'I Am The "Super Rich" And I Can't Afford Obama's Tax Hike'

[MJ DeMarco]

MJ? Russ? Anyone? What were/are your strategies for not going wild with your money?

You have to love your freedom more than whatever you want to buy. Right now, I am free. I live. I pursue dreams. I sleep well and I eat well. That to me has more value than any car or 6 bedroom estate.

If owning a Lamborghini, a Mercedes or a big house was a threat to my freedom, I wouldn't own them. In other words, I'd feel more free living in a trailer park, debt-free, never having to work again, rather than living in a big house with mountains of debt and being imprisoned to a job because you know, I got bills to pay.

 

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[Kung Fu Steve]

You have to love your freedom more than whatever you want to buy. Right now, I am free. I live. I pursue dreams. I sleep well and I eat well. That to me has more value than any car or 6 bedroom estate.

If owning a Lamborghini, a Mercedes or a big house was a threat to my freedom, I wouldn't own them. In other words, I'd feel more free living in a trailer park, debt-free, never having to work again, rather than living in a big house with mountains of debt and being imprisoned to a job because you know, I got bills to pay.

I agree. Freedom is important to me. Just to play devil's advocate, wouldn't the freedom of travel, and having what you want to have also be important? Or are we talking just about time here? Is that just a difference in priorities? When I say "I want the time to travel, learn, play" are we speaking about the same things? I generally enjoy driving fast cars, so naturally I want the Lambourghini, but I also want my own helicopter to be able to fly around when I want and where I want! Does this fall under the category of "stuff" or is this the same thing? Or again - is it perspective?

 

[MJ DeMarco]

Does this fall under the category of "stuff" or is this the same thing? Or again - is it perspective?

Steve, there is absolutely nothing wrong with fast cars, private jets, and helicopters. It really matters based on your perspective, your priorities, and your goals. My contention is this: know when you can truly afford these things, and when you truly cant. A Fastlane strategy is designed to make any such purchases (even the extravagent ones) possible by making them "affordable".

If you buy something and are imprisoned to the purchase OR it doesn't expand your net-asset value and/or cash-flow (cash-flow creates "free time") then it probably isn't a good buy. I have a chapter in my book about this, relating to "affordability" ...

If you can drop $250K on a helicopter and not be imprisoned by the purchase, regardless of circumstances, you can afford it. To a successful Fastlaner, this purchase is like walking into the convenience store and buying a gallon of milk.

If you know your wants (and how expensive they are) then your strategy needs to be capable of making that a reality ... and that relies in your wealth equation to which your business is bound.

Not sure if this answered your question ...?

 

[Russ H]

I don't recall changing my post... I did post twice within a couple of minutes, but don't remember changing it (even have a typo I have not corrected)

D'oh! When I looked back I saw the post you did right before mine-- which was where it was when I first responded (I thought).

Oh, dopey me-- I went back and included your original quote so my comment wasn't non sequitur.

Thanks,

-Russ

 

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[Rawr]

""I'd feel more free living in a trailer park, debt-free, never having to work again""


The only problem with this is, what do you do with your freedom if you have no means?

I suppose you can write a book - even if you have to walk to the library and do it there.

Or you can take up learning skills,

but you can not go on vacations, dine out, entertain yourself in the typical ways. Although with technology and things like couch surfing it is a lot easier to accomplish with less $, but still, living free without money is sort of like being unemployed on welfare, doesn't feel too good, no?

 

[Kung Fu Steve]

Steve, there is absolutely nothing wrong with fast cars, private jets, and helicopters. It really matters based on your perspective, your priorities, and your goals. My contention is this: know when you can truly afford these things, and when you truly cant. A Fastlane strategy is designed to make any such purchases (even the extravagent ones) possible by making them "affordable".

If you buy something and are imprisoned to the purchase OR it doesn't expand your net-asset value and/or cash-flow (cash-flow creates "free time") then it probably isn't a good buy. I have a chapter in my book about this, relating to "affordability" ...

If you can drop $250K on a helicopter and not be imprisoned by the purchase, regardless of circumstances, you can afford it. To a successful Fastlaner, this purchase is like walking into the convenience store and buying a gallon of milk.

If you know your wants (and how expensive they are) then your strategy needs to be capable of making that a reality ... and that relies in your wealth equation to which your business is bound.

Not sure if this answered your question ...?

I believe you did! But of course a well answered question always leaves room for more questions :smxB:

I'm sure I will read it in the book, but how do you then determine "affordable" is an imprisoned purchase just one that forces you to take care of it? I.E. a house that needs maintaining - would that be considered? I don't currently own a house, nor do I choose to because I just don't have the time to cut the lawn and fix the water heater (nor do I want to!) I suppose that can all be hired out... (just thinking out loud here)

The only problem with this is, what do you do with your freedom if you have no means?

Rawr, beautifully put into words. Because we have all been unemployed at one point or another will all the time in the world, but no means! I'm guessing it is two completely different things. Fastlane enables the means to pursue your freedoms, perhaps?

