The “New Rich” & Living Like A Millionaire Abroad

Wait until the end, or spread it out over the best years of your life… you decide.
(Photo: MarkSmallWood)

Are you on the Deferred Life Plan or part of the New Rich?

The New Rich (NR) are those who abandon the deferred-life plan and create luxury lifestyles in the present using the currency of the New Rich: time and mobility (aka Lifestyle Design).

Deferrers (D) are those who save it all for the end only to find that life has passed them by (aka the norm).  Take a look at a few of the differences:

D: To work for yourself.
NR: To have others work for you.

D: To work when you want to.
NR: To prevent work for work’s sake, and do the minimum necessary for maximum effect.

D: To retire early or young.
NR: To distribute recovery periods and adventures (mini-retirements) throughout life on a regular basis and recognize that inactivity is not the goal.  Doing that which excites you is.

D: To buy all the things you want to have.
NR: To do all the things you want to do, and be all the things you want to be.  If this includes some tools and gadgets, so be it, but they are either means to an end or bonuses, not the focus.

D: To be the boss instead of the employee; to be in charge.
NR: To be neither the boss nor the employee, but the owner.  To own the trains and have someone else ensure they run on time.

D: To make a ton of money.
NR: To make a ton of money with specific reasons and defined dreams to chase, timelines and steps included.  What are you working for?

D: To have more.
NR: To have more quality and less clutter.  To have huge financial reserves but recognize that most material wants are justifications for spending time on the things that don’t really matter, including buying things and preparing to buy things.

D: To reach the big pay-off, whether IPO, acquisition, retirement, or other pot of gold.
NR: To think big but ensure payday comes everyday: cash flow first, big payday second.

D: To have freedom from doing that which you dislike.
NR: To have freedom from doing that which you dislike, but also freedom and resolve to pursue your dreams without reverting to work for work’s sake.  After years of repetitive work, you will often need to dig hard to find your passions, redefine your dreams, and revive hobbies that you let atrophy to near extinction.  The goal is not simply to eliminate the bad, which does nothing more than leave you with a vacuum, but to pursue and experience the best in the world.

…It’s like this, the value of money depends on four things:
What you do,
When you do it,
Where you do it, and
Whom you do it with.

Look at this example:

Option 1: Would you rather work 80 hours per week and make $500,000-per-year, tied to a single location, routine, and life schedule? (wait until the best part of your life is over to “retire,” which if you’re used to putting in those hours you’ll be bored in a matter of days) OR,

Option 2: Work 20 hours per week (1/4 of the time) and make $40,000-per-year from anywhere, with a flexible schedule, and no deferred life plan. (take mini retirements throughout the best period of your life and not wait until the end to enjoy it).

If we assume we all need 8 hours of sleep per day, then that leaves us with 112 hours of ‘active’ time in a given 7 day week…

Free Time Per Week:

Option 1: 80 hour week
112 – 80 = 32 hours (1.33 days) of “do what you want time”
Option 2: 20 hour week
112 – 20 = 92 hours (3.83 days) of “do what you want time”

Free Time Per Month:

Option 1: 5.32 days
Option 2: 15.32 days

Free Time Per Year:

Option 1: 63.84 days
Option 2: 183.84 days (~ half a year)

Now, I know what you’re thinking: Option 2 doesn’t make sh*t for income!  You’re right — but try to think about the true value of free time and remote work capability.  ‘Do what you want time’ doesn’t mean “sit on your ass” time (at least not all of it), but time that you can put towards more enjoyable activities and experiences.  If you can free your time and location, your money is automatically worth 3-10 times as much. That statement has nothing to do with currency rates.  You can live like a rock-star all over the world on $40k per year.  Being financially rich and having the ability to live like a millionaire are fundamentally two different things.

Getting more out of your money not only applies to the lifestyle you live in the present, but how you can plan and save for the future.  In fact, because the cost of living goes down (and the style of living would go up), it would leave a greater percentage of your income to put into savings.  How many people in the US making $40,000 per year, can effectively save half?  They are lucky to save 10% ($4,000)!  See the following example…

Example: Buenos Aires, Argentina

Airfare:

> Free, courtesy of credit card airline mileage points. (However, the average cost for a round-trip ticket is $500-$850 U.S.)

Housing:

> Penthouse apartment on the equivalent of New York’s Fifth Avenue in Buenos Aires, including house cleaners, personal security guards, phone, energy, and high-speed Internet. $550 U.S./mos

Meals:

> Four or five-star restaurant meals twice daily ($10 U.S.); $300 U.S./mos

Entertainment:

> VIP table and unlimited champagne for eight people at the hottest club: $150 U.S. ($18.75 U.S. per person x four visits per month= $75 U.S./mos/person)

Education:

> Two hours daily of private Spanish lessons, five times per week: $5 U.S. per hour x 40 hours per month=$200 U.S./mos

> Two hours daily of private tango lessons with two world-class professional dancers: $8.33 U.S. per hour x 40 hours per month=$333.20 U.S./month

Transportation:

> Monthly subway pass and daily cab rides to and from tango lessons: $75 U.S./mos

Four-Week Total for Luxury Living in Buenos Aires: $1533.20

Annual Total: $18,398.40

Enough said?

One last thing… read this amazing little excerpt from a book titled Vagabonding, which will get you pretty juiced up about travel:

…in more vivid terms, you’ll start your travels by doing things that you dreamed about when you were still planning your tour travels:  You will stand in awe of the ancients at places like Stonehenge, Angkor Wat, and Machu Picchu; you’ll wander amazed through the exhibits of the Smithsonian, the Louvre, or the Hermitage; you’ll stare in reverence at the sunrise over the African Serengeti, sunset on the Australian outback, or high noon in the steamy jungles of Borneo; you’ll listen, rapt, to the otherworldly whistle of the Mongolian throat singers, stare in amazement at the swirl of Turkish Sufis, or stomp along madly to Irish drinking songs.  You will shop for Mayan weavings in the markets of Chichicastenango; haggle for damask in the souks of Damascus, or bargain for brocade in the merchant alleyways of Varanasi.  You will bungee-jump the canyons of the New Zealand, climb the slopes of Kilimanjaro, or windsurf the Sea of Galilee.  You will have impassioned one-week love affairs (with natives and fellow travelers alike) along the Adriatic coast of Croatia, the cobbled streets of Havana, or the neon avenues of Tokyo.  You will sip cappuccino in the cafes of the Italian Riviera, eat fresh fruit in the Sri Lankan highlands, or stare blissfully into space along the clean blue waters of the Costa Rican coast.  You will quaff ouzo all day on the islands of Greece, dance to techno all night on the shores of Goa, or lose a week’s sleep in the Carnival madness of Rio de Janerio

###

Ferriss, Timothy. The 4-hour Work Week: Escape the 9-5, Live Anywhere, and Join the New Rich. New York: Crown, 2009. Print.

Potts, Rolf. Vagabonding: an Uncommon Guide to the Art of Long-term World Travel. New York: Villard, 2003. Print.

How to Live Like a Rock Star (or Tango Star) in Buenos Aires

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2 responses to “The “New Rich” & Living Like A Millionaire Abroad”

  1. John Pauler says :

    Great post Chase. Have you thought about the first place you’ll go once you free yourself?

    For anyone seriously considering a remote life, or just an extended mini-retirement: the below url links to a handy cost of living index tool, an easy way to see where you can live the baller lifestyle on a modest income.

    http://www.numbeo.com/cost-of-living/rankings_by_country.jsp

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