That's the wisdom of Naval Ravikant for becoming wealthy. Really. I take that to mean that you'd go to work, and instead of spending your free time cooking, cleaning, doing home repairs, sitting through a stressful commute, etc., you'd pay someone else to that all that for you. How would that work out in real life? I'll include meals, housekeeping, lawn mowing, and repairs & maintenance on the house. I won't include taking a cab or Uber to work because in all honesty, I usually enjoy my commute, even though it's long. Eating out three times every day: $25/day => $9,125/year Housekeeping: $50/week => $2,600/year Lawn mowing: $20/week (35 weeks per year) => $700/year Repairs & maintenance: $500/year Grand total: $12,925 per year. Ouch! After taxes and a substantial 401(k) contribution, that's almost half my take-home pay. How do you get wealthy by the modern equivalent of supporting a houseful of servants? (That's what I ...
A few dumb ideas I've seen: A House is a Liability The next time the CPAs I work with need a good laugh, I should bring this up. Houses are assets (they can be sold for cash), mortgages are liabilities, and repairs and maintenance are expenses. These are important differences if you're trying to put together some personal financial statements to see how you're doing. How to Succeed without Really Trying No, this can actually make you poor. A coworker and I figured what this advice would cost us--to eat out, hire a cleaning service, hire someone to mow the lawn, and hire out every little repair on the house. I came up with $13,000; she came up with $17,000. That's just for one person for one year. The long-term cost of fluffing off your chores: let's assume $15,000 per year to start. Invested in the stock market at 8% per year, that adds up to $1.76 million in 30 years. Even if you're spending your time reading, meditating, and writin...
The answer to this should be obvious...and yet people constantly make their lives harder than they need to be. Maybe it's America's Protestant origins, maybe there was some natural selection for industriousness during the neolithic era, but whatever the cause, the lives of other people (not mine) could be a lot easier. The best things in my life didn't require long hours grinding away at dull, hard work. In fact, the dull, hard work offered few rewards. I spent four and a half miserable years in engineering school only to graduate and find the market was flooded with mechanical engineers. My school advised...more school. Which I went in for--and amazingly, it didn't create a job opening. I finally switched to admin work--which didn't even require a college degree--and finally enjoyed a steady paycheck. I traded my arduous diet and exercise regime for a low-carb diet and lost 20 pounds and a gaggle of health problems. I sold my ridiculously overpriced house in Den...
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