Outsourcing Life: Unconventional Advice for When You’re Financially Secure
Published on - February 10th, 2010 (by J.D. Roth) This is a guest post from Erica Douglass. After selling her online business for a million dollars at age 26, Erica
“temporarily retired”. She now writes an online business blog at erica.biz. This is very much an article about advanced personal finance techniques, and doesn’t necessarily reflect my own philosophy.
You’ve pulled yourself out of debt, are saving a reasonable amount of income for your retirement, have built an emergency fund, and your daily needs are easily met with your income. Congratulations! Now what?
That’s exactly where I was in 2007. I sold my business and generated a huge windfall — over a million dollars. I paid off all my debt. And then I looked around and said, “Oh, crap.”
I had absolutely no idea what to do with my money. Previously, any extra money I’d earned was immediately stuffed back into my business, and I had been running deficits nearly everywhere. This was the first time in my adult life I’d ever had my head above water, financially speaking.
Over the next three months, I proceeded to blow over $50,000. Oh, don’t get me wrong — it was fun! I bought a new car (that I still drive), some really beautiful artwork from artists I loved (that looks great on my walls), and thousands of dollars in clothes, new furniture, and other indulgences, such as $4,000 custom hand-made stereo speakers (that I’m listening to right now.)
It was fun…for a couple months. Then it got boring.
My Spiral into Depression
Like many lottery winners, I spiraled into depression. The business I had spent six years of my life building was gone. I felt adrift — like I had no purpose. Despite having been “successful”, no one knew who I was. I had marginalized most of my personal relationships in favor of growing my business and working myself to death. And money wasn’t going to buy me out of the situation.
Slowly, I pulled myself out of my depression. I realized I had the opportunity to make myself into anyone I wanted to be. I could do anything I wanted. I had complete freedom. The thought was both exhilarating and terrifying.
I bought a shelf full of self-help books and read them all, relentlessly seeking to answer the many questions I had. Some of them were philosophical, like “What made me successful when so many others have failed?” Some were practical, like “How do I invest my money?” But all of them led back to one deeper question: “What should I do to be happy?” I soon realized the latter question was incorrect. The better question was, “Who should I be to be happy?”
In December 2007, I started blogging. I exposed a significant amount of my business life and thoughts. I wrote about my successes and my mistakes and failures. I enjoyed writing, doing videos, and interacting with my readers. Helping others figure out their purpose, their businesses, and their websites and blogs was a fantastic experience.
Spending with a Purpose
I made a point of trying to achieve greater states of happiness on a daily basis. Instead of being merely content — or even apathetic — with my current state of being, I realized I could be happier daily. And suddenly it hit me: I understood what I wanted to do with my money. I wanted to outsource pretty much everything I hated doing.
In order to live a simpler, calmer, but more effective life, I had to drop the shackles of wanting to do everything myself. To allow time to meditate, think, write, and create, I had to get rid of the drudgery of daily tasks. I realized my money could serve a fantastic dual purpose: To allow others, whose passion is cooking, cleaning, or assisting in various ways to help me — while I supported them by giving them income to do what they loved.
My life fundamentally changed that day. I started hiring people to do everything I didn’t want to do. The first step was to hire a cleaning service. Then I hired a personal assistant to work out of my house, filing papers, doing laundry, and organizing. I hired virtual assistants to do all the menial tasks I hated doing: bookkeeping; video editing; audio editing; even setting up my Facebook fan page. (Lisa, my VA who set up the Facebook page for me, said happily: “I can’t believe I get paid to do this!” And I realized…we’re both lucky.)
My Daily Routine
I wake up in the morning and my VAs have sent me their updates. I am building a business where I create how-to videos for small business owners and bloggers who want to drive more traffic to their sites and get more customers.
I learned meditation, and currently spend about 40 minutes a day relaxing. I also spend a few hours a day doing the parts of my business I love, from creating videos to writing to programming. When I walk down to the kitchen, it’s clean; Elia, my housekeeper, comes in every week to make sure it’s spotless. She spends 2 hours cleaning our kitchen; total cost to me: $30.
My VA in the Philippines edits my videos and does a fantastic job for $3.33/hour.
Whenever I do an interview with another entrepreneur, I send it to another VA in the Philippines, who, for $9/hour, edits it perfectly, getting rid of all the strange pauses and “um”s. I send the edited interview off to a transcriptionist. For less than $30, I get back an excellent transcription, often 12-16 pages long.
