I’m not sure what the demographics are like on this site, especially since I don’t pay any mind to statistics and have a general disdain for that sort of thing–placing people into neatly fit boxes and the like. But I get the sense that a great many of you are under the tender age of 47.5. As you know, anyone older than 47.5 is strictly prohibited from viewing this blog and shall be executed on site, if caught doing so. Furthermore, it is the age at which “The Fly” will retire from blogging, pass on the crown to a younger, more deserving, trader/investor, who will carry on the traditions of financial debauchery, until he relinquishes said throne at 47.5 years of age.
When I was younger, I used to stuff money into envelopes, budgeting for the months’ expenses. One envelope was for “rent”, another for “electricity” and so on and so forth. I spent all of the money that I had, save my investments in the market, which I smartly spared due to keeping the dream alive, supporting a child and wife. I was in my early 20s and the market was an unforgiving monster. I couldn’t handle the volatility and money was tight for a long time.
I recall one New Year’s, being as happy as a troll inside of the comments section, because I had taken home the enormous sum of $4,250. Back then, I thought it was all the money in the world. Soon after New Year’s, my 8 month old son, wife and myself celebrated over dinner at the local diner. I might’ve ordered a “Romanian steak.” The whole meal had to cost no more than $50. But it was a luxury for me, as I was accustomed to living lean and eating even leaner.
As time went on and the market improved, so did my paychecks. I moved out of the basement apartment, which I rented from a bastard of a landlord, and into a brownstone. It took me a long time to move, since I always felt the good times wouldn’t last. A friend of mine, who started the business the same time as me, used to park his brand new Mercedes in my driveway–right outside my basement apartment. He spent his money as fast as he made it. He achieved success faster than me; but his didn’t last as long.
Soon enough, the checks grew from $4,250 to $10,000 to $50,000 per month and so on and so forth. It’s true when they say “the more you make, the more you spend.” Last month we spent upwards of $3,500 on groceries alone. We didn’t buy anything exotic or elaborate, just ordinary meat and vegetables from the local Whole Foods. We are consumers at heart. I think it has a lot to do with mortality and our desire to live the best with the time that we have here. Only a handful of us are able to save a lot of money. Most of the people I know would be flat broke, if it weren’t for their enormous monthly paychecks. Gone are the days of frugality, when people saved for rainy days and put money aside for their children’s inheritance.
These days, I’m afraid the stock market is used to finance the personal pyramid schemes people have going on. They spend so much money on gratuitous items; but make it all up in a week or two at the races, also known as the stock market. Either way, this is an unsustainable way to live. Get your lives in order, man, else you’ll be singing the blues when this hit parade ends.
We talk about making money a lot here and have plenty of talented traders present to help you make more money. But no one tells you to ease up on the drunken spending sprees. You’re gonna regret it one day, as I’ve once regretted my debaucherous ways. It took a second wind to give my boat another go around, something I am grateful for. It’s not often that people are given a second chance at success. Most of the time you’re given that chance, through hard work or luck; and if you blow it, it’s gone forever. My grandfather comes to mind when thinking about that subject, a story for another day.
The moral of the story is: set up trust accounts, SEP IRA’s, invest in property before you buy that new Benz. Be smart and try not to live your whole life now, for it’s going to last a long time and you’ll need some of that worthless fiat cash to get you through the latter years.
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wise words coming fm a sub 47.5er
Phenomenal Post, Fly!
@BoilMeImIrish
Best icon in a decade
(tips hat)
47.5 is for the craven unwashed, you’re not retiring until 59.
how do you spend $3500 in regular groeries? do you have a large family, or was it from entertaining via house dinner parties?
Also, i thought investing in property was for the dentist who doesn’t belong in the market?
Matt- as you may know, a full shopping cart at Whole Foods can be $500.
One person can spend $ 1,000 a month there, easy.
As a single guy, I used to go out for dinner alone at restaurants all the time, and that was $30-40 a night ten years ago.
Good savings can come to a person or family who can eat healthy and cheap at home. It requires discipline and time to stay that course.
My dining out expenses is sep from grocery. That’s a whole other story.
I have 3 kids, one is 17. They eat a lot.
If I have 3 kids it will surely be an accident. My 2 beautiful girls are enough.
Great post fly. I am born to immigrant parents who stressed the importance of respecting money and being able to put a little bit aside each pay check. I’m sub 30 and live in a basement apartment but there are times when I spend recklessly when I make more than usual. Surrounding yourself with like minded individuals is key.
lasers; http://news.yahoo.com/us-navy-ready-deploy-laser-1st-time-183857955.html
Dr. Fly, super sage post. To this day, it befuddles me when I learn of the latest handsomely paid colleague to lose their house or car to repossession – a regular occurrence….
