One of the advantages of being an employee is that The Man usually air-conditions your cubicle. Well, for knowledge workers, anyway, rather than, say, brickies or landscape gardeners. And the heat is on in England at the moment.
Way back when, in the 2003 heatwave DxGF and I bought a standalone air conditioner and we thrashed that unit, but it used a horrific 3kW to sort of chill one room. It seems to take far more energy to cool something down through a certain temperature difference than it does to heat it up by the same difference, I guess these things are dreadfully inefficient, particularly standalone units that try and pump out the waste heat carried in air as opposed to dual systems with an inside and outside unit with the waste heat carried in a circulating liquid. So you get a 3kW heater in the room to add to the load. Not only that, you have to open the window a crack to get the exhaust hose out.
We were grateful for that in 2003, but it made an unconscionable noise and power was cheaper in those days.[ref]Americans will be tapping their heads, and go just get damn split system aircon, but I wonder how you have any hearing left. When I arrived in LA after a long flight and got to the motel the room aircon unit was on, and I thought I can’t hack this racket, so I turned it off. You don’t do that in LA in July – not getting any sleep was preferable to being fried 😉 Airconditioners I’ve come across in Europe are usually made by Japanese firms like Mitsubishi and are much quieter, but that thing was an all-American GE unit and made a terrible noise. Elsewhere in the city aircon seemed unwholesomely rowdy until you got to a Fortune 500 company offices or a bank. I guess people just get used to the noise.[/ref]
So it needs some lateral thinking. I need a large body of water, and the North Sea will do. Time to park myself down by the waterside and chill out to the waves –
and the peaceful sound[ref]the intermittent rumbling is sadly the wind, I only had a handheld rig as I wasn’t expecting to do any recording.[/ref]. There was a pleasant breeze off the sea – it was almost too cold.
I did look around and wonder why the other punters weren’t at work – some were retirees but half seemed to be families. I can’t really moan that the beach was teeming like Benidorm.
So the ermine air conditioning isn’t really that portable. But it does have some extra features, like the fine ruins of Greyfriars Friary
and it seemed rude not to celebrate the moment with some fine dining
Londoners travelling up the A12 for a weekend break may want to note the Friday Street farm shop, which is a few hundred yards detour off the A12 on the London-bound side. The strawberries and cream set me back £3.23 which I thought was a good deal for quality in both items, and they have a good range of foodie delectables. I paid roughly twice that in fuel. There are some that may carp that you can’t spend £10 for gratuitous decadence every day, but I have done my time of ultra-frugality now. No nightingales to be heard in Dunwich forest, where I’ve heard them in previous years, it’s probably too late in the season now
Dunwich is noted for mostly having disappeared into the sea. In 1250 it was a rich port town of 4000 souls. Since then the sea has gnawed away about 1.5km of the coastline, so most of the old town has fallen into the sea. It is now a village of about 100 people.
The sound of the sea is not far from Jacob Forster’s grave. It’s coming for him after two centuries of undisturbed repose…
Mr Money Mustache will no doubt consider seeking air conditioning an act of pusillanimous weakness, but the trouble is that no part of Britain is very far from the sea, and in a maritime climate it always really wants to rain. Even on a hot day with blue sky – the inherent desire to rain results in high humidity. So things like swamp coolers work fine at the lower latitudes of LA, but are a waste of space and money here.
So I am leveraging the fact that I own my own time, and summer is a good time to live like a king, reasonably cheaply. Strawberries and cream by the seaside is pretty good 😉
Incidental rant: why doesn’t Britain have proper cadastral records?
I came across this notice walking from the car park to the Friary:
Every other European country has a definitive land register of who owns what. But not in Britain. Because all the land was seized in 1066, what the King didn’t keep for the Crown was handed out to the aristocracy, which hoards it and passes it down the generations, much of the land in the UK is not on the Land Registry, so you get situations like this.
In any French village you can ask to look at the cadastral records at the Mairie to know who holds a piece of land. Isn’t it about time that we sorted ourselves out and demanded of the aristocracy and anyone else that it bloody well registers every single claim to every piece of land it asserts that it owns, and if no claim is made after 10 years then tough shit, it belongs to us all? After all, if it isn’t registered then Lord Warburton-Smythe can simply make sure everyone looks the other way when his sprog Jimmy Warburton-Smythe-Pollock take over that part of the family estate when he pegs it because no bugger knows about that acreage, because it isn’t on the records. Decent cadastral records would help catch sneaky buggers avoiding inheritance tax and would be a prerequisite to introducing a land value tax. It smacks of dire incompetence not being able to find out who owns what of a scarce and finite resource, and one every other civilised country has solved. But since the lack of transparency serves the aristocracy perfectly well, they won’t let anything be done about out it, the piss taking bastards.
Be afraid, people, be very afraid. Saga[ref]I am very happy to say Saga haven’t yet detected from my spending patterns and personal data held by advertisers that the Ermine has crossed the 50 turns around the sun mark despite me being closer to 60 than 50, I have never received junk mail from them[/ref] tells us the over 50s are big spenders. It’s the beyond retirement that I’m intrigued by, have these profligate silver surfers found a way of borrowing from their own cold dead hands? I’m sure the intergenerational foundation would have something to say about that, but Saga?
I’m sorry, but by the time you’ve gotten over 50. you shouldn’t be in the business of borrowing for frippery, For sure, you shouldn’t be paying down your mortgage if there are better things you can be doing with your money, like socking it into a pension or investing it. But if you want a new kitchen, and need to buy that sucker on the never-never, then you need to take a long hard look at yourself. Now there is a case to say YOLO, but only if you can be sure that you can outrun your debts. The advantage a young person has in going YOLO and living beyond their means is they have human capital in spades – their future self gets to work longer or harder to redeem their overspending. The finished at fifty, not so much.
For a fifty-something to play the YOLO game effectively, you need to be able to know the year you die. Now you can determine that, but it’s all going a bit Logan’s Run
So many new cars, Saga surfers, so few holidays, WTF?
Saga say these over 50s buy three new cars in the decade 50-60 and yet only seven foreign holidays, which strikes me as odd, what’s with the materialism grizzled citizens of Saga-land? Mind you, Saga are one of the few banks to advance a loan based on income both from a pension and from savings and investments. The trouble is the usurous 7.9% APR. I’ve groused before on how an retiree is a loans pariah, even when the aim of the loan is to use tax allowances, indeed a 7.9% APR would be tolerable to get a 20% uplift. But not if you have to be a homeowner and it’s secured on the house. Although taking up a use it or lose it tax allowance is a reasonable sort of thing to borrow money for, it becomes non-reasonable if you open yourself up to the risk of losing your house or becoming a forced seller.
Paying nearly 8% for a new kitchen or car before you have saved for it is just foolish in my view. and by the time you are into your sixth decade you really ought to have learned better. Unless you have a good reason to believe your future self will be richer than your present self, just don’t do it.
The 50s is a very tough decade for the FI crew to get right
This decade is tough for many reasons. You can’t get hold of your pension savings until your are 55 and rising, so a whole chunk of your savings may be sterilised, the old silo problem again. You are fast running out of human capital – it very much depends on the field you have been working in, but openings at the sort of salary you were on if you can consider early retirement may be rare. Your financial risk exposure to redundancy is high, and you have less time to catch up if it does happen to you. You may be at a peak of child-related spending unless you had your children very early in life. One of the notable features of the early retirees from The Firm before 55 was that they were mostly the child-free, and being out of the university expenses meat grinder was probably a big part of that.
Retiring before 55 runs against the general way people do retirement, and it’s a more critical decision because just as you cut the power you have the longest glide path to sustain. It’s a hard balance to get right. Looking back, it is clear that I underspent in the early years following retirement in 2012. Compounding the error I earned a few lousy bits of money in a few one-off hit and run jobs and then picked up a steady income from some technical stuff and bookkeeping until last month. I never recognised these amounts as any useful amount of money, because they were typically less than 10% of what I had been earning when I was working, and I didn’t trust them, so they formed no part of my budgeting. But they seemed to make a surprisingly large contribution to the slowing of the fall in my networth, which was aided by the stock market being tremendously kind to me across the years 2009 to now, until I could make it with just my DB pension because I could defer it long enough.
Much as I was a purist in that the aim of retirement was to bust The Man right out of my life, I discovered that it was freedom from the rules and the bullshit that I wanted, only later did I find it was also the freedom to do other things, which is why it is time to get work right out of my life again as my pension savings come on stream. No SHMD The Returned for me 😉 I am no longer self-employed as of this month, now that I have collected my second and last year of Class II NI contributions purchased at the spiffing price of £150 p.a. When I was on PAYE I was paying over £5k p.a. and the cheeky barstewards made those years count less for being contracted out. It’s not necessarily the last money I will ever earn, but I will favour no-commitment one-off hit and run jobs in future.
I don’t know what the personal circumstances of all these profligate Saga spenders are. This extract doesn’t convince me they are that well off –
Lenders have been short sighted by turning down people by looking only at earned income which is one of the reasons we launched Saga Personal Loans, to give more people access to credit they can afford in order to live the way they want to.