Lisa, my VA here in the U.S., has set up an entire website and integrated it with a shopping cart for my customers to order products and access them once they have ordered. She charges $30/hour (my most expensive staff member) and she’s worth every penny.
I treat my staff members well, and they love the fact that they can work from home and get paid great wages ($3/hour in in the Philippines is equal to about a $65,000/year wage here in the U.S.) They are happy — I can see it in their emails and text chat messages.
My partner Richard and I fight less. There’s no scrapping over who will do a certain task. If no one wants to do it, we work together to figure out how to hire someone.
A Disease Opens My Eyes
I was recently diagnosed with Celiac disease. The management of the disease may sound simple, but it’s not: eliminate wheat, oats, barley and rye from your diet. Most restaurants have very
few gluten-free items; I’m lucky if I can order one non-salad item from a typical menu. Some restaurants are impossible to eat at; soy sauce, for instance, has wheat in it. I’ve gotten sick from things as odd as bacon, cake frosting, and ranch dressing.
After a few weeks of eating mostly hot dogs and tuna fish, I grew tired of my limited options. I thought about learning to cook, but it wasn’t something that excited me. So we hired a personal chef to cook our meals — one who understands the challenge of cooking gluten-free. We pay her $10/hour, including travel time to deliver the food to us, and she gets a fun side job.
In a randomly-chosen week before I hired a personal chef, I ate out four times and went to the grocery store twice. I spent a total of $179.91 on restaurants and groceries. Last week, I spent $215.49, including groceries, for eating out and paying my personal chef. My “eating out” expenses dropped from $86.14 to just $32.28 — over 60% less! My total spent was $35.58 more, but to me, that’s a small price to pay for gourmet food of my choice delivered to my door. Another remarkable and unexpected side effect was that I no longer have an urge to go out and spend money at fancy restaurants — I simply ask my chef to make what I want and deliver it to me.
It has been more than two years since I sold my business, and I am happier than I have ever been. I made different choices than most: We rent a house instead of owning (a savings of nearly $4,000/month in our neighborhood — more than our monthly rent payment!); we only have basic cable; we don’t have a landline, credit card debt, car payments, or student loans.
I chose, instead of buying more Stuff, to live a more fulfilled life. For me, even more important than holding onto my money tightly was to learn to let it go — to give it to others in exchange for work well done, and to trust that they could do tasks well. It’s one of the best decisions I’ve ever made.
Previously at Get Rich Slowly, Erica shared Finding Time to Pursue Your Dreams: How to Free Up 750 Hours a Year with One Simple Change and The Ten-Minute Budget. Download her free Blog Success Manifesto, which offers 30 tactical tips to grow your blog faster than
you ever have before.
GRS is committed to helping our readers save and achieve your financial goals.Savings interest rates may be low, but that’s all the more reason to shop for the best rate.Find the highest savings interest rate from Ally Bank, Capital One 360, Everbank, and more.
This article is about Advanced, Odds and Ends
Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author's alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.
Discover is a paid advertiser of this site. Reasonable efforts are made to maintain accurate information. See the Discover online credit card application for full terms and conditions on offers and rewards.
SEARCH FOR RECENT ARTICLES
“…I chose, instead of buying more Stuff, to live a more fulfilled life…”
That’s basically what I’m striving for as well and it’s something I believe you can do even though you aren’t a millionaire.
loading....
I always said that if I won the lottery, the first thing I would do is hire a maid. This confirms what I always thought: to be happy you need to be doing what you do best and not worry about the small stuff.
loading....
I cannot believe that you are bragging about how cheaply you can hire people from the Philippines when there are so many qualified people here in the US that need the work so desperately. Yes, they won’t/can’t work for $3.33 an hour, but, according to your post, money is not the issue.
loading....
I found it fascinating to hear about life from the opposite side of the spectrum, and I find very few people who have amassed great wealth are open to conversation on that topic; I guess they too, like many people, are guilty of the belief that “money is the ultimate taboo topic.”
As for oursourcing your time, I believe that it is necessary to do that only when you are doing something more personally-productive/fulfilling OR bringing in more income than what is being outsourced to your workers.
I’m sure many people that have reached Erica’s level of financial independence have a bit of an “identity crisis” as so much of our life is spent working, we tend to lose focus of our true desires which we want to pursue in life. Clearly, she has began making ammends with that issue and I’m glad for you.
