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Ask the Readers: Save More or See the World? Print
Friday, 3rd July 2009 (by J.D.)This article is about Ask the Readers, Choices, Planning, Savings, Travel
I’ve written a lot lately about finding balance. It’s important to save for the future, but how do you balance that with enjoying today? Each of us has to address that question in our own way. A reader named Max wrote to share his own dilemma:
I’ve been working as a web designer since I was 18. I made a few financial mistakes in my early days: leased a car for four years, bought a couple of motorcycles, spent money on Stuff that had no value. I’m 25 now and I’ve owned a condo for four years. I was lucky to buy it really cheap and only have $100,000 mortgage left to pay.
Things have changed in the last two years. I’ve traveled a lot. I’m constantly increasing my knowledge and working on new business ideas. But I don’t have the time to do anything about it because I’m always working…to for pay my condo.
Fortunately, I have no debts other than the condo. I have $5000 in savings. My total expenses are about $1700/month and I make about $2600/month. I made some calculations and I can easily bring my expenses down to $1000/month if I didn’t own the condo.
After working as a web designer for nearly seven years, I’m sick of it. I want out. I want to bartend a couple nights per month and travel the rest of the time. Actually I’d be happy just traveling and doing any kind of work outdoors: bartending by the beach, teaching motorcycle riding classes, gardening, surf instructor…
Would it be wrong to sell my condo (I could get $160,000), take the profits, and go travel the world? Do a few side gigs here and there and enjoy life while I’m still young? I don’t have kids. I’m not married, no girlfriend. No car, no debts other than mortgage. I’ve been wanting to live in Australia, California, Japan. I’m sick of cold winters in Maine.
I’m also scared to just “save money” eternally until I’m too dead to enjoy it. I don’t understand the point of saving my money and working to pay my bills when I can just cash in now, take as much time off as I want, and still get by on a small salary doing work that I really enjoy — outdoors, where the weather is great.
I need advice, and my parents keep telling me to keep my “good” job.
This is an interesting question, one that many GRS readers wrestle with. The good news is that Max is in fairly good shape financially for this stage in his life. He has $5000 cash and $60,000 in equity in his condo. He has no debt. He has no ties.
Based on this, I think there’s a balance to be found. I’m sure many folks would recommend simply finding another job, moving from Maine, and pushing forward with a sedate (but safe) life. And there’s value in that. At the very least, Max should stay away from debt.
But at the same time, I can’t help but remember my friend Sparky. Sparky didn’t have $60,000. His wealth was more like $6000. But when he was Max’s age, he packed up and traveled the world for five months. Sparky loved it.
Because he was not burdened by Stuff, Sparky returned to a financial position similar to the one he’d left. He didn’t have a mortgage or other debt. His core savings and investments were still intact. He lived for five months without an income, it’s true, but he spent exactly what he budgeted, and he had the experience of a lifetime.
Max has an opportunity that may never come again. How many of us at age 40 can simply pack up and travel the world? 
How many wish we could? (I do!) Knowing what I know now, if I were in his position I would sell the condo, put half of the money in savings, and then use the rest to travel on the cheap. I might even take a job in another country and live there for a while.
When I returned to Maine (or to Texas, or wherever), I’d start again from scratch, either as a web designer or as something else entirely. Maybe go to school. I’d use the remaining condo money to jump-start my life, to stay away from debt.
Along the way, I’d read The Razor’s Edge, Vagabonding, and The Art of Non-Conformity.
This advice may be counter to what you’d expect from me. I’m a huge advocate of saving and investing early. But I think Max already has a good start, and he has a chance to pick up something even more valuable than home equity: He has a chance to build life equity.
What would you do in Max’s situation? Would you travel the world, too? Or would you parlay the good financial start into a stronger foundation for the future? What advice can you offer Max?
Programmer photo by evhead. Photo of Japanese garden by One man’s perspective.
July 3rd, 2009 at 5:20 am
I tend to agree. Life experiences can be rather limited if you always play it safe. Like the cliche line goes “You can’t take it with you” - but you CAN take memories of experiences with you. You can pretty much always come back to the “standard” employed-life, but you may not always have the ability to travel so freely, or at all depending on the situation.
With a decent monetary safety net, why not see what opportunities there might be on the other side of the world?
July 3rd, 2009 at 5:34 am
Now is a bad time to sell the condo. Why not live frugally for one more year for your travel fund, and rent out the condo while you are gone. It pays the mortgage, and you can travel. With an initial 7-8000 dollar to travel, and some work on the road, you can travel for quite a while. You also have a skill that is valuable and transferable: You let me stay in you B&B for 3 nights and provide me with some meals, and I will build you a relatively basic website for your B&B. etc.
July 3rd, 2009 at 5:35 am
JD suggested exactly what I would have said. Sell the house, save half the money. And then travel the world!
July 3rd, 2009 at 5:38 am
Well, what’s the worst that can happen? Running out of money? If that happens, return to Maine, become a web designer again and *you’ll be in the exact same situation* you’re in now, except that you’ve got $65.000 less in the bank but have a one in a lifetime experience that many can only dream of. I think J.D.’s advice is perfect.
July 3rd, 2009 at 5:40 am
Sure. Travel. Teach ESL classes. You can see quite a bit if you do that. Or just travel the world FIRST and then settle down for a year at a time in different parts of the world teaching. If that sounds appealing to you. Of course, you’d make a lot more doing websites or IT work than teaching English.
July 3rd, 2009 at 5:41 am
JD, I know Sparky’s death was a profound moment of reflection for you, but I’m starting to wonder if maybe it’s coloured your perception a little too far in one direction. Yes, Sparky’s early death was certainly tragic. But it’s equally tragic to be old, penniless, and perfectly healthy. I think if you were to spend some quality time around some relatively destitute elderly folks, it might help round out your perspective a little. I hope you don’t take offense to these comments.
Of course, the letter writer could die young. But statistically, he’s likely to live well into his 70’s. Personally, I believe it’s best to play the odds, and the odds say this 25-year-old should be prepared to handle at least a decade of retirement.
That said, I agree with your underlying advice - that he take advantage of opportunities he has that he might not have later, provided he STAYS AWAY FROM DEBT. If it were me, I’d still make some provision for saving for the future on top of that, but he’s young enough that that’s not imperative yet, in my opinion.
July 3rd, 2009 at 5:45 am
There is a whole world of people out there who “travel slow” and work to pay their way and take it one day at a time — lots of resources for people looking to travel indefinitely. It’s not necessarily about having the money saved up, but putting yourself out there and being open to opportunities that open up: volunteering your time in exchange for accommodations; knowing where to look for the best rates on flights, etc.
Check out a “professional traveler”,
http://theprofessionalhobo.com
…who left the rat race when she was 30 and is still traveling three years later. Her posts and links on her site will lead you to all sorts of resources and people who are leaving it all behind and following their hearts to seize the day.
July 3rd, 2009 at 5:53 am
Given the state of the real estate market these days, it may be a difficult prospect to sell this condo, depending on local conditions.
Why not rent the condo out? That way, you keep the asset, it produces income, and should you need to return, it’s there.
July 3rd, 2009 at 5:54 am
Go for it, you’ll not regret it. If you’re scared to sell your home, is it possible to rent it out on a long term lease sufficient to cover the mortgage payments so that you’ll have a home to come back to or you can decide to sell it in a year or so? I appreciate that you’l need to save more to travel or work your way around the world. Good luck, enjoy life!
