The Minimal Viable Living Cost (MVLC)

Finances are the foundation of enabling you to access what you want. In its most fundamental form of the base-line expenses in shelter, food, transportation, utilities. 

How many of us feel confident that we can take care of these expenses for the next 10 years? I’m so curious on where we are genuinely at, because we don’t talk about these numbers enough. 

The statistics say most people are living paycheck to paycheck which is a very unhealthy situation - a reliance of that month’s income directly affecting your ability to live. This correlation means you are very dependent on the money coming in each month and you have to worry about next month? 

I’d like to first address the expats / nomads who have a different approach altogether. Often the formulae for cost of living is quite different for us, at least when we are moving countries, where cost of living can be is substantially lower. This Minimum Viable Living (MVL) cost let’s call it, varies each month for someone slow traveling and working online. 

But depending on how slow you go, there’s adding that balance out like cost of flights, visas, tours and other travel things. And don’t be fooled, places like Mexico and Bali are no longer cheap like 10 years back, these places attract a lot of expats & you can easily be paying $10 for a juice. 

For those who live in 1st world cities in countries like USA, Australia, UK. Average monthly MVL I’d estimate around 5K-10K USD? I’m being very minimalistic in my calculations here for a relatable average. Correct me if I’m wrong. I’m averaging out between city living like Sydney & London from my own experience. 

This benchmark, of needing to make at least ~5K a month to survive. How many of you make this from a salary job? Thats 60K USD annually as a minimum. 90K AUD. This is just the basics? 

I saw a video that shared for Melbourne (where I’m originally from) has a need of 15 x your average salary in order to save up only for a DEPOSIT for a house purchase. That should be 20% of a property that averages 600K now = 120KAUD

Wild.

It is no wonder why we are all seeking ways to enhance out earning potential and there’s so many entrepreneurs escaping the salary system and aiming to make more money online. 

There’s this dream & highlighted possibility that if you become an entrepreneur that wins - you will access these financial means but thats far from the reality. Running a business has numerous costs that you don’t even think about. 

Often if you are still stressed out about your minimal cost of living and you are trying to build and scale a business - that kind of pressure does not go together well. 

Some get very lucky and persist through hardships & live out of garages yes - but if you think you want to grow your business baby in that kind of state - just know that it is not easy nor will it be as enjoyable. 

Before you can become a successful business owner - Getting out of this rat race is the priority focus. If that means working a 9-5 to cover this, then it’s what we gotta do. I had to work at an agency in London before I could focus on my business growth. 

Sometimes I think back on how I did it, and know theres so much there I can share with you to help guide this path too.

Please comment or let me know if this pathway to financial freedom is 100% you would be keen to hear from me about. 

More on this next time.