See also
- https://tanbinvest.dreamhosters.com/19469/y-heavy-livelihood-pressure-usd300k-family-lz-yu/ .. an in-depth discussion with LZ.Yu
- blind_FOMO[def]: TJ.Lin@Chn young techie .. the discussion was even more in-depth
- https://tanbinvest.dreamhosters.com/20896/livelihood-s-liu/ .. those condo and private schools are not part of livelihood
In my Dec 2021 year-end dinner with 3 colleagues, once again I noticed my breakaway from middle-class, in terms of priorities, blindFOMO
They talked about condo (1.2M was what they discussed), big mtg (like 900k), maid, private internaitonal schools as if there is no choice (They are foreigner in SG. Later I brought up college funding and SDXQ.) They also talked about car ownership… in a well-connected Singapore!
Varun reiterated that there’s no right or wrong, but I do have an opinion. I think some of those items are the wrong priorities for me (and probably for them too), because I have better self-knowledge. I think in old age some of these individuals would regret when they re-evaluate their past decisions in total honesty. Other eg of personal priority where there is no right or wrong:
- To them, short commute is a good-to-have but low priority.
- To them, healthy longevity is presumably low priority, and pleasure is high priority. Well, look at Grandpa’s experience after 85.
- To them, my diet struggle, hazards, availability … are clearly a low priority. I feel some of their waistlines represent their growing income.
- To many of my peers in their 30s and 40s, more time with kids is a priority, but for me, I don’t want too much time or too little time with kids. I know what I want.
I don’t want to spend on commercially popularized priorities like car, luxury housing, top SDXQ, branded colleges,,,
I’m willing to spend on my personal priorities such as family reunion trips, low-stress/low-pay jobs (like Mvea, Citi…) I think the issue of maid is similar.
— creep vs savings .. I think for some of these colleagues, their savings rate might be decent. However, their burn rate is probably higher than mine due to 1)housing 2)car 3)maid. I remember one Sonic guy used cheap credit to finance private school fees. Even without kids, some of them spend more than I do, perhaps spending 80% of salary.
Their lifestyle creep is probably higher than mine, influenced by peer pressure. Actually I don’t have enough insight. My lifestyle creep is non-trivial.
— high ground .. I feel they won’t reach my level of cashflow high ground any time soon.
I think their burn rate would be 80% of income including mtg P+I.
Their FullerWealth would be much low than mine.
Mtg .. They basically assume that a 30Y loan is “fine”, even though it would impose an extremely stringent obligation to pay $2k-3k/M non-stop. Well, that’s Not “fine” to me, not a minor thing to me.
I enjoy a high brbr and FullerWealth (my priorities), but to them, those priorities may look like saving money for nothing.