Thanks for sharing a peice of your life with us here at GRS Erica.
loading....
I really couldn’t relate to this piece. “I’ve just sold my business for a large sum, I’m lost.” I would love to be in that ‘predicament,’ but alas, it did offer a chance to see that sudden wealth can bring its own problems.
loading....
I have to agree with Erica. While I’m not independently weathly just yet I do value my free time more than 10 bucks for a lot of stuff.
http://www.broadcastthoughts.net/2009/05/utility-of-time.html
Recently my wife got on board and discovered she could pay $10 to have her pants hemmed which traditionally took her an hour to accomplish.
While being frugal is admirable in most cases moderation in all things has value too. Cutting expenses at the cost of quality of life is not always the best decision when you are still able to meet your financial goals.
loading....
Great article. I’m glad that some of the pieces are shifting to a more financially independant theme as some of the readers are surely progressing from a debt stricken base to a more financialy secure group.
loading....
One nice article Erica …
Sometimes I feel good that I don’t have so much money and I have to go to a job next morning!
loading....
Loved the article.
Regarding DJ’s Phillipines comment, I’d like to add an alternate view.
I’ve been to many developing countries. Income from foreign jobs helps improve a person’s standard of living tremendously.
Erica gets more bang from her buck both in goods received but also in changing someone’s quality of life. I doubt if these side jobs were done in the US, they could significantly impact pulling someone out of poverty. I personally don’t know anyone in the US who lives in a dung hut or shanty without running water or electricity. I’ve seen plenty in Asia and Africa.
I want to remind people that the USA used to be the low cost country once upon a time..so was Japan.
loading....
Oh no, I’m a little upset — DJ — do you have a passport?
When you say that people in the US need that work desperately — do you mean to feed their families or to upgrade their cable package?
I have no problem with the fact that opportunities for success are now available to people beyond the US border. Lots of people in the states have had vast opportunities for success at their doorsteps their entire lives and never realized it, or made poor choices and squandered it. Sure, sometimes bad, unfair things happen — but I encourage you to think about the scale of the unfair things faced in less developed economies.
loading....
@Kathy – not everyone can relate to the “how to pay off your debt and develop a budget” articles either. like JD talks about, there are stages of personal finance, and while most people aren’t in the last stage, it’s still interesting to read more about it.
@DJ – maybe you missed the part where she hires a US-based maid and a US-based personal chef?
Overall, great post, and a great complement to JD’s “money as a tool” post from a couple weeks ago.
loading....
Like previous comments, it goes to show that money does most certainly not buy happiness and that we will only be satisfied when we find the things in life that really give us peace and true contentment.
loading....
If you really are having trouble with how to spend your money, I would recommend setting up a charity or trust of some kind, and go out to poorer countries and donate and work to help their lives and experience what they’re going through. By helping them, you’ll feel very content, and you know your money is being put to good use by helping to save lives.
loading....
I like that some of the reading here has to do with more philosphical pursuits once a level of income is attained that frees us from debt. That is where we will all eventually be, right?
This article is a perfect demonstration that money doesn’t neccesarily lead to happiness, but can very easily provide you with the freedom to do the things you want to do, and conversely, choose not to do the things you don’t want to. Excellent.
#4 Adrian – I disagree that you should only outsource your time if you replace it with something “more personally-productive/fulfilling OR bringing in more income”.
In order to truly feel the freedom of having money, it is a two-part formula. First you need to choose NOT to do something you hate, and pay someone else to do it. Then you just need to enjoy that freedom without feeling you need to justify it with replacement tasks or income. Without the second part of the equation, you don’t really have the freedom, do you?
loading....
The part of my life I’d really like to outsource is the part that brings in the income, unfortunately.
loading....
Message I got from this article: If you’re rich and unhappy, pay people do everything you hate/are too lazy to do yourself.
This will make you more happy by eliminating the things you do that you unhappy.
Meh.
For me, I don’t mind cleaning my condo, but I’m not the best at it. So once a month I hire a Philipino lady who I love to come clean it. She makes $60, I get my floors scrubbed. I do it because I’m not talented enough at mopping for the perfectionist in me, not because I dislike cleaning.
I was hoping this article was going to talk about charitable donations or volunteering when you become independently wealthy (through hard work as Erica did, or the lottery/inheritance). Not why/how to hire Philipino VA’s cheap and why its a good thing.
loading....
