Attainable luxury is a trap

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The book of the week is Unscripted.  I haven’t made it all the way through yet but I know where it is headed.  This isn’t the first book I have read by MJ Demarco (Millionaire Fast Lane).

In this book he talks about the life that we were sold and how by following that life, and that script, we play into middle class slavery.  That slavery looks like waking up, going to work, waiting for a weekend, waiting for a pay raise and driving a C Class Benz.

The C Class Benz

A part of this trap is the concept of the C Class Benz and the four bedroom home in the suburbs.  A while back I spoke about this in regard to following the heard into a life of middle class mediocrity (people hate when I use the word mediocre to describe the mediocre). After giving this some thought I found that it is even more true that I realized.

Attainable luxury is one of the things people aspire to.  You get there by working (hard), getting a degree and following the rules.  I have been there and back multiple times.  You get the nice apartment the nice car the toys, all financed with credit cards and bank loans, and that ties you to your job.  The fact that attaining these items ties you to some other place is what makes it the trap.

Luxuries prevent you from obtaining luxury

While it is noble, accumulating attainable luxuries prevents you from obtaining true luxury.  Attainable luxury = luxury that keeps you in the middle class. Think apartment, car, watch.  Real luxury = the things people couldn’t have even if they moved home to live with their parents.  LOL. Think ocean view multiple million dollar property, think Bentley Mulsanne, 100 unit cashflowing apartment complex.

For me, I tried to use those attainable luxury items as a stepping stone.  My goal was to go from entry level Lexus to mid level Lexus to big body Lexus to Bentley.  Make sense right.  “Entry Level” means you are getting your foot in the door? WRONG.  You can’t level up when you have one hand tied behind your back in entry level flash.  Attempting to do so is a trap bro.  Attempting to level up through attainable luxuries will stunt your ability to get to the levels that matter.   People who drive Bentleys didn’t get there working their way up the corporate ladder.  Not en masse.  Most built their own ladders.

The problem is that it is tough, if not almost impossible, to build your own ladder when all of your wealth and time is being sucked away from you, with interest.  The You don’t REALLY get to the Bentley level JUST working HARD for the sake of working HARD.  You get to the Bentley level by working a strategy and working smart, HARD.  Hard work for the sake of hard work and for wages is slavery.  Slaves did what they were told, rarely did they create and innovate.

So if all your time, effort, energy, creativity and most importantly your RESOURCES, are used to sustain your entry level luxury lifestyle you are losing and they are taxing you with interest the entire time.  Being tied to these items ties you to a job which steels your best hours and your best years.  Enjoy the projects.

The Obvious Road

A better way, and my current strategy, is to forsake the obvious road.  The obvious road is to compete with your friends and family.  But you know where that ends. Best case you have a mil set aside at 60, worst case, you retire on social security.  Neither of those is appealing.  The goal is to live like no one else so later you can live like no one else.  Your friends don’t know what they are doing.  Don’t upgrade the car, don’t even buy another.  Buy cash flowing real estate, businesses and high growth stocks. Buy something that can set you free not something that WILL hold you down.  

One of my favorite writers, Scott Trench, author of Set For Life, made a point that he just bought a new four-plex.  He already owns multiple other properties.  But if you have read his book you would know that he drives a Toyota corolla.  If he drove a Benz he wouldn’t own a fourplex.

You can have entry level luxury right now but you will never see real wealth.  Or you can learn the ways of the wealthy, the Rolls Royce drivers, and start working that system.  I promise you that the Rolls Royce driver didn’t get there clocking in and out.

Another example of not taking the obvious road is one of my family members.  He drove a Honda while he paid off his home.  Instead of taking out a massive loan on a $50,000 E class which he would have ended up paying about $65,000 with interest plus taxes, insurance, maintenance, he drove a $10,000 Honda, paid it off early, likely paid way less in all of the above additional fees, and applied the difference to his mortgage.  He now has a paid off home and multiple millions set aside.  Wealth.

Throwback Thursday Dollars

Make your temporary permanent.  Make your temporary money pay you forever.  I want to get new checks from the throwback money I put up not new likes from the throwback pictures I put up.  I want my old money to pay me forever in new money.

You don’t get there by blowing it fast for the gram.  Life is long.  At 35 with a few mil in assets generating six figures you can do a lot of damage.  You can live and travel in true financial freedom on your terms.  OR, you can trap yourself and your skills to a job hoping for a raise, only to wake up at 35 making at or near the same amount of income.  The choice is yours, freedom or bondage, you can’t have both.

Be great,

Todd Millionaire

 

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