Perhaps Saga haven’t targeted me because I am simply too poor, not because I have cleverly dodged their tracking mechanisms. But if their fifty somethings are borrowing money to do up their houses and buy three new cars in 10 years, then these guys aren’t that rich either, and they certainly aren’t living within their means. I spy trouble ahead for these indebted consumers as their human capital rapidly dwindles. The ermine may look poor to Saga, I’ve never bought a new car in my entire life, never mind three after retiring. But I am rich in a way that these silver borrowers aren’t. When I buy consumer goods on credit cards I pay them down in full each month as the statements fall due. Saga’s big spenders are rich in cars and kitchens, I am rich in self-determination. Each to their own.
I’ve never come across the concept of serious leisure before, but a bit of Internet ratholing brought me to the Serious Leisure Concept, which takes a look at how people spend their spare time, should they be lucky enough to have such a thing in their lives. The site is heavy on sociological speak, but they break down leisure time occupations into
the sort of instant gratification, hedonistic and gormless thing that gives leisure a bad name – watching reality TV etc. It’s a bit wider than that
[Casual Leisure] is fundamentally hedonic […] Among its types are: play (including dabbling), relaxation (e.g., sitting, napping, strolling), passive entertainment (e.g., TV, books, recorded music), active entertainment (e.g., games of chance, party games), sociable conversation, and sensory stimulation (e.g., sex, eating, drinking). Casual volunteering is also a type of casual leisure as is “pleasurable aerobic activity,” or casual leisure requiring effort sufficient to cause marked increase in respiration and heart rate (Stebbins, 2004a). Casual leisure is considerably less substantial, and offers no career of the sort just described for serious leisure. In broad, colloquial language casual leisure, hedonic as it is, could serve as the scientific term for doing what comes naturally. Yet, despite the seemingly trivial nature of most casual leisure, I argue elsewhere that it is nonetheless important in personal and social life. (my emphasis)
Well, yeah. You need the yin to balance the yang in life, and going without shooting the breeze and eating is taking austerity too far.
I think we all get this side of things. The other two categories were interesting additions to the taxonomy:
is the systematic pursuit of an amateur, hobbyist, or volunteer core activity that is highly substantial, interesting, and fulfilling and where, in the typical case, participants find a career in acquiring and expressing a combination of its special skills, knowledge, and experience
They then break down amateur, hobbyist and volunteer down further, but the essence of this type of thing is that it isn’t an immediate and known win like getting a coffee, you must put something of yourself into it to get something out of it. I found this sort of thing more rewarding after retiring, for the simple reason that you have more time to hone the art. I screwed up a little in being shorter of money in the first few years of retiring than I am now – don’t pay off your mortgage early if you want to flatten your income profile 😉 But I would go as far as to say getting into serious leisure will improve your experience of retirement no end. I’m not comfortable with their use of the term career, but perhaps that’s because I have BTDT, unlike Jim I have absolutely no desire to climb another greasy pole. Like him, I did not leave the rat-race as an elective move towards the positive goal of FI, although perhaps I had the advantage of having a three-year run-out period. That nobbled any fond nostalgia for the hell on earth that the modern management practices have turned the professional workplace into for my INTJ type. Either way, I hope they don’t mean career in a work sense, but it is of course true that there is an arc of progression from noob to wizard-guru as you hone the art and craft of your serious leisure pursuit.
I think I want to do more of this. And perhaps less idle surfing, though I do love coming across new ideas and poking a curious ermine snout into the vagaries of this world. I recently got back into video editing and shooting, partly for a short job with some travel coming up, and I was amazed at the improved performance and the way editing and compositing, even 3D compositing is done routinely. I whiled away most of today learning what has happened in this field since I used Premiere around 2007. Is that serious leisure or idle mucking about? Dunno.
is a short-term, moderately complicated, either one-shot or occasional, though infrequent, creative undertaking carried out in free time. Such leisure involves considerable planning, effort, and sometimes skill or knowledge, but for all that is not of the serious variety nor intended to develop into such. Nor is it casual leisure. The adjective “occasional” describes widely spaced undertakings for such regular occasions as arts festivals, sports events, religious holidays, individual birthdays, or national holidays while “creative” stresses that the undertaking results in something new or different, showing imagination, skill, or knowledge. Although most projects would appear to be continuously pursued until completed, it is conceivable that some might be interrupted for several weeks, months, even years
I was unable to work out if I do any of this. I do pursue some projects over time, but I can’t see how “continuously pursued until completed fits in”. That starts to get to sound suspiciously like work 😉 One needs a good few leisure projects, and cut between them. That sort of dissipation wouldn’t be tolerated at work!
I was surprised that so many listed travel in their project-based leisure, I’d have put it in casual. But they did the course so they know better, or maybe their travel isn’t like mine. We also have serious sample bias here because all the respondents are undergraduates, they have yet to join the treadmill of the rat-race and they probably don’t have children.
I got on to the serious leisure site after reading about the demise of the weekend, which is much more the typical narrative that you hear, basically it’s ‘Leisure – what’s that? We work all the hours given us and on the weekend we drive the kids here there and everywhere in between doing the laundry etc etc”. I recognise two of the themes from her piece. The first theme was the much greater freedom I had as a child that seems to be the case for children now, and also the opportunities to fill my own time without structured events. Having children was something people did and fitted into their lives when Katrina Onstad and I were children[ref]I would hazard a guess she was a child less long ago than I, perhaps Canadian kids kept their freedom to roam longer than Brits[/ref], it seems to be much more all-encompassing now.
The other theme was the way people don’t seem to have hobbies any more.
Hobbies are declining, but a hobby is exactly the kind of activity that adds value to the weekend. Stamp collectors and basement inventors may not be cool, but they know the benefits of becoming fully immersed in an activity and losing track of time – that rejuvenating “flow” state
The students were anomalous in that they did have hobbies. When I was growing up in what by modern standards would be a poor area, many of the adult working neighbours had hobbies, they were often creative but low-cost. Many of the guys actually made furniture[ref]Look at this Popular Mechanics from the 1970s for how common making furniture this was – I wouldn’t have a hope in hell of making something accurately enough out of wood to be fit for being in the house[/ref] using hand tools, others made models, and some of the women made clothes[ref]this was the 1960s and 1970s, remember[/ref], presumably both clothes and furniture were much dearer in real terms than they are now. I’d say there’s more consumption and casual leisure now compared to the other types that there used to be.
We’ve imbued work with the job of giving us meaning, and it seems to rob us of our leisure time in so many ways
I recognised another pathology mentioned in Katrina Onstad’s weekend article –
A friend used to make beautiful earrings occasionally. Almost ritualistically, she would buy the beads, and carefully craft the small, coloured jewels in a quiet workspace. Then came Etsy. Now she makes beautiful earrings and sells them, ships them and manages this business along with a full-time job and a family. What was leisure became labour. The side hustle is a weekend thief, but in a time of stagnant incomes, many must choose income over time.
I’ve seen that too. I made some ultrasonic microphones because I wanted to differentiate bat sounds and ended up selling some of these because people wanted to do the same. It was okay, but I was working at the time, so it was a weekend time thief. More recently I had been doing the accounts for a small operation and recently finished that – the time commitment was low, but the relief on finishing up is worth far more than the income. It’s unpleasant enough doing my own tax return, life is too short to see more of the taxman’s tiresome demands on behalf of others.
Somewhere in the back of my mind there must be an old tape still playing out from childhood or early adulthood that income = security, and worse than that, only income from selling my time = security. Perhaps when I finally draw my works pension in a couple of years I will chill from that. Intellectually I can see that I will run out my SIPP in a couple of years, this year it paid me with whisker of the HRT threshold, but I don’t really regard that sort of saved money as an income. There is learning to be had here. I’m not averse to doing the odd hit-and-run job, the microphones were that sort of thing, but I need to avoid regular commitments – the sort of thing Katrina’s Etsy friend ended up with. There is a lot of recommendation to turn a hobby into your job, and yet some good reasons not to.
Much of the point of hobbies and leisure interests is that this isn’t work. The fun with the microphone was developing it and looking for bats with it and hearing the differences, it was solving the problems. After making one or two, the novelty palls, and I’m not good at repetitive things, it’s the fun of the chase of design I liked more. I guess the lady with the earrings may have the same thing – making a new one is the buzz, mailing them out and dealing with returns, not so much perhaps.
There’s a more subtle problem. The business world tends to kill creativity in its search for continuous improvement and optimisation, it strips out the places to play. Although it isn’t creativity in the artistic sense, the design part of problem-solving is a form of creativity, if it isn’t up against the clock IMO. As a young research engineer/scientist I covered many more areas than I did as time went on. Part of that was The Firm shifted quite heavily away from research to development and then into IT, specialising and compartmentalising the workforce as it did so. But I think there is a wider trend towards specialisation – the mantra of concentrate on your core competencies and outsource everything else. In the more vertically integrated scientific and technical companies I worked in 30 years ago I got to learn electronics, I got trained to use a lathe, milling and shaping machines and oxyacetylene welding not because this was what I was going to be doing but because they didn’t want their researchers to run the workshop staff ragged with requirements that couldn’t be made. Companies now would probably outsource all that sort of stuff unless their primary function was mechanical engineering.
That may be more efficient, but it’s much less interesting. Pursuing a hobby doesn’t demand hyper-efficiency, because it is just as much about the journey as it is about the destination. There’s reward to be had in the tides of a hobby, in the ebb and flow of the creative process. These meanderings may not be efficient, but they are part of the fun.