 

[Russ H]

""I'd feel more free living in a trailer park, debt-free, never having to work again""

The only problem with this is, what do you do with your freedom if you have no means?

I suppose you can write a book - even if you have to walk to the library and do it there.

Or you can take up learning skills,

but you can not go on vacations, dine out, entertain yourself in the typical ways. Although with technology and things like couch surfing it is a lot easier to accomplish with less $, but still, living free without money is sort of like being unemployed on welfare, doesn't feel too good, no?

Actually, whether you live in an apt or a trailer, what's the dif?

Living below your means is living below your means.

Living in a trailer is how I got my start when I first moved to California (it was small-- 7.5' wide x 14' long). I lived there for 2 years (even had a roomie part of the time) to save $$-- which I did.

Stuff like that helped me get the $40,000 I needed to put a downpayment on my first house.

The house purchase wasn't to live on less (mortgage payements were 4x what I paid to share a house or live in a trailer)--- it was part of my PLAN to fix up the house and retire on the profit.

-Russ H.

 

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[Russ H]

Oops-forgot to add:

Living in that trailer park were some folks who lived simply, and didn't work much. Across the street from me, in a 5th wheel, was the father of Huey Lewis. Dr Cregg (Huey's dad) practiced medicine one day a week, and went fly fishing and hunting the rest of the time.

He did what he wanted, when he wanted.

Lived w/his hunting dog, and was a very happy guy.

-Russ H.

 

[Russ H]

If you can drop $250K on a helicopter and not be imprisoned by the purchase, regardless of circumstances, you can afford it. To a successful Fastlaner, this purchase is like walking into the convenience store and buying a gallon of milk.

Dang, dude-- where you finding helicopters this cheap?

Most of my clients were spending millions for theirs-- and that was 10-15 years ago!

http://www.controller.com/list/list...1&setype=1&catid=7&bcatid=13&Pref=0&HDROR=asc

-Russ H.

PS And w/things like planes, copters, and boats-- it's not just the entry level purchase-- it's the tens or hundreds of thousands of dollars in maintenance it costs each year to keep them running!

 

[hatterasguy]

Maybe some of you have a strategy to avoid this trap? While I've learned to be real frugal these days there have been times in my past that money has come and gone faster than I knew. I could see myself buying something silly once I hit that 1 million mark.

MJ? Russ? Anyone? What were/are your strategies for not going wild with your money?

I think we've talked about rules for this as far as "what can you really afford to spend on..." What were those formulas again?

Be frugal don't go out and lease 6 new cars, a boat, and buy a massive house. Not saying you can't have some toys but you have to do it right. Being frugal isn't about being cheap, its about not spending every dime you make so you actually build up and have some money.

RK laid out the toy thing well, have your assets pay for your toys. I'll add to it, toys should be bought with cash. Don't take on debt unless it makes you money.

You also have to understand how you work, everyone is wired differently when it comes to money. For me I have horrible money management skills, if I have it I will buy toys and spend it. So my solution is simply not to have it, all my money that I don't need to live on is tied up in my business. I limit myself to one CC because I know I will rack up everyone I have, etc. Some people can live very well on a budget with a lot of money in the bank I can't. Last time I tried I was buying a toy every week.

 

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[Bond]

Dang, dude-- where you finding helicopters this cheap?

Most of my clients were spending millions for theirs-- and that was 10-15 years ago!

http://www.controller.com/list/list...1&setype=1&catid=7&bcatid=13&Pref=0&HDROR=asc

-Russ H.

PS And w/things like planes, copters, and boats-- it's not just the entry level purchase-- it's the tens or hundreds of thousands of dollars in maintenance it costs each year to keep them running!

Well, you can get one of these for about $100K + paint, freight and Flight / Maintenance Training

http://www.rotorway.com/talon.html

 

[MJ DeMarco]

Apparently the poor guy was subject to an online lynch mob and stopped blogging.

FOXNews.com - Firestorm Erupts After Blogger Says His $400G Income Doesn't Make Him Rich

 

[Russ H]

Apparently the "poor" guy was subject to an online lynch mob and stopped blogging.

I don't think his other blogs (on taxes and law) had ever gotten close to the attention this one did.

I think the analysts had a lot of insight:

"By any standard they are rich,” DeLong said. "But they don’t feel rich.”

He said things Henderson takes for granted — retirement savings, private schools, new cars — are out of reach for most Americans, and he dismissed his complaint as a simple “cash flow problem.”"

********

But Michelle Newton-Francis, a sociology professor at American University, said Henderson's blog had an impact because it showed “the country is redefining what it means to be rich and powerful.”

“We used to have a class hierarchy and most people wanted to be middle class. Being labeled rich or poor carried a stigma. Now it appears we are either rich or poor.”

“But the bottom line," she said, "is that no one wants to pay more taxes.”

********

1. Shift in wanting to be part of the middle class (it's no longer "good enough")

2. Those who are rich/wealthy don't feel rich

3. NO ONE wants to pay more taxes (duh). Which is why govt overspending is being met w/such a backlash-- from ALL QUARTERS.

-Russ H.

 

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