image credit: joeshlabotnik
Today’s post comes from our cousin, Todd who recounted experience he had with a colleague. Todd is in his late 20s; the colleague is older, and should theoretically, be wiser.
One day, we were waiting for a meeting to start. As we stood there, he turned to me and said, “Todd, you work for [the university]. Don’t they pay you enough to move out of your townhouse and buy a real place to live?”
I bit my lip and said, “Uhh – they pay me really well. I don’t have any complaints. We live where we live because we like it. We also chose to do away with my truck, because it sat parked in front of our house, 4 days each week. We just figured it would be better to consolidate to a single vehicle.”
“Well yeah, but you should probably go back to school and get your doctorate, so you could teach. That’s where the real money is in working for a University.”
“Yes, but I already make more money than starting faculty –“
“Then you could afford a bigger house.”
At first I was pretty irritated that he would judge me like that. I didn’t want people to think that we are poor. But, last week I was at lunch with a friend who provides banking support to all of the Wells Fargo branches in the region. As we ate, we chatted about finances, and I recalled that discussion.
This friend, who lives across the street, shared some additional insights. In that discussion, he pointed out that many of the problems he sees in the lending business come from people trying to have the nicest house and nicest cars on the block.
Instead, he pointed out other things that aren’t so obvious – the fact that we have six months worth of savings, life insurance and 3 different retirement accounts, with substantial monthly contributions to each. We have a modest home, with substantial equity and very affordable payments. We own our car. The only debt we have is from reasonable student loans at a very low interest rate and our mortgage. We are saving enough money that when I start the MBA program next fall, we will have the full amount to pay cash for the program.
I love my job – I put in honest days, but I have lots of time to spend with my family. My favorite days at work are the ones that get interrupted to go feed the ducks with my wife and daughter, or the days we play soccer or golf in the hall outside my office. I live within walking distance of my office, and often run home at lunch to check and see how things are going. How can you trade that in for a few more dollars a year?
I guess we’ve come a long way from when we were first married and broke with maxed out credit cards!
What I love about Todd’s story is the way he sounds (remember, millionaires sound different than broke people). Todd’s not a millionaire, but he sounds happy, content, secure. He’s living a life he chooses to live, not one dictated by what others think of his stuff or by overwhelming payments on debt.
Don’t think Todd’s depriving himself. He loves to bike on and off road; he has nice bikes and just returned from a boys’ trip to Moab, Utah where you can ride some of the best slickrock in the world. Todd loves to climb and hike and do generally extreme things outside. He has all the gear he needs. He’s more than a bit of a tech head, and, as far as I know, he has all the technological gadgets he needs (I’m sure there are a few things he drools over and dreams about, but he’s doing alright.)
The point is, Todd spends money on the things he needs to live the life he wants, not on the things that impress others (like a bigger house or more cars.) That’s why Todd sounds secure. That’s why Todd sounds happy; he’s building the life he wants to live, not working to impress others.
Take a minute to think about your own life. Are you building the life you really want to live? Or are you accumulating stuff that is only for show?
How would it feel if you got rid of three things (or payments, or habits, or anything that is taking your time or money) that are not helping you attain your ideal life. How would that feel?