July 3rd, 2009 at 6:04 am
My advice, sell condo, keep 1/3 for new abode albiet small and homely, 1/3 travel for 1-2 years, 1/3 survival, when returning from travelling…go back to whatever employment…otherwise rent condo, have a good travelling holiday…on return..rent cheaper accomodation for yourself and enjoy the returns on the condo, whilst you prepare for your next overseas jaunt after working solidly for 6-12mths and repeat this process whilst renting your condo indefinately for 3-5 years long-term.
July 3rd, 2009 at 6:05 am
@Betsy - exactly what i was going to suggest! Instead of cashing out on the condo, rent it to make the payments. If the market turns up later, you can still sell it and get more for it than in today’s market.
Too many folks in America have NOT seen the world and their insular views color their thinking on poverty and hunger and just about everything that goes on outside this country. The US has pretty small portion of the world’s population, taking far more than our share of the scarce resources. Expand your horizons, get some empathy, get your news from something other than talk radio, meet some people who’ve never had the opportunities most of us simply take for granted!
But don’t blow your whole wad on travel. Go and come back. Plan for your future self, too. Figure out how to make travel part of your lifestyle, because once you’ve seen the world, it will be hard to come back to Maine (or *anywhere*) and simply stay there.
July 3rd, 2009 at 6:06 am
Run do not walk to the nearest airport.
July 3rd, 2009 at 6:14 am
Sell it and hit the road. When you get back (if you get back), downscale to the point where you can support yourself on a basic job. Repeat as desired until you desire a change.
July 3rd, 2009 at 6:15 am
My solution is to get my condo paid off, then alternate between coming home and working for a while, then taking off to travel for a while, and so on. I’m not ready to be homeless.
July 3rd, 2009 at 6:17 am
I’m inclined to agree with everyone who said “do both”: put aside some money, then travel with the rest. He could travel and do those travel-y things to supplement his travel budget. That way, he gets the experience of a lifetime, but he’s not stuck eating dogfood and trying to make up for lost time when he’s 60.
I also like Betsy’s idea of renting out the condo. Have someone else pay his mortgage for him, and he’ll still have it to come home to when he’s done travelling.
Alternately, something my (rich) relatives do is go travelling my staying in random other people’s houses. I don’t remember what it’s called, but it’s sort of along the lines out couchsurfing, except you stay in someone’s whole house (and while you are gone, someone else stays in yours). I know there are whole online communities out there for this, but I can’t remember what it’s called to look it up. I know my relatives enjoy it a whole lot, and they’ve travelled all over like this.
July 3rd, 2009 at 6:18 am
In 2000, I flew to New Zealand and spent 7 months backpacking up through Australia and South East Asia. I was careful with my money, but I didn’t deny myself the occasional luxury either (learning to scuba dive off a tropical island in Indonesia for example). I also had a great exchange rate on my side, but still with all airfare included, I spent 7 months in 9 countries for less than $10,000. I did spend a week picking apples and peacherines in Wagga Wagga, Australia, but otherwise didn’t work. (I had a work visa while in Australia, but with only a backpack I hadn’t thought to pack the right clothes to wait tables or temp with. If you are under 30 you could get a work visa too, with some restrictions.)
I came back almost broke, but debt free. And it was, by far, the best thing I’ve done in my life. I was constantly amazed by the amazing people I met along the way, seeing life unfold in cultures that were so different…and yet so much the same. I camped in the Outback of Australia, I went to the National Opera in Thailand, I got chased by wild Komodo Dragons in Indonesia, I ate cobra in Vietnam. And I wouldn’t trade the experience for any amount of money.
Go travel. (I’d of course recommend Asia, it is well-traveled by backpackers, easy to navigate and also easy to get off the beaten path for some solitude, and far cheaper than almost anywhere else. Whatever you do, don’t miss Angkor Wat in Cambodia.) Like the great Mark Twain said, you will regret the things you don’t do far more than the things you do. Saving for the future is important, absolutely. But so is having a life worth living. Pick your destination, give yourself a budget, and have an adventure to tell your kids about.
July 3rd, 2009 at 6:22 am
Max should also read “The Joy of Not Working.” It should be available at his local library.
July 3rd, 2009 at 6:23 am
I found myself in a similar situation recently. Some cheap tickets to Japan came up, do I knuckle down and build my fortune, or do I make a trip to Japan? I said “pfft, plenty of time to earn money, let’s go!” and I had a wonderful time.
You’ve got your whole life ahead of you to make money, but the experiences are what gives you the juice of life. Travel the world!
July 3rd, 2009 at 6:27 am
However, I did NOT get the foothold in “regular society” that many other people did. When I returned to the USA, I felt out of touch with ‘the rat race’ and the culture of regular life (which is not always beneficial). It took me a long time to get settled again.
My recommendation is do it now, if you want to do it. You will never know what you find out there: an interesting new career, the love of your life, your future. If you truly want to be unfettered, sell your condo for what you can (don’t bother trying to get top dollar, but do fix it to get the best possible price in a ’sell-it-fast’ manner), and put your money in an accessible but safe place, like an online high savings. Do NOT rent it out unless you want to care for tenants’ every whim. Just sell. I do recommend that you start traveling but go to a first destination where you can get interesting experience: perhaps being a river guide or working on an Australian sheep farm (as an example).
Being a web designer is valuable. Take a small but fast laptop with you, (12″ Mac is perfect) in case you need to pick up web jobs. Use a SMALL narrow backpack so you can get through narrow train-car doors. Pack light. Keep your money in a body pack around your waist. Remember that no possession is precious except your life, your wallet, and that computer.
You are in the perfect position to do this. Do it now, if you want to do it at all. The people who get “midlife crises” are the ones who regret doing the experiences they wanted when they were 25. Just BE SMART at every step, notice every opportunity, and take them every time you can.
July 3rd, 2009 at 6:34 am
Wow, at 25, I would have considered that year’s equivalent of $65,000 to be a fortune. Nicely done.
From the tied-down age of 41 (2 kids/spouse), I regret the adventures I haven’t had (yet).
I think that as long as you:
– set up a good and accessible safety net ($$$) for yourself
– have a good handle on what you want to do and learn on your adventures, so that you can choose the right opportunities when you see them
– keep your options open for when you get back, without tying yourself down. Don’t end up broke, completely starting over.
– keep the idea of doing web design as a freelancer in the back of your mind. Sounds like something you could do on the road. No point in throwing out any money-making skills you have.
IMHO, now is a good time to take a career break if you can afford to. The job market is tight, and jobs that exist are becoming less lucrative and life-friendly. Hopefully, you can enjoy yourself in the casual jobs until things start coming back.
I say go!
July 3rd, 2009 at 6:38 am
As a web designer Max can sell the condo, save most of the money, and buy the round the world ticket, but still maintain his network by doing some freelance web designing. Doing some freelance work will provide enough income to live in most parts of the world and maintain his skills and network. If he decides to return to the US down the road, that network will give him a leg up in starting his new life.
July 3rd, 2009 at 6:43 am
As long as you really do stash half, go for the traveling. Try to travel responsibly, and by that I mean keep your ears and mind open to ways you can earn money as you go.
Maybe instead of working at the surf shack you can create a new website for them and take your time doing it so you can have play time and a home base for weekend trips. That sort of thing. The famous Mike’s Bikes tours in Munich started b/c a guy was traveling and decided to start his own business. That said, any kind of hard skill, like being able to work in a bike shop, will find you some kind of employment.
If you do Europe, try to get a visa that will let you do odd jobs in Schengen countries. (google that)
July 3rd, 2009 at 6:44 am
You have the perfect skills to do this. While I do not do it during my day job, I’ve made a lot of money doing web development (different from design work, as the dev work pays more but it is harder to find the ‘quick’ hit jobs) over the past 5 years. You have a perfect opportunity to continue doing web design on your own terms, under your own employ, and travel any damn where you want to go to! You’re crazy not to do it.
