From CEO to Pizza Delivery

[MJ DeMarco]

From CEO to Pizza Delivery ... Also, failed in the hedge fund business.

Frames one of the most valuable "Slowlane" concepts ... LIVE BELOW YOUR MEANS!

Yahoo!

No matter how much $$ you make, ya gotta keep OUT less than IN!!

 

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[LaughedAt]

This is really sad, however I can't help but think it's definitely his fault, reasons:
1- Probably his ego, from the pictures I can tell that house is worth at least $1.5 Million, he could've sold it and rent an apartment, however "a CEO can't rent an apartment, I need a mansion" & "what would my peers say about me renting an apartment, they would go crazy".
2- Quitting a very high paying job to start a business, I wouldn't quit until my earnings from the biz surpass income from job, he apparently was living the $750k-a-year lifestyle, why he would quit his job and start a hedge fund expecting to reach similar income in a short amount of time is simply beyond me, he was living lavishly, he should've known that businesses very rarely make high profits during startup period (if at all).
DOWNGRADING and RISK MANAGEMENT, ever heard of that sir?
3- Highly educated, MBA from UCLA, vast experience in business and couldn't do better than a pizza delivery boy? I mean I know times are bad but I'd imagine with such education he could at least find some entry-level government\middle management job making at least $40k a year, something's gotta be wrong here.

I hope I'm not coming off as an a**, but I really hate it when people screw up and start blaming everything/everyone around them and not even thinking maybe it was their mistake!
And thanks MJ for posting this!

 

[Jonleehacker]

I watched that entire show (20/20) and yes the stories were sad, but what was most amazing to me is how all the people were resigned to their fate.

There was no one asking, "how can I make something positive out of this?" or "where can I make money right now?"

That's real recession, when you can't even see any options, sad that people are so poor in their thinking.

 

[Runum]

I watched that entire show (20/20) and yes the stories were sad, but what was most amazing to me is how all the people were resigned to their fate.

There was no one asking, "how can I make something positive out of this?" or "where can I make money right now?"

That's real recession, when you can't even see any options, sad that people are so poor in their thinking.

I agree. I visited with several adults this week from across the country and most of them said something like "no one's making money right now in this economy." They said this while I am looking around and seeing so much opportunity. So sad.

 

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[biophase]

You would think he could be a manager at a store or something. Guess he has to work his way up.

 

[White8]

I hope I'm not coming off as an a**, but I really hate it when people screw up and start blaming everything/everyone around them and not even thinking maybe it was their mistake!
And thanks MJ for posting this!

Exactly right. After becoming a commercial pilot and lamenting the fact that I couldn't find a job, I was told "It's your own damn fault". After the initial shock and some self analysis, I realized it was my fault. I failed to move to a part of the country where I could have made it a reality. Now I always try to analyze how I am responsible for my situation and how I can avoid future problems.

 

[hakrjak]

When I saw this guy's story I immediately figured that he must have burned a lot of bridges. If corporate execs have 1 resource, it's always networking & tapping into their "old boys network" -- Surprises me that the guy couldn't get even 1 friend to put him in a position under them.

- Hakrjak

 

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[Russ H]

I was struck by the fact that they're still living in their grand palace of a home, and the kids are going to a private school.

What lesson does this teach?

How different their lives might have been if daddy and mommy had moved into a small apt when dad lost his JOB, and they went to public school.

Mom's attire was definitely not from the GAP, either.

Living beyond your means . . . it's as American as . . . as . . .

-Russ H.

 

[biophase]

I was struck by the fact that they're still living in their grand palace of a home, and the kids are going to a private school.

What lesson does this teach?

How different their lives might have been if daddy and mommy had moved into a small apt when dad lost his JOB, and they went to public school.

Mom's attire was definitely not from the GAP, either.

Living beyond your means . . . it's as American as . . . as . . .

-Russ H.

At first I thought that also. But being that they live in Florida they probably couldn't sell and were upside down. Also they haven't made a payment in 2 years, so it's better than renting!

The private school part is probably a touchy personal subject and they figured its worth it and someone is paying for it.

 

[TaxGuy]

How different their lives might have been if daddy and mommy had moved into a small apt when dad lost his JOB, and they went to public school.

Mom's attire was definitely not from the GAP, either.

Living beyond your means . . . it's as American as . . . as . . .

-Russ H.

