DIY – do it yourself phenomenon began its root in the homes. In the last twenty years, with the explosion expansion of The Home Depot, Lowe’s and the likes has inspired many home owners to fix and maintain their homes without the need of the services of others.
This article expands the DIY idea beyond the nuts and bolts of the home and generalizes the concept to the everyday living – when and when not to utilize the service of others.
Let’s begins with an actual event I came across few years ago!
One particular morning, I was mowing my grass when the neighbor crossed the street for a casual morning conversation.
It has been three years since I have arrived at the financial independence mile marker. For three years, I decided to completely disengage from the working force and tested my lifestyle against the earnings from the investments.
Yet, in all the conversations with friends, family and neighbor – I am working from home!
Initially, becoming financial independence at the age of 45 is such an unfamiliar notion to many people such that the conversation always ended with the deer in headlights situation or just outright awkwardness.
After the formal morning greeting, Tom (not his real name), asked me if I am aware of any job opportunity that pays in the range of $25 to $30 per hour.
I assumed Tom was looking for a new opportunity, because as far as I knew Tom was currently employed.
While we were discussing the opportunities, Tom’s lawn contractor showed up and began its service. Instantly, I had a financial Eureka moment about how innocently we utilized the services of others without the awareness that – financially, the service is above our pay scale.
A crew of professional lawn-care team made up of two persons can do the average size lawn in about 15 to 30 minutes for an average fee of $40 – that is $80 to $160 per hour.
Tom has an associated degree from a technical community college. The industrial pay scale for his service ranges from $20 to $40 per hour. He was looking for an opportunity on the lower end – $25 to $30 per hour – yet, he was hiring a service that charged $80 to $160 per hour.
I did not tell Tom to go back to his yard, fire the lawn-care service and seize the opportunity to make $80 in an hour – minimally!
Let’s for a moment and imagine that everyone life purpose is to be the wealthiest person on the face of the planet.
To achieve the financial endeavor, the math equation is simple: incomes – expenses = savings.
Let’s say there are only two persons live in the Small-Ville, you and another person. Both of you travel to other towns for work and return home every day.
To maintain the lifestyle, you both require each other service one a month and pay each other the same competitive rate as the employers from the other town – he/she is making $50 per hour and for your skill and service you are paid $25 per hour.
It is quite obvious that by just the metric of income you are behind in the competition to be the wealthiest person in the town.
However, it is the monthly expenses of $300 more than him/her per year for the requirement of his/her service that seal the fate of the competition (30 x 12 = 300).
The above example can be extrapolate to three, four, five, six and 7 billion people in the world and the end the result will be the same. If your lifestyle requires the service of others who are making more money than you – the financial game is over.
Financial independence is not the endeavor to be the wealthiest person on the planet. But, it shared the same math logic: incomes – expenses = savings.
The financial independence target is a discoverable number based on the individual lifestyle and financial fitness.
Financial fitness is the individual capability exerted in the financial competition. The lifestyle must be chosen in such a way that in-line with the individual’s capacity to do it yourself without the reliance on the services of others – who makes more than you!
Having the financial independence plan does not mean the absolute DIY way of living.
So in the designing of a lifestyle budget, which are the services financially sensible to let others assist in the everyday living?
Services that cost more per hour in relative to the personal income are primed to be added into the DIY package.
And of course, services that cost less per hour in relative to income are candidates for others to take on the responsibility. The precious time can be utilized to earn additional income, invest into the skill or trade and lastly for a moment of relaxation.
In 1934, Abraham Maslow published “A Theory of Human Motivation”. In the book, he organized human needs in a hierarchy structure –
- Self-Actualization
- Esteem
- Love & belonging
- Safety
- Physiology
Ninety-five percents of the population are living out their entire lives in level four and five because of financial constraint.
One, two and three elevations require an immense level of requirement in autonomy and the unlimited of time – a requirement only a small percentage of the population has the proper independent mindset to meet.
Financial independence is the genesis for autonomy and time.
Do it yourself, DIY, is the first step on the financial independence path.
Let’s play the game of life!
