything. However, Gary acknowledges that not everyone is going to be a hugely successful millionaire. Most will just be able to earn a middle-class living despite their hard work. “Not everyone is Oprah.”
I agree that simplifying your life to live cheaper is important. It will allow you to work less, waste less time shopping and consuming and also it is good for the environment. A simple life is a good life.
However, I think most people chasing the Tim Ferriss idea of the 4HWW are young males just out of college. In my twenties, I could live on $500 in Thailand or Bali and $1000 in an expensive country like Japan. However, married and approaching 40, it is unlikely that I could do that again.
Many of the lifestyle design crowd are not even living abroad or self-employed yet. They are still only imagining it, yet they talk about living it for the rest of their lives.
Great post. I get so many emails that are looking for this magic bullet. I think it all comes down refusing to do anything other than living the life you want. If there’s no other option, you make it work.
Hey Cody,
Great post! I especially like what you said about “not keeping up with the Jones’” and it reminds me of this book I read recently called “Put Your Life on a Diet: Lessons Learned From Living In 140 Square Feet” by Gregory Johnson. It’s a really good book. In it he talks about how he chose to give up a 2400 sqft home and move into a 140 sqft home he built himself. He started to use his community as an extension of his ‘home.’ He spent more time outdoors and really connected with his community in ways that others who live isolated in their big homes could never understand. You should definitely check it out.
Keep up the good work. I know that you’ll succeed with your lifestyle design project. Patience is key. Peace.
I’ve been realizing that living in the U.S. doesn’t really cost as much as I thought it did. If you adopt a minimalist philosophy and simply are smart, a little can actually go quite a long way. I’m planning on quitting my job in May, and I’m pretty confident that I can make it happen. I’ve been trying to come up with some kind of consulting/freelancing I can do, but nothing really comes up. So I’m sticking to affiliate marketing and a few hands-off income sources.
It truly is amazing how little money you need to live a great life in some parts of the world.
Like Cody, I live in Bangkok and definitely recommend checking it out.
Sawadee Kah Cody, not only do I love reading your posts, but I thoroughly enjoy the discussions that follow here as well. I checked out the book from the library, but really didn’t get into it! Maybe round 2 might be in order!
I agree with Carmen that this lifestyle is not for everyone. For us, we made a decision together as a couple that THIS life IS for us. What have we got to loose. We already know the alternative and we are NOT happy with it!
Having been to Thailand a couple of times and with our last visit over a month, really helped us realize that what we make now, just my husband alone, we can live very well– but is that our goal NO, not really! We know that having extra income will allow us to do more for others, living small and giving large- there’s plenty of need out there, especially in Thailand!!
Anyway, I say this to you in every post of yours, We’ll hook up in Thailand and hopefully add to the amazing things you and Dwight are already doing!!!
Great post!
Cody – AWESOME!
“Consciously living and pursuing your ideal lifestyle is a journey, not a destination.”
Like John mentioned in his comment, everyone is sold on the full-time income with part-time hours. What’s missing is the WORK part.
For me personally, lifestyle design isn’t all about the money, it’s aligning my “work” with the overall flow of my life so that the distinction between the two is minimized. That’s the goal, anyway – and it’s DEFINITELY a tough journey but one I think is worth taking!
Paul
Great post Cody. I had the same mental breakthrough that you just described, albeit a while back. Once you start living for yourself and stop living for the opinions of the Jones’s, friends, co-workers, etc. life is so much more free. A whole new world of possibilities is opened up to you and your current life is an example of that.
I personally don’t need the $50,000 brand-new SUV, every item in the home decor catalogue, or the huge plasma screen HDTV. I do however think it is good and healthy to have 1-3 areas of your life where you can make more expensive (but value) purchases and enjoy the finer things. For myself it is fashion/clothing. Because nobody wants to be the insufferable extremely frugal person who is so caught up in ‘saving and not overspending money’ that they don’t really enjoy life. As with all things in life, moderation and self disciple is the key.
Interesting post with interesting responses.
I didn’t get much out of the 4HWW – I personally thought it was written for new online merchants but was tweaked to appeal to the masses (when you next read it, you may see this too). However if it worked for you, then it’s was prob worth the $20 investment
I think people need to start believing in them selves more and like you mentioned above, people shouldn’t be scared of making mistakes. My Dad once told me:
“Chris, make as many mistakes as you can… but never repeat them”
If you believe in yourself, you’ll invest in yourself…. that’s when the rewards will start flowing through.
Just me 2 cents
Cody, how do you save up for a future house, wedding, or college tuition for your kids?
I wrote a post about this and still haven’t found the answer. Looking for some insight from you bro
You’ve hit the nail on the head, once again. People who you might think are making thousands a month because of the lifestyle they’re projecting online are often living on much less… it’s just that they’ve made choices to cut out ‘needs’ that are keeping them from their freedom. For some people, having stuff is a part of their ideal lifestyle but for many of the people I know online, having stuff gets in the way of freedom.