Preach on brother Russ :smxB:

On an unrelated note, just further convinces me never to waste money on private school(the public education I received was just fine :coolgleamA or a house that is too big for my family, in fact the 1700sq ft home my parents have in AZ is just right for our family plans, well it needs a bigger garage, but even the 1200sq ft home we have now is much too big, even when we have 1-2 roommates, basically the "extra space" is used to store "extra stuff" that despite all we have donated/thrown away still takes up plenty of that space

 

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[michael]

Its not only about the school you attend but also the caliber of students you attend alongside.

In many cases a good private school can set you up to network with the people who will be managers, engineers, financiers etc in the future and that can't hurt your fastlane plans now can it?

Preach on brother Russ :smxB:

On an unrelated note, just further convinces me never to waste money on private school(the public education I received was just fine :coolgleamA or a house that is too big for my family, in fact the 1700sq ft home my parents have in AZ is just right for our family plans, well it needs a bigger garage, but even the 1200sq ft home we have now is much too big, even when we have 1-2 roommates, basically the "extra space" is used to store "extra stuff" that despite all we have donated/thrown away still takes up plenty of that space

 

[kidgas]

Interesting story.

I can't say that I feel sorry for them, however. I believe it very foolish to take a leap at a business when you have dependents. As a father of 6, I would never jeopardize my family like that. I am just absolutely dumbfounded that someone would quit like that.

For sure, I will make sure that part-time work will pay off first before quitting steady income.

 

[hakrjak]

Its not only about the school you attend but also the caliber of students you attend alongside.

Glad you said that. As a parent to young kids, I'd rather have a school that may have less academic success but with good kids, than a school with major academic achievements, but bad kids.

One of the wealthiest private schools in my area is known for being a big "drug school" because all of the kids there have plenty of money, so instead of doing the cheap stuff -- they can throw parties and pretty much do whatever kind of drugs they want. It's way out of control.

- Hakrjak

 

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[Russ H]

Interesting points, Hak.

I loved living in Marin County-- but that's one of my concerns in raising our kids there-- all of the kids have so much $$$ that they can afford very expensive addictions/follies.

I think that's why so many "Millionaires Next Door" live in modest homes, send their kids to public school, and no one knows how much they're worth.

Reminds me of the friends/party scene in the movie "The Ultimate Gift".

Need to watch that (or "Peaceful Warrior") again . . .

-Russ H.

 

[rcardin]

On an unrelated note, just further convinces me never to waste money on private school(the public education I received was just fine :coolgleamA

Unfortunately after no child left behind our public school education is nowhere near what we received when we were kids in the 70's and 80's. Now everyone is expected to pass or it might hurt their self esteem. There is no such thing as homework because if they don't do it they might actually experience failure. Oh what a pity:cuss:

I recently had to allow a student to retake a test because she either was absent or possibly I lost the test. She had a 78 average but Dad wasn't happy that she had not made A/B honor role like she always did. I let her retake it because of pressure above and her average changed from a 78 to a 94 because of the test.

Which would have been a better lesson for the child? The fact that somebody above her could have screwed up or the fact that daddy raised a little hell and got her the retake?

End of rant......................:smx6:

 

[Andrew]

Also they haven't made a payment in 2 years, so it's better than renting!

Thats the real story.. consider this: http://static.10gen.com/businessinsider/~~/f?id=4979e68630b7d9800073dbcd

That money isn't getting paid back. Tougher luck for the lender than the borrower.

 

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[hatterasguy]

Typical, like so many stories from the 1930's.

Sounds like he was living way above his means if he only had $500k to lose after making that much a year for so long.

 

[HenryMcSilver]

I don't understand people that live way above their means, it just doesn't make sense to me. I guess I'm just really meticulate about my finances because I would hate to get in debt at all. I don't know if my thinking process is fast lane or slow lane but this is how mine is.

 

[MJ DeMarco]

I don't understand people that live way above their means, it just doesn't make sense to me. I guess I'm just really meticulate about my finances because I would hate to get in debt at all. I don't know if my thinking process is fast lane or slow lane but this is how mine is.

Living below your means transcends both Slowlane and Fastlane.

Earn $100K/mo spend only $40K/mo.

Earn $50K/year, spend only $35k/year.

 

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[hatterasguy]

Yeah don't do what a bankrupt builder I know did. Earn a $1m and spend $2m. He had every toy you can think of, even a swimming pool with his name on the bottom so you could see it from his chopper.

He did have a hell of a time while the party lasted.

 

[BryanC]

LoL. If you think about it... these guys produce like absolutely nothing... are a parasite on our economy... and have no actual real wealth for themselves to show anything for it.

What do they do, get the money in their hands and blow it right out on frivolous consumption... ARGH! :smx4:

 

[RiseAbove]

I've read about guys like this, just by telling their sad little story they got 100k+ job offers...

 

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