Galt's Gulch - My Version (Part 2)

Galt's Gulch - My Version (Part 2)

In part 1 of this topic, I mentioned that there are 2 ways to withdraw from the economic/tax system. One way is for those of wealth and means to simply emigrate to another more economic/tax friendly nation. But for those of us that are not independently wealthy, we have to choose another option.

The second option takes a whole different approach and it is definitely not for everyone. This option includes the following:

1. Pay off all debt.
2. Reduce living expenses to the bare minimum.
3. Do not create any new debt.
4. Reduce your income to the minimum payroll tax level

In this scenario, Galt's Gulch is not a geographical location. It can be anywhere and everywhere around you. The important thing is to minimize the amount of money that you surrender to the government. For now, you may be able to shelter some of your assets in IRA's and 401K accounts, but it will be only a matter of time before your private retirement funds are raided so "everyone can have a 'fair shot' at retirement".

For nearly 30 years I have been struggling to get ahead, pushing my career ahead to increase my income. I have been fairly successful in that end. However, as my income increased, so has my spending and financial burden. At the point of (what I call) my awakening, my lifestyle was taking the vast majority of my "take home" pay. I really was not saving money. I am not alone in this dilemma.

My wife and I are at a point in our lives that it is possible to make a significant lifestyle change. The last of our children has married and is moving in with her husband (next month) as he is returning from Afghanistan. She and our grand kids will be located across the country from us. So now we face the prospect of spending our hard-earned vacations flying to Seattle a couple times a year.

So, we have analyzed our living expenses (mortgage, utilities, cable, car payments, etc.) and tried to come up with ways to reduce those expenses. We determined that our major anchor is our house and the related expenses. But what are we going to do? Go homeless? Of course not. We want to reduces expenses, not be paupers.

Our decision may seem just as drastic to some people, though. We have decided to sell all of our assets, property and anything not portable and purchase a motor home* (RV) with cash. We will then move into the RV as our permanent domicile. The plan is also to outfit the RV with solar panels, battery packs and a generator to handle all of our electrical needs. We will also tow our paid off automobile behind us for local traversing, grocery shopping, etc.

This setup will allow us to live completely self-sufficient (off the grid). There are many places to park an RV for free for extended periods of time and occasional stop off at campgrounds to empty tanks and fill water tanks as needed.

As it turns out, this is becoming a major trend for various reasons.

In the next posting, I will discuss the pros and cons of this approach.

Thanks for dropping by.

Take care,

Kit

* We ammended our plans a bit.  We purchased a travel trailer instead of a motor home which gave us more living space for less money.  We also financed a large enough truck to pull the RV.  We found out that we could not pull our vehicle due to its' configuration.  The generator and solar panels are still in the future.

Galt's Gulch - My Version (Part 1)

Galt's Gulch - My Version (Part 1)

From a literary perspective, Galt's Gulch (from Ayn Rand's Novel: Atlas Shrugged) was a fictitious place in Colorado that the producers of society escaped to in order to withhold their talents from society. It even had a type of cloaking device and force field to keep out government intruders that wanted to force them back into the workplace and economy.

The story's protagonist (John Galt) was unhappy with the prevalent crony-capitalism of the time. Over time, he was able to convince many key industry titans to close up shop and bring the entire system to a halt.

In the present day, government has grown exponentially since the days of Ayn Rand. Public sector unions are a major driving force behind many politicians and corrupt lobbyists have control of the rest. It is now impossible to make and keep a profit without bowing to the state.

I see very little hope in changing the system from within. However, I am not an industry titan. Nonetheless, as a member of the middle class, I am affected by the encroaching income tax burden.

So, I am redefining Galt's Gulch for my own situation. I desire to find a way to escape the current system that penalizes success and rewards those who do not contribute. One way would be to acquire enough wealth to leave the country and hope to find a location that is friendlier to the producers. Unfortunately, I do not have the means or wealth to do this. The other method would be to reduce my income to below the income tax level and live comfortably.

Now, maintaining a mortgage, car payment, utilities, smart phone, cable, etc. It is impossible to just reduce income. That would be crazy and I would be miserable. I have become accustomed to a certain standard of living.

So, what am I to do? Keep doing what I am doing and hating every minute or do I have another option? Next time, I will discuss the path that I have chosen.

Until next time,

Kit

Glimpses of the Gulch

Glimpses of the Gulch

Galt's Gulch is not a geographical location, to me. Instead, it is a state of being ... an attitude ... a perception. I am learning to be happy in the moment. I am becoming satisfied with the beauty around me. Every day I discover new places and treasures. I am beginning to practice freedom. I am still bearing the yoke that society has put on me, but I can see the path to freedom.

These pictures are only a few miles from my home. I do not need to travel to a far away place to experience beauty. I can be as free in my back yard as I ever could be in a far away destination.

The Path begins as a Process

The Path begins as a Process

Kat and I have have embarked on our journey. No, we have not actually departed yet. We are now in the planning stages. But planning for what, exactly? Well, I will discuss that at length in future posts. I was going to wait until we departed to start blogging. But now I realize, the planning and preparation are also part of the journey.

The early stages of our preparation will be the following:

1. Selling or donating all of our non portable assets/possessions.
2. Paying off all debt
3. Set aside a slush fund to finance our journey and to live off of during lean periods.
4. Educate ourselves on minimalist living and self-sufficiency.

We have already begun jettisoning our non-portable possessions via garage sales. In January, we will step that process up even further.

We are both excited and impatient to get started on this journey, but we are determined to have the patience to do this right and not rush into this unprepared.

I will write more next time about our goals and reasons for these goals.

Until next time.

Kit