I see these guys who work for the design houses as web designers and I see no future for them. The design houses usually are small, not very stable, no real growth opportunities, and they pay like crap.
If I were in your situation, with some savings, no family to feed, and living somewhere I didn’t want to live, I’d spend a month researching and planning:
1. Get your mobility in order - bank access online, grab that 12″ macbook as the other commenter said and load it up with all the data/software you’ll need, etc.
2. Set yourself up some marketing materials so that you can grab freelance work doing web design, if in fact you want to continue on with that work (or if you *have* to from time to time).
3. Figure out where you want to go and how you’re going to get there, and how you’re going to get back if you get there and decide you prefer to quiet lifestyle of Maine : )
You should really have this thing well thought-out. I’m *not* speaking from experience (few can for this scenario), but I’ve travelled extensively and I can tell you the last thing you want to do is show up in a Japanese train station not knowing where you’re going or how to speak any Japanese.
If it were me, I’d go to Australia. SUPER friendly people who generally don’t exhibit the anger (I think jealousy) towards Americans, and since you speak the language you’ll be able to find work. Heck, you should be able to find a job as a bartender there if that’s really what you want to do. But keep in mind, as someone who did that while working through college (in my mid 20’s) - that’s not exactly a career. You can’t do that forever. Well, you can, but I wouldn’t advise it.
Good luck! If you do it - start a blog and tell JD so he can tell us! : )
July 3rd, 2009 at 6:52 am
Agreed that it would be good to look at all the options.
Selling the condo and planning will take a few months anyways. Save as much as you can for that time, so you’re nest egg outside the condo sale is $10k+ (work a second job, whatever). It can be kind of fun bc you’re working to a goal.
Sell the condo and you could initially put that money in something like a vanguard bond fund (vbmfx). If you have $60k, you’ll be making about $300 a month from it. That could help steady you for a long time with just a little bit of side work and your $10k. If you want to dip into it later, you can. But then you could gauge how much you need. It would be pretty sweet to pull it off and still have cash when you get back.
July 3rd, 2009 at 6:54 am
This is a great question and I’m glad you brought it up J.D. I’ve been struggling with a similar situation. I’m 27 years old, been traveling as much as possible (while having a 9-5 job) over the past 5 years and and it’s my love.
I started a travel blog on budget and independent travel that’s gaining some success but hardly enough to make a living on (yet?).
Thanks to GRS and Dave Ramsey’s teachings, my goal is to get out of debt in the next year and hopefully gain some equity in my condo and do a similar thing to Max shortly afterward. I’m hoping I can travel and keep my site going to earn enough income to live lightly. It’ll be hard but we’ll see how it goes
July 3rd, 2009 at 7:06 am
I’m in the process of doing a similar thing. Since the housing market is crappy, I’m planning on renting out my house, and moving abroad. From the sale of all my other belongings/Stuff, I aim to have 6 months’ living expenses in the bank, and will aim to get a job abroad ASAP. I don’t know how long I’ll stay overseas, or where I’ll end up, but whether I sell my house here or continue to rent it out for several years, I should be in pretty decent financial shape when I return.
July 3rd, 2009 at 7:07 am
@Kevin (#6)
Your comment made me smile, Kevin. I appreciate the concern, but I actually worry that Sparky’s death didn’t have enough of an effect on me. I haven’t actually changed much about my life in the past six months. I’m talking the talk, but not walking the walk. I think I’ll get there, but so far I’ve been afraid to change drastically. Like you, I worry about the future.
That said, I think Max is in a great position, and that it’s possible here to do both: save for the future while obtaining life experience that will serve him in good stead. I’d be willing to wager that the money he spends on travel will provide better investment returns than he could get by putting it in a mutual fund. (Provided he travels frugally, of course.)
Still, your point is well-taken. And you’re right: I think Max should avoid debt at all costs.
July 3rd, 2009 at 7:09 am
I’ve got a totally left of field comment here.
What makes you think that you can work in someone else’s country just by showing up. When Mexicans illegally cross the border and take work, they’re routinely condemned.
But when you want to work in someone else’s country (albeit just to get by and not to send money home), that’s ok? In all probability, if you can’t get a work visa, you’re going to work illegally for less than minimum wage and with no taxes paid. How is that fair to the locals who need the jobs (especially in this economy) as well as the tax revenues?
Seems like a bit of a double standard here.
I’m all for travelling and expanding horizons but assuming that you have the right to work in someone else’s country without getting the paper work is just wrong.
July 3rd, 2009 at 7:09 am
I just found this paperback book in my library, The Best Things in Life Are Free by Glen Shay.
A very good read.
July 3rd, 2009 at 7:11 am
Rent the Condo, convert the loan to Interest only and longest time period available (30 yrs?) - to make the rent cover the interest payment.
July 3rd, 2009 at 7:21 am
Just rereading the post: you make 2600, and spend 1700 including mortgage. That means you are able to save 10000$ this year. Combined with the other savings, you can travel several months, and even longer in SE Asia. With a little work on top of that, you’ll get far. If you like the new life, you can still sell the condo. If you’ve had enough after 6 months, you can come back.
And I second the comment on converting the loan to interest only
July 3rd, 2009 at 7:22 am
When I was 24, I was living in VA and was working in the 2nd largest lawfirm in Washington, D.C. It wasn’t my job that I didn’t like, but the place. I just wanted to get out of the snow and the cold and the commute, and while VA was a place that my father chose to raise a family, for the culture of D.C., it wasn’t for me and I was afraid that if I didn’t leave there, then I would live out the rest of my life there and be buried there, and I don’t know, I just left! I always wanted to go to CA, so I quit my job, but had a good reference with it, and drove cross-country with my car filled w/my only possessions remember feeling like you do when you are on a roller-coaster — excited and scared at the same time. When that fear kicked in — like how are you going to make it in CA when you know no one there? I told myself, that no matter what it took I was willing to work as hard as I needed to to make sure I wouldn’t have to return to VA. When you have that kind of drive and determination, and willingness to work two full-time jobs if you have to, you just have to follow your instincts or you’ll wind up being miserable, or regretting it for the rest of your life.
I got a room and rented it weekly, then interviewed and the law firm was so impressed that I had worked at that other place, the name they knew, they hired me instantly. I met a co-worker there, and her and I got together and got an apartment together, and I did make it. If you come to CA, you might never leave. Beautiful year-round weather here. Eventually some family and friends, who visited me, relocated here too.
When you mentioned bartending, I thought about this: I was working for an attorney who was sitting behind his desk w/his head in his hands. He was 29. I asked him what was wrong. He said, I don’t want to be here. I asked him what he meant. He motioned with his arms and said this isn’t me. I would give it up in an instant if I could. He said that all he wanted to do was be a full-time bartender. Why are you an attorney then?? He said because it’s what his parents wanted him to do, but it’s not what he wants to do. When I saw his pain and anquish, I thought, wow this guy sold his soul for someone else. I don’t know whatever happened to him because I had a job transfer, but for his sake, I sure hope that he followed his heart. I’m glad I followed mine.
July 3rd, 2009 at 7:29 am
I think taking a year off while also doing some freelance work is okay, but I would be worried about no health insurance for that time period, and I would be careful about embracing the lifestyle for more than a year or so.
Good luck and safe travels.
July 3rd, 2009 at 7:31 am
Go, go, go. The world offers opportunities that can’t be imagined until you do it. Sell it, save half, and go unburdened into discovery.
July 3rd, 2009 at 7:43 am
Do it. You have nothing to lose but regret.