I loved this article. I feel strongly that hiring someone to do tasks I hate is a means to circulate wealth – as long as I am treating and paying the service provider well (usually a bit above the going rate). Whenever we can EARN (vs get a handout) a living (especially if we enjoy the work) providing a service, we feel better about ourselves and can further our goals. I view doing something I hate to do myself so as to save money (when I can well afford it) denies someone with that skill an opportunity to earn – to me this is a form of “hoarding”.
loading....
I believe a key takeaway from this post is that we all are searching for meaning and often become diverted from our path by searching for money…
“What is important in life is life, and not the result of life.” ~ Johann Wolfgang Von Goethe
“If thou wilt make a man happy, add not unto his riches but take away from his desires.” ~ Epicurus
“Money often costs too much.” ~ Ralph Waldo Emerson
“Freedom is not procured by a full enjoyment of what is desired, but by controlling the desire.” ~ Epictetus
loading....
I can really relate to this article. We’re financially comfortable, and I recently spent a year working only 3 days per week. I was so much happier and the additional time was more than worth the 40% pay cut.
I’ve also begun the process of outsourcing since returning to full-time work. The first time I had someone in to clean, it felt like the greatest thing ever! I love the idea of some sort of personal assistant like she mentions, someone to do various household tasks and errands, but I’m not sure where to find a person to do that or if it would even be affordable at my income. It would also require a high degree of organization, since I would have to make sure to have everything ready for the person before their arrival.
loading....
Interesting article.
I’ve often thought that I would not do well if I had a lot of money. I need to be busy to keep from driving myself crazy.
I noticed that Erika attributes her loss of happiness (and regaining it) to outsourcing menial tasks, and I can see how that might have a part in it. But what usually makes people feel depressed is feeling like there is no point to live. Not having a purpose. Also, being isolated from other people. When she sold her business, she no longer had purpose, and when she began doing something she cared about again – working to help small businesses – she began to feel better. On top of that, all of her assistants allow her to be connected with other people and not isolated at home.
So another thing you could take from this article is to think about your purpose in life, and if your job is your purpose, plan ahead if you’re going to retire. Depression is extremely common among retirees, especially male retirees, for this very reason. Don’t let your job be the only meaningful thing in your life, or when you get hurt/sick/retire/laid off, you’re screwed.
Just a thought from your friendly mental health professional
loading....
I enjoyed this article so much! I feel exactly the same way. I work two jobs to get my bills paid (and debt paid down- debt snowball here I come!) and I pay someone to come into my house to clean it every two weeks. Costs me $70 a month. And most people say – “Wouldn’t you rather work one job and clean your own house?” Not a chance. My second job (teaching voice and piano)is my dream job, my first job is the “I have to have health insurance job.” So if it comes down to teaching or cleaning, there is no competition. I love teaching and I hate cleaning!
loading....
Some of these guest posters are getting annoying. They offer few insights or original thoughts. The one above merely babbles on about her life. Most are regurgitating self-help books again, and again and again. And most self-help books are written by Tony Robbin-like losers anyhow. They rip off advice and common sense that have been with us for centuries, repackage it with a slick title and sell it to the ‘tards.
Let’s hear more about gardens and box factories.
loading....
@Adam(#15):
“I was hoping this article was going to talk about charitable donations or volunteering when you become independently wealthy”
If I had so much money that I never had to work again, why would I want to continue working, for free? I want to become wealthy so I no longer have to work at all.
Why would I give money away, and risk not having enough to maintain my “don’t-have-to-work-ever-again” status? If I give away $10,000, then the markets take a tumble and I’m faced with the prospect of having to rejoin the workforce, will those charities send me a cheque and return the favor?
Thanks, but no thanks. Once I have enough cash to guarantee a lifetime standard of living, I’ll be hanging on to my money until I die. After that, it’s all yours. I don’t have kids, so I don’t really care what happens to it once it’s finished providing me with a carefree life. But why in the world would I work hard and sacrifice for my whole life, then just give away the spoils of my labor?
loading....
It’ll be interesting if/when Erica has children. The temptation to outsource their care will be quite difficult to resist for all the same reasons.
IMO A personally-fulfilling life doesn’t come from the things that money buys (including outsourced menial tasks) but from the mark we leave on the world. Donate big money to a local charity and get involved (donating time) and see some real meaning in life.
loading....
