A classical title for my plea to stimulate simplicity.
Life is complex if you want it to. Can we make it simple again? Sure! Just let go of some of your activities and luxurious materialism. Easier said than done? Probably. So, what can you do to make your life simple again? Simply give up more!
To set an example, my wife and I decided to sell our house. We are moving to a smaller house. Of course, we can make a lot of excuses for not doing it. At the same time, we did create a list of what it can and will bring us instead. The most important one for us is freedom! We want to create more freedom, so we can travel more, invest more in personal growth and help more people. By downsizing we can actually save a significant amount extra every month. Of course, we’ll be happy in our new home too! And this doesn’t mean we’ll buy a dump 🙂
So, how does it work? Here is a fictitious example :
Value of the house : 300,000 €
Mortgage : 150,000 €
Net : 150,000 €
New House : 180,000 €
New Mortgage : 120,000 €
Own Means : 60,000 € + costs notary, energy documents… 20,000 € = 80,000 €
Net Profit : 70,000 € (=300K – 150K – 80K)
With 70,000 € you can buy yourself quite some freedom 🙂 And yes, I know, it’s just a fictitious example, just fill it in for your own situation and be amazed how much “extra” freedom you can get by downsizing.
On top of that, if you invest this at a 20%/year rate (ask me how), you’ll double it after 4 years! Of course, you can also spend 10,000 € this year and gain 12K € next year (@ 20%), of which you can spend another 10K € to enjoy your freedom. And you could do this every year. In my world spending 10K € on extra freedom is fantastic! Oh, by the way, you could repeat it yearly. And you might consider giving away 10% to your favourite charity too : 1,200 €! The remaining 800 € will probably cover extra costs, taxes and partially inflation, right?
So, now that I’ve shown you how to do it, what steps are you taking to simplify your life? Sure, it takes courage and it doesn’t have to be the same plan we are executing, but I am sure you can downsize easily too. So, let me know which actions you are taking…