July 3rd, 2009 at 7:45 am
yes… sell the condo, pack your bags and hit the road
July 3rd, 2009 at 7:56 am
Interesting discussion, especially in light of recent discussions about happiness and financial freedom
I agree it’s an amazing opportunity, but go with a plan — and get the necessary visas, etc to work if necessary and a kick-ass travel insurance/health insurance policy (from World Nomads or International SOS).
Good luck
July 3rd, 2009 at 7:59 am
You don’t say how much you’ve already paid off on your condo already. You also have $900 a month that you can put towards a traveling fund!
Like other people have said you could try cutting your living expenses right down and save even more. If after a year you end up with say $20,000 ask yourself - is that not more than enough to go traveling for at least six months.
There are plenty of other options that might be available to you.
Find someone to rent it for a year and pay off your mortgage whilst you are traveling.
Switch to an interest only mortgage and work out what you need to pay that off for 6 months (or do it with also renting it out and fund your travels for even longer!)
I.e. have the best of both worlds - at least for a while!
July 3rd, 2009 at 8:10 am
Go, Max, go! See the world!
July 3rd, 2009 at 8:14 am
Save half your savings and see the world, we live only once.
July 3rd, 2009 at 8:18 am
I recommend letting go of his current situation and taking the opportunity to experience some adventure. I’ve been very lucky to have traveled all over the world - 23 countries, 7 continents (including a trip to Antarctica) and I’ve lived in Atlanta, Paris, Manhattan (NYC), Chicago and Seattle. All of my moves were for school or work (Project Manager for construction projects), but other than living in Europe for school with the help of student loans, all of my other travels were done on personal time and with money I had saved. Over the course of about 7 years I tried to take at least one international trip every year.
I pretty much hated my job, so in 2006 I quit and took the whole year off. It was one of the best years of my life and I traveled in the US and Asia, took some classes – photography, writing, etc. and basically just enjoyed my life. I bought an independent health insurance policy to cover emergencies, and fortunately never had to use it. At the end of the year I still had over $10,000 saved up to help me transition back into the working life.
My financial situation has NOT been negatively affected by those decisions. It was just a matter of managing my money effectively. I still have over $10,000 in an emergency fund, decent retirement accounts and no debt. I don’t own a home, but I find that the trade off of having fewer expenses is more appealing to me at this time in my life. I like having the freedom and flexibility to pick up and go if I need to. In the past I’ve owned condos in two different cities and from the time I either wanted or needed to move, waiting for each home to sell delayed my plans to move by many months.
Despite getting laid off a few months ago (the building industry has been hit hard), I have never regretted any of my decisions to experience life to the fullest. I’m now 38 years old and I am going back to school in the fall to start a new career. My life has become so much richer - I have met many great people and I appreciate what I have so much more than I did before my travels. It is amazing how much I took for granted and realizing that some of the comforts we have in the US are true luxuries in other parts of the world is a blessing that has truly put my desire to buy “stuff” in check.
July 3rd, 2009 at 8:20 am
Go for it, Max! you will only regret if you don’t go.
You have nothing to lose except you might not get the same web designer job. But you can always restart a new career after you back to “real life”. It’s good opportunity to do it given your financial and family situation. It would be a lot harder after you marrie/have kids then you are also have the responsiblilty for the kids/family.
I had the same dream when I was on my 20+. As a new immigrant in Canada with a IT job (good pay), I couldn’t pull the trigger at that time as my financial is not ready. Now I am on my early 30, with two younger kids it’s a lot more harder to pull the trigger even though I could afford it now (debt free including mortgage, saving for 2 years expense).
Good luck and all the best!
July 3rd, 2009 at 8:29 am
Definitely do it.
Only thing I would say is instead of bartender jobs, create a blog for yourself where you can showcase your web design work and ability.
That will help you pick up a customer or two here and there, and will leave you with more money and more time compared to having a bartender jobs.
Being able to do web design is a perfect opportunity to work from anywhere in the world.
July 3rd, 2009 at 8:32 am
You’re only 25 - it’s possible (likely?) the romance of bartending or outdoors work will wear off after you’ve been doing it for a while, but that’s okay. You can go back to web design or whatever if that happens, ideally with a better sense of what will make you happy in your off hours.
However if I were you I’d keep the condo and rent it out if possible. I would sock away as much of that $1,000/mo buffer as you can between now and, say, next september - by taking a room-mate, being frugal, selling things, whatever. Having a target date will help a lot in keeping you focused on the goal and removing the stress of your current workload.
July 3rd, 2009 at 8:38 am
I speak from experience. After college, I moved straight to Spain where I taught English for two years. (I had a visa, but many of my friends did not. Teaching is generally a great option for work abroad. Especially in conjunction with your freelance skills, you should be able to scrape by. Also check out WOOFing where you can work on farms and get room/board covered) I planned it this way because I knew life/career/marriage/mortgage etc would tie me down eventually. I knew I wanted all those things, but I also wanted to travel. You can have both, but generally only if you do the travel while you’re unfettered. And it’s worth every bit of potentially lost income, especially if you can either rent the condo, save for a year to cover mortgage AND travel (really, $10K is all you need for a year, depending on where you go and what odd jobs you can pick up) or sell the condo and put $50K aside for a nest egg. Those choices are yours, and are all reasonable financially sound choices.
On $1000 euros a month, I made enough to scrape by, go out every weekend, pay for travels throughout Europe, and get to know myself and the world (Europe and the United States) from a completely new perspective. It was harder than I ever imagined it would be, but also more valuable and exciting than I could have ever imagined. I would NOT trade those two years in Spain for an extra $30,000 in in 401K, including the lost benefit from any compounding interest. Period.
Even with minimal income abroad, I moved back to my parents house with $1000 and with no debt at age 24. I had no job connections whatsoever or skills such as freelance web design to fall back on. I was scared about starting over, but wealthy with life experience. I found a temp job, worked hard, and forged a new life path. Although I started with nothing, I’m 29 now and have more in savings than most of my friends and I’m on a secure and interesting career path. In other words, my experience did not set me back financially. In fact, my travels and teaching experience have opened doors I can’t quantify in dollars - language skills, public speaking skills, people skills, and something interesting on the resume to discuss in interviews, even if I didn’t have the initial connections to get jobs back in the United States.
You’re starting from a more stable position than I am, and you have any number of options that can help you travel, secure yourself financially, and keep open job opportunities here in the US, when or IF you decide to come back. Other commenters above offered great ideas on saving, freelancing and selling or renting out the condo. Pick what works for you, and GO. Happy travels.
July 3rd, 2009 at 8:41 am
My sister was about 25 when she realized that she was spending all her time working, so she’d have money to travel, whenever she scraped up enough money to do it.
That realization changed her life.
She took a second job, so she could enroll in an intensive program to learn to teach English as as second language–and in a few months, left the States for Barcelona, and the beginning of her teaching course.
My sister’s now 33. She’s traveled the world on a shoestring budget. She’s lived in New Zealand, Spain, South America, and a five star resort in the Maldives, teaching. And in between jobs, she continues to travel all over the world…and she loves every minute of it.
One day, she’ll be old, and she won’t have gazillions of dollars–but she’ll have led a far more fulfilling life than most.
Conventional wisdom is perfect for conventional people. If you’re not–then take the good from it–and pursue your own path. Youth is a GREAT time to do unconventional things–to test your wings and figure out what you want out of life. It might not be what everyone else thinks you should do, but then, it’s not their life.
Go for it!
