Monthly Archives: September 2015

Small town living – a path to financial independence?

Here is a reply I left recently at my favorite financial blog, Mr. Money Mustache.  Pete, a fellow engineer, spent the last several years challenging and cajoling people to become financially independent.

He “retired” at age 30, and now does what he wants with no financial worries. Lives a nice lifestyle in nice digs, too.

His formula is simple — cut consumption and increase savings. When your income from investments equals your expenses — viola — you are now financially independent. He did it in seven years, and you can too.

So what does this have to do with consulting? You don’t need to be fully financially independent to make your JumpToConsulting, but you DO need some reserves. Assume at least six months with no income.

So if you are overconsuming and living pay check to pay check. you can’t make a JumpToConsulting, or any other jump. You first need to cut your expenses and change your mindset and your lifestyle!

One way to do this is to move to a small town. That is what my older son (the inspiration for this blog) did this year. Here is his story:

Don’t overlook small towns – particularly those about 100-150 miles from a major city.

After living in the city, my older son recently moved to a small town in Minnesota – population 5000. About 100 miles from Minneapolis, it is beyond commuting distance so it is no longer a suburb. But it still close enough for city resources (hospitals etc.) or a big city “fix” if needed.

They bought a nice house for 1/2 the cost in the city. The grade school and a park are across the street, and the high school is a few blocks away. The kids love it – they can bike all over town with their new friends. His commute is under ten minutes of country driving. His wife works in the high school as a teacher’s aide, and loves it.

They were concerned about leaving the city, but have been pleasantly surprised. Small town festivals –wineries — microbreweries — parks with uncrowded campgrounds. It may be rural, but there is still plenty to do. And the big city is still only two hours away.

Looking for a job change, he stumbled – almost by accident – on an executive opportunity with a small medical manufacturer. The company was delighted to get someone with his talent and experience, and they pay him accordingly. The school was delighted to hire his wife too. Big city wages with small town cost of living — how great is that? Plus the quality of life.

These opportunities abound, but you must seek them out. So if you are not yet financially independent, consider this as one way to speed things up — and enjoy the journey immediately. My son admits he never dreamed they would live like this.

A few more details on my son. After taking a company through a complex acquisition, he no longer had a job. Small thanks for helping grow the firm by 10x in a couple of years as their financial guru.

So he took his MBA in finance, his experience, and his proceeds and hung out his shingle as a consultant. The early discussions with him were the catalyst for this blog.

Although he was building the business, it was going slower than hoped. When one of his clients make him an offer he couldn’t refuse as the VP of Finance for a start-up, he jumped at it. Besides, like his dad, he has a love of small business.

But after a couple of years, it became obvious the start-up was stalling. Furthermore, there was friction with the founder, who was unwilling or unable to make necessary changes. (Been there myself.) So rather than wait for the axe to fall, he started a job search.

One interesting opportunity was with a medical device manufacturer in a rural community. As both he and his wife grew up in the city, there was some reluctance to purse it. Still, the job sounded interesting, so they decided to go in a new direction. So far, so good.

I’m proud of my son for taking that chance, and for working hard, like a good consultant, to make a positive impact on the world.

I’m also proud of his brother. A financial attorney in a large Manhattan firm, he recently took a chance and initiated a special project on alternate currencies. As their “Bitcoin-guru”, he too is working very hard to make a positive impact on the world.

Well done, both of you!

P.S. Thanks to the Internet and Fed-X, one can easily consult from small towns. And depending on your niche, you may even find plenty of clients right in you own backyard. 

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