Many of us in the financial independence/retire early space want to get financial independence because we want freedom from the Man taking over all our time. However, attaining financial independence takes a long time and it’s a tough slog. Retirement Investing Today has reached the finish line in his early forties after nine years of this. RIT even asks himself is he an outlier, I would say he is. I am less of one, but I went three years with no holidays and working hard and spending as little as possible to get out in my early fifties. What you have to go through to get to being able to retire early isn’t fun before, though it is afterwards 😉
It also concerned me that a lot of the narrative on here isn’t very widely applicable to people starting their working lives now – after all I started work thirty-five years ago. I think Andy has a lot to offer this cohort, because while work has changed, it isn’t all adverse change, and some of his ideas may help play that hand better in the modern world. Andy challenged me in the narrowness of my vision regarding work – his persistence in the face of a curmudgeonly and stuck in it’s-ways Ermine can be seen in this comment thread
Getting to financial independence is about earning and saving, and it pays to get that right, both in terms of earning as much as you can and saving as much of that as you can, but I’d say that more than half the battle is getting control of your headspace, knowing what you are doing and why. The younger Ermine was called out as a spendthrift wastrel and compared to many in the PF scene he was, although he avoided the general category error that is consumer debt which dooms many to a life of wage-slavery.
Andy is offering a different take on this. More choices open up when you separate the requirement for independence from financial independence and retirement
Andy has looked at the financial independence/retire early (FI/RE) scene with fresh eyes, and he observes a lot of independence can be had before financial independence. He is an inspiring example of someone in the FI community who isn’t working in finance[ref]I have nothing against people working in finance in London. But you’re a breed apart because of the pay levels, and the rest of us need hope and inspiration too ;)[/ref] in London, but is getting freedom of self-determination and control of how he spends his days. Andy is in his early thirties and lives with his charming wife and two delightful young children in the beautiful surroundings of Devon near Dartmoor.
In particular, he is of the view that many of us miss the point in focusing on the distant goal of financial independence. You can get a lot of independence and a lot of resilience from The Man by looking at working and earning a living in a wider way.
So I decided to find out more, and visited him down in Devon, on the way to looking at some prehistoric stones on Dartmoor. The rest of this post is an interview with Andy about some of his ideas on life and work.
An Ermine interview with Andy from Liberate.life on how he separates independence from financial independence.
The title of Andy’s site says it all – his aim is to liberate life from the limitations of working for The Man on one side, while at the same time not deferring all gratification until he is as grizzled as an Ermine, because his kids will have become adults by then and he’d have missed them growing up.
Changing your thinking patterns is never easy, and a lot of how we think about money and work was set quite early on. In the interview I ask Andy about his vision of what a good life is, and he talks about how mastery of his destiny is important to him and what he has changed to get closer to that, and his different take on financial independence.
More ideas from Andy on how to liberate your life
Andy’s website liberate.life is both about the how and why, but he offers more targeted way to help you make the changes:
one on one coaching* on how to become more entrepreneurial, and how to test new business ideas so they show whether they are likely to succeed sooner rather than later.
Andy can help you liberate your life with his one-on-one course, if you are open to new ways of thinking, and have the talent and drive to make changes. He is open about the scale of the challenge and the rewards. Andy’s approach is to steadfastly challenge limiting beliefs about work and earning, so you can use your ability to add value to other people to the full. Hell, he has even got the grizzled Ermine to think about doing some kind of paid work, just for the fun of it[ref]Note: I am interested in the research field and it benefits people I care about. I am not The Returned 😉 [/ref]
He’s even more persistent in delivering the message in person. Resistance is futile – the world of work has changed, and agility and lateral thinking in the face of change are what helps get ahead now IMO.
What did I learn from Andy?
I should acknowledge I haven’t done his course, but we did talk for a long time. I’m not his target audience because it is too late for me. I had to solve the financial independence conundrum on my own. And yet it’s clear that both my limited history and the nature of leaving the workforce left large regions of limiting beliefs:
Limiting belief 1: A view that selling is a sleazy occupation and I have never done it and have no place in it
This is as a result of my limited experience- I have only ever worked for four companies, and three out of the four were very big firms. I was far removed from the front line. Selling is an essential part of making any enterprise work, and my concept of sales and marketing was a combination of Arthur Daley, Spanish boiler-room telephone sales scams and used car vendors.
Now if I look back at my career I have sold ideas and strategies to people, but if we ignore that as lost along with the career, I then looked at designs and services I have sold to people outside my main job. And discovered that because I had always conceptualised sales as the spoken word, I had ignored sales I had made through the written word – a few thousand pounds on articles (ignored because I have been reading journalists decrying the death of print for years), and also a few pieces of equipment sold because people had chased me down to buy equipment after I have published technical articles on new opportunities and techniques.
In particular, because outside work I generally influenced through the written and not the spoken word I missed that I had already been selling through widening influence in the way of writing technical articles, even if I did make my customers chase me down and articulate their requirements as a request. I am clearly of the Ralph Waldo Emerson mousetrap school of thought here 😉 If I wanted to take this further I would carry on in that line, using influence by contributing original articles to special-interest organisations and getting sales from that. I had missed seeing all of this because selling is done verbally in my beliefs. It is theoretically possible that using social media I could expand this, although I don’t have to. I use Google to publicise my articles[ref]this blog is an exception, I don’t really know how people find this, though I am glad you do, and I tip my hat to fellow bloggers who I believe are the main route[/ref], and by choosing to specialise in niche areas it works for me. I don’t SEO or all that malarkey – write decent stuff about technology I am interested in and choose small pools. Decent writing matters. I’m never going to win the Booker prize, I am wordy and not always focused. But in these small pools I am competing with engineers, not with Shakespeare, JK Rowling or even Dan Brown. ’nuff said.
Limiting belief 2: Quite serious blind spots regarding working and earning
These came around because of the way I reached FI, running away from something rather than towards it. You shouldn’t do that generally in life, and I was saved from the boredom that afflicts many who retire to get away by the return of an inquiring mind. That exit left marks from the experience that work hurt a lot at a particular time of weakness, and this was generalised. In fact it was the absence of control that hurt, if I had been in a position to turn round to the boss who tried to shaft me and say
“Quite frankly, if that’s how you feel then you can f**k right off and stick your performance management where the sun doesn’t shine, if you want to do things in such a stupid way then be my guest and find some other sucker to cover for your failure to look ahead”
I probably would have felt fine and dandy about the whole thing. Obviously I would then still be working, arguably wasting precious time of my life to earn money I didn’t need so it’s perhaps best that it happened that way.
So I ended up with the feeling that the whole principle of selling some of my human capital for money ends up as pain, as opposed to the specific example at that specific time did. I inferred the general from the particular, and you shouldn’t really do that from one data point, it’s bad epistemology.
I am sure there are other limiting beliefs, but I’ll vouch for Andy’s tenacity in hauling those out.
So there you go, particularly for younger cohorts for whom the journey to FI looks very long and hard. As the man says – Sick of the daily grind but can’t wait for FI? Take a look.
*Disclosure – Andy contributes to the Ermine’s beer fund for signups through here, but this won’t cost you any extra. I never promote something I don’t see real value in, I scrapped Google Ads from Simple Living In Suffolk years ago when they flashed offers of Wonga et al to unsuspecting readers. Having met him, Andy seems to play a pretty straight bat, judge for yourself.
Before they are financially independent, most people work to earn the money to buy the stuff they need and want, it’s how 21st century capitalism is meant to work at the moment. It gives rise to the term ‘work’ – something that you have to do otherwise bad shit happens, like you end up with all your stuff thrown out on the pavement.
Because it’s something you have to do for many years, many of us get Stockholm syndrome with work. Inveterate story-tellers that humans are, we tell ourselves that work is innately a Good thing and lends meaning to our lives. Let’s take a fine example of this from someone who I’m generally in agreement with, other than in this aspect of life:
But I believe almost everyone will benefit from having an ongoing economic relationship with society while they can – even if only for a day or two a week.
I’m the poster child for disputing this paradigm. I consider it a limiting belief, and have taken pot-shots at the Calvinist work ethic every so often on here. The beauty of financial independence, however, is that you get to have the choice of whether to work or not. Over at SHMD, Jim has decided that he missed work, so he went and got himself a job, even though he doesn’t need the money.
I would generalise that to everything that irritates us… I don’t think it’s particularly personal in this case. If Monevator and Jim and 99% of the rest of the FI world want to work till they drop, good luck to them. It’s just the concept that work is an inherent good that gets my goat. As a society, we are going to have very serious trouble and mental distress with this meme if the robots and globalisation really do take half our professional jobs in the coming years, unless we have a social revolution that probably involves bending some of the axioms currently underpinning society. Hopefully one of them will be work = meaning 😉
I realize today that nothing in the world is more distasteful to a man than to take the path that leads to himself.
In order to live intentionally, therefore, I need to separate the beliefs coloured by past experience from my current experience, and my temperament had the past experiences not happened. Otherwise I will live in an imaginary prison, boundaries that once had value but have no more.
What does the word Work mean to me
It means a lack of freedom, it means grind, it means being trapped. It means earning money, it means selling my time for money, it means restrictions on my time. It means doing stupid shit like justifying my existence, it means filling in time sheets that have no bearing on reality, paperwork just because. Because humans are devils with their recency bias, this litany of woe is because the most recent experience was largely negative. But for 27 years out of my 30 it also meant the opportunity to travel, to do good interesting stuff and to build capital across my working life as I slowly exchanged human capital for financial and social capital. If I were to allocate the experience of my years evenly, then only 10% were bad, maybe 12% if I add in the six months I was unemployed between graduating into Thatcher’s first recession in the 1980s and starting work.