July 3rd, 2009 at 8:44 am
If I were 25 again I would put bags on a good bicycle and ride it across/around the U.S. Like Max, I enjoy a nice motorcycle ride, but there’s no simpler way to travel than by bicycle. I’d choose the U.S. because I could work if I needed some cash, and there’s no language barrier. I also enjoy working outdoors (so why do I do accounting work??) especially agricultural-type work. My advice to Max is to do what others have suggested and make a plan. Plan to find someplace else to go for an extended vacation and maybe a direction will present itself. I’ve been in a frame of mind where I just wanted to get outa Dodge, but my fear of the unknown has held me back. There’s no better time like the present. J.D.’s suggestion of reading the Art of Nonconformity is a good one. Max may find he is able to work and travel and also make a life.
July 3rd, 2009 at 8:55 am
If Max can really get $160k for the condo, I would say sell it and bank most of the money. Spend a year traveling frugally; then reassess his life, where he wants to live and how he wants to support himself.
July 3rd, 2009 at 9:00 am
I lived in Romania as a volunteer who worked with orphans and taught English on $600-700 a month (which I got from sponsors in the US) from June of 2005 to June of 2006. While there, I flew back to the States once to visit my guy (now husband). The night before my flight I stayed at a hostel and got to talking with a guy who was traveling thru Europe. He was sitting there working on something on his laptop. I asked him what he was working on and he told me that he did some freelance work and had a few stocks…and he was traveling off the income from that. I thought it was a pretty cool idea for someone who wants to travel and has that freedom. Don’t really have any advice for the guy about the condo, but I just know that when you are young and don’t have a lot to tie you down that is the absolute BEST time to travel and see the world. As someone said in an earlier comment…it is a great thing when Americans can actually experience other cultures.
July 3rd, 2009 at 9:01 am
I’m with everyone who says to GO NOW! REally…in 15-20 years, if you have a family, a (larger) mortgage, etc..it’s really hard to make a change. And you’ll feel doubly burdened at that stage for not having done this.
One thing to consider is the possibility of getting a “real” job overseas. Check with the employer that you have, to see if you can move abroad, and yet continue working for that firm. Get a cheap apt in Europe, set up an office corner, and start travelling on weekends or extended times to the places you want to see. It’s really not unheard of.
We’ve lived abroad 4 times, 3 times on a company’s dime, and once on ours during hubby’s grad school days. We were able to live well, but on our own dime, we were super frugal…very easy to live on the cheap, even in Europe.
I read that at any given point in time that there are 7 million Americans living, studying, or travelling outside the US…NOT including the military. It’s something that everyone should do at least once in a lifetime.
A comment on renting out the apt while you are gone. Do you have someone you can trust (family or close friend) that you can pay to find a desireable tenant, and oversee matters while you are away? You could offer to pay them a certain amount, and check in now and again. Real estate agents will do this for a fee, but not sure how much…but it might be worth it to find out and if that fits in with your agenda.
Just go…go to the library and check out a bunch of “Let’s Go Europe or Asia or India.” They are a wealth of info for cheap travel and can give you great ideas about where you’d like to go and what kinds of things you could experience.
Happy travelling!!!
July 3rd, 2009 at 9:04 am
Go, go, go! The longer you wait the more enmeshed you will become in life back home and the harder it will be to leave. As others have mentioned, there are lots of ways to offset costs while you travel (working remotely, teaching ESL, WOOFing), so $60,000 is overkill unless you plan to stay in 4-star hotels everywhere you go.
Have a great time!
July 3rd, 2009 at 9:11 am
I have to agree with the freelancing option. Travel cheaply, try to cover your expenses as you go. If you can find someone to rent the condo to cover the mortgage while you’re gone that would help too.
July 3rd, 2009 at 9:16 am
JD, why CAN’T you just pick up and travel the world? You don’t have kids. You have a career that enables you to work from pretty much anywhere. You have enough income to deal with the expenses.
If it’s your dream, GO FOR IT. Now.
To tell the truth, there is some talk at our house - even with two young kids - of doing something big like this, like moving to France for a couple years, having my wife teach English, and living in a small French city and let our kids learn a new culture and a new language. We’re seriously thinking of this in a few years.
July 3rd, 2009 at 9:24 am
Do it Max! Make it happen!
When I was your age I moved cross-country via Amtrak, to a city where I had no job, no friends, and no place to live aside from a hotel room that rented by the week. It was the best thing I ever did and continues to shape my life and perspective. I did it with something like 3k in the bank and a plane ticket back home for Christmas (I moved in September). I figured if I hadn’t landed on my feet by the time three months had passed, I’d go home for Christmas and stay. It only took two weeks for me to get a crappy job and worse apartment, and it only got better from there.
There is no time like now to get the wheels in motion. You will not regret it.
July 3rd, 2009 at 9:26 am
What you said, J.D.
July 3rd, 2009 at 9:27 am
Luckily Max is in an awesome position now, and traveling seems to be a possibility.
With all due respect though, as a fellow 25 year old, I wonder if people in our age bracket are a bit too willing to throw other possibilities out the window in lieu of those they consider more exciting. Traveling is awesome, I’ve done it, and now I’m 25, married, settled, paying a mortgage with the money from the good job my degree affords me, and life is just as great as it was when I lived in Paris for one summer.
Having a job as good as Max’s may not always be a possibility in this economy, but maybe he’ll have no problems at all finding employment upon return or a condo that’s an even better deal then the one he’s sitting on. I just don’t understand our society’s fear of regret ruling our lives; we all have a choice in letting that regret be our main focus (or not). Foreign countries are great, new experiences are wonderful, but there’s a lot to be experienced in everyday life here as well.
I mean no offense whatsoever to J.D., others comments, or Max in saying this and I wish Max all the best in his travels because it sounds like that’s the path he’d most like to take.
July 3rd, 2009 at 9:40 am
So many of you keep encouraging him to keep doing web design — but he clearly said he’s sick of it and wants to work outdoors, bartend, do anything BUT web design.
Renting the condo could be more headache than its worth — what happens when a pipe bursts and he’s 5000 miles away? Unless there is someone in his home town who can act as caretaker, it could make for some sleepless nights.
When I was 27, I quit my job and used my savings to go to the South Pacific for three months. I didn’t have a plan for what would happen when I got back. It was one of the best trips I’ve taken and I don’t feel I’m any further behind financially because of it.
I say go!
July 3rd, 2009 at 9:45 am
Now, there are a few financial tricks you can take advantage of as well. I have posted a few of them here:
http://boards.bootsnall.com/post9063.html
Now, in your situation and with the current economy, I’d stick out working for at least another year. I am a big believer in taking advantages of opportunities in life as they present themselves. And, right now, in the current economy, that opportunity is probably to take advantage of your job while you have it, save up enough money until you can do the trip with cash, and then you can rent out your place while you travel. The world isn’t going anywhere, you are only 25, and travel can be done at any age regardless of what people like to tell you and waiting another year or two isn’t going to make any difference other than improve your financial base.
July 3rd, 2009 at 9:45 am
Of course Max should do this! In his case, there’s no reason not to. (Assuming he’s willing to avoid debt and to set aside some money so he can avoid debt when he returns to the U.S.) Traveling and living the lifestyle he’s talking about is priceless. It’s life changing and incredibly cheap to travel most of the world, and perhaps you’ll never come back to the “rat race” — there’s nothing wrong with never owning a condo or having a “stable” job if you can do this without debt. In fact, Max might even earn more while he travels by doing web work for touristy restaurants and hotels that he encounters. He has one of the most portable skills in the world. And as Max seems to know, it’s easy to travel the world spending nothing if you’re willing to do odd jobs - bartend, stuff at hotels, etc.
