Simple Living – The Great Office Escape

Simple Living

You probably arrived at this website with the hope of escaping your 9-to-5 job in search of a more meaningful, more enjoyable, and/or less stressful career.

But did you know that one of the simplest (no pun intended) way of achieving this dream is to cut back on your consumption? Anyone can do it. And the money you save by living a simpler, more socially and economically conscious existence can help set you free!

Read about the Voluntary Simplicity Movement

Time to Consumption Ratio

Have you ever stopped to really consider how much your new laptop cost you? Or your five new pairs of jeans? I’m not talking about in dollars, or in interest from your credit card payments. I’m talking about in time, which you can never get back. If you have ever wondered how to calculate the time value of a purchase (or purchases) in your life, there is a ratio that you can use.

T=(PC)/I

What does this ratio mean? Well, you don’t have to be a math wizard to understand! I will explain below:

“T” is for time. This is how much free time you have to spend when you do not have to work.
“P” is for perk. This represents a purchase in your live that is a “want” (not a need), such a as a big-screen TV, expensive pair of shoes, iPad or other new gadget.
“C” is the cost of the item. How much is your new Harley?
“I” is for your monthly income. How much do your earn (on average) per month after taxes?

How does the ratio work? Let’s give it a try. Suppose you purchase a new 57″ plasma TV for $3,000. You decide to pay cash for your purchase (no credit). So your P (perk) value is 1 because you bought just one TV, but your C (cost) is 3,000. Your P value can be higher if you purchase multiple quantities of the same item, or you have monthly payments.

Now let’s say that your monthly income is $2,000. Now we have all the information we need to figure out your (T) ratio:

T=(PC)/I

T=1*3,000/2,000

T = 1.5 or 1 and 1/2

This means that your TV actually cost 1 and 1/2 months of time! If you invested the $3,000 instead of purchased a TV, the 1 and 1/2 figure would be higher. Obviously there are extra complications to this formula such as interest, but this ratio keeps the concept simple. In this example you are working almost 250 hours for your television. And time is something that you can never get back.

Simple Living Alternatives

So many of us confuse a want with a need. We think that we need a mortgage, but it’s possible to rent and end up in better shape (note that this does not include purchasing property, which can be an investment.) We see that shiny new iPad for sale and we line up like hyenas to be the first with our very own. But do we really need an iPad to get through our days? Not a chance. You’d be surprised what you don’t need! In some cases, we don’t even need a car, which can be a huge expense. I lived in Portland, Oregon for over 2 years, the last 13 months of which I had no car and was just fine. I enjoyed taking the bus and walking (and I probably saved over $5,000.)

Here is a nice, handy list of common consumptions and some less expensive alternatives. Did you ever think that doing some of the things in the right-hand column might help you escape your 9-to-5 job?

Consumption	Alternative	Savings
Mortgage on a house	Rent	There is a common misconception that it’s important to own your own home, or that renting is throwing money away. In reality if you use a mortgage as an investment, then it’s ok. This includes buying property or a home and then renting rooms out, or refurbishing a home with the hopes of making a profit on sale. But most people don’t do this. Most people buy a house that they will not own for 30 years (or ever) refinance, pay a ton in interest and put large sums of money into a mortgage. When looked at this way, renting is cheaper.
Buying a car	Biking, walking	If you live in a city where you can realistically walk to work or bike to the market, you can save a ton. Cars are extremely expensive when accounting for insurance, maintenance and time.
Television	Laptop computer	I know this sounds a bit crazy. Why is a computer a good alternative to television? It’s more expensive after all. You can watch everything on a laptop that you can on TV. There are hundreds of internet channels available with plenty of movies and programming “on demand.” Most people have both a computer and a TV, but these days you really only need the former.
50 pairs of shoes	1 pair of shoes for each occasion	I will never understand our obsession with shoes. Sure, it’s just another piece on the image-obsessed cultural puzzle of the modern world. But some of these precious gems for your feet can be incredibly expensive. But what if you see a pair that has both the form and the functionality? Should you buy those shoes?
Having a large family	Having fewer (or no) children	It’s a bit presumptuous of me to place having a large family under the heading of consumption, but there is a great deal of truth in this notion. The more kids you have, the more expensive it will be. You will purchase and use more diapers, food, laundry detergent, toys, birthday party gifts and cleaning supplies. We are all citizens of this beautiful little planet, and there are probably too many of us already. Do everyone (and yourself) a favor and stop at three kids.