I totally agree with buying services for the things you don’t enjoy doing when you are in position to. My husband and I lived frugally while he was in med school, residency, and fellowship (10 years). I worked long hours at a job I wasn’t crazy about (but paid well). He was paid as a resident and fellow, but not very much. Our goal for when he became a full fledged physician (one that made decent money) was to be debt free except the mortgage. And we were, we even had an emergency fund of 2 months.
So when he started making a respectable living I quit my job – we both knew it was the one thing that would make us both happy. I did all the house, yard work, etc. I’m even handy enough to do small repairs. We were both happier and I was healthier without the stress (I got my weight and cholesterol down, and my blood pressure dropped back into a safe range).
So a year ago we moved for an even better paying practice in a place closer to our families. We decided it was time to get someone to do the yardwork. My husband despises yardwork. I didn’t mind it when we lived on a tenth acre lot and I could cut the grass with an electric lawnmower. But now we were on a hilly acre and we’d have to buy and store lawn equipment. That, coupled with my raging allergies, made us decide hiring someone was money well spent. And it is.
We still drive the same modest, used cars we drove before I quit my job. We still have the same material items in our home, only replacing things that have worn out with time. In other words we realize that there are some things in our life we just aren’t happy doing and money is well spent in those areas.
loading....
Wow
I really love this piece especially about how Erica hires people to help her out. It’s refreshing to hear about someone who really understands the value of their time.
loading....
I can’t relate to this post at all. I am somewhat secure financially; however, I hope I’m never “secure” enough to smugly advise people to outsource things they’re too lazy to do to other countries and tout that as a skill.
To those claiming that outsourcing work to the Phillipines will help pull these workers out of poverty, that’s simply not true. People living in dung huts or shanties are not getting these jobs – she says they work from home, which means they have homes with internet access and video editing equipment. But hey, as long as she can tell from their emails that they’re happy, I guess it’s the right thing to do, right?
loading....
I love this post.
The PF blogosphere has been a tad monotonous as of late. There can only be so many posts on how to build a budget, make your own burrito, hang your clothes out to dry…
loading....
I don’t disagree with the premise of hiring people to do work you hate when you can afford to do so, but I think, Erica, your privilege is showing. I sincerely doubt your housekeeper’s “passion” is cleaning other people’s houses. Hire out your work, fine, but don’t act like you’re doing your maid a favor by letting her scrub your kitchen. This sort of attitude contributes to the barriers between classes, and frankly I see it a lot in personal finance writing. The general LACK of that attitude at GRS is why I read this blog.
loading....
I can’t relate to this post at all. The self congratulation around paying someone $3 an hour in the Philippines made me sick. If $3 an hour makes the Filipino VA happy, imagine how happy an American minimum wage would make her, how life-altering and philanthropic that would be.
So far the track record for female guest posters is pretty poor as far as I’m concerned, what with the designer purse rentals and paying Filapinas $3/hour. I might stick to the archives for my inspiration for awhile. I know JD is busy with his book but it is getting to be too many guest posters for my taste.
loading....
Wow, interesting discussion.
I used to share the view of some that extra funds should be donated to charity. However, on reflection, I think that Erica’s choices to outsource DO make a difference – to the people she pays. No administrative overhead (as many charities have), she receives value in return for her spending AND the person she pays directly benefits. Not sure if this is any different than, for example, charities that allow people to “sponsor a child,” except that someone works for the money and the giver receives a tangible benefit.
Perhaps conscious spending to enable people to support themselves performing valuable services is as virtuous as giving to charities. Even better, it gives the people being paid something to be proud of.
loading....
When we can afford it again, I’m looking forward to hiring a college student to personal assist for us. Well, I’m not actually looking forward to the hiring because that can be stressful, but I am looking forward to having someone take care of clutter (e.g. load the dishwasher) and that to-do list that seems to build up.
loading....
I hope, Erica, that you don’t have to call on a credit card glitch any time soon. You’ll be patched through to someone in the Phillipines or India to talk about your money–and good luck to you trying to understand what they’re telling you!
Outsourcing to other countries makes sense for people who want to save a few dollars–but horrible for Americans so in need of money to buy groceries or shoes/clothing for their children. (Other reader up above: Do you really need to see mud huts along our streets to feel empathy for people in need?)
And I DEFINITELY agree with the other reader: It’s absurd acting like you’re doing your maid a favor by paying her to scrub your kitchen floor.
loading....