July 3rd, 2009 at 9:55 am
I’m looking at your story and see a bunch of advice that I think is horrible. I’m 28 so I see your pain, I went through the “quarter life crisis” a few years ago too. But here’s the harsh reality - YOU CANNOT AFFORD IT! You have $5k in savings- THAT’S LESS THAN THREE MONTHS OF AN EMERGENCY FUND AT YOUR CURRENT EXPENSE LEVEL!!! You *MIGHT* be able to get some equity out of a condo, but not nearly as much as you think you’re going to. IN THIS MARKET YOU CANNOT COUNT ON HAVING EQUITY! Only count money in hand!
Here’s the other problems, you probably dont have any money for retirement do you? You also probably dont have any money set aside for health insurance if you do quit do you? What happens if you fall down and break yourself in the Outback? Yea, you’re gonna be broke and there goes your fun dream. Sure having fun for a year or two when you’re 25 may be cool, but you’re gonna feel like a real idiot working until you’re 65 when you could have been smart and retired at 40-45 and had an extra 20-25 years of fun.
Granted you’re 25 and you have no debt except for a mortgage, which is good. Making only $2600 a month, that’s not so good, especially for what you want to do. I live in California now, you know what $2600 a month gets you? It doesn’t get you what $1500 gets in Maine. Trust me, I lived across the river in Portsmouth NH, so I know what I’m talking about here.
All is not lost and the fact that you have no major debt is a big plus. Here’s what I’m recommending:
1. Sell or rent out the condo, take that equity you’ve got or rental income and go to school. If your career isnt making you happy, find a new one while you’re still young enough to do it. Once you get married and have kids, you’re going to be less able to be your own independent decision maker.
2. Rent/sell the condo, sell all the junk you dont need and take a break from what you’re doing now. Join the military or the Peace Corps or something else that will let you travel, bring in income, and get some other life skills under your belt. If I was single, I’d join USAID in a heartbeat. Check it out, USAID.gov. They’ve got a ton of foreign service jobs and you can get paid good money with a stipend and pension benefits to live in a foreign country doing real good hands on work.
If you quit what you’re doing now and travel the world, it will be fun, but ultimately you’re going to run out of money and come back to where you are now and have absolutely nothing. You’re not really doing anything to invest in your long term happiness if you give it all up now.
This whole thing is about making a life change so make it a permanent one, not a temporary one.
July 3rd, 2009 at 10:00 am
Why sell? Why not rent out the condo, and keep his options open? He can always sell it later.
July 3rd, 2009 at 10:02 am
Why sell the condo? Has Max tried to rent it out? That way he keeps his options open for a while. He can always sell it later.
July 3rd, 2009 at 10:03 am
“I’m also scared to just “save money” eternally until I’m too dead to enjoy it.”
He saves $900/month and only has $5K saved. If 6 months of hard work and saving is approaching an eternal rut, he’s gonna have a difficult life.
That said, no one should be afraid to leave job they hate (especially when they have no family depending on them).
July 3rd, 2009 at 10:07 am
Trent (#53) wrote: JD, why CAN’T you just pick up and travel the world? You don’t have kids. You have a career that enables you to work from pretty much anywhere. You have enough income to deal with the expenses. If it’s your dream, GO FOR IT. Now.
I find it fascinating that Trent is the one who picked up on this. He and I are a lot alike, which is probably why we have so much cross-pollination of readers. Also, we’re in similar positions.
To answer his question: I don’t do this because I do have at least one tie, and a very big tie at that: My wife. Kris isn’t interested in this. She loves her job and finds it fulfilling. But technically she can retire in about ten years, so we’ve considered doing something like this then. Also, I keep trying to convince new neighbor Chris Guillebeau that I could tag along with him on his adventures, but he tells me I’d be bored bored bored. He’s probably right.
But Trent is right: I should look for a way to make this happen, at least on a limited basis.
July 3rd, 2009 at 10:07 am
From Melisa Post #41
One more thing, if anyone is interested in seeing a handful of my travel photos I forgot to include the link with my last post. It’s attached to my name now, so please feel free to take a look. What is included there does not even come close to all of the photos I’ve taken, but it is just a sample of what kind of adventures I have had.
July 3rd, 2009 at 10:19 am
I totally agree…sell the condo and enjoy life (of course put some money aside to start over). There is plenty of time to “grow up and settle down” later. It is sooo much harder to do this the other way around–settle down, get married, have kids, etc then sell everything when you are older and become a vagabond.
July 3rd, 2009 at 10:23 am
Max, dude. Sell the house and go! I am a 24-year old who has that same itch to see the world like you do, and man, we may never have this opportunity again.
You can always get a mortgage, ya know? To be able to travel the world in your 20’s having new experiences and loads of fun….well, shoot, that’s just not something you put off till retirement : )
In other words, go for it.
July 3rd, 2009 at 10:29 am
Before taking off for the hills, consider if you even WANT the settled-in life when you return. Several of my friends who don’t want children only realized it when they were struggling over a stable vs. unstructured lifestyle. If marriage and kids is what you want, great: work it into the plan. Just don’t go through that life step on autopilot because you assume it’s “what grown-ups do”.
July 3rd, 2009 at 10:35 am
This message could (maybe should) only contain two words: Do it.
It’s a change you should take. I speak out of experience. When I was 29, my relationship ended, I was fed up with my job and saw this ad in a paper, telling that you coud go to Australia for a year on a special permit that allowed you to work there if you liked. I quit my job, sold my part of the apartment to my ex, just packed up and left. It was very scary at first and very unlike me, but it turned out to be the best experience of my life so far, I’ve never felt so free and ‘no worries’ in my life. I worked in a bank before I left and Downunder I worked as a chef, totally based on my own enthusiasm, without any experience apart from cooking at home.
Having said that, I’m very happily married for four years now, back home and quite happy in my job and also often wondering if there’s a life next to saving money until I’m too old to enjoy it. But, now I have had the opportunity to see a country I always wanted to visit, got it out of my system and calmed down as it were, to a more grown up way of life. So again, Do it.
July 3rd, 2009 at 10:37 am
This in one thing that’s actually pretty easy to do, but it’s *scary*. Lots of people don’t go do this because they’re afraid of being alone in a foreign country, with no obvious place togo home to.
Plenty of people dream about this life, but few are willing to make the sort of leap of faith required to actually get started.
What would *I* do in Max’s situation? I’d probably talk about how cool it would be to go, but then give a laundry list of reasons that I shouldn’t, none of which are really stopping me, because it was scary. This isn’t meant as a slight against Max or anyone else, I probably *would* do that. You have to realize that getting started will be scary and requires you to really leave your comfort zone.
With all that said, if I was single, I’d probably be in Turkey right now with some friends that are there. If they weren’t going too, though, I probably would have stayed home.
If you want to go, then put the house up for sale and buy a plane ticket. You can get another condo and another job making $40k/year (that’s not even good, it’s just average). If you want everything else to be perfect, then you’re never going to go.
July 3rd, 2009 at 10:51 am
Selling the condo now would be a huge mistake. The real estate market is in a slump. The sale price may very well not come close to buying an equivalent home a few years down the line.
Traveling is great, but it won’t do anything to afford him the ability to get out of his web development profession long term. If he wants a career change, taking night classes would be a good option. If he can get the student loans, taking time off of work to do this would also be a good option.
I think Max is doing some well for someone at the age of 25 — better than I was doing at the age of 25. But nowhere near well enough to do anything this drastic.
Max may, however, need a good one- or two-week vacation, and so some (much more limited) travel during that time.
July 3rd, 2009 at 10:52 am
What’s the end game? Some people need a change of venue to get perspective. The big caution is that not everyone has the propensity to satiate a wanderlust. Some people just can’t do it, although they feel that they want to do it. If you feel seriously in a rut, sell the condo and travel, but give yourself a fall back plan in case you don’t find yourself capable of living the lifestyle. If you can live the lifestyle, then you can always continue on. If not, then you will have something to restart again.