So it’s easy to see the limiting belief. Work = pain, and I need get as far away from that as possible. Even in 2009 I intellectually knew that was an extreme view, but one that because of where I was in my working life I could get away with. The power of the intensity of feeling galvanised me to clobber wasteful spend and save and take the necessary risks with extreme prejudice, and reach FI 8 years early.
What I did not realise was that simplification also distorts
and it is the distortion that clouds much of my thinking when it comes to the topic of making money
I think the word ‘work’ has picked up some unnecessary bad connotations […], especially as we’ve transitioned out of the years when ‘the recipe’ (grammar school -> degree -> job for 40 years -> pay your dues -> final salary pension scheme) still worked.
I was that grammar school guy, son of a maintenance fitter, who went to university, got a degree, then worked only four real jobs[ref]excluding casual crap before leaving university – kitchen portering, repairing radios and TVs and odd-jobbing[/ref], have a final salary pension scheme. It worked for me. I was able to retire early because I saved roughly half the notional capital behind my FSP, but having the FSP effectively gives me a massive bond-like holding, which means my risk tolerance with stock market investments is insane, because the FSP will keep the wolf from my door.
Liberate.life is the counterfactual to my experience – younger and more dynamic, but electronics engineering is the field the younger Ermine worked in. And yet he is yin to my yang – he can sell, and freelances, and as I read this it looks like the antithesis of everything I know about work. It’s like looking in the mirror and seeing half the image right way up and half of the reflection upside down. I’m damned if I know which half is off but I suspect it’s mine 😉
So it was time to investigate the subject of work and money deeper. For a long time the obvious issue, that I associate work with pain, simplified things too much
I associate specialisation with success with work
For 25 years I was working in a big company, and in a big company hierarchy. Big companies tend to narrow people down into specialisms in engineering, because they have enough people that they can do that. I pursued some technical interests after leaving work, and have some of this on a blog, when I read it back it is a whole load of random bits and pieces on all sorts of subjects as I flit from one are of interest to another. Mine is worse on that front than your typical engineer’s blog, they at least tend to have a reasonable common thread for a few posts. As someone who is financially independent I can afford to pursue my whims, but if I were looking for staff and I saw that sort of character, I would think Jack of all trades and master of none, and file the CV in the round filing cabinet on the floor.
I haven’t even stayed with electronics and software, a few weeks ago I offered to fix a generator on a no fix no fee basis. I was pretty sure that Google was going to be my friend, the world is full of Honda GX small single cylinder 4-stroke petrol engines and Google is full of people who are describing faults and getting hints on how to fix them. The fault was the engine would run for about 20 seconds and the die. Google told me this was likely a blocked breather vent in the fuel cap, which I confirmed by unscrewing the fuel cap as the engine was about to conk out. Whereupon it ran fine[ref]Obviously you shouldn’t run an engine with the fuel cap open because petrol vapour is inflammable and invisible so don’t try this at home.[/ref] 😉
TFS identified this sort of mentality as a ‘scanner’ but twenty-five years of working in big companies has taught me to identify it as ‘dilettante’. Apparently it is more tolerated in today’s world of work, a kinder term for that sort is multipotentialite. It is more tuned to today’s world in some ways, because better communications means provided you can search well, you can gain the benefits of other people’s experiences by covering masses of ground. You just couldn’t do that before the Web, you couldn’t find enough different people to talk to, and it would have taken ages anyway. Multiple tabs were made for that sort of approach to finding stuff out – cover masses of ground, fast.
So I have uncovered some unhelpful associations, and indeed at some level I despise that generalist tendency because for 25 years that wasn’t how to have success at work. It is possible I played against type for a quarter of a century because I prized security and stability and did not know how to manage money over more than a monthly basis. I always needed an answer to the Micawber question, and a regular income made that possible. I struggled with that while running several years from savings, in hindsight I didn’t spend enough. The generalist tendency occasionally caused me grief at work and probably slowed my rise up the greasy pole, on the other hand even in a big company you need people who can cross domains. It tended to work well in good times but be awkward in bad times.
But since I have the drains up I may as well keep on digging at these unvoiced assumptions…
I associate a steady stream with income – I am virtually blind to feeling uneven income is income
I can’t really relate to income that comes in unevenly in dribs and drabs, because for 30 years income arrived in roughly the same amount each month, apart from overtime (in the early days) and bonuses (in the last couple of decades). It’s still a little bit of a mystery to me how a string of lousy £50 here, £100 there dividends in my ISA adds up to a good few thousands of pounds of income when rolled up over the year. I was able to jump over the uneven lumps ≠ income in the ISA because there are so many of these minor transactions I can think of this statistically. Many people work really hard to make their dividend income spread evenly across the year, this sort of happened naturally for me, although slightly peaking in Q1 and Q3. You can have 20 companies working for you in a HYP, but I would defy anybody to work 20 part-time jobs or even have 20 streams of income, that sort of diversification is hard to have with many income streams.
At a gut level I don’t really consider the sort of hit and run one-off jobs like the generator as income. For sure, Quicken adds them up for me so I can declare this, as long as I keep my pension + earnings below the personal allowance I am chilled. Last year I was able to toss a lot more than the usual £3600 in my SIPP because these things added up to a fair bit more than that. But it doesn’t feel like income, because it is unreliable and lumpy.
I associate earning money with work
and worse than that, I associate earning money with selling my time for money. So these one-off jobs don’t feel like work which is good, but they don’t feel like earning money either, which is bad. I don’t trust them, so I just bung the result into SIPP and live off the steady income from the SIPP, because I can’t budget with variable lumpy amounts. By a curious twist of fate a retiree older than 55 can put all their earnings into a SIPP in one year and get it bumped up by 20% to extract the next year, provided they don’t draw more than the personal allowance. I’ve only got another few years worth of that before my main pension shoves me well into the normal tax bracket, but I may as well enjoy the windfall while it’s there.
And yet together with the income from the ISA these odd jobs will start to add up to about the national minimum wage. It was not so long ago that I was chuffed that the dividend income from the ISA matched what I would have got from jumping through the hoops to get JSA (£71p.w so ~ 3700 p.a.) and yet the rate of increase of the ISA income per year is creeping up[ref]in fairness that was written nearly six years ago when the best you could put into an ISA was about 10k p.a. Some of the win in getting to three times that was the fact Osborne turbocharged this to time and a half, the time honoured magic of Saving Hard at work rather than any particulalry sharp investing chops[/ref]. I don’t draw an income from the ISA because I don’t need to – I want to pump that up as much as I can before I enter the regular BR tax bracket in a few years, since it is tax-free income.
I have lived in a big-company bubble for 25 years and it has limited my vision
I owe liberate.life some beers for widening my search. Because the similarities of the engineering skillset (naturally separated by 25 years or so due to the age difference) and yet pretty much everything else looking like a counterfactual, he’s shown me a set of limiting beliefs I was unaware of. More surprisingly to me, they aren’t particularly due to the trauma of the nutty performance management usage and abusage I took in 2009. That does exist, and has it’s own consequences. The idea of following Jim SHMD’s path and selling my time to an employer to draw a salary brings me out in hives. I’m not gonna go there, and I don’t need to.
But unassociated with that, my concept of making money was massively narrowed by my experience of working life, the unchallenged assumptions of that grammar school kid who followed the default track. Now that I am grizzled of fur and sufficiently past the finish line that I have options all the way up to and including doing nothing, I can zoom out and ask myself the question – is there a better way?
Perhaps I should turn the telescope round and ask myself what do I want out of earning money. I have identified a project where I could use a bit more money. It doesn’t directly change my own lifestyle, so my greatest fear of earning more through selling my skills doesn’t apply – that fear is that I would earn money, inflate my lifestyle with Consumer Crap™, get locked into it and lose the delightful freedom of FI. I am happy with what I will have, my lifestyle will inflate somewhat anyway as my income increases once my main pension starts. I don’t need to earn more money to raise my lifestyle. Although once I believed that I screwed up discharging my mortgage early which meant I took an income suckout for the last four years, now I am on the other side I’m not so sure that I regret taking the suckout over the convalescence period. but that’s easy to say from the other side of the mountain. I got a significant ‘pay rise’ this when my DC pension started in June and will get a massive ‘pay rise’ when my non-deferred pension starts in a few years. Breaking the link between making money and my own lifestyle gives me detachment which can distance me from the suffering normally associated with ‘work’. It is one aspect of the freedom to that financial independence is about, once you have spent the time integrating the freedom from.
So what do I want from off-piste opportunities to make money?
a subset for the simple reason that I have command of my time, being FI. I will do other things that fulfil me, this does not need to replace my use of time, but it needs to add, or at the very least not take away.
I want to earn through doing something that is congenial
has some originality or novelty
creative in some way[ref]it doesn’t have to be engineering – for the past few years I have been makingsome money from photography and from sound recording. But trends in the wider economy are running away from those sorts of things[/ref]
with decent people who aren’t dickheads in general[ref]Everybody s a dickhead sometimes, it’s part of the human condition, and that’s OK. Persistent dickheadery is what I want to avoid[/ref].
that helps people or causes that I know or care about personally
that is specifically something I bring to the party from skills, temperament or talent if any
I want to spend less than a day a week on this, but I favour that being in all-or-nothing chunks with long gaps in between. Part of this is that I am limited by the tax system, I don’t want to work for the government 20-40% of my time. I have done my share of that over the last 30 years.
