Building wealth is a long game. It’s sometimes very easy to get discouraged as a result. Despite a lucky investment when I was 22, I felt very little pleasure having a large savings account in my early 20s. Money degenerates to just numbers on a screen that provides no utility unless spent.
I was actually considering quitting my newfound job in San Francisco after two years in 2003 to live a vagabond lifestyle in Hawaii. Surf in the morning, massages in the afternoon, and Mai Tais in the evening can’t be that bad. Thoughts of buying a Eurovan VW to go road-tripping across the continent as I took showers at rest stops also crossed my mind.
It’s dangerous to receive a financial windfall so early in life because there’s a risk of saying fuck all to everything. You suddenly think building a sizable financial nut is so easy, when it’s clearly difficult in a short period of time. With a sudden injection of wealth, you may never achieve your potential because you simply don’t bother trying as hard.
After much deliberation and a perpetually drunk upstairs neighbor, I decided to buy my own property to “get rid” of my money. I was sick of renting and I was also unmotivated to work for money, a big problem if you work in finance! As soon as I plunked down the six figure check I felt a sense of relief. Having no money never felt so good!
Finally, I’m working for something more, I remember thinking after paying my first mortgage payment. Living in a nicer property instead of a dingy one bedroom was a reward for four years of hard work and risk taking. Slacking off was not an option because if I did I might lose my home!
Perhaps the real reason why I love property so much is not so much for the returns, but for the refocus it provides. Mortgage debt saved me from being another know-it-all kid who throws his life away at the age of 26 due to a lack of patience and perspective. A mortgage was the anchor that kept me from blowing away.
Years later at the age of 32 my enthusiasm for work once again began to fade. 10 years raced by after college but I was afraid to go out on my own because work was all I knew. The Dark Side Of Early Retirement was penned to make sure I wasn’t falling into the same trap without any purpose. When the post was published, I was immediately bashed over the head by the early retirement community if you read the comments. Little did they know my goal was to purposefully bash my own crazy thoughts to make sure I wasn’t missing anything before deciding to take the leap of faith two years later!