"How do you afford to do that?" A dirtbag's guide to the financial hustle.

At some point it's just about taking the plunge.

This week we're in Lake Tahoe, having just hiked 120 miles of the Tahoe Rim Trail, and we're preparing to host an adventure storytelling event tonight before working the Tahoe 200 at the end of the week. After that we'll head back up to Seattle before going to Portland, Bend, Moab, and then New Zealand in October. Earlier in the year we went to Calgary and the Sunshine Coast, and if things pan out, we might make it to Mexico by the end of 2018 as well.

A question that we were asked recently is how we afford to do all of this kind of stuff, and I've been thinking about how people afford to live their dreams a lot recently. Budgeting may seem a bit unrelated to all this travel and adventure and stuff, but it's nuts and bolts, and it's come up in more than one conversations recently.

I've got a couple of hours this afternoon, and I wanted to organize a few thoughts around finances specifically because I think it's helpful to provide real life examples of how people do the kind of thing we're doing - leaving a traditional full time work path in order to travel, play outside, and start creating your own thing from the ground up - without venture capital, a trust fund, or a wealthy benefactor. 

We've pursued this kind of lifestyle for about 3 years now, and in that time it's been really helpful to have some role models ourselves (thanks Urbanski's!). I don't have any magical secrets here, but I do want to take a minute to outline the basic strategy we've been using to make this work. It's easy to make assumptions that this type of lifestyle is inaccessible to most people, and it's helpful to make things concrete and point out that there are real-world ways to figure it out.

I'm calling this a Dirtbag's guide to the financial hustle.

1) Absence of debt and marketable skills create a massive amount of freedom, even if your income and savings aren't huge.

For a bit of essential background, the life situation that Angel and I find ourselves in is a pretty good one, from the perspective of an entrepreneur.

We aren't independently wealthy, and we can't afford not to make enough income to meet our expenses for more than a couple of months. We aren't willing to take loans out to finance our lifestyle because we don't want debt, so we have to figure out a hustle from month to month so our income reliably meets our expenditures.

​But, after 15 years working and saving diligently in our careers, we don't have much current debt, and we have a fantastic safety net because we have highly marketable skills. I'm a nurse. Angel's a nurse practitioner. If our given hustle isn't working, it's really easy to pick up shifts in order to quickly make enough money to survive. 

For me, that's a big part of the reason that I feel comfortable enough to take the chance on figuring out how to make money in other ways. If it doesn't work out, we both have solid fallback options.

2) There are only 2 difficult steps: a) believe you can figure it out, and b) commit to hustle until you do.

From a position like ours, my personal experience has been that the most difficult steps in making a transition from a stable, long-term career path into something creative, entrepreneurial, and travel/adventure-based have been the psychological steps required. 

I'm personally a creature of routine who likes stability, and it hasn't come naturally to me to give up a traditional contracted job in order to drift around and figure out how to survive. So the first difficult step, for me, has been to believe that I can figure it out. That somehow or another, I'll figure out how to make enough money to survive. Somehow, Angel has that instinct, so she's been the rock.

And related to that, it's difficult not to just retreat back to the familiarity of a comfortable job. I'm a nurse, I can work whenever and where-ever I want. There's a bit of hyperbole there, but not much. But in order to do what we're doing - traveling, creating a business, maximizing our flexibility - we have to be committed to the hustle of making it work across the long haul. That requires a continued commitment to the idea that we're going to figure this out - how to make a passion project pay in a way that's sustainable. That confidence might not always come naturally, but is reinforced the longer we do it, and the more years we manage to make ends meet living a non-traditional lifestyle.

3) The goal: lower expenses to an amount you can meet with income.

Because of our lack of debt, our basic equation is that, in order to keep Boldly Went-ing, we just have to figure out how to keep our expenses lower than our income. The way we've been achieving that, I think, is probably what you'll find most helpful here.

In order to achieve a balanced financial equation, there are really only two things you can do: drop your expenses, and increase your revenue. This is where the rubber hits the road: the practical answer to the question of "how we afford to do what we're doing." How do we make more than we spend while also traveling around, making up a business, hiking a bunch, doing what we want?

