Safe and Sound magisto-movie from IncrediblyX on Vimeo.
Last year has had it's ups and downs being that I have been divorced for a couple of years makes it alright. Being alone has given me much clarity and given me the gift of non-attachment that a single person would enjoy. I am however, becoming increasingly aware that I'll be retiring in four years and that priorities like advancing at my job has taken a backseat while prepping for the world without a guaranteed paycheck have certainly become a precedence. Preparing for retirement has suddenly turned into a short-term goal instead of long-term. Wisdom and things I have learned and learned again:
- It is cheaper to purchase a brand new convertible and dump it a year later than it is to rent one for a year straight.
- Do the math: I paid $27K... okay, okay honestly I paid $30K (taxes, everything), sold it for $22,500. Now on the other hand, renting one if you can even find one (color, specs to your liking) is $1,200 a month and multiply that by 12 and you pay $14,400 not counting insurance, etc.
- Selling a car is twice as hard as buying one if you're trying to get the most out of your money.
- A house is a money-pit. There are always problems that are....for the lack of better terms...."expensive".
- Air conditioning? - $500 cha-ching
- Broken Sprinklers? - I dunno, because I didn't fix it.
- Broken dishwasher? - I dunno, because I washed all my dishes by hand
- Dishwasher not routed correctly?
- Grass is dying.... weeds are taking over.
- Broken this.
- Broken that.
- The list goes on and on and on and on and on
- However, I did fix a ton of stuff myself with my incredible man skills and learned a few things or two.... or three.... or twenty
- All-in-all like a new born baby, a house requires constant attention
- If you are active-duty military, do not. I repeat, DO NOT buy a home mostly because you're NOT going to live in it for long.
- Instead, my short-term strategy is to save up my money, live in super low-rent housing (or 10 roommates) and put down a good down payment on a franchise or something when I retire. While the risks are high, the potential for making money via entrepreneurship is much greater and much faster. Spending my entire life savings on a house to earn a mere $12K a year or less via renting it out while paying my own rent elsewhere does not make economic sense. Neither does flipping a house that has gone up in value since a good amount of profit goes to taxes, seller fees, etc. anyways. Think bigger. If your investment doesn't earn you $10K or more a month, don't waste your time. Save money for something bigger and invest wiser.
- Remember, the only winners are the realtors, the bank and the government.
- It is better to save enough to pay off a home with cash so that most of your earnings isn't spent on mortgage interest.
- Mortgage is a tax deduction you say? Yes, but just a small percentage of it actually comes back to you. Do the math. I used to be a volunteer income tax assistant for the IRS. I know taxes. The government is not stupid.
- Do not buy a house that is not in a renters market if you plan to rent out your home. Do your research. Check to see if there are any colleges or universities nearby. Is it within 5 miles of a military base?
- Temecula, CA is a good example. Lots of homes for rent, no renters. Job outlook in the area is awful, everyone commutes a long distance which is clearly evidenced by the horrendous traffic patterns along the interstate leading into and out of the city. The current trend is that hundreds of people are buying homes to rent out which is flooding the market with empty rentals and driving rent prices lower than mortgage payments.
- Do not listen to a realtor. It's their job to sell you a home and will feed you false information with a smile.
- Money = Happiness. Money buys things, services if you're too lazy or busy to do it yourself, and best of all, great memories.
- Have you ever seen a sad person driving a convertible, on a jet ski, with an annual pass at Disneyland, or writing a million dollar check to "Name your Charity" Foundation??? No.
- Money makes the world go round. Not, "Likes" on your Facebook page or purchasing expensive things that goes towards something else. Make a real difference by getting rich and go do something that would make a global impact.
- Keep your inbox empty.
- The less there is to stress about, the easier your life will be.
- Do not plan to live anywhere for any lengthy amount of time.
- When I retire at age 38, I plan on moving where I can get a job. Once I have established that, I can plan on bigger things like finding my goldmine. Purchasing a home will never be a priority... until I have found my goldmine.
- Kids are going to take care of you, so take care of them.
- Do your best to educate them and don't spoil them.
- It is proven that people who grew up in tough, crappy situations end up becoming the most successful in life. If you don't believe me, then Google it. I'm tired of hearing how people who have been pampered all their lives do not know how to perform basic things or lack basic survival instincts.
- Life is a Game.
- Your opponent is time. You only have a limited amount of turns before you die. Your success is dependent upon some very vital things:
- How happy you are.
- How much education you have achieved.
- When everything starts to make sense in the "big" picture and when everyone's pitiful gripes start to sound annoying because you are too smart, you have achieved a good amount of education.
- Does this education make you more successful?
- How much money you have earned.
- Did you procreate?
- Did you teach your offspring how to survive in the real world?
- You can afford the basics:
- Sufficient Shelter
- Good Food
- Reliable Transportation
- Stylish Clothes
- Fun
- Have you saved enough money to live comfortably for 12 months with no income?
- Are you making a difference in your community? To the world?
- What have you done to immortalize yourself?
- If you can't think of a good way, think again. Try to write to your Congressman to make sweeping changes to policy.
- One example which happened several years ago, I have written a complaint to my Congressman who was the head of the Armed Services Committee about the unfairness of people with degrees getting paid the same as people without higher education in the U.S. Navy. And guess what? Degrees are now a part of the Navy's advancement system. Cool huh?
- Go ahead, be fearless. Do things as if you're going to die tomorrow. Chances are, you're not going to die tomorrow.
- Jumping out of a perfectly good airplane was probably the craziest thing I did last year. But it was totally worth it and I would do it again in a heartbeat if I could afford it.
- You have total control of your destiny. Don't take no for an answer and be brutally honest even if it is going to hurt someone's feelings. Leadership 101, son.
- Do not feed your kids any sweets. Dental work is expensive, even with insurance. That bag of Skittles just cost you $500 in cavity fillings! Don't do it.
- Do not believe everything that you read on the internet. Trust your gut, if it sounds like bad advice, it probably is.
- Don't buy organic. Why? Are you trying to live to be a hundred? Organic foods expire faster and taste weird.
- Sleep as much as you can. It feels good to sleep early and wakeup naturally. You're more focused throughout the day and you don't need to waste your money on energy drinks and coffee.
- If you don't have a gun, get one. It is always good to prepare yourself for the worst in case of a total shutdown in society. Amongst chaos, bullets speak louder than coin when it comes to getting basic needs like water in case of the apocalypse.
- Learn from other people's mistakes and don't trust other people's advice without verification.
Ending this post with last years, Camaro Cruise which pretty much was the turning point of last year for me. 2013's Motto: "Fear nothing. Do everything."
Borrego Springs Cruise 2013 from IncrediblyX on Vimeo.
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