Financial Preparation for Downshifting
Basically - getting your House in order!
You, your family and friends are now behind your dream and thngs are pretty well set up for the big day. Great.
Unfortunately though, finance cannot be overlooked at this stage. Money does to a certain extent make the world go round and if you haven't any - it comes to a rather abrupt halt !
No more are the midday snacks, the morning paper, the chocolate bar on the way home, even a bunch of flowers for the wife. But, the positive side is that you don't need them anymore and as for the flowers, I have no doubt you'll soon be having a bit more work to do in the garden and grow your own anyway.
During all the preparation why not have a re-look at your mortgage, life assurance and other policies. There's a good chance you can shop around for better deals or release some equity somewhere.
It's a good thing to look at your transportation. Do you have two cars and you do really need them both ? Would a smaller car, or even a van be better.
The more open ended options you have, the better. I had approximately 6 months salary in my bank when I downshifted, in two years it had gone. Mainly because I didn't want to upload my work load and second because I was not aware of those emergency moments such gear boxes, accidents and going for cheaper options with equipment which simply didn't last the distance.
It pays, if you're going into a small business to buy the best whilst you can afford it. It'll last longer and the return will be higher.
I have a main job through summer (see My Story), but have to do all sorts of things during the winter to keep myself afloat, things I'd have never imagined
Luckily I've managed to ride financial crisis storms, not through skill, but by wheeling and dealing a bit and a lot of luck thrown in.
On occasions some downshifters find themselves earning more after a while. What was to be a new life of less pay doing something enjoyable becomes, maybe surprisingly, financially successful.
But for many, life isn't like this and can be 'what seemed to be a good idea at the time' can become a nightmare.
In these situations you need to diversify your work as much as possible. ie If there aren't any decorating jobs to do, buy a Hedgetrimmer and cut hedges etc.
My direct debits exceed my estimated earnings, what can I do to cut back ?
Downshifting & Finance
Judge your success by what you had to give up in order to get it. Dalai Lama
Copyright © Richard Cannon 2001 - 2015