The two categories of actions we take include dropping expenses we can live without, and maximizing the number of revenue streams that we can cobble together.

a) Dropping expenses

For us, in 2018, dropping expenses has meant the following things:

• We sold our condo in Seattle because we couldn't rent it out in the long term, and a large percentage of our income was going towards our mortgage - and would for the foreseeable future.
• We bought a house in Tacoma that will likely appreciate in value, but more importantly we can rent out for a decent profit above cost.
• We have no house at all for the next four months because we're renting ours out.
• We got rid of one of our cars so we could stop carrying insurance on it..
• We switched insurance carriers to lower our monthly bill.
• We free camp, hike, and sleep outside most nights when the weather tolerates.
• We couch surf with friends when we can't do that.
• We use travel points on our credit cards whenever we can to pay for expenses.
• Everything's from a thrift store.
• And maybe counter-intuitively - when we wanted to spend a chunk of time focusing on the business, we went to Mexico to do it. Cost of living was much lower there. It costs less to take a month off to work on a project in Veracruz than it does in Seattle.

b) Maximizing revenue streams.

I mentioned above that we haven't had traditional contract-based full-time jobs for 3 years. But that doesn't mean at all that we don't work. In fact, we work more now than when we would if we did have normal jobs. I'm almost sure of it. It's just that the jobs take the form of a series of side-hustles. And they're organized so that we can do them in a way that's compatible with a peripatetic lifestyle. 

While for most of our lives, our sole income streams were traditional jobs, in 2018, there have been at least 10 ways that we've earned money. In roughly descending order, from most to least lucrative, here are our the ways we've made money this year (not including investments because we’re not planning to touch those pre - retirement, so the money’s not “real” yet for us):
​

• Nursing - i.e., my per diem job where I can pick up shifts as needed/possible.
• Medical direction at outdoor events: i.e., Angel's contract with Destination Trail's series of 200 mile races this late summer/early Fall.
• Renting out our house
• Selling tickets to Boldly Went events.
• Patreon donors - people who believe in what we're doing giving little bits of money monthly to keep it going.
• Tour guiding through Boldly Went in the Seattle area.
• Renting out our Oru Kayaks
• Podcast/event sponsorships
• Selling merchandise
• Selling our personal stuff. 

None of those revenue streams is big, but pieced together, they're enough to allow us to travel around, work on establishing the business, and work on creating more revenue streams - writing a book, trying to build bigger events, finding more sponsors, and maybe picking up more fun side jobs that don't feel like a burden.

What’s life feel like in that context? Pretty damn flexible. There's no one job obligation that feels like it truly "owns" us. We have to figure out how to make money to keep doing what we want - but it's the "keep doing what we want" idea that feels like it's the focal point of our life, rather than the "making money" part. Life feels creative, and a bit unstable, but not in a threatening way because we always have nursing as a fallback. Our taxable income at the end of the year will be really low, but I definitely don't feel poor, because we have figured out so many options. And I think a variety of options in life is the true opposite of poverty. 

Mainly, life these last few years feels like investing in something we believe in with this project - something really personal, creative, and cool.

Will our income streams be different next year? Almost definitely. Maybe we'll find some online income? Or take different side jobs? Or just work more at the hospital? Or less? Who knows? It's weird - it almost doesn't matter, because it's not the point. The point is finding out a way to afford to do what we're doing - traveling, building a business, working on passion projects, creating something cool in the world that we believe in.

If you like this post, you'll also like my book The Dirtbag's Guide to Life. It's a fun guide like this, but for your entire existence.

Another stream, which we also can’t continue to do this without is Patreon - where lots of individuals chip in a few bucks to help keep our podcast, events, and other content happening. If you listen to other podcasts, a lot of them have entire, large production teams. Our team is us and our patrons. We hope you'll check out our page - it's a great place to both help out concretely with a couple bucks a month, and to provide feedback and advice about how we can make what we're doing more valuable!

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