Saturday, March 8, 2008
I get this a lot: you seem to spend half of your life on the road -- how can you afford this? Here's the secret. Save. Save hard. The general rule of thumb is that if you're saving 10% of your income, you're doing pretty well. Rubbish. If you're saving only 10% of your income, that means if you lose your job after 10 years, you have one year to find an equivalent job before you're on the street. Hmm. When I'm in the US I save about 70% of my income. Have since I graduated. And invest almost all of that. For the long-term, Benjamin Graham / Warren Buffett style. Last time I took a year off, interest alone paid for half the trip. This time, I'm hoping interest will pay for the whole thing, plus some left over. Save hard. Invest for the long term. Travel on the cheap. That's all there is to it. That's the secret.