- Dec 1, 2014
For me, I won't stop making money because my purpose is clear that I want to help more people. In this world money is an instrument. Right now, I allocated 20% of my net income for Giving activities. I recommend focusing on helping others. You can build a foundation if you want. It's self-rewarding!I've been thinking about this alot lately because I'm now at the point where I truly think that I have enough. But I'm not 100% certain yet. And it's also not as much as people may think. I know that is weird to say, but as you get older, you actually need less and less money. It's an odd place to be in, where your motivation for doing things ever since you were a teenager suddenly disappears.
I made this post in July 2020 (HOT TOPIC - How would you spend $1 million dollars and get no sellable value from it?). As you can see, this idea of spending money and having enough has been on my mind for a while now.
Then, someone recommended this book to me a month ago, (BOOK - Book discussion: Die With Zero) and it basically reinforced what I had already been thinking.
Getting back to how much is enough. That's a tough question. I'm going to be 50 this year and if I estimate that I'll live till 90, that's 40 more years of spending money. However, let's do some math here. If I had $4M, I could spend $100k a year. Many of you may think that $100k a year is not enough. However, if you factor in investments, real estate appreciating, rent increases, it's pretty clear that one could spend alot more than $100k a year and still have a substantial amount at age 90. So in reality, I could probably spend $150k a year on $4M. Now let's assume that I had $6M. Well now it's truly a no brainer. I mean $200k a year for the next 40 years with no living expense?
Now imagine if I continue to work 5 years. During this time I will increase my net worth and then have only 35 years to go. So now my yearly spend number increases to $250k-$300k? It's sort of going in the wrong direction. This is why I'm pondering all this right now. Just before I turn 50, and not 55 or 60.
So where is this going? Well, the funny thing is that alot of the things I have wanted to do was money motivated. And without the money part, I wonder if I still want to do them.
For example, I've always wanted to buy land and build tiny homes on them. Buy why did I want to do this? Well, the building part was cool and the finished product is cool too. But the last part is where you put them on Airbnb and make $200/night x 350 nights = $70,000. Multiply that by 5 tiny homes and you got $350,000/yr coming in. Again the dream was money based. What else would I do with them? Leave them empty? Sell them?
So I'm wondering if I should still but land and build Airbnb tiny homes, IF I don't care about what they can bring in. What is the purpose of this project then? Is it a hobby that I'd do regardless of monetary consequences? That's a question I haven't answered yet.
People tell me, you should buy bitcoin... but why?
You should buy XXX stock, but why?
You should buy real estate in XXX, but why?
Why should I if there is no money motivation?
This past week me and @snowbank went around Sedona looking at lots and new construction. I am trying to look at things without a money lens, but it is so hard. When you stand on a lot that is asking $300k. You look at the beautiful views. But then you ask, how much does it cost to build, how much does the next house over sell for? Then you do the calculations in your head. Hmmm, if I buy this and build this, it will be worth this and I can sell it for this. But should any of that really matter if you want a house of your dreams on this lot?
I guess I'm trying to get to the point where I don't make decisions based on money. And I don't mean I waste money. But the potential profits or future value of things really shouldn't come into play anymore, if I truly have enough net worth today.
I'm curious to know so I ask @MJ DeMarco, what is the purpose of your day trading? Is it a fun game you play? Is it something you do to keep your mind sharp? I assume that the day trading returns are a small percentage of your net worth/cash flow?
Interested to hear everyone's thoughts.
I highly recommend reading this book. I believe this will definitely answer your questions.
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