I’ve read Erica’s stuff in the past, and this post is very similar in both writing style and topic….honestly, she seems like a well-written author, but I can’t relate to many of her topics. This one included.
loading....
I’m glad Erica is not depressed, but I really cannot relate to this post at all. Outsourcing one thing or another that you hate doing is fine, but outsourcing it all and pretending others love what they do for you….
I think there’s some joy to be found in all the little things we do in our lives (that we don’t always love). I don’t love folding laundry, but it’s nice to sit next to my husband and fold it all up and put it away. And I love cooking good food for my family (even though it can be a daily drudge sometimes).
I’m with Poultry in Motion.
loading....
I have liked the idea of the guest posts, as they strive to represent “all walks of (financial) life.”
However, this one sounded like it was written as an infomercial, and it really just turned me off to the writer’s post.
loading....
Hi,
I have to agree with Abe and Willow: all the guest posts are getting tiring. I read this blog because I really enjoy JD’s “voice”. I know guest bloggers provide alternative views, but they are no longer resonating with me…
Good luck with your book, JD. I hope it gets finished soon and you come back to us!
loading....
Hi – I’d just like to say that I appreciate, and would love to see more, articles on the more advanced stages of personal finance. I know budgeting and the realization that you need to spend less than you make is a critical stumbling block for many, but imagine that many of your regular readers have taken that step (we are nerdy enough to be reading PF blogs!
. I know I appreciate articles like this that help keep the bigger goal of financial independence/stability in mind and give some concrete steps of what can be done. Thanks!
loading....
I’m trying really hard to like this post, but I can’t help but cringe. The “I’m so much happier because I don’t have to do menial tasks!” attitude can be a little hard to swallow when you haven’t reached financial independence (or may have quite that level of freedom).
More power to her, though. Different things make people happy, and we have to work with what we’ve got.
loading....
I saw nothing in the article to suggest that Erica was actively seeking out people in other countries to work as virtual assistants at a lower rate, instead of people in the US? I’m guessing she didn’t put a classified ad on Philippine Craigslist – she probably went to a VA clearinghouse and said “I’m looking for someone to do X” and they said “Here’s a qualified candidate and this is their going rate.”
Personally I like this idea, even though I can’t relate to it just yet. It is my goal in life to have someone come clean my house though – I hate housework.
loading....
I think the author is missing her own point. Hiring people to cook or clean isn’t what made her happy — it freed up time, to be sure, but what made her happy was getting back to work.
There are many posts here on GRS about the subject of money vs happiness, and I see it in my own life and those around me.
Many, many people focus all energy on accumulating enough money to be happy. Some make it, and are happy for a bit. The author relates this experience.
To be happy, though, she started up a new business. This new business is more closely helping other people, which I see as a step in the right direction.
It is my hope that she will be able to either sell or outsource her new business also, so as to take the next step. Having gone from business serving self to business serving others, perhaps she will move forward to freely serving others.
Christ, love, and charity. The giving of oneself without expecting anything in return. Serving others, and in turn being a part of something greater than ourselves. In this small, short, limited life, that is where we find peace, contentedness, purpose, and happiness.
loading....
Great article. This is exactly where I want to be within a year or two.
It’s interesting that many people say, “I can’t relate.” Here’s the thing: the path to amassing wealth is fraught with giving up control of things like labor, cleaning, etc. Knowing that you can’t handle it all is an important step to becoming wealthy and affects scalability.
I don’t think she sounds smug at all. It could be that some are threatened by her candidness about a very taboo topic – outsourcing. It’s personal to many, and can be hard to excuse for that reason. However…she uses a mix of domestic and international help, so…I’m not seeing where she’s sold anyone out.
We also have a very Western-centric view of the rest of the world sometimes. We imagine that those who are getting higher money are keeping the poor down, and that, by hiring those educated, middle-class people, we’re perpetuating the cycle. We may not think that that $3/hr is going to the poorest inhabitants of that country. But…we don’t know. We cast our own biases on the situation and twist it in such a way that the rich person is bad, and the poor are downtrodden. This is poverty thinking at its finest. Many times, that salary is shared within families. So, yes, it may be going out to the countryside.
But we don’t know.
At any rate, I’m working on doing more than relating to this post. I’m focused on having it myself.