As for house, wedding and college tuition… I think some people think about these things and some don’t. Living this sort of lifestyle might seem ideal but it does come with sacrifices and for me, that might mean my kids will have to get a job and pay their own way through school. I did it… it builds character! A wedding doesn’t need to be expensive and I would think people who simplify their lives wouldn’t care about having a big, showy wedding. Although most of you lifestyle design people seem to be guys and I think your future wife might have something else to say on the matter! House? A backpack suits me.
But if these things are important to you, there’s no reason why you can’t have them if you work hard on your business. There’s no guarantee but there’s also no guarantee that if you have a ‘regular’ job you will get a good wage or have the job for life. Both options are risky. I would much rather have my fate in my own hands. Plus lowering my expenses means that I can save money a lot easier than if I were paying loads of rent, driving a car, and living in an expensive country. Earning $3000 a month and paying $300 a month in expenses means that a house, wedding a college tuition for the kids isn’t really that out of reach after a few years of saving.
Thanks for the comments everyone. Yeah, I think Tim Ferriss said it in 4HWW, people think they want to be millionaires, but we don’t really want the millions, we want what we think only millions could buy. We want the experience of feeling like a millionaire. So maybe you can change the rules—you don’t have to bring in thousands and thousands of dollars to have luxury experiences, live where you want to, do what you love, and make a difference.
@Christiaan @Carmen @Paul Norwine: Yeah nobody ever said it would be easy—it’s difficult as hell sometimes to make a living doing what you actually enjoy and living life on your own terms. Sometimes you have to make sacrifices, go without, or feel like you are behind a few steps from your colleagues. But, if you can find what you’re truly passionate about and make a living at it, there is nothing that can match that feeling.
@John Bardos & @Jun Loayza: You guys are absolutely right, different people will have different financial needs & goals. I tend to bring in between $1k-2k per month, and out here in Thailand all I really need to get by is 750-1k per month (that includes rent, food, entertainment/events, and student loans/bills back home). For me personally, house, wedding, kids really are not a priority (although admittedly I guess a house one day and supporting my kids really should be on my budget list). Anyways, I’m honestly still not convinced if I’m ever gonna settle down with the wife and the suburban life, so right now my savings tend to go into travel, visiting family back home in CA, and volunteer stuff out here.
So, the short answer is that I’m a bad role model for Jun, because I’m not really saving for those things at this point. They’re not my priorities. But, I think that you and I are very similar in the financial struggles that we face. We’re both building our own companies, have no guaranteed paycheck, and have to sort out our own taxes, insurance, social security, etc. I think the challenges I’ve faced are very similar I’m sure to what you have, and if you have the discipline to make those things priorities, then you will be able to save money for them no matter what financial situation you’re facing.
@Kirsty, great input thanks. Yeah part of this geoarbitrage principle is if you can continue to make thousands per month and live in low cost-of-living countries like Thailand or Argentina then you actually might be able to easily put away more money than you would back home. I know that my lifestyle was costing me about 2x as much in California as it does here, and if I lived at the same standard that I do now, it would cost me 5x as much back in the States. I put a lot of time into personal projects, writing, and volunteer work, but some people could invest all that time into business and come away making tens of thousands of dollars a month that would all be going to the bank.
What do others have to say about saving for a house payment, wedding, and kids?
Really inspiring Cody. Personally I’ve been back and forth with some web business ideas as to which one would actually “work” when instead I should just buckle down and attempt something dammit! lol Keep the insights coming.
Thank you. I needed to read this. This kind of lifestyle seems like it is all about choices and hard work, really. It’s nice to hear you say that and confirm there isn’t one single thing that makes it happen like everyone seems to think. It’s awesome just to know that it is possible if you make the decision that it is what you want.
Hey Cody,
I think, like several of t he comments, I wrestle with creating some sort of *meet in the middle* between Tim Ferris and Gary Vaynerchuck. Great insight on your post!
Thanks,
Jill
Whew, late to the party! Cody, I can’t thank you enough for your friendship. It was months ago now that I asked you that, on my hunt for information and what was working for people. The gold you gave away in this post, and something I’m learning everyday as I analytically pick apart designing a lifestyle is this…
“Entrepreneurship and lifestyle design are a series of experiments and failed attempts, but if you have the persistence to keep pursuing your goals, eventually you’ll get there.”
I love it and it’s my life…perhaps the term “lifestyle design” simply gave me something to rally to. I’ve made progress in leaps and bounds and couldn’t be happier to finally address earning income and applying the core principles to a freelance and business mindset. One other thing I love about your story that I’ve read now a few times is…
“At least in my experience, rather than play by the same rules most people are playing by, I looked at what kind of lifestyle I wanted, what kind of place I wanted to live in, and realized that it could easily be had for much less than you’d think if you look in the right places (obviously, for me, Thailand is where I chose to live for at least a year or so).”