I don’t what to sell my time for money. Obviously doing something creative takes time, but I don’t want it in the form of billable hours, more billable results
I don’t want to ever see performance management. An engineer’s work speaks for itself, should that be the field I use
I don’t want regular or ongoing time commitments. Hit and run jobs are what I want, get in, do, then get out
I am happy with no fix no fee and no guarantee of regular work – but if you aren’t there regularly for me there’s no guarantee I will be there for you 😉 and yes, that is sort of at odds with 9
I prefer to sell Mind, not Stuff. Stuff gives warehousing and cashflow problems, and regulation is a bitch. It’s not hard and fast though.
I do not want to be derivative or routine. I don’t want to be a replaceable work unit. No chuntering out ebooks or matched betting which seem common fave side hustles in the PF scene. I am rich enough not to have to do this, and old enough to know my time is limited.
no franchising, if I am not original enough to make a decent return then I will just walk away
and if I do do this, I want to earn a lot more than the minimum wage for the time I do spend on it. Unless it really is so much fun that I don’t mind, but I’m not building that assumption in from the off. I am not volunteering. I don’t do that, particularly the sort of staffing job. I have done one-off data analysis and design stuff for the RSPB, but not under the usual volunteer x hours a week, it was task-oriented.
Unfortunately the logical conclusion is freelancing or contracting. I have no experience of that at all, zero track record, no domain knowledge, I am an introvert and can’t sell. So I have never done this in a big way although I did have a multimedia/web design company on the side in the early days of the WWW mid 90s to early 2000s. But selling was my weak point and when the major customer changed technology I folded the company. I read this and think ‘bloody hell, I can’t do any of that’.
Not only that, but it appears that small companies are where the most likely chances of success are. I have worked for a small company, a 10-15 man band, but it was at the very beginning of my career 34 years ago. Small companies are like the past – they are a foreign country; they do things differently there.
I had some bizarre engineering experiences in small firms, two stick in my mind. In my first company, the design engineer swore blind that a virtual earth amplifier had a high input impedance. Now at 22 I didn’t know a lot, particularly when to keep schtum and STFU, and I had been testing these blasted things which used to want to take off and oscillate more often than not. That’s bad in an optical sensor. But I did know that a virtual earth was a low impedance input. So when there was much head scratching in a meeting as to why we have more duds than good ‘uns I go and pipe up “but a virtual earth is a low impedance – the clue is in the name”. I was dead right, and the clue is indeed in the name, but there was a deathly silence and the assembled multitude digested the unwelcome fact that the lead designer had goofed, as pointed out by the rawest recruit. Seemed a good idea to move on from there after a year…
The second was when I was the lead engineer on a project at The Firm, and we had contracted some clever fellows in the Cambridge Fens. These guys had minds like planets, and I had told them the average TV sound in expected typical audio levels of 0.7Vrms. For some reason they decided they only needed a peak to peak level of 1V, sadly convention has it that the peak to peak amplitude in this case is 0.7×(2×√2) or nearly 2V. The passage of time had gentled the Ermine’s needle-sharp teeth and I had learned that it pays to nudge people to coming to the conclusion that perhaps a mistake had crept in somewhere. But I confess I had to look it up in a textbook after a meeting where one of these guys a lot brighter than me was declaiming that the signal was entirely correctly 1V, he really believed that. They were awesome at digital stuff, could pull their set-top box code apart and have it have it changed in a few hours. In a bigger company somebody else would have been in charge of all that fuzzy analogue stuff and this challenge to basic engineering fundamentals wouldn’t have happened, particularly in front of the customer 😉 Small companies have much more of a heady mix of absolute brilliance and the occasional absence of fundamentals, in my limited experience of them.
For many reasons I would be a fish out of water trying to apply what’s left of my skills in this different world. I have no knowledge of the terrain, and I don’t know if my passport is good for the country. To my advantage I don’t have to succeed, though of course that may work against me too, perhaps I will not have sufficient fire. It’s not looking good, but I have one key advantage. I am not desperate – I am financially independent. Even at the moment the amount in my current account slowly creeps up month on month and I need to toss it into the Nationwide every so often to win 5%. As a result my risk profile is very different from normal, I can screw up a few times and let it go.
There are other odd wrinkles, take this perfectly reasonable recommendation
I can see that might work when each piece of work is won anew, ie there is no history, it’s obvious to play to your strengths. But in my career I achieved many wins by fighting down weaknesses – it is this which turned an introverted young Ermine into someone who could speak in public and lead international teams. Even in the specific realm of personal finance I had to fight down the common get rich quick belief that trading is the way to make money with stocks, and come to understand that the noisiness of the information, the abnormally high likelihood of infrequent outliers and the high frictional costs mean that often the less you do[ref]inaction on its own is not enough although Robert Kirby’s The Coffee Can Portfolio made a good case it was, inaction is necessary but not sufficient IMO[/ref] the better your long-term performance.
So there are many hurdles and mindset-shifts before I could turn freelancing for small companies into something workable. And surprisingly, none of them are particularly associated with the issues that finished my big company career. Why consider this route? Because the one thing I know I don’t want to do again is a regular job. I don’t have the time, there are all sorts of bad associations, and it’s not what I want to do with my life. Because that was the only way I knew of making money, I accepted I was never going to make money from my human capital again.
People have occasionally challenged that assumption. But it took time for the noise and hum from the crash-landing of my career to die down, and for me to see an opportunity that wouldn’t lock me into a consumption lifestyle, so that I could see the remaining limiting beliefs. Whether it will amount to aught is unknown at the moment.
Andy’s liberate.life is a different take on financial independence, with less emphasis on the financial and more on the independence
In the personal finance sphere our weapon of choice is of course personal finance, it is the Law of the Instrument. If all you have is a hammer, everything looks like a nail. It’s written in the term financial independence, hell, what other sort is there? Well, given the assumption we are talking about living in a First world consumer economy in the 21st century, that is.
We are aiming to save enough money to not have to work. RIT is the poster child for doing this relatively young, but his journey to FI was a pretty harsh ride. I’ve never earned anywhere near the amount of money I guess RIT earns, but I’ve never taken that sort of punishing schedule for years on end either. In my case, because I was naturally closer to the end of my working life, I could get away with focusing on the financial route to independence. You can become more independent, in terms of choice on how you spend your time, without becoming financially independent. The model I and most people follow, working for a company to get nearly all your income, is one of the least independent ways to get the financial capital you need to live life in a Western consumer economy.
You made it! You’re financially comfortable. Your car is new enough to not break down all the time. You live in a nice house. If you have kids, they’re well dressed. People hold you in high regard and by society’s standards, you are a success.
So why the hell does your life feel like such a grind? At one point, you were young and full of optimism but now you just follow the routine, day in, day out. You don’t have any passion for what you do any more. You do it because you have to. You’ve got bills to pay. You can’t see a way out of this before the sweet release of retirement at 60-something… and then you’ll be too old and worn out to live out the dreams you’ve always had anyway.
Now since I am not a million years off 60 I would dispute
and then you’ll be too old and worn out to live out the dreams you’ve always had anyway.
Bollocks to that, mate, remember that statistically happiness is U-shaped across the life cycle in many Western societies, so some of this is part of the human condition. But that proviso aside, he’s offering a freebie course in how to get FI[ref]for the sake of full disclosure I have done neither[/ref], and if you want to pick his brains specifically 1:1 interactivity is there if you pay him for his time.
In many ways getting to FI is a matter of asking the right questions as much as finding the right answers. The right questions can lift limiting beliefs into the light of conciousness. You don’t have to fight limiting beliefs if you don’t want to or need to. I’m not going to bother fighting the belief that working for an employer has become a soul-destroying issue of gamesmanship and playing the game with meaningless metrics that strip out the joy of solving problems sometimes otherwise known as work, because I don’t need to. It’s probably not universally true, even for me now.
But now I have found a potential application for deploying the residual vestiges of human capital I may still have which won’t lock me into lifestyle inflation and consumer crap, it is worth challenging some of the limiting beliefs about making money other than just using my financial capital. And without a doubt, Andy helped me ask some of those questions, and I have found that the default answers were often wrong, inconsistent and incomplete.
So if you feel you have made it but want a way out go read some of his work, if only to ask yourself some awkward questions. You may not like the answers but they can serve you well.
After all, they sort of do the same kind of thing, act in the same sort of space and need to merge IMO. Before 2009 I had been a member of English Heritage for a while, largely to get into Stonehenge for free[ref]free once I’d gone about three times in a year ISTR[/ref]. It was a good staging post on the way down to the West Country, and usually picked up enough visits to make it worthwhile. It’s been a while since I was part of this, but now I have returned to the land of those with a regular income, I need to go out and put some of that to work.
I want to see more of Britain, and take my time
One of the remarkable things about Britain is that a lot of the place is like a history theme park, and that it has all sorts of bizarre things scattered around the landscape. Take this oddball triangular building. It challenges you a bit being inside, we are so accustomed to rectangularity in rooms that it’s quite disorienting.
The aristocracy of this country was eccentric that way, and fortunately the reforming post-war governments dispossessed enough of these folk of their undeserved wealth gifted them by that varmint William the Conk that we have the opportunity to see some of them.The general principle was since so many people got slaughtered in service to King and Country in the World Wars it was considered a bit rough to have the toff dynasties lording it over the proles like they used to.
