What I Learned Today 005: Relative Income

by | Jun 30, 2013 | Blog

Today I was reading about the ‘New Rich’, which is basically the idea that time and freedom is worth just a much or more than actual money.

It starts with looking at the difference between absolute and relative income. Absolute income would be taking a view that someone makes $100,000 a year for example, and not taking into consideration the fact that they might be working 80 hours a week. Relative income is thinking about it terms of time. So if someone is making $100,000 a year but only works 20 hours a week, they’rein a significantly better position because of the energy expelled to create that income.

The idea of the New Rich makes the argument that it is more worthwhile to make say $50k a year working 20 hours a week, than it is to make $100k a year if you have to work 80 hours. As long as $50k will support the lifestyle you want. Most people want the ‘freedom’ that is associated with making more money, but if you can create even more freedom by working less then you’re coming out ahead. In our example the 50k person makes roughly $50 an hour, where as the 100k person makes only $25 an hour.

This type of lifestyle mind shift can have an incredible impact I your happiness and can get you to move away from the ‘spend all my time now to retire later’ mindset. Instead you will be enjoying life as it goes by while you are young and having freedom because what you do doesn’t tie all of your time to simply make you more money now.

This is an interesting point that is made in the ‘4 Hour Workweek’ book by author Timothy Ferris. I’m interested in digging further.

– Joel

The Difference Between Sound and Noise

The Difference Between Sound and Noise

A sound is simply a movement of energy in the world - just a happening. When we label something a sound, it has no other connotation. However, when we label something a noise, it's a sound that we’ve decided is undesirable. It's amazing how we do this with nearly...

It’s Time We Talk About Adapting to Climate Change

It’s Time We Talk About Adapting to Climate Change

As I sit at my brothers house for the 6th day in a row, I wonder how well humanity is actually dealing with climate change. We've been evacuated from our home in West Kelowna, and the wildfires are still raging through the city. I'm not referring to the long-term...

Specialists and Generalists

Specialists and Generalists

I used to think I was scattered and inconsistent. That I was less worthy because I have tried many things and didn't hyper-specialize in one thing. But now I know that's bullsh*t. The world needs specialists, and it needs generalists - here's why. The problems we face...

A Clouded Heart Can’t Change The World

A clouded heart craves happiness but will never kiss the sunAnd even the noblest intentions continue casting shadowOnly through seeing with a pure heart will one find peaceWhere the light is not sought, but radiates with ease In this, one mustn’t expel effort to...

Rise With Randomness

In the randomness we writhe And yet chaos breeds a time That we cannot merely run from But can actually build our home on. When we run from disorder We forget the chance to be the sorter, To be the one who surfs with the waves Instead of the drown one, we can save....