There has been a plethora of stories talking about the privilege possessed by the upper middle class as of late. This article is typical of what the left is trying to do– they are saying that young people no longer have a chance at the American dream because they are being kept down by [insert here: “Boomers,” the upper middle class, banks, landlords, Donald Trump] because of privilege.
The things that supposedly prove that you are blind to your privilege are:
- Why don’t you move to a less expensive area, or one where jobs are more plentiful?
- I worked hard to make it, you can too.
- Money isn’t everything.
- We all have the same opportunities to succeed.
- I don’t worry about money.
- Why don’t they save more?
- Everyone should travel.
Numbers 1, 2, 4, 5, and 6 are all linked in my mind. It isn’t just about hard work, it’s about choices. The choices that we make directly affect the outcomes that we experience. If you pick a troublesome albatross for a mate, you decide to smoke week all day instead of hustling to improve, or you waste all of your money on OnlyFans, Starbucks, and Door Dash, you are not making good choices. Your outcome will reflect that.
That isn’t to slam having some vices- I like to gamble, and ordering Door Dash when I am at work instead of clocking out for an hour to go eat is actually more cost effective. The think is, you can’t be doing those things when you are poor. The importance of understanding when you can give up wants in order to afford your needs is something that many young people struggle with. Everyone, when they first move out of their parents’ house, is used to living a better lifestyle than they themselves can afford. My mother used to call it a “caviar and Champaign taste on a beer and bread budget.” Live within your means, save as much as you can, and then you will later enjoy a better life. Learn that sacrifices when you are young will pay off when you are older.
Once you realize that, you won’t have to worry about money and you will be able to travel. There is no secret to making it- so many people think that there is some magic or secret society to becoming wealthy, but it isn’t a secret and it isn’t magic.
The way to wealth is this:
Own your house. Renting just means that you are paying someone else’s mortgage.
Buy a house, preferably with a 15 year mortgage. Pay it off as quickly as you can- don’t just make the minimum payments. Look at four different choices (using West Orlando prices):
- Rent a nice 2 bedroom apartment. Ten years ago, it was $1200 per month. Same apartments today are $2300 per month. If you did that for 15 or 30 years, it would cost you $324,000 or $648,000 and you own nothing.
- Buy a house with the roughly same square footage in the same area for $140,000 in 2002. A 5% down mortgage would mean a $7,000 down payment and monthly payments of $937 for 30 years. Total cost for 30 years: $344,320. A lot, but you also now own a house that is now worth $425,000. Not bad. You are now $733,000 more wealthy than if you had rented.
- Or buy the same house with a 15 year mortgage. Now the payments are $1281 per month, but you pay it off in half the time. Now the total cost is: $237,580. After 15 years, no payment at all. You are now $835,000 more wealthy than if you had rented.
- Same 15 year mortgage, but make an extra $200 per month payment against your principal: you pay the house off 3.5 years early, and this saves you another $12,000 in interest payments. You are damned near to being a million bucks ahead of renting.
Don’t pick a spouse/significant other that spends you into the poorhouse.
I know that she (he) is fun- after all, spending money is fun and gives you instant gratification, but at the expense of your future well-being.
Know the difference between wants and needs.
Door Dash, Starbucks, and eating out are great, but you don’t NEED to do that, especially when you are poor. Wait until you can afford it before you waste money on these things. If you don’t own a house, are making extra payments on it, and can’t afford to pay all of your bills plus put at least 10% of your income aside as savings, then you can’t afford to any of those “Wants.” Learn to wait until you can.
Education is the key to financial well being.
That doesn’t necessarily mean college. The lack of a college degree doesn’t mean that you won’t get a good job. There are plenty of trades out there that make good money- welders, for example. I was a fire medic and making a pretty good living.
Having a college degree doesn’t guarantee you a good job. Taking out $200,000 in student loans for a degree in 14th Century French poetry is a bad idea.
The trick is to learn a valuable skill, then be good at it. Work hard, make wise choices. Save. Don’t waste money on stupid bullshit. Then be patient. It will take a while. It took me about 12 years to go from bankrupt to a million in net worth.
That’s my advice. I have learned all of these things the hard way. It wasn’t privilege that got me to be successful- remember, I have been poor and even homeless. It was the school of hard knocks. Doing the things I recommend here is hard. It takes discipline and sacrifice.
Or you can just stay poor and blame your landlord or Donald Trump for it.