Thats the key, whether you choose to live a life requiring thousands a month to fuel crazy cars, dream vacations, etc, or to live a minimal life with simple joys (I happen to fall in the middle)…you’ve chosen it. The difference is taking the choice and being intelligent about it. Thanks for this. Onward!
I admire your lifestyle and the way your pursue your passions. I am with your mantra about embracing the journey and focusing less on the destination. However, I do see you have built up such a strong personal brand and I am sure you have some strong goals in mind when it comes to business. How do you balance the two…or is it less of a balance or just a holistic way of life?
I think you hit on two key points here: reframing choices and lifestyle needs. Here’s a great quote from Henry David Thoreau on financial needs, “What is the use of hurrying to pile up money when one can live on so little?” I don’t remember the exact day I went from a consumerist mentality to a minimalist mentality but it is very liberating indeed.
The topic of framing deserves more attention and I’m working on getting some of my thoughts into words. For now I’ll just say that once we’re aware that we control the basis for comparison we empower ourselves to make decisions that align with our natural proclivities. Some may call this rationalization, but I prefer the term conscious self-deception.
I think a unintentional part of Tim Ferriss’s book is that he earns $40k a month from his business and people pay attention to figures like that. In reality his millionairre lifestyle doesn’t come from the financial figure, but from the time figure as he points out.
But even 4 hours a week refers to paperwork and such activities that no-one likes doing. He still spends plenty more time on what earns him money, just doesn’t consider it work. You still need to put in a reasonable amount of hours working out where to trim the fat and get to the lean part of your income. There is a certain amount of trust and income needed to outsource everything in the methods he does.
It’s best to consider his book a guide rather then an instruction manual and adapt it to your own requirements.
I love it when I see this design on lifestyle improvement blogs. It just makes me feel like I’m in the right place because of how it looks.
I too am in the process or hope to become self employed and living luxuriously out of a backpack. I think once I get to that life, that I’ll really know what it means to be comfortable.
I tweeted, stumbled, and shared this.
“There was no single catalyzing change! Entrepreneurship and lifestyle design are a series of experiments and failed attempts, but if you have the persistence to keep pursuing your goals, eventually you’ll get there.”
That’s my favorite quote. Just 5 minutes before reading this, I was sitting in my kitchen, drinking a caffeinated beverage and I saw “Energy” in bold lettering. It’s the word of the month on my calendar. The quote accompanying it: “Energy and persistence alter all things.” Benjamin Franklin.
Before that my mom and I were talking about how small actions can have huge effects on our body and energy. I drank last night at a family party, and I usually don’t drink. I don’t feel too great today. When I’m eating healthy, running, etc, my energy feels great. My mom mentioned how there are also people who feed or drain us of energy and how “this is an energy world we live in”.
I realized a few months ago that my world revolves around energy. When I have high energy, I feel like I can do anything. When my energy is low, I’m susceptible to self-doubt, etc. A goal I carry with me is to keep in mind that every action and thought I have contributes to my energy, and the energy I cultivate will correlate to my very next actions and thoughts, a.k.a. my productivity, my happiness, and my success.
Everything carries energy, the things I surround myself with, the environment I live in, the people I hang out with, what I put into my body, the thoughts I wake up to.
I love your quote:
“Entrepreneurship and lifestyle design are a series of experiments and failed attempts, but if you have the persistence to keep pursuing your goals, eventually you’ll get there.”
You don’t just take one action, and suddenly are living your ideal lifestyle. Lifestyle design is about designing your life, it’s about creating your life and living the life you want in the present moment.
That’s inspiring because sometimes I get in lows and ask myself, “What am I doing with my life?” “Can I really do this?” I question myself. At points when I’m incredibly broke, I doubt myself. Creating my ideal life isn’t easy, but it’s worth it. It could be easier if I give in to the 9 to 5 work life, and stop pursuing my passions. It would be convenient at least, but I wouldn’t be happier.
“If you have persistence to keep pursuing your goals, eventually you’ll get there.”
That’s what keeps me going. I strive for happiness, wherever I am in my life. And when I hit low points, I tell myself that eventually I will succeed. If I don’t give up and if I continue to try and try and try, eventually, I will succeed.
A big thing that helps me to succeed is to maintain my energy. To treat myself well, to surround myself with positive people, to cultivate positive thoughts, and to choose actions that continue to cultivate my energy, which feed into my persistence.
For me, lifestyle design is self-growth, and the ever-present desire to strive to become a better person, for myself, and for others. And through that desire, amazing things can happen.