Sunday, 29 April 2012

How I downshifted



A three part series By Rob England - a consumate downshifter, Dad and model train enthusiast!

Part One
Here are some tips on how to make today’s popular life-style change: the downshift, from one who has already gone there.

Once I worked 50-60 hour weeks for an IT vendor. I spent weekends traveling; I spent 50 or even 100 nights per year away from home; and missed a fair chunk of my son’s first four years. My aspirations changed as I got older and had family and the company changed too. It had ceased to be fun. At times it got downright Dilbertesque.

So I quit. Now I work for my own company (I figured it was the only way I was ever going to be a Managing Director). I still work long hours but I do so mostly at home, at times that suit me. I work on projects only if I think they are a good idea. I am away from home when I want. I took most of January off to go camping with my son, and most of February to play with my hobby (model railroading if you must know).

Changing to a lower paced, lower pressure, simpler lifestyle is known as “downshifting”. For many people in developed nations, especially professionals, we have sufficient surplus affluence to make it a viable option.

If that sounds like something you would like to do, there are two ways to achieve it. Either (a) make such a bucket-load of money that you need never work again or (b) follow these steps:


1) Freehold your home
Plenty of people go out on their own while still paying mortgage or rent, but if you want to relax a little, downshift, and not be a slave to the job, then you need the freedom of a freehold home. You could go live in a cardboard box, or you could make enough money to pay the mortgage off (see (a) above). It is amazing how quickly some people can clear a mortgage if they set their mind to it, especially childless couples. Alternatively, consider downshifting where you live. If you want the bright lights of the big city, it will be hard for you to escape debt. But if you go live somewhere less hectic you can also find lower property prices: moving from a major city to a smaller town or city can give you enough equity to buy for cash – we did. This does of course require you to…

2) Reduce expectations
People addicted to the high-spend lifestyle that many jobs can buy will remain job-slaves. It is a great help if you can shift to a less materialistic mindset where you value quality family time, peaceful environment, and simple pleasures over dining, travel, fine possessions and inner-city excitement. We can go camping for weeks for the price of one airfare to Bali. Besides, we already have lots of those possessions.

3) Build the right skills
Most professional people after a decade in their industry have plenty of bankable technical skills. It is the same for those in trades. The key skills that many lack are an understanding of business and of consulting. These can be learnt. Pursuing this line of personal growth will serve you well whether you stay with your employer or go out on your own, so your employer should be supportive of this direction and it does not commit you to a decision.

4) Realise your value
For most people, what you can make per hour as an independent consultant is several times what your boss is paying you per hour. So even with down-time and no paid holidays, you can work for less hours and still be in the same financial shape – or good enough (see Reduce Expectations).
If you don’t want to work by the hour at all, you can try your hand as an entrepreneur. That would of course require you to…

5) Consider taking a risk
The only difference between successful entrepreneurs and other folk is a comfort with risk. They may not thrive on it, or even like it, but they all can live with it. You can make a lot of money working for a salary or for contracts but the only way to get stinking rich is to derive income from something that scales, i.e. something that is not linked to the number of hours you have in a day. This could be selling a product or an idea, trading, or getting other people to work for you. These are all entrepreneurial activities, and they involve higher potential rewards and higher risks.

Check out parts two and three of  'How I down shifted' later this week.

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