There’s no need to get the violins out for the aristocracy – the landed gentry still own about half the rural land this sceptred isle, because the crafty devils struck a deal with the reforming post-war governments. Of course, Mr Attlee, they said, you wouldn’t like to break up family farms now, would you, after all we have just survived a war and had to dig for victory? So give us an exception on agricultural land for inheritance tax. Which still stands, but of course our landed gentry can’t be arsed to drive their own little Fordson tractors or get their hands dirty. They take public money in the form of subsidies to the tune of about £245 for every British household to reduce the costs of carrying their unearned capital stored in agricultural land, get huge contracting firms to farm the land, and flood it with chemicals, poison our birds while they of course keep the ancestral wealth in their dynasty free of IHT, because it’s agriculture, innit? To add insult to injury for the great unwashed, Gerald Grosvenor, who owned £9bn of ancestral wealth when he carked it recently, moaned that it didn’t make him happy. Well, Gerald, you know what you should have done then, you miserable git. Spread some of the love around, then maybe your kids don’t get to moan the same when they’re 64 😉 Seriously, you couldn’t make it up.
In the UK there are two heritage organisations, the National Trust and English Heritage (and the Historic Wales and Historic Scotland equivalents to EH). The overlap is notable – for instance EH run Stonehenge and the National Trust own the site, and Avebury it seems the National Trust run the site, even if they did upset Bill Bryson. Cynical me wonders how he managed to shell out £31 before seeing a stone, and whether his role as an English Heritage commissioner had something to do with his discombobulation. I’ve had the same dilemma as Bill whether to take a fleecing from the National Trust or observe from the sidelines but if he really did manage to miss one of these great big things
while he was so busy chasing comestibles then I think he needs a visit to the optician. Personally, I don’t expect to pay anything even for parking when I go to Avebury, but I guess I have more experience of the site than Bryson had 😉
We all go through life accumulating experiences, and, inveterate pattern-matchers that we are, all too often we infer the general from the particular of those experiences. In the search to impose order and meaning on our world, we frequently conflate correlation with causation, and build up a mental map of the world at odds with the territory. Some of these beliefs about the world gained from experience are just plain wrong or get overtaken by events after they are formed. To take one
“You need to work”
When I left university I had no money and therefore needed to work. I hadn’t come across the option of dropping out and possum living, and it probably wouldn’t have appealed, a young buck must run with its kind 😉 Peer pressure is strong for young adults.
But in that first year I built a limiting belief, by inferring the general from the particular. I needed to work, at that time and for a significant time afterwards. But not for all time. I needed to earn enough to pay the capital cost of some of the necessities of life. I didn’t think that deeply about buying a house, though I left London because it was clear that I wouldn’t be able to buy a house there and maintain a decent lifestyle. I really should have thought more about buying a house at a market high, but that’s another story. There’s a pattern developing here, an across the board intentional living fail.
A considerable amount of luck saved me from myself – I was enterprising enough to shift myself from boring jobs until I found one that loaded the grey matter enough to be congenial, I was fortunate enough to end up in a company where I was looked after pension-wise and the pay was decent enough. And then got on with the job of spending too much but not more than I earned on consumer crap, partying, beer and travel.
And so across the intervening years, the world globalised and loads more people joined the capitalist workforce, and it started to arbitrage towards cheaper countries. I was protected from that from a long time but eventually the erosion came to my door. There’s an argument that the Millennium Bug work of the year 2000 accelerated this erosion of developed world work in the IT world. The Firm opened a BPO joint in Mahindra and a couple of the localised Big Cheeses instrumental in setting it up benefited handsomely from their shareholdings in that.
I wasn’t passionate about IT although competent, I moved into it and out of electronics engineering because that was what The Firm did. Some people did jump ship at the time, fearful that their electronics skills would atrophy. In the first glimmerings of intentional living I came to the conclusion that I worked to live not lived to work, I was in serious negative equity so I adapted and retrained. I suspected electronics design would go to cheaper countries, and it did – the tide would have gone out on me faster in electronics that it did in IT. [ref]I still indulge the passion for electronics in making instrumentation, it’s of course different from the purely analogue world I cut my teeth on as a teenager but still fascinating. But there’s no point in trying to make money from it, too niche, too much regulation and too many Chinese copycats ready to eat my lunch. OTOH I would probably still be an employable bench tech/engineer, because there is still some niche instrumentation being made in the UK. But why the hell would I want to drive to Cambridge every day?[/ref]
Limiting beliefs can seriously hold us back in life. But most of the time such beliefs are invisible to us. They control some of our thoughts and behaviors behind the scenes, enough to curtail our results in some area of life.
His article also proposes a method of eliminating these. I don’t have his particular brand of materialist rationalism, so while I am prepared to acknowledge some limiting beliefs, I won’t fight all of them. One of mine is that something snapped in me mentally in the last few years at work, and that once something like that has broken it will never bear that load again. Since I’m rich enough not to have to challenge this by finding another job, I don’t have to go through the pain of challenging it, or indeed find out that it is in fact true. The evidence that countermands that belief is that people overcome much greater mental challenges than having a really shitty experience of working for a year.
The way this belief limits me is that I will never be able to feel safe enough to deploy any money that I earn in working again to increase my lifestyle, because I will be afraid of losing having the FU nuclear option on work. So while I might well appreciate more baubles and jaunts, no consumer shit tastes as good as financial freedom feels. And I’ve gotten used to owning my own time. So I’ll pass on the extra money and enjoy the extra time.
Over at SHMD Jim has returned to work. While that wouldn’t be right for me I tip my hat to a fellow who concluded a 0 hours week wasn’t enhancing his quality of life, and took the obvious corrective action – go get a job. I’d actually read Jim’s article before it was cited on Weekend reading and just thought good for you Jim, about time too 😉
When I read the phrases selected by Monevator from Jim’s post I thought blimey, did I read the same article? Monevator is a much more pithy and concise writer than I am, but the precise extract and reformatting together with the extra narrative in his post I think says something about both the observer and the observed:
I was struggling a bit with the retirement lifestyle, and finding the change from a full on, full time working week to a zero hour one quite difficult to handle.
I just couldn’t shake the notion that I was too “young” to put my feet up, that I should be working and that I should be out there earning money.
I might not have “needed” the latter, but it never quite felt that way.
Jim’s evocative description of the problem shows to me an incongruity between his map of how things should be compared to the territory of how they were. He doesn’t need the money, but he needs things to be different to how they are to feel happy about it. This looks like a limiting belief to me, largely because Jim “shoulds himself” twice in one sentence. Two different takes on this issue, one from Psychology Today and the other from the A0M seem to indicate this limiting belief is from an external locus of control in the affected topic. He is measuring an internal state by a yardstick written by other people. Since humans are a social species some of this is inevitable, and there was an easy and obvious solution. Make the territory more like the map and go back to work.
Monevator admits his gut belief later on
But I believe almost everyone will benefit from having an ongoing economic relationship with society while they can – even if only for a day or two a week.
Sadly, by the time most people reach the point of having options, they seem to feel too burned out by the workplace to explore all the various other ways of making money more freely.
Protestant work ethic detector goes off. You don’t have to work to have an ongoing economic relationship with society. I allocate capital, society pays me for the pleasure of using it 😉 Heck, on the other side of the coin the consumers of Britain racking up unsustainable credit card debt have an ongoing economic relationship with society, even if they are on the dole, or reality TV show aristocrats.
I am thinking of buying a Naim 272 to replace my 30-year old preamplifier, tuner and audio streaming box, surely I still have an ongoing economic relationship with Salisbury then? I don’t even have to worsen Britain’s consumer debt mountain because I have the money.
Now I am a case of the burned out husk Monevator refers to, although I have to say that the proposed alternative of endless hucksterism of selling your wares as a freelancer/contractor gives me even more the heebie-jeebies than the thought of going back to work for The Man. But I’ve already confessed to the potential limiting belief in my case, so far be it from me to criticise either of these two good people for tolerating theirs 😉 We can all afford to pay the cost of our limiting beliefs – I will be poorer by the opportunity cost of the money I could have earned, they will be poorer by the opportunity cost of the time spent working after financial independence. Conversely, they will be richer in money, I will be richer in Time, and each to their own. Neither course is right or wrong, it can only be right or wrong in combination with the individual’s predilections and temperaments, which may change over time.
What’s that burnout process all about then?
Like Monevator, the younger me didn’t understand the burnout mechanism. I saw burnout in enough other people at The Firm, but had been fortunate enough to occupy specialisms slightly removed from the ritual slaughter and yearly cull of too many project managers as the number of projects to manage dropped. I was offered enough PRINCE2 training but I’d rather drink my own urine than be a PM. I have respect for the job and the difficult balances to be made, but I don’t want to be it, and particularly for the Firm. I didn’t realise then that the The Firm employed the same techniques as some Japanese companies on some of these guys – because there were technical reasons why compulsory redundancies were expensive for them, so they needed to mind-f*k people. They created a Redeployment Unit, which was ostensibly to re-educate some of their dead woodold fossils superfluous headcount. It had a terrible success rate – more than 50% of people eventually left on voluntary redundancy terms, because they couldn’t stand the endless Jobcentre style filling in CVs. You had to fill in so many a week, just because. It drove a fair number of people round the bend. In many cases they had been pulled from overworked teams to match headcount targets, it seemed to be a particular irony to then go for a coffee with their ex-team-mates and hear that deliverables were slipping because there weren’t enough boots on the ground. Which conveniently meant they could pull the project, outsource it to India and send the rest of the team to the RU, while marking down their performance management results. Conveniently you were barred from taking voluntary redundancy if your performance management score was needs improvement, so they saved money by sending people round the twist. Nice.
