We Can Take 3 Days of Vacation Every Year For The Rest of Our Lives Without Ever Having To Work For It.
Let’s talk about the formula no one has taught you in school.
Wouldn’t it be better to travel without worrying about running out of money?
This story isn’t only about the destination.
It’s about the mindset. It’s about how we got there.
And how you can join us.
“The only real prison is fear, and the only real freedom is freedom from fear.” — Aung San Suu Kyi
Last year at this time Katharina and I have been at a truly beautiful, yet magical place known as “Santikhiri” or “Mae Salong” in northern Thailand.
One’s destination is never a place, but a new way of seeing things.
-Henry Miller
The area is famous for its “local oolong tea” and the former production of opium. It’s been a “must visit”-spot for us on our journey along the Thai border with Myanmar.
Most of the citizens nowadays still have Chinese roots as their ancestors were fugitive of the Chinese army.
This place is not really well known and only visited by a couple of tourists.
Most of Thailand’s tourists tend to stick around Chiang Mai and avoid rural areas like Mae Salong.
It’s a place off the path that invites you to sit down with the locals.
For us, this hill-tribe-village has been our home for three days packed with adventure, discoveries, and delicious food.
Traveling Without Working
Let’s return to the first question.
Wouldn’t it be better to travel without worrying about running out of money?
Here is the truth about achieving super ambitious goals:
It probably won’t be easy.
But it is most likely possible.
This story is about the first step. Leave the comfort zone and getting somewhere always starts with the first step.
If you are still here, this might be yours.
Let’s walk together for a while.
Have you heard people talking of passive income streams?
There are several approaches to create a passive income for travelers. Those are the most known and also the most competitive:
· running a blog
· selling online products (eBooks, courses, etc) or
· licensing your photos.
But, there is also another way.
Katharina and I earn a decent amount of dollars through the companies of which we own shares.
Every year we get cash straight into our current account. The only homework left for us is to withdraw the notes.
I know.
Most people think this can’t be for the average person. You probably think this only for the rich and privileged.
That is not true.
Don’t label it straight away.
That’s too easy.
That’s your comfort zone talking!
“Aim for the moon. If you miss, you may hit a star.” — W. Clement Stone
Katharina and I are pretty average.
Neither of us was born rich. We have worked for everything that we have achieved in life.
It’s actually not that hard to design a reliable passive income stream.
It requires planning, preparation, commitment, and upfront investment.
Does it still sound unrealistic to you?
Well, this story might be written just for you.
What School Doesn’t Want You To Know
What is money for you?
We are used to considering money as a medium of exchange and as payment in return for our labor.
We work from Monday to Friday, in shifts and sometimes even on the weekends.
Living from paycheck to paycheck is normal.
We are raised to live up to society’s expectations.
And it makes perfect sense.
The economic machine works like that.
Someone has to make the stuff money buys. The economy consists of transactions.
Every exchange of money for products and services is considered to be a part of the system.
But that’s only one part. A transaction is also the exchange of money for assets such as stocks, real estate, or deeds.
The knowledge and tools required to assess the power of owning assets are not covered in the school’s curriculum. On purpose.
Do you remember what you learned in school?
I do.
I read a lot of old books, learned to rephrase tales, and rearranged formulas that I did not understand.
I have not even learned to question critically. School wanted me to be the average joe who later lives the average life.
Here is the equation no one has taught me in school:
1 day = $1,400.
One day of freedom with no chores and responsibilities in low-cost countries in Asia, South America, Europe, and Africa for the rest of your life requires today an investment of $1,400.
Life has much to offer for the ones ready to think differently and to be brave enough to act against society’s consents.
The Ridiculously Easy Math
Back to passive income.
I mentioned we own a share of different companies. I prefer this term over “investing in stocks”. Technically both terms are correct but the letter sounds a little too speculative to me.
To make your asset return money for you, you only need to invest upfront, do the research, and leave it to work.
Here is an example.
An investment of $1,400 in a stock with a 5% dividend yield pays out $70 in dividends. Each year.
$70 equals one day.
If you need three days, you need to invest three times $1,400.
Does it make sense?
No?
That’s OK. Here are some stories that might help you to get onboard.
Katharina and I own 35 IBM shares. Those shares are worth $4,375 as of today and currently pay out $55 per quarter or
$227 every year.
This is called a passive income stream.
This is what has paid for our trip to Mae Salong.
And finally, this is what pays for our next three days trip once traveling is allowed again.
Do you want to walk further?
Alright, here is the second step for you.
Why IBM?
Here is my investment theory in short:
IBM is a leader in the field of artificial intelligence and blockchain, two key technologies growing at an average growth rate of 50 % per year. Today the company earns the majority of its revenue through their declining service business with low margins.
At the end of next year, IBM spins off its infrastructure service- business as an independent company. The new IBM will focus on the highly profitable hybrid cloud market with gross margins of more than 70%, with more than 50 % of its revenue being recurring.
The hybrid cloud market is estimated to be an one trillion-dollar market, with IBM currently making only $20 billion per year.
For the first time in more than ten years, IBM finally has a Chief Executive Officer with a tech background. This guy is laser-focused to turn the company into a growth story once again.
“Separating the managed infrastructure services business creates a market-leading standalone company and further sharpens our focus on IBM’s open hybrid cloud platform and AI capabilities. This will accelerate our growth strategy and better position IBM to seize the $1 trillion hybrid cloud opportunity.” — Arvind Krishna, IBM chief executive officer
I was just about to write a few paragraphs about the valuation when I discovered this very well-researched video.
In fact, it’s the very best stock related video on Youtube I have ever seen.
That’s it for IBM and Mae Salong today.
I hope you have enjoyed this little journey to Thailand and towards financial independence.
Not until we are lost do we begin to understand ourselves.
Henry David Thoreau
Disclaimer: We took all the pictures shown in this article ourself and call ourself the proud copyright owner of them:)
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.
I hope to see you again in the future.
