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Years ago, I worked on a project for a baby Bell. Our job was to analyze buying patterns of all their various services such as Caller ID, Voicemail, and the ilk. We found that the demographic most apt to load up on those features were actually the poorer households. The same kind of conspicuous consumption is true for clothing and cars.
My wife and I call ourselves 'honorary old money.' Not because we are wealthy, but because many of our friends and acquaintances are. The thing I've noticed is that those folks tend to not worry about having the most opulent homes or the most stylish luxury cars. And if you meet them out in public, their clothes will be kind of nondescript.
The only things they tend to splurge on are a) vacations, b) education for their kids, and c) entertainment. Everything else, they tend to stress long-term value over showy bling.
I rent a room on an overcrowded 3BR house (8 people), zero smartphones in the house, and one car. I buy shoes ($13.97) and underwear at Walmart, and all other clothes at thrift stores (pants, shirts) or dollar stores (gloves, hats).
I also think it goes beyond just the horse refusing to drink. The horse believes the water is only for other horses and not available to them. Too often we get weighed down by our childhoods or our experiences that told us we are not as good as everyone else and that we can't live the lives other people live. We are imprisoning ourselves with our own minds while fully believing it is external forces keeping us down.
The bolded should be nominated for quote of the year.
Years ago, I worked on a project for a baby Bell. Our job was to analyze buying patterns of all their various services such as Caller ID, Voicemail, and the ilk. We found that the demographic most apt to load up on those features were actually the poorer households. The same kind of conspicuous consumption is true for clothing and cars.
My wife and I call ourselves 'honorary old money.' Not because we are wealthy, but because many of our friends and acquaintances are. The thing I've noticed is that those folks tend to not worry about having the most opulent homes or the most stylish luxury cars. And if you meet them out in public, their clothes will be kind of nondescript.
The only things they tend to splurge on are a) vacations, b) education for their kids, and c) entertainment. Everything else, they tend to stress long-term value over showy bling.
I remember reading something similar years ago. Old money people buy the best coat or suit or shoes they can and then wear them for years. In my 20s, the head of the public agency for which I worked fit that description. He had money because his father had invented something in the early 20th century. His loafers were always kind of scuffed, he would go too long without a haircut. Dressed rather drably. He was loaded, but he didn't look it, and he was in a public position receiving a salary that was a percentage of what he could have made in the private sector. Also a person who would speak to the cleaning people with the same level of respect he gave anyone else.
If you're in the right place at the right time, it can be.
Of course, six years have passed, and the value of the condo dropped since then so that I could sell it only for approximately what I owe on it.
I consider condos dubious at best as investments. Where they shine is as hedges against rent inflation - I would be happier to have escaped rent inflation than I would be worried about a condo that doesn't appreciate as fast as I had hoped.
I consider condos dubious at best as investments. Where they shine is as hedges against rent inflation - I would be happier to have escaped rent inflation than I would be worried about a condo that doesn't appreciate as fast as I had hoped.
That's really true. And there are still places where you can buy a nice (but not fancy) little condo for well under 100k. And some of those places have low property taxes. For example, in Reno, NV there are dozens of condos for sale in the 50 - 100k range, and many of them have property taxes well under 1k per year.
So why not make condo ownership your goal? It seems achievable, if you would get serious about your circumstances and do something.
If you can get it half paid off, you could take a reverse mortgage when you are 62 or older, then never have to make another P & I payment.
IMHO the biggest difference is that the stupid people are consuming while the intelligent people are investing. That does not mean, that the clever people are automatically spending less, but they are spending it on things that give good value and return. For example I tend to buy good custom made leather shoes, that are $300+ but last 10 years or longer when they are good taken care of. I do not buy any "labeled brand" shoes made from plastics foam that are produced in China for $5 and then sold here for $100. The only thing that would ever make me take out a loan is a house or a business, which in the long term gives higher return than the interest rate. I've seen people taking on a loan for TVs, Playstations, Clothes... seriously? Never ever take out a loan for short term consumption.
And do never buy things that you do not need with money that you do not have only to impress people who you do not like.
I sell from time to time when I can use a friend's scanner, of course this is dependent on his schedule.
When I was six years old I saved bazooka bubble gum wrappers. Maybe you should try that. Seems the kind of thing that could work for your retirement. Then travel the world.
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