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When I was out for a run this morning I had a breakthrough thought as to why I’m not mega-rich. It’s quite simple: I didn’t follow all the conventional financial wisdom with the dedication needed to reach those lofty heights. Apparently I’ve failed because I thought differently about some normal pearls of wisdom.
Take the often-touted phrase, “If it appreciates, buy it; if it depreciates, lease it.” Unfortunately, I don’t think this way. I like owning my cars outright, and continually leasing just wouldn’t work for me. This has apparently cost me a fortune in depreciated assets that should be making me rich in the markets.
Then there’s the wisdom to buy a “forever home” for the maximum you can afford and sit tight until your final days. I missed the memo on this one as well. All those relocation costs and realtor fees have vanished into thin air, never to grace my retirement accounts and build my financial standing.
Next, we move on to my career and the old adage of “climbing the corporate ladder.” I achieved director’s level and then promptly quit to try my hand at starting my own business. This was another setback in my quest for riches and extra cash to invest in the S&P 500 for my betterment.
When managing your own business, you run squarely into the sage advice of “grow or die.” I admit to doing this for a few years until I had a stable operation, but if I’m totally honest, after that, I couldn’t be bothered to get any bigger. I turned down a few opportunities to acquire competing companies and drive my profits upwards, once again thwarting my ability to invest even greater amounts into the markets.
So there we have it. I could be wealthier, possibly by quite a lot. Do I regret my choices? Not in the slightest. The cost to my values and life philosophy made following some of this financial wisdom unpalatable at best.
My path to retiring in my late fifties wasn’t a straight line, but a series of choices that prioritized my values. This isn’t a story about ignoring financial wisdom; it’s about being flexible and adaptable. My career choices and lifestyle decisions might have seemed counterintuitive, but they were intentional.
Obviously, we should build a foundation of smart financial habits, but in the game of life, I think the ultimate goal isn’t just to accumulate wealth—it’s to build a life that you genuinely want to live. I seem to have achieved that at a cost I happily paid. I may not be mega rich but I’m mega content.
“It is impossible to live without failing at something, unless you live so cautiously that you might as well not have lived at all.” – J.K.Rowling
Fun post and comments from folks. Thank you.
My most catastrophic failure was my five-year first marriage. I was an idiot, even at the “mature” age of 45. She didn’t love me — I was a tool to secure her immigration status. Six days after becoming a citizen, she walked out. Served me papers on Valentine’s Day. It was the fastest, least expensive divorce legally possible. (To her surprise, she wasn’t entitled to what I had accumulated previously, and the dog chose me.)
But… if it weren’t for falling in love with her, I wouldn’t have bought a California coastal home I couldn’t afford (fortunately in my name alone) and almost lost at one point. The house eventually doubled in value and launched my journey to financial security.
If I hadn’t been married to her, I likely wouldn’t have made some of the decisions about my new consulting business that made it a success, or the investment decisions I made that (mostly) turned out pretty well.
And without her I wouldn’t have had some of the most defining, profound experiences of my life, which I wrote about in the dating profile I put up on Yahoo Personals on that Valentine’s Day. A lady 2000 miles away read the profile and fell for it (along with my smile, she says). She made me want to be my best. We’ll celebrate our 20th next year.
Talk about failing up!
Mark, you’ve nailed the idea that wealth isn’t just dollars in an account. It’s the freedom to make intentional choices and build a life that feels right for you.
Prioritizing contentment and your personal philosophy over blindly following conventional financial advice is a form of wealth in itself.
Although it seems my actions were premeditated, the pattern only became apparent looking backwards through my life. Our subconscious can sometimes be a backseat driver.
Contentment is the greatest concept there is.
Mark, that’s a great story. I’m a big believer in the ripples created by the decisions we make. I think those ripples carry on throughout our lifetimes. Had you done a single thing different you may not be where you are. Retired in your 50s with grandkids, a beautiful summer home, and a Suzie to give you a good slap in the head when you deserve it.
I often wonder how things would be different if I’d stayed in school, and begun my tax practice 30 years sooner, and married a different girl, (we divorced after 25 years). I suspect I would have acquired a lot more money, and perhaps retired in my 50s like you. But would I have had the same kids, same grand-kids, same house, and a Chrissy to slap me sillier when called for?
As a wise philosopher once possibly said… there are many forks on the path of life, only one takes you towards a special wife who administers a slap on the wrist 😁
So you are saying you are a failure, but happy? 😁 Me too.
Yep, in a nutshell. Man, I slaved over those four or five hundred words and I only needed your ten 😂
“If it appreciates, buy it; if it depreciates, lease it.” Unfortunately, I don’t think this way. I like owning my cars outright, and continually leasing just wouldn’t work for me. This has apparently cost me a fortune in depreciated assets”
I don’t get the concept in regards to cars. I believe when you lease you are paying dearly for the depreciation then the dealer gets to sell the car and the merry go round continues as you always have a car payment. We have generally bought new cars and kept them at least 10 years or until they become an unreliable money pit. The best example is the 2WD, stripped Toyota Tacoma that I bought new for $13K. I owned it for 17 years then sold it to my brother for $1K (he’s still driving it).
In the past five years we have bought two new vehicles, and the 2020 Tacoma only has 43K miles on it. We like to have new vehicles that we know we will meticulously maintain. With our ages of 66 and 67, with expected decline in our driving miles declining over the years may mean these are the last two vehicle we own.
I was always a buy guy, however, when Chris’s $5K Prius required a $7K repair, I altered my thinking. Today’s cars are so complex, it takes a certified mechanic for many repairs, and that ain’t cheap. So we leased her Crosstrek, and left our cash invested. The peace of mind having a new car, under warranty, and ready for a road trip is surely worth something.
“I don’t get the concept in regards to cars”.,………The concept of tax-efficient leasing may not be universal, but it’s a significant factor for business owners in the UK. The total cost of the lease is a tax-deductible expense, and you can also reclaim the sales tax. I would be surprised if it’s not the same in the US, but maybe not. This makes leasing a much cheaper option in the long run. Despite these benefits, I still chose to buy my vehicles outright because of my mindset.
That worked great for you, but most people aren’t in that category. After I paid off my last car loan (or perhaps the last but one) I started putting $200/month into a “new car fund”. I stopped after a while but the account (in Vanguard Wellesley, with reinvestment turned on) has been quietly growing ever since. I bought my current car back in 2007 with the insurance settlements from the accident that totaled the previous car. I checked, and the new car fund is now worth just under $82,000. Given I have no intention of paying anything like that much for a car, it’s probably time to turn off reinvestment…
Similar here. We follow my grandpa’s advice. When we buy a car we pay cash. And when we get that car we start saving a monthly amount equivalent to a car payment into a high interest online savings account. It current account is $54k
I agree there are other things more important than money, and in my case my financial goal was not to acquire as much wealth as possible, but rather to acquire enough. I suspect you’d agree.
“enough” was definitely how I thought about it.