Performance management clobbered me because for the first 20 years at The Firm, appraisal was roughly about how well you did the job. I was okay with that. For an engineer their work usually speaks for itself. However, performance management was a way of introducing arbitrary extra elements, FFS like giving 5 minute seminars at all hands meetings whose tedium was increased by 5 minute presentations on random stuff to tick the box, and it was a bewildering mishmash of capricious targets. Basically you had the choice of meeting the targets or doing the job.
I pre-empted this with the last vestiges of energy I had in reserve in 2009, and fired off speculative applications because there was an opportunity to use some of my legacy electronics engineering skills for the London 2012 Olympics. I was fortunate enough to win that lottery and sweat out three years doing something interesting, time-bound and rewarding. I got a decent sendoff and the guy in charge of delivering the Olympics said I was leaving on a high, and in terms of what I did, yes. But I formed another belief about working then. Which is that working in the modern world of professional jobs is all consuming, over-controlled pissing match that hurts, and I want no more of it in my life.
It took time before freedom from became freedom to, and I realised the value of the prize I had unwittingly taken with me on the way back from the pub at that final leaving do. Eight precious years of my life that I will never live again, and in decent wealth and health, and indeed I still have a few to go before I reach 60 where I’d join the original track of my retirement from work. What’s the point of burning them up working? As Arnold Zack said to Paul Tsongas
Nobody on his deathbed ever said, “I wish I had spent more time at the office.”
Tsongas retired on (physical) medical grounds and cashed in his chips at 55.
It is the privilege of youth to think you will live for ever in perfect health – in general this squares with your experience of life so far, but as they say past performance is no guarantee of future success. I got a long way into middle age on that assumption, and I am still to be to the best of my knowledge in good physical health. But when something existential that you took for granted fails in service, then the knowledge that can happen changes you. I like to think I got some wins out of the negative experience – I deepened, and took the opportunity to jump the tracks of the assumptions I had never challenged since first starting work. I took the glittering prize of my time back with me, but I only unwrapped it and saw its gleam after the first phase of decompression had passed after two years. I had to switch off so much of myself to get through the last three years of working that I had to train myself to see beauty and appreciate music again. It is all the more amazing because I know the emptiness of the burned out years. I have more gratitude for it. It is sweeter for having known the loss, and to discover in the depths of winter, I finally learned that within me there lay an invincible summer.[ref]pinched from Albert Camus, Return to Tipasa[/ref].
I hazard that Monevator hasn’t had that experience in the work area of life and I hope he never has, and Jim took corrective action much earlier in his journey out of work, or had greater resilience. Indeed, the younger Ermine knew the feeling of Monevator’s surprise at people’s passivity in the face of an adverse work environment –
Sadly, by the time most people reach the point of having options, they seem to feel too burned out by the workplace to explore all the various other ways of making money more freely.
It’s always a puzzle, why the hell don’t people sort their shit out and improve their situation? The reason it so often happens is that while mental stress may manifest in an obvious breakdown, the seeds are sown and grow in tiny incremental stages beforehand. It is in these days, months and years beforehand that the fightback must commence.The breakdown is the result of feedback mechanisms that are trying to compensate for the stress finally being overwhelmed. While they work OK these feedback mechanisms minimise the visibility of the problem by trying to maintain the norm. So by the time people realise something is wrong they have passed the point of no return, they do not have the energy to start the fight. I was fortunate in having good people around, and doubly so in having a rare legacy skill that was needed for the last three years it took me to buy my way out. There is much more luck than judgement in that narrative. Some judgement, yes – in the switched off nature where I had lost most of the function of the emotional centre I still had the intellectual centre working at half cock. I was able to see with unclouded vision that buying into a shattered market of 2009 might be a good idea[ref]I am not a passive investor, because to build my portfolio I had an extremely short timeframe of only a few years. My contributory investing career is almost done now. To me valuation matters for new money, and 2009 was a good year to apply that. I may become more passive after I have finished contributing, though I will leave my HYP in place for the zero carrying cost and the income.[/ref], and the nonfunctioning emotional elements did not jam that with the ‘run for the hills’ response. But it’s probably the luck that won it. I learned from that experience, charging into the markets in 2011 during the Summer of Rage and again earlier this year. Last year I was into EMs, which was probably jumping the gun, though the addled brains of my fellow countrymen destroying the currency have helped buy me out of that trigger-happiness and even these dogs are starting to perform.
Work meant more for me when I was younger, it was part of how I saw myself, and it took the long process of individuation to de-identify myself against external values and own my values. There is a lot of existential value associated with work for many people – take Ruth Graham’s rebuttal of the deathbed quote. It’s also not terribly surprising that people who suffer burnout break the link between meaning and purpose and work. After all, if I felt like Jim about work I would have to go back into the fray, risking the burnout again. It is easier to change myself than the toxic world of performance management and meaningless metrics.
Jim doesn’t have that link broken. There are hardly that many terrible consequences of working when you don’t need to. But it isn’t totally cost-free. Those are years you won’t get to live again. Work is a way for finding challenge and interest. But it’s not the only way.
How to go nuclear on your career
This is a bigger change that gradually inching down, or switching to a different type of work. If you have any lingering doubts, then don’t do it. Go for the slowly reducing your hours if you can, or alternative employment. After all, that’s the point of being financially independent. You can choose not to work, but you don’t have to. If you are reducing your hours, things are simpler, you probably want to stay in the same location.
But if you are aiming to finish work, or do something else, then you have more options. Moving is one of them – of course if you have a partner/children and particularly if they are not retiring at the same time then this is out, unless moving closer to their work. For many people FI roughly coincides with their children coming of age, which I hear is also a big life change for the parents. It’s a good time to re-evaluate what you want out of life.
Anybody living in London should seriously consider their options on reaching FI. It’s a young person’s city and no place for old men IMO – and you may as well leverage the closeness to massive pool of employment premium on the value of your house or reduce the rent you’re paying. It’s an opportunity to reduce costs, unless you value the lifestyle more than the cost.
For many people work is a huge part of the amount of day-to-day intellectual stimulation they get, they are too busy in their non-work time making all the trappings of a middle class life happen and wrangling kids. Pull the plug on work in that sort of lifestream and there’s going to be a great big instant hole.
If you are going to quit then you have to step up to the bigger change. You have greater opportunities too, simply because you now have all your time to allocate to living your unique life. In no particular order I toss these out as things worth considering, they work for me. I’m not saying they have to work for you
Look to your social circle post-retirement
Early retirees, very early retirees, men, those who move on retirement all have a particular issue with this and ideally want to start addressing it before they leave work. To stereotype shockingly in the interests of brevity
Early retirees (30s-40s) and men often have a lot of their social circle connected with work. Retire early and half your social circle is still working and will be for the next 20 years. You want to at least think about backfilling this, and you’re probably going to have to make most of the effort.
Those who move on retirement may face having to start anew in a different place. If you have an idea of where you are moving to, there’s a case to be made for cultivating social connections there ahead of time.
Retiring is also an opportunity to leave behind people who have become toxic in some way, it’s not all bad 😉
Toss your TV.
Slightly tongue in cheek, but it is a particular form of a general principle. Create, learn and be intellectually active rather than a passive consumer. TV is great escapism to switch off from work. You don’t need that any more. And too much of TV is vapid attention-grabbing pabulum whose main purpose is to be a carrier wave to ram consumerist messages into your head.
Learn something new every day
You probably had to do this at work. If you are retired, then you have the freedom to cover new ground. Learn about new things just because. It doesn’t have to be useful. I am thinking of making a bull-roarer today. It is the diversity of what you learn that makes you a more rounded person, and exposes you to more viewpoints. Read at least two papers from the opposite sides of the political spectrum. Try and open your mind to points of view that you don’t agree with. Are they at least internally consistent? Are your views? Are your views perhaps wrong?
Read books as well as the Web
The Web is a fantastic resource for learning something new every day. But it is shallow, it is bad for your attention span, it is often unreferenced and unauthoritative, and there is always the vile commercial imperative in a lot of writing, which favours the attention-grabbing and the short form. I found too much web reading damaged my ability to take in information from books, I had to slightly relearn that
When I say books, I mean books that have at least some print format that is not self-published. If a publisher had to take a risk on the book it is more likely to have merit. The massive swathes of ebooks written by money-grabbing incompetents are a way of trying to ‘monetise content’ and from my experience that content isn’t worth my time. There isn’t a book in everybody, leastways not a book worth anybody’s time. I wish there were a way of screening out the output of ebook content mills on Amazon. Using your public library to borrow real books is one way round that.
I’m a walking guy on this front, but that’s because Ipswich is a relatively compact market town. most places I want to go are within two miles. Over distances like that walking wins over cycling by not having to park your legs outside your destination and worrying some scrote is going to pinch them. I’m of the opinion no retiree needs to use a gym[ref]If you get an endorphin rush, have masochistic tendencies or simply like the stale smell of sweat and pheromones, then damn well go for it – there’s nothing wrong with gyms if you can afford the money. I just don’t think they are essential.[/ref]. The trouble with walking when you are working it it wipes out a huge amount of your small amount of free time, after all if I want to walk somewhere two miles away and come back it’s going to wipe out an hour and a bit of my day. That’s tough if I only have four hours free time. But it’s no beef for a retiree. It’s good for you, and thinking while walking is somehow a different and more lateral experience too.
