Every single time I'm in any grocery store, walking the street, or anywhere in a posh neighborhood, esp. the Bay Area, I think:
* "Golly, gosh, gee, how do these people afford these wonderful homes?"
* "What do I have to do in my career to make enough to buy this?"
* "Is it even worth it suffer in a room packed like a sardine in order to invest?"
Then, I came across this little chart on Zillow from Q1 2017:
I highly respect all self-made folks who can afford what they get, but it was really helpful reminder for me.
Many times, one can think someone else is doing great; but perhaps they think the same about you.
Was wondering if thoughts like this have ever entered anyone else's mind?
Cheers,
Alice
@Alice K. All i see when i drive by houses like that are high income earners leveraged up to their eyeballs. I prefer to drive by the middle class neighborhoods and ask myself "How do i buy ALL of these?"
"The Millionaire Next Door" really changed my perspective on material possessions like that :)
Keep hustlin'!
- Lloyd
@Account Closed here's a license plate idea for you....30KTRNKY...
I need a hint on what it means. The acronym makes no sense to me.
@John Thedford, if you apply the 80/20 or 90/10 rule, it's true across the board. There's no surprise there.
Here's a "short" true story:
When Warren Buffett asked another billionaire in SoCal how he could justify owning a private jet. His response was "You don't justify it; you rationalize it." Buffett rationalized and bought himself a private jet shortly after. By owning his own jet, he would have better control of his schedule and have more time to spend with his family.
How did I rationalize my purchase? When I told my wife I'm buying myself a Tesla this year. Here response was "What's the rush?" She thought the purchase was going to be next year. I told her I expect to get another $175-$200k from our investments in the next couple of months and another $500k next year. The Fed and CA tax credits might go away next year, and there's no guarantee that I'll live till next year given how unpredictable life can be even though I'm healthy now. Also, I'm taking about 2% of my earnings each year for the last 8 years to buy this car. Basically, I'm purchasing it a year earlier than anticipated. Nothing changed. Here reply "Makes sense. Go for it."
When we went to Disneyland a couple of weeks ago, my wife saw a self-made billionaire sitting by himself texting away. She told me to go and ask for a photo with him. What's the worse that can happen? He says no? I went over and asked. His response was "Sure." Not only he took a photo with me, he took many photos with us and siblings. People around us had no idea who he was. One guy realized it and took a selfie with him. Such a nice guy, and he's in great shape too. For that reason, I'm now a new fan of the Dallas Mavericks. ;)
There are 540 billionaires in America out of 321 million people. How many billionaires do you recognize if you were to meet them in person, and what's the chance of you meeting a billionaire that you can recognize in person?
My sister told me I should frame this photo and use it as a motivation. The joke of the family now is that a self-made multi-millionaire sitting next to a self-made billionaire. One of my friends told me I should have told him that I'm a shark myself, San Jose Multi-Family Shark to be exact. LOL!
If you want something in life, you either have to work or ask for it. If you don't ask, the answer will always be NO. I saw a rare opportunity and asked for it.
Here is the photo.
@Account Closed ;)
You could do something like SJ RE KNG, but it's a bit boastful imo. Dunno, guess I'm not into custom license plates. If I did, I'd go ironic. Maybe RE PIMP, but I doubt they'd allow it.
Nice pic with Cuban btw. You guys posed and are dressed real similar. Little subconscious modeling going on there, I think ;)
Great thread. Forces me think about my own investment strategy.
TLDR; I may not have million dollar houses but I feel just as wealthy. Invest in things today that will make me feel wealthier tomorrow.
I mean literally tomorrow. Delayed gratification is great virtue… only if I get to enjoy them... Some things are beyond my control, therefore I don't optimize my investments for the long term.
In my case, I arrived in the bay area in early 2012 which was the perfect time to buy a house. If I had bought one then and would have gotten good equity by now. At that time I didn’t want to be held down by a mortgage and wanted to invest my resources into my tech career instead.
Fast forward to 2016 and I had reach a point in my career that I felt it couldn't make me feel wealthier. That was when I started seriously looking at real estate. Again I could have bought a nice house in the peninsula but then I would have tied myself to four walls which wouldn't make me feel wealthier. Instead I bought a house away from the peninsula which allowed me to force some cash flow. Since it can take care of itself with minimal work from me, I'm allowed to move around as I please tomorrow and that makes me feel wealthy! ;)
I've rented a big house before in San Carlos and stayed in many nice big houses through AirBnB so can understand the appeal of a nice million dollar house with a nice curb appeal, big backyard, double garage and the whole shebang. Some people are homies and enjoy hanging out at home so that's a great investment vehicle for them... Just not for me... coz I love heading out, meeting people and flying to other parts of the world. Kinda like @J. Martin. :P
Furthermore I prefer investing in people. Much of my resources has been invested into my wife who have since produced a film, wrote books and did crazy awesome things that no equity in a house can replace. :D
Speaking of cars, I love to drive! Peak hour traffic aside, the views of rolling fog over the mountain while driving a nice car with great music for company is still an incredible feeling. Instead of a gas saver like a Prius, I've opted for a high mileage (crossed major depreciation), not so gas saving sporty 1 series that drives like an M3 on those mountain roads… because I don’t wanna die driving a Prius tomorrow...
Preach it! Wealthy in life :) Here is my braggy success custom plate:
LUV LIFE (Had to put the J b/c there's too many other people who enjoy life too ;-P ) I've been investing in travels, new experiences, and spending time with awesome people. I'm not really into flashy cars (@Gagan Johal ahem! lol) but maybe like you just famously said:
"I don't want to die tomorrow driving a Prius." lol
It was only $5k, so I don't feel too bad. But the traffic isn't as unpleasant with the sun on your face and the wind on your back ;)
For @Account Closed,
I'd vote for: TNISKNG (Tennis King)
Btw, I LOVE Shark Tank!! That's awesome you just stumbled across Mark Cuban and he agreed to take a pic w/ you.
100% of shots you never take don't go in. Glad you asked him :)
@Amit M.,
How about for you?
I might have a nice million$ house some day like the rest of you grown-ups, but will probably be rented on Airbnb and a revenue generator when I'm not there ;) I'm just too frugal to leave a good-earning asset unused.. We'll see if that changes over time..
Can't use that license plate unless I'm Roger Federer or Rafael Nadal. I've been winning every even year and finally broke the spell and took 1st place this odd year yesterday. @John Thedford, I applied the 80/20 rule by the way and it worked.
My partner is a 69-year old guy who used to be in the Navy. Although he's a little slow and has his right knee braced due to some pain, I knew he has mental toughness. He wanted to join the tournament, but others didn't want him so I took him. I told him to cover 20% of the court while I'll cover the other 80%. It worked. We upset the favorite team in the semi-final by beating them in straight sets 6-2 and 7-6 (5). We went on to win the championship.
It's not what you think. It's how you think. My partner is the guy furthest to the right. I intentionally wore my lucky Mickey Mouse T-shirt. The same shirt that I took the photo with Mark Cuban. Enjoy!
Congrats on breaking the odd year streak @Account Closed!
Takes a lot of hard work and dedication to get on top. And probably even more to stay there.
Btw, since I'm inspired by you're ask, I'm going to call Mark Cuban and Barbara Corcoran to come out to the Summit and help us raise some money for Duc Son Orphanage, and see what they say :)
Maybe I'll also go on a hike and get some exercise ;)