Wednesday, August 09, 2006

BREAK EVEN THEORY (BET)

This is a theory ... one of mine ... not the only one ... about what to do out the rest of my life ... I call this one the ... BREAK EVEN THEORY (AKA BET ... which tells a lot about it) OF MY LIFE ... the idea is based on 3 basic truth ... 1. I don't want to die with any money left on the bank account 2. I don't want to die with any vacation days not spent 3. I love to travel and backpack more than anything else ... on top of that I am 35 and I have some savings (not a lot ... but some ... for one reason or an other ... I never bought an apartment / house) ... and I am not planning to get married ... sooooo ... what I was thinking is ... if I will continue like this ... I will get to a certain point in my life when I will have more money than time to spend them ... I call it the BREAK EVEN POINT ... so why not leave everything and start backpacking ... and continue forever ... backpack in the country that I love the most (not the Western world) costs $1,000 / month ... let's assume a margin and assume that I will spend the double ... like $2,000 / month ... this makes $25,000 / year ($24,000 + $1,000 for Xmas) ... if you try to make a model out of this crazy idea ... this is what you have ...

... the picture was taken few weeks ago when I amudse for almost 20 minutes with my BET my colleagues ... the theory is the one on the left ... on the right there are work related b*llsh*ts ... almost forgot ... you need to make an assumption also on the age you will die ... on the example for my colleagues I made 90 years old assumption ... even if I have the feeling that I will get maximum to 70 ... look to this picture that, for a coincidence, I took when I turned 35 years old in the YELLOWSTONE NATIONAL PARK ... kinda of a hint for me ... probably I am really HALF WAY ...

... anyways going back to he formula ... the formula is ... YEARS TO BREAK EVEN = [(Supposed Age at Death - Actual Age) * (Yearly Spending After Break Even) - Actual Savings] / (Yearly Savings Before Break Even + Yearly Spending After Break Even) ... and ... the numbers on my actual savings and annual saving on the whiteboard are fake ... but using them ... if you are 35 years old, have already $500,000 savings, an annual $50,000 net savings ... and you forecast to die at 90 ... you will have your break even in 12 years ... when you will be 47 ... which is the number on the board ... unfortunately it is not true for me ... but I just wanted to see a small number as a result ... you know ... marketing ... trying to convince my colleagues that it was a good theory (not very scientific, I know) ... :o ... but ... you can try with real numbers for you ... the formula is very simple ... and ... in a way I know it is crazy ... but on an other way ... one of my favorite quote is "Your dreams are never silly; depend on them to guide you" ... and I believe in it ... let me check in few years where this theory will carry me ... but again ... this is not the only theory I have for my life ... I have an other couple of them ... one is related to B&B and an other about SURFING ... an other day ... an other post ... :o

3 comments:

after all is said...

I absolutely love it Andrea!!!!! Can't wait to hear the other future theories :)

Anonymous said...

dude
I know all these calculations and thoughts already... all is true and it is not a big deal to finance loooong trips, but what I have realized is that you eventually get tired and want to have routine...yes yes routine..familiar places, people, you want your own bed, your own stuff ... After traveling for too long I have realized that for me the best period will be 3 months to really enjoy, but to be left with a taste for more...

Let me BET that you will end up with someone, despite what you say... I know you...

Anonymous said...

Dorothy Parker said “I don't know much about being a millionaire, but I'll bet I'd be a darling at it.”.
I agreed with her, so... down with calculation and break-even points! Do you know a millionaire that could be interested in a lovely italian girl? kisses. lara PS: In Italy "ferragosto week-end" is approaching... we'll enjoy this little vacation on Mount Adamello and we'll think about you eating a big plate of "polenta&capriolo" (roe deer with sort of thick porridge made with maize flour
... in english it doesn't sounds good... but it tastes terrific)

 
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