Obviously there’s space for the car as well, if you are going to haul stuff. But don’t go nuts on it. I walk a mile and a bit to recycle glass, carrying it in a rucksack. You can easily carry 10kg in a backpack, more in panniers on a bike.
Create experiences, don’t buy them
Climb hills, learn about Nature, invent, carve, repair, originate before consumption. Many ‘attractions’ are simply commercial enterprises designed to separate parents from their money because they don’t have enough energy or imagination to distract/entertain their kids themselves. I personally avoid places like this like the plague. But there are similar joints for adults, and, I am sad to say, particularly targeted at men who have a weakness for extreme this and that. There are general trends to commercialise, professionalise and monetise recreation. What did kids do before Go Ape? They climbed the trees and built their own tree-houses from scrap wood. BTDT
Do hedonism, but vary it. Prize diversity and quality over quantity
There’s nothing wrong with going to a decent restaurant every so often, but it should cost you more than £100 for two (Londoners probably need to think £300). Do better, but less often. There are vast swathes of middling and low end joints which aren’t worth your custom, go big or go home, but go infrequently. And spin it out with other sorts of hedonism.
Travel alone sometimes
You see far more of a place when you travel alone. Conversely the experience of travelling with your partner is a more congenial experience and gives you shared stories. Make space for both.
Be insanely curious
Poke about in the cornucopia of variety that is our world. Take things to bits, turn them over and wonder why. Lift stones and see what’s underneath[ref]Old World only – don’t do this in Australia, where if it moves it wants to kill you[/ref]. Play
Do one thing at a time, and do it well
There’s a trend towards multitasking – looking at your phone while listening to an audiobook etc. Humans haven’t suddenly become great multitaskers over the last 20 years. If it’s worth doing it’s worth doing well.
Leave the smartphone at home
This is a personal bugbear of mine. I decommissioned my smartphone when I realised it was simply pissing me off for no good reason, and swapped it for a dual-SIM plastic Nokia 150. Why? Dual SIM gives a better chance of getting a signal in the countryside if they are on different PAYG bearer networks, plus I can route outgoing calls and SMS via the cheapest option. I couldn’t stand the touch keyboard, and prefer predictive text SMS. The RF performance of a basic phone is so much better than a smartphone, people can actually hear me and I get to hear them (if they aren’t using a smartphone outside an urban area). Every photograph I’ve taken with a mobile phone is a little bit shit and makes me wish I hadn’t taken it or had used a real camera. I don’t regularly do Facebook, twitter and all that cobblers. A smartphone is a really crappy satnav, because again the RF performance of the GPS is poor in urban areas, which is of course where you really need detailed navigation and good responsiveness. They are great in the open, on motorways and A roads, the sort of places where it’s easy to navigate using map and road signs 😉 I bought a Garmin satnav after realising that I was going to more places I hadn’t been before even in Suffolk and was spending too much time and fuel overshooting, then turning round to back up. It performs properly in urban areas, uses DAB to update traffic reports rather than spying on me by using the mobile network. A smartphone does a load of things, all of them poorly, and I got sick of that in the end.
Reduce unnecessary interruption in your life
Most of these come from electronic devices and social media. You can probably still swim with the hive-mind by connecting every three hours and then disconnecting, and the old saw about connecting to email once or twice a day is also worth noting. Even if you are a social media maven, well, connect every hour or half-hour if you must, and then give your full attention to whatever you are doing. If you can’t be bothered to give it your attention, then perhaps just cut it out of your life altogether. You don’t have this choice at work, because obviously you are being paid to do what others want.
Pursue novelty. For its own damn sake
But try to avoid paying for it 😉 In general any new experience or thing should challenge you, teach you something or make you grow some tiny bit. Too many manufactured experiences are designed to get you to buy something or take part in the sequel, hence try to avoid paying for it. I admit that three years of frugality mean I take this a little bit too far. I should become more prepared to pay for and honour quality and distinctiveness.
Choose diversity in what you do
You may think you want to lie on the beach or play computer games all the time. Too much of any one thing isn’t good for you. Mix it up. You have the opportunity now your time is your own. Seize it. If you’re sitting in the same place for as long as you were at work you’re probably doing something wrong even if it is on the beach or at a computer game.
Does retiring early kill you faster?
Towards the end of his piece Monevator opined,
Incidentally, I also think retiring early is bad for your health.
This is a hard subject to get any accurate research on. For starters, people who retired early in the 1970s and 1980s tended to be be educated white collar workers, which is a shocking sample bias. These guys are going to be richer than the general population, and, surprise surprise, richer people live longer anyway. Pretty much everyone reading this will probably have a longer life expectancy than average all other things being equal, let’s face it the poor don’t read about personal finance and early retirement because it’s not relevant to their lives. There are just too many confounding factors and statistical wrinkles to establish facts with a decent confidence interval. We diverge more and more from each other as we get older – at graduation you had more in common with your peers than you’ll have with them at the reunion year when you all start drawing your State pension. There are more subtle forms of sample bias. Some people retire early for health reasons, arguably I am one of them, although for mental rather than physical health. If you retire early for physical health reasons then you’re loading the dice towards shortened longevity, I don’t know what the stats on that are like for mental health. For physical health reasons it’s probably still the right thing to do – for you, and for the same reason as retiring early was the right thing for Paul Tsongas. You gotta play the hand you are dealt.
There’s an ESRC report that concluded[ref]I had the devil’s own job trying to locate this. It is called “Health And Well-Being In Old Age: It’s Still Money That Counts” by the ESRC in 2009 The press can get it from Science Daily[/ref]
“Early retirement is generally good for people’s health and wellbeing unless it has been forced on them,” the study said.
“Those forced into early retirement generally have poorer mental health than those who take routine retirement, who in turn have poorer mental health than those who have taken voluntary early retirement.”
A moot point for me then. Arguably it was forced upon me, although I did not retire using any formal ill-health procedure, and indeed took an active part in the decision to retire early but using voluntary early retirement mechanisms. In that case Monevator’s prognosis is right and I will die younger than my parents. OTOH I can hardly say the ESRC’s narrative on mental health squares with my experience of life post retirement 😉
There’s sport for both of us in Sing Lee’s interesting piece using the pension funds from several big American white-collar employers’ pension funds. I confess that I agree with Lee in that technical creativity is probably at it’s peak in the 10 years around 30. Although he took a lot of shit for it Mark Zuckerberg was probably right that young people are just smarter. If people stopped berating him for his political incorrectness and listened to what he said, he proffers a mechanism which makes a lot of sense to me
“Young people just have simpler lives. We may not own a car. We may not have family.” In the absence of those distractions, he says, you can focus on big ideologies. He added, “I only own a mattress.” Later: “Simplicity in life allows you to focus on what’s important.”
Looking at the other end of the working life arc Sing Lee’s 2002 talk of over-funding of pension funds sounds delightfully naive now – he didn’t realise that the developed world was going ex-growth after the dotcom bust. However, when he charted the years of retirement versus age at retirement, I think his narrative is pretty much along with the narrative what I did, although I didn’t have the strategic vision and just ended in a tactical firefight.
The pace of innovations and technology advances is getting faster and faster and is forcing everybody to compete fiercely at the Internet speed on the information super-highways[ref]how delightfully anachronistic, I haven’t heard reference to Al Gore’s information super-highway for years, it’s so AOL Connie[/ref]. The highly productive and highly efficient workplace in USA is a pressure-cooker and a high-speed battleground for highly creative and dynamic young people to compete and to flourish.
However, when you get older, you should plan your career path and financial matter so that you can retire comfortably at the age of 55 or earlier to enjoy your long, happy and leisure retirement life into your golden age of 80s and beyond. In retirement, you can still enjoy some fun work of great interest to you and of great values to the society and the community, but at a part-time leisure pace on your own term.
On the other hand, if you are not able to get out of the pressure-cooker or the high-speed battleground at the age of 55 and “have” to keep on working very hard until the age of 65 or older before your retirement, then you probably will die within 18 months of retirement. By working very hard in the pressure cooker for 10 more years beyond the age of 55, you give up at least 20 years of your life span on average[ref]Sing Lee does stand somewhat charged with inferring the general from the particular. For starters his stats about longevity are typically from people who retired 30 years ago, so the pressure cooker pace of change wasn’t so bad. Some of the jobs will have been more physically wearing 30 years ago which may have taken a physical toll. There’s no good answer to the delay in longevity statistics, we will find out what early retirement really does for my age cohort in a few decades.[/ref]
But anecdotally I see where Monevator’s coming from. I’ve seen people retire and then pretty much switch off. My Dad did this. He retired, at 65, from his job as a fitter, and while he didn’t zone out totally he watched far too many crappy TV game shows. On the upside he was also stuck to Teletext and share prices[ref]this was pre-internet[/ref], he read company accounts and went to AGMs, as well as gardening and the occasional travel. In support of Monevator’s angle, as a non-early retiree, he got to 86 before leaving this mortal coil, which is still 16 years of extra time over his allotted three-score-years and ten.
Retiring early does hit people who get a lot of meaning and self-esteem from work. It’s not inconceivable that if they lose meaning from life they may live shorter lives, and certainly have a lower quality of life. The obvious answer is ‘don’t retire early’.