My advice to the young hot money studs that are interested in always having money on hand: Do not have children. Do not keep a pet animal. Only date/marry a woman that is already self sufficient (and childless). Pay for all vehicles & vacations in CASH.
I’m sure there’s more to add.
Buccs- No doubt the domestic life costs big money, but safe to say that many single guys blow huge amounts of cash prowling around and extricating themselves from situations.
http://www.youtube.com/watch?v=u4uzZL6RQbw
Lol! Perfect…
I cannot agree. My biggest assets are my children. Money can never replace the memories.
No disrespect. I’m only referring to money alone. Kids & pets are fiscal heat-sinks (electronics analogy), but if they enhance your life experience, the additional expense is more than worth it… I suppose 😉
Indeud life is boring and unfulfilling without kids
Fly, no disrespect intended from me either. Family is more important than anything. Years ago, I spent so much money on crap that means nothing now.
Between all the gold talk and fiat cash reference it’s getting decidedly “Zero Hedgy” in here lately.
I really, really want to quit my job and start trading full time since I’m missing out on some great opportunities by not being able to watch the market all day, but posts like this remind me how nice it is to have a steady paycheck.
How big, or small, was your bankroll when you started trading full time?
I will have no money when I am dead.
I’m over 47.5 years,,and wouldn’t have known about the twitter and the facebook without the help of you whipper snappers
I await the executioner
New to the site. Great post. Love this blog.
Mr. Fly – what happens if I am 34.1 but I feel like 62? As my toddlers get older does the variance between my real age and what I feel like get closer? Great post by the way.
Tax
Head to the gym. You will feel younger immediately.
Rich dad poor dad, everything is that book. Be self employed or business man under a corporation, full time employees dont get rich. With your spare money acquire assets – stocks, real estate – instead of liabilities- fancy cars,etc. Compounding will do the magic.
Wow. I am impressed with that WFM bill. I have purchased my groceries from there (in the old days it was Bread and Circus) since my pre teen days. I doubt i spend more than 1000 a month there though. I have a family of five but the kids are all under the age of seven. You can actually keep the bill quite low if you buy mostly fresh fruits and veggies and bulk grains and avoid the pre packaged stuff. I don’t get those that drive nice cars but eat food from Costco…
5 stars for this one. Nice life lessons. I often wonder if the few people I know who drive extremely expensive cars truly are a mere check or two away from a cardboard box. I don’t hear much talk about saving for a rainy day much. I have always tried to “pay myself first” via 401k, IRA, etc.. and then.
At 41 myself, I am amazed that about 2% of my friends have a will and only 1 couple has a living trust. You mentioned it but you are right on to pursue it if you have kids or not.
When the kid(s) are at home they are the most important thing in your life.
You just don’t know it for sure until they are married and out of the house.
Trust me on this one.
Nice post. Reminds me of a song:
I’ve got money in the bank. I can still get high.
That’s why your girlfriend thinks that I’m so fly.
Best post since I started reading last year.
You’re the man, Fly
I’ve found that investing in things that improve your life/longevity are some of the best assets to use your free cash on… but that’s after SEP IRAs, rental properties etc.
Without good health then all the money in world doesn’t mean squat.
Drinkin 40’s of Old E outta brown bags. Mashing down the strip in a S Class.
Neither the government mor big business will tolerate hard working educated savers. They have been brainwashing the public for years to live on hope and coolness. Smart is not cool. Why work when you might win one of their lotteries. Don’t let that other kid have a better car or phone or pair of jeans than your God given right to thanks to that 18% credit.
Keeping cash in the bank or with your brokerage account will earn you a snickers bar after a year. And the great risk remains that our accounts will be “Corzined” or “Cypused” if we do build up some value. I’ve been a saver while my friends and family spend like drunken fools, but i’m not feeling like I’ll benefit from it.
2 adults, 3 teens who ate like horses. We never bought any processed food, always bought from small markets, organic veggies, wild seafood, quality Alberta beef and lamb, proper bakery bread. Our food bill was around $700. a month 10 years ago. Food prices haven’t gone up that much.
$3500. a month is ridiculous unless you are feeding the entire cul-de-sac.
$700 per mo? You must’ve subsided on oats and barely
I drink my barley.
Subsisted
This blog post goes great to contrast with the newest blogger who does nothing but fly around the world. I wonder how his monthly airline bill stacks up against the monthly whole foods bill.
Hmm, I wonder how many air line miles he has too.
that guy is still a young punk and he must be making a shitload to finance those trips.
Listen up to one of the last ‘real men’ aboard his own vessel as he puts a British interviewer ‘in his place’. Arrrrr:
http://www.youtube.com/watch?v=ynpO7PUYRSw
Only the lowlifes have kids and leave no inheritance. The game is about the name if anything at all.
The Tonight Show is creepy just like the tape. New normal they claim.