The Everything Guide to Living Off the Grid (6 page)

CHAPTER 3
Generating Income Off the Grid

Unless you have an ample pension or a large savings or investment portfolio, or if you are still going to keep a regular job, you are going to have to find some way to earn money even if you are living off the grid. The reality is, even if you are totally self-sufficient, there is no escaping expenses like property taxes. This chapter will give you ideas on creating income.

How Much Does It Cost to Go Off-Grid?

Many years ago the United States government offered free land in order to increase the population in certain areas of the county. But, under the Federal Land Policy and Management Act of 1976 .FLPMA), the federal government took over ownership of public lands and repealed all remaining traces of the Homestead Act of 1862, but it did grant a ten-year extension on claims in Alaska. However, there are communities in places like Kansas, North Dakota, Minnesota, and Nebraska that are willing to give up a parcel of land, provided you meet the right criteria. But these are parcels within a community, not farmland in the countryside.

Congress passed the Homestead Act and created the Department of Agriculture, the transcontinental railroad, and the land grant college system all within two months of one another (May–July 1862).

One of the first expenses you will encounter when you move off-grid is the purchase price of your land. The first three rules of real estate are location, location, and location. This is also true when estimating the cost of your property. You can spend from $25,000 to $2,500,000 depending on the number of acres, location of the property, and condition and size of the home.

Add to that initial expense any updating to the house, outbuildings, septic system, and alternate energy sources. Of course, these things don’t have to happen all at once. But, you should budget enough to ensure your home is in good shape. You will also have to purchase supplies like seed, livestock, animal feed, and whatever equipment you decide is necessary to work your land. Be very realistic when you prepare a budget for your new move and then add 20 percent for those little surprises that always seem to crop up at the last moment.

The bottom line is this: it is not cheap or free to move off grid. Despite the view of “the simple life,” an off-grid life needs to be built from the bottom up. Unfortunately, those who start out thinking they can move off the grid on a shoestring budget are often those who give up their dreams and move
back to the city. With a little advance planning, however, you can successfully earn a good income while living off the grid.

Generating Income

When you’re looking for a method of earning income as you begin your new off-grid life, you need to look out of the box. First, consider your current employer. Is there a way to take what you do for them to a home office? Perhaps you could commute to the office several days a month, but do the rest of your work at home. Perhaps you could transfer from being an employee to becoming a consultant. If you’ve done a good job and have a good work history, you might be surprised at some of the options employers are willing to offer you. A word of caution: if your employer is downsizing and looking for opportunities to lay off employees, don’t explore this option unless you have something to fall back on if he says no.

Your next option is to do a self-assessment and consider the talents you have and how you might be able to market them. In today’s world of virtual offices and rapid Internet connections, there is an amazing number of options for employment.

Are you Internet savvy? Website designers, graphic artists, copywriters, and even bloggers are just some of the Internet-based jobs available. Study a local Craigslist Help Wanted section to view the variety of virtual employment opportunities.

If you are going to run your own business, don’t forget business expenses: Keep receipts and good records of business travel and other expenses including office supplies, postage and shipping costs, dues, subscriptions, and anything else business-related, including computer software for your business and upgrades to your system.

Are there classes you can take, either online or through your local community college, to hone some skills in order to create an online consulting business?

Perhaps as you review your skills, you find you have skills that are more down-to-earth. Are you handy around the house? Do you have excellent carpentry, painting, remodeling, or plumbing skills? These skills are very much in demand, especially as baby boomers age and need help around their homes.

Are you an excellent cook or baker? Can you build a kitchen in your home that can be FDA certified so you can provide baked goods to local restaurants or gift shops? Can you start a catering business?

How about accounting skills? Do you have the background to start a bookkeeping service for local businesses?

As you look at these options, be sure you study the area where you are going to be relocating. Speak to the Chamber of Commerce and the local Extension office to get ideas about the needs of the community. Speak to the director of a nearby senior center to discern the need for a handyperson or other services the senior community might desire.