July 3rd, 2009 at 10:54 am
Max, being an expat I have lived the last 12 years outside my native country and have travelled the world quite a bit both in the line of duty and for fun - it’s a great experience. On top of that after I graduated I travelled through teh middle east for 6 months before getting a “real job” and to date it remains one of the best experiences in my life! so like most others I would say - “go” … but consider this:
- now is probably the worst time (ever?) to sell a condo so see if you can hold on to it by renting it out
- cut down your expenses a bit and you can save $1000 a month, just hang in there for another 6-9 months whilst you plan your trip and you suddenly have a lot more options / flexibility
- travel light, if you go to Asia you can get just about everything and it’s cheap. Just take a laptop to remain employable as a web designer whilst you travel
- scan all your documents and keep a scanned copy in your webmail so if you ever lose everything you go into the first internet cafe you see and can at least get a copy of your crucial papers - passports, visas, driving license etc.
Enjoy!
PS If or when you do come back, don’t be surprised if your perspective on the world has changed and if you fail to agree with friends who stayed behind when you discuss the issues of the world - traveling changes a lot…
July 3rd, 2009 at 10:59 am
JD, one of the things that grief counselors say is that after a loss, you shouldn’t make dramatic changes in your life for one year. So, really, you’re smart not to change “enough,” as you put it. I would tell Max to go do it, too. He’s young, he’s got the $, and he’s got time in his favor. I traveled overseas for the first time ever this spring after having a health scare that turned out okay. My first thought after being told I was okay was that I was running out of time to do the stuff I wanted to do. Being in our mid-50s, however, my husband and I have to balance having enough in retirement with doing stuff now while we still can (I have physical issues that limit what I can do and they’ll probably only get worse the older I get). So I do regret not having traveled when I was younger, but I didn’t have the means to do so like Max. Go for it, Max!
July 3rd, 2009 at 11:28 am
Well, it seems like Max has an answer considering the overwhelming majority of responses. I certainly agree with most of them. Do it. A few thoughts:
1) You have skills that could allow you to make money from anywhere in the world. Is there any opportunity to continue working for your current employer while traveling and trying to figure out something else to do?
2)In regards to your housing situation: If you do decide to travel, you need to take a realistic look at what it’s worth and how much you could actually rent it for. If you can hire a management company or pay a friend/relative to manage it for you and still cover the mortgage, I would hold on to your place and rent it.
3) If you decide to travel, I think the most frugal way to do it would be to avoid an itinerary at all cost. Make a short list of places you must go and things you must do, but don’t tie yourself to a specific agenda. Do your research while you’re traveling and let opportunities come to you.
3) http://www.couchsurfing.com is one of the most simple, yet amazing, concepts ever bestowed upon mankind! Use it and any service like it to cut down lodging costs and meet awesome people that will expose you to more of life as a resident than as a tourist.
4) If you’re going to travel for long and/or stay in place long, being a tourist will get BORING! Sounds like you are considering applying for a work visa while you’re away. Do this absolutely and find work where ever you can as another opportunity to support yourself and meet people to improve your experience. You can even do this in addition to free-lance web design work to keep you financially healthy on your travels.
If you’re intelligent and resourceful, doing what makes you happy will always bring you more abundance in life, be it financial or experiential wealth.
July 3rd, 2009 at 11:30 am
I love this post! I was actually thinking of the same thing. Traveling the world when I hit 25, which is 1 month from now. I would recommend him to go for it! He’s at the best age to do a lot of traveling, given that he doesn’t have a lot of responsibilities yet. And he has been really good with his financial matters. It will be an experience of a lifetime.Good luck!
July 3rd, 2009 at 11:31 am
Go, go, go! See the world. Just take some of the profits from the sale of the condo and put them away as a down payment for your next place, if you ever want one. You don’t want to start at zero.
July 3rd, 2009 at 11:41 am
One more vote for travel and adventure! I’m living in Europe right now - I moved last summer at age 40. I couldn’t believe how many people were SO excited for me, but would never do the same thing themselves. I truly believe that experiences like living in a foreign country are much easier when one is younger, and with less responsibilities.
When one is younger, it’s much easier to adjust to a new country, it’s easier to live on less money, it’s easier to travel cheaply and stay in hostels and camp. I also think bartending and dealing with demanding drunk people makes a web designer job look awfully good.
My only suggestion is to use some of the condo money to fund an IRA for two years, to get the benefit of compounding interest. I think Max seems quite responsible financially otherwise, and I doubt he needs more financial advice.
July 3rd, 2009 at 11:57 am
This made me think of something I read this last week about Karl Malden. He wanted to study acting but his father didn’t think he should give up the “good” job in the steel mill. His Mom encouraged him to chase his dream. Wow, aren’t we lucky he did??? He died at 97 a respected person, award winning actor and a man married to the same woman 70 years. Just makes you think.
July 3rd, 2009 at 12:00 pm
I’m with JD on this, sell the condo, save/invest half the money, and use the rest to travel. At his age and with his lack of obligations, he’ll be no worse off for doing it, but could actually be much better off.
As a 25 year old with web design skills, he’s readily employable. Web design is in demand everywhere, so he could take jobs, temp or freelance in the places he visits if he stays long enough. That’ll also give a chance to LIVE in these places, as opposed to just visiting them.
While traveling, he may find his dream place, a new career or purpose, or even a spouse. He’ll get more from moving out of his shell and out into the world.
It’s been said so many times that as people get older they have regrets not about what they did, but about what they didn’t do. Max has a real opportunity.
July 3rd, 2009 at 12:22 pm
I would also recommend travel, with one caution:
LEARN CONSTANTLY WHILE YOU TRAVEL!
Pick up new languages and skills… do a lot of reading… study the art of different cultures. Because when it comes time to “start over,” you will have to explain the 2-year (or so) gap in your resume.
Another option: START YOUR OWN COMPANY.
You can incorporate for around $500, then just pick up and travel. If you find gigs along the way, being an America based corporation makes the taxes a lot easier for you and your employer.
Plus, when you get back home, you can now put “business owner” on your resume
That shows guts, especially in a down economy… now you can sympathize with a future boss and say “running a company is harder than it looks!” Or, who knows? You might like it and keep doing it when you return.
July 3rd, 2009 at 1:04 pm
Bex–Good point. With the economy in the tank, he’s probably not leaving much on the table by leaving. Building an international experience–now that’s a resume decoration we could all use!
July 3rd, 2009 at 1:05 pm
Travel. It sounds like Max has been sensible enough to stay away from debt thus far and seems like he would travel frugally as well. You’ll never be overseas and think “what would have happened if I would have stayed at my web design job that I was sick of?”
July 3rd, 2009 at 1:09 pm
How about a variation on this, if possible. Freelance for work but hold onto the condo and do house trades for travel. That way you get a good fix of travel as often as needed plus keep building the asset of the condo. We use homeexchange.com and there are lots and lots of folks wanting to trade to the US.
July 3rd, 2009 at 1:21 pm
I’m actually a little confused: Max says, I’ve traveled a lot. I’m constantly increasing my knowledge and working on new business ideas. But I don’t have the time to do anything about it because I’m always working…”
Now, that sounds like he has been able to indulge his travel desires, at least somewhat and that there’s more than just traveling he is craving now.
The economic conditions world-wide now aren’t good — with unemployment high in many countries (higher than here) I’m not sure that Max can get the easy jobs people have been able to get in the past while traveling, but really, I think Max hasn’t really explored exactly what he wants right now — maybe he wants to move somewhere with less winter than maine and work part time while exploring his own business ideas?
