The CEO of the company I worked for used this phrase a few days ago while discussing competitive advantage, but it goes for RE too. Especially those of us still dreaming.
Not too many years ago, we had that dotcom bubble and many people I knew were drawing high salaries - in retrospect perhaps the highest they'll ever get.
Some stored some of that cash away, investing it outside the bubble - and while they may have taken the hit with everyone else, they were also in a financial position to not have to worry too much about where their next meal would come from.
But many didn't. I know one guy who was making more than I was who blew his wad on a Caddy SUV and an apartment in the best part of town. He ended up having to sell the car and move back in with his folks for a bit.
Knew a bunch of other people who did similar things - expensive car, big apartment, nights on the town, trips to some place I can't pronounce. They had a ball while it lasted, but the hangover can be a bitch.
These people didn't make hay. As a result they squandered an incredible opportunity to put extra cash away while they had a surplus AND they were young. The opportunity cost of wasting that money is mind-numbing.
I'm guilty of this too - when I graduated from college, one of the first things I did (after I landed a job) was buy a new car. Terrible financial decision. I still have the car and will until the wheels fall off, but I'd be farther along the path to RE if I had bought a used car at half the price, and invested the rest.
So if the "sun" is shining for you - and even in this economy, it is for many of us - challenge yourself to save a little bit more. There's no guarantee that you will be able to ten years from now - or even tomorrow.
Not too many years ago, we had that dotcom bubble and many people I knew were drawing high salaries - in retrospect perhaps the highest they'll ever get.
Some stored some of that cash away, investing it outside the bubble - and while they may have taken the hit with everyone else, they were also in a financial position to not have to worry too much about where their next meal would come from.
But many didn't. I know one guy who was making more than I was who blew his wad on a Caddy SUV and an apartment in the best part of town. He ended up having to sell the car and move back in with his folks for a bit.
Knew a bunch of other people who did similar things - expensive car, big apartment, nights on the town, trips to some place I can't pronounce. They had a ball while it lasted, but the hangover can be a bitch.
These people didn't make hay. As a result they squandered an incredible opportunity to put extra cash away while they had a surplus AND they were young. The opportunity cost of wasting that money is mind-numbing.
I'm guilty of this too - when I graduated from college, one of the first things I did (after I landed a job) was buy a new car. Terrible financial decision. I still have the car and will until the wheels fall off, but I'd be farther along the path to RE if I had bought a used car at half the price, and invested the rest.
So if the "sun" is shining for you - and even in this economy, it is for many of us - challenge yourself to save a little bit more. There's no guarantee that you will be able to ten years from now - or even tomorrow.