Be creative as you explore your options for income so it meshes with your new lifestyle.

Bartering and Dealing

One of the oldest methods of commerce is bartering. The late James Harvey Stout wrote that bartering was in its third cycle in the United States during the early 1980s. The first cycle was the colonial era: “During the seventeenth and eighteenth centuries, money was scarce, so the colonists relied primarily on bartering, with commodities such as beaver pelts, corn, musket balls, nails, tobacco, and deer skins (from which we get our modern slang, “buck,” for the word “dollar”). Colonists also used the money of other cultures—the Native Americans’ wampum (which consisted of beads made from shells), and the coins of foreign countries.”

The second era of bartering happened during the Great Depression. During the 1930s, money was scarce, so people established barter groups like the Unemployed Citizens League of Denver (with 34,000 members) and the National Development Association. The League was developed by Charles Dunwoody Strong, a community activist whose own business, an architectural practice, folded in 1929. He modeled the League after a similar
organization in Seattle. An excerpt from his biography at the Colorado Historical Society gives a little more insight into the League:

The organization sought to relieve the distress of the unemployed and underemployed through cooperative production. Meetings were held in mortuaries because schools were closed in the summer and churches were reluctant to open their doors to the unusual, and in some eyes, questionable organization.

Membership surged. In 1932, Strong met with the governor, labor leaders, and veterans’ groups to plan an “economic takeover” of the state upon the reelection of President Hoover. With the election of Franklin Roosevelt, the initiation of his New Deal programs, and the subsequent relief of some economic suffering, interest and membership in the League wavered.

According to Stout, the third era of bartering began in the early 1980s. During the long recession, bartering resurfaced and was featured in many magazine articles and many new books. Barter clubs were created throughout the nation. More companies learned about the advertising industry’s “trade-outs,” international commerce’s “countertrade,” and the other possibilities for bartering in business.

When you barter, have a clear idea of what you need ahead of time. Offer a concise description of the goods or services you need and the goods of services you can offer. Have your description slimmed down to a sentence or two.

Arguably, you can see a fourth era of bartering regaining popularity as websites like Craigslist.com offer items for trade, and e-mail services like
Freecycle.com
offer members the opportunity to trade for items no longer used or needed by other members. In an off-the-grid situation, you can barter produce, services, eggs, milk, or anything that has value with neighbors.
The key to successful bartering is to be sure that you offer equal value for whatever you are bartering for. Bartering does not have to be limited to your locale. An interesting experiment in bartering was documented at One Red Paper Clip blog. Kyle MacDonald started with one red paper clip and ends up with a house. Although this is not a common occurrence, you will be able to see how bartering can work, especially in today’s economy.

Farmers’ Markets and Other Local Produce

One of the first things you should do when you decide where you are going to purchase your off-the-grid property is to have a conversation with the local Extension agent. Through the Cooperative Extension System, you will be able to learn not only which crops grow best in your area, but also the specific type of seed you should use. You can learn which crops are cash crops in your area, those that you can sell to local restaurants and grocery stores or are in demand at farmers’ markets. You will also learn whether there is an overage of certain crops on the market, so you’ll know to only grow enough of those for your family.

According to the USDA, between the years 2009 and 2010 there was a 16 percent increase in the number of farmers’ markets in the United States. The number grew from 5,274 to 6,132.

The Extension agent can also give you information about local farmers’ markets, including the dates they start and the hours they run. Like anything else, you want to be sure you receive enough return on your investment. If the local farmers’ markets do not offer a lot of foot traffic, you might want to look at markets in neighboring communities.

Many restaurants, and even grocery stores, will contract with local farmers for fresh eggs, local cheese, fresh produce, and even canned goods like preserves and relishes. Once again, your local Extension agent will be able to guide you in the right direction, but don’t be afraid to make some contacts of your own; locally produced food is gaining more popularity.