Maybe he wants to negotiate a month or two off from his current job to take an extended trip…. does he really need to make a complete life change to get additional satisfaction in his current life??
I know the situation is not the same, but my sweetie and I spent our 20s doing what we wanted — not travelling, graduate school — and while we have greatly increased our life satisfaction, we are way behind a lot of our peers in terms of monetary success. We were lucky to have been consistent savers and inherited money as well, but I just don’t believe it’s true that you can ignore the future and assume “it will all work out…”
July 3rd, 2009 at 1:36 pm
GO! GO NOW! RUN, DONT WALK! Max is in a terrific position to travel and he should do just that! I love to travel and only wish I could do more of it. See the WORLD!
July 3rd, 2009 at 1:41 pm
This man is in a GREAT position, in my opinion…he has skills, motivation, desire and excitement. It doesn’t have to be a choice between a “good, safe job” and bumming around the world wasting money and time. Who knows…he may find someone and fall in love, end up starting a great business venture, or be just the person needed to help another business out, but on his terms.
He can sell the condo, or rent it out if allowed, or just save some money to keep in an account that will pay the mortgage automatically for a year or two. It can be on the market while he’s away having a GREAT time, learning about himself and other ways of life.
One option he might consider is the Peace Corps, which is always looking for tech savvy people to help with microenterprises.
While I didn’t start saving for retirement and buy a home until I was 37, I know many others far older than me who haven’t done that much yet. I also know people far younger than me who have done much more in terms of financial stability and acquisition of wealth? So what? Personal finance is personal, and it really isn’t a race…who are we trying to compete with, anyway?
This man sounds like he has a good head on his shoulders and has already mastered some fundamental principles of GRS…I wish him well. Boredom is a life killer!
July 3rd, 2009 at 1:50 pm
I think it makes more financial sense to rent the condo out than to sell it. You will still need a place to live when you get back. Plus, the costs of selling real estate and buying new real estate later will take a costly chunk out of your equity.
If your condo has the right setup, find a roommate now and get used to them and use the extra cash to pad your savings. Also, if you find a roommate you can trust they can keep an eye on things when you rent out your half of the condo and go traveling.
There are also websites for houseswapping with people abroad. Could be a good option as well.
July 3rd, 2009 at 1:54 pm
Max, suggest you read “The Four Hour Work Week: Escape 9-5, Live Anywhere, and Join the New Rich” by Tim Ferriss and many of the posts on his “Experiments in Lifestyle Design” website at http://www.fourhourworkweek.com/blog. Best wishes!
July 3rd, 2009 at 1:57 pm
Having the insight of my parents who traveled when they were his/my age, do it now.
Not only will “life get in the way,” as they told me, but you won’t be as physically able to deal with any mishaps that may occur along the way and you’ll be in better shape for physically demanding adventures.
If you have the money, definitely travel now. You’ll get so much more out of it.
July 3rd, 2009 at 2:02 pm
Definitely go! Sounds awesome and I’d like to do the same thing.
But I agree with the posters who suggest saving money separately from the condo dollars, and using that to travel.
My suggestion is to plan to travel on non-condo sale money. Carefully weigh the options between selling the condo and renting it out.
Selling means you’ll be emotionally free and have no issues like having to find renters, deal with possible damage, property management companies, taxes etc.
Renting will bring in some income, but also some hassle. By the time you pay your mortgage, you may not make any money other than whatever capital gains you get on the unit itself. I’d argue that you could probabaly get the same rate of return by selling and investing the money in a quality market fund. Keep in mind that the housing market is down, but then so are the markets so you wouldn’t be taking a bit hit by re-allocating your investment from property to stocks.
By either keeping the condo or by not spending the money you keep your options open for your return - you can buy again, or if you love travelling enough you can use the money to extend your travels.
And don’t listen to the person who made comments about work and visas. Most countries including Australia have short term (1 year) visas available with work permits for people exactly like yourself.
July 3rd, 2009 at 2:11 pm
My advice:
Sell the condo, don’t quit your job. Rent the smallest, cheapest apartment you can fit yourself into. You can even practice living out of your backpack in your own home.
Bank the profits from the condo sale for retirement, or a downpayment on a home if you decide to re-enter normal society. This is not your vacation money.
Figure out what you want to do first. Surf instructor in Hawaii? Bar tender in Mexico? Or maybe just disappearing into the Amazon rainforest. Whatever you choose, make a picture collage of it and post it on your wall to keep you inspired.
Keep working and saving until you have enough money to get started, maybe $10,000 - 15,000. If you really can cut your expenses to $1000 a month, this should take you about six months. Each day before you go to work, look at your collage and remind yourself why you’re doing this. Maybe even start counting down the days till you can quit. I bet just the fact that it’s not permanent will make working easier. You’re not wasting your whole life in a job you hate, you’re just building up some money before you quit. And if it comes down to it, you could walk away tomorrow.
Once you start travelling, I suggest that you try to work enough to break even. Use your $10,000 as a buffer, but don’t just go on vacation. If you aren’t eating through your savings, you never have to go back to work.
July 3rd, 2009 at 2:41 pm
Hi,
Having rented out houses a couple of times, both with bad results, I would not recommend this option. If you do go this route, you’ll need a property manager, but even with a good one, there will be problems they’ll need to contact you about. I certainly wouldn’t want this worry on my head if I were in another country.
I am much envious of this person and certainly wish I had the courage and money to venture forth when I was single. Form what I hear there are many ways to travel and work odds and ends jobs, and while kids are wonderful, they do limit doing this kind of thing so better to do it now while he can. I think if I were in his shoes, I would confirm what I could get with a couple of real estate agents and then I would try finding out something along the lines of working odd jobs in my countries of interest. I would travel using some of the money from the sale of the condo when necessary, but earn room and board or meals when possible, living within my means and working a bit as well. This kind of work would be more educational and fun than traditional work and wouldn’t be constant so he could still see the sites.
What a great opportunity.
July 3rd, 2009 at 3:06 pm
Tell him to pack his one bag and hit the road.
July 3rd, 2009 at 3:14 pm
Travel. No question.
July 3rd, 2009 at 3:30 pm
The best thing that ever happened to me was getting laid off when I was 28, single, and (almost) debt-free. Technically, my job was eliminated and I was offered a boring-sounding job with the same company making the same money. So I took the severance, got into my car, and did a 3-month tour of the USA. I camped out, ate peanut butter sandwiches, and otherwise traveled cheap (hey, gas was cheaper then). I love camping and it was pure bliss from day one. Seven years later, I’m sure I’d have more savings if I hadn’t done it. But my only regret is that I didn’t take longer. This time every year, I feel the urge to leave it all behind and see some places I haven’t seen yet (and revisit some that I have).
So my advice is go, go, go.
July 3rd, 2009 at 3:39 pm
Beyond a doubt I would travel. It is obvious to me that Max totally learned from early mistakes with money and has more than made up for it in a few short years. With that kind of ambition and know how he will be able to pick up right where he left off or in some different place when he returns to the States. IF and when.
TRAVEL now. TRAVEL before you are more encumbered.
July 3rd, 2009 at 4:08 pm
If you can spend money without going broke, then do it! Enjoy life, don’t go in debt, and save for the future.
July 3rd, 2009 at 5:28 pm
i have not read through all of the comments but it sounds like one extreme to another. there is enjoying life and living your dreams…and then there is dropping out of life and partying hard. it sounds like the young man just wants to be a non-life participant. i would hope for more from someone than that.
July 3rd, 2009 at 5:36 pm
Travel is absolutely the right choice. He will never again be in a position to pick-up and leave.
However, I would not count on getting work in other countries–the recession is even worse elsewhere. Travel on the cheap—have amazing experiences—make lifelong friends.