RE: Charity – Once again, people assume because she’s rich and doesn’t toot her own charitable horn, that she doesn’t give. How do you know? You don’t. However, there’s virtue in poverty, right? The rich person MUST be doing something greedy to keep that money, amirite? I think the best giving is the silent type, and she may feel the same way. How you fill in the story blanks of this very fortunate woman says everything about your money mindset.
loading....
Seriously? (sorry, I’m usually a pretty calm commenter, and its been a long day — I really mean no offense)
I don’t think Erica’s maid is following her passion, nor do I think Erica does — so should the entire field of low-wage, low-skill, often difficult work be eliminated “so that everyone can pursue their passion”? THINK.
I love the quote “its absurd to think you’re doing your maid a favor by letting her scrub your kitchen floor” directly below an indignant comment about sending work overseas — um… ironic much?
Julia — income generated through small business (and skilled workers) both trickles down to the local economy and does far greater good for development than charity, which is the primary vehicle to target the poorest in developing countries (and the Philippines has 3 P’s and one L)
For what it’s worth — I don’t love this post or its message much — but these comments are the most disappointing!
loading....
Too bad I don’t have $1 million to blow to rid my life of all the things I hate to do.
loading....
Hmmm, I too feel uncomfortable with the idea of paying someone in the Phillipines $3 an hour and calling it a good thing. It’s another example of that sense of entitlement that we in first-world countries have, and our fortunes are built on the backs of people who weren’t as fortunate as we were because of where they happened to be born.
Maybe that’s a good wage in the Phillipines, but what if they wanted to move to North America? Or take a vacation to another country? Not such a great wage anymore, is it?
However, it’s really not my place to judge, and maybe there is something I don’t understand.
I do have to say that I would LOVE to even start a business, but I have no idea where to even begin. I wouldn’t even know what kind of business. So I find it admirable when people build their own businesses, especially at such a young age.
loading....
My takeway from this article is to look at all the things I do (outside of work) that are unpleasant to me and evaluate 1) whether outsourcing the task would provide me with overall value (value=benefit > cost) and 2) if I can justify the cost within my budget.
As long as the cost can be worked into a budget that meets the criteria we talk about on this site and other PF sites every day then it is worth considering as a quality of work improvement.
loading....
I’m a daily reader of GRS, though I don’t often comment. However, I just want to back up some of the other comments and say bring back JD! It’s one thing to write an article about improving your best asset – your ability to make money. I appreciate posts about negotiating your salary, starting a side hustle, etc. And I understand the need for posts about using wealth to create more wealth.
Yet, it’s another thing entirely to smugly opine that you’re improving somebody’s life by granting them the privilege of cleaning your kitchen and washing your dirty underwear. What’s next? Her toilet’s going to break and she’s going to hire a plumber and ask him, “Aren’t you glad I had that third burrito? You’re welcome.”
loading....
Umm…am the only one who thinks that $1M at 26 isn’t going to last her very long if she used some of it to pay of her debt and she continues to spend as she appears to be spending? I don’t remember the article speaking of her savings, retirement nest egg, etc. Indeed, she mentions not even owning a place – that is a hefty chunk of per principal for a down payment right there – if she ever decides to buy.
I get that $1M is a lot of money. But at 26, that is a lot of her life ahead of her.
At my age (31), the retirement calculators put me at needing $2M to retire comfortably – i.e., continue working to retirement, then living off of $2M in today’s money.
Anyway, just my two cents. I wish I had more facts on how much she has socked away and any savings goals that she still has. Plus, whether her videos are generating enough income for her to not have to touch the principal she received from the sale of her business.
loading....
JD
I guess these guest articles are really deviating from the purpose of this website.It is supposed to be about how to get rich slowly but not how you get windfalls and brag about it and how you brag about being able to hire labor from philippines for $2/hour.
I really like articles written by you and these guest articles are really disappointing.
loading....
I love the comments on this story. They really show how the ‘poor-and-going-nowhere’ think about the world.
-start snarky sarcasm-
Ohmygod – you pay someone to clean your house and dare think it’s a win-win? You are degrading that cleaning lady. You pay a freelancer (and a non-US one GASP!) to do work for you at a rate you both agree on and think it’s a good thing? HOW DARE YOU!!?!
-end snarky sarcasm-
The article was ok, but take a look at yourself if you posted or agree with some of these comments saying ‘i can’t relate – i’m soooo poor, and you take advantage of poor people. hire only US workers. blah blah blah.’
loading....