Jul 26

Let’s start with, “I’m not a Multi-Millionaire…yet.” :) But I played one recently when I was on the East coast visiting family and friends. Multi-Millionaire friends.

Mansion StepsOne was a medical specialist, one inherited boat loads of money, old money, one sold helicopters internationally, one flew private jets that hauled wealthy families around the world, still one was a higher-up in a nationally known financial institution, two international financiers who by the way retired around 40 years-old to take care of their young kids. Well isn’t that special. :)

When it came right down to it though, we were all gathered together for a graduation party. Held at an estimated $5,000,000.00 Victorian-style estate. Well at least that’s what all the men stood around trying to figure out how much the place was worth.

Situated on a bay that fed the Atlantic ocean with its own swimming pool and docked boat, the place had so many rooms it was difficult to find your way back to the party after visiting the little boys room that, well, seemed half the size of my house.

We arrived early to help finish setting up for the party and help prepare a bit of the food. The majority of the food was being catered but some of the “down home” folks wanted to put a final touch to the event by cooking up some home-made tasty touches.

BathroomI ran around with the owner of the home who was cleaning his pool when we arrived. I thought, “Wow, he cleans his own pool.” He proceeded to show me what he wanted me to help with and how to do it. I was impressed as we walked around as if he was an event organizer instead of a 50+ medical specialist.

I asked him if he did most of the work around his home or hired help. He said he did the mowing, cleaning the pool, taking care of the boat, the two kids, and mom and dad cleaned the house.

He did hire out the edging and gardening. I was impressed. After discussing all the visible possessions for a while he concluded with, “Yep, I’ll be working to pay for all this for the rest of my life.” Oh, by the way, they like to visit the French Riviera once a year as well.

As the party progressed and most of the mingling folks knew each other, the multi-millionaires actually shared tales of having problems “affording life these days.” I thought to myself, I hear this same story among 20+ year-old newlyweds. What’s worse, having million dollar money issues or hundreds of dollars, newlywed money issues?

One person talked about “flying his client, the family to Isreal and then flying himself over to Rome instead of back to the states so he could wait to fly the family somewhere else in a few days.” Yikes!! :)

Yet another, the international financier discussed the complexities and expenses of owning three homes, one in California, one in Colorado and one in China. Geez!!

YachtIn the end, I was discussing with a family member who lived closed to some of these multi-millionaires, the money problems the spouses complain about on a monthly basis and how they’re going to make ends meet.

I guess some of this is evidenced in stories of non-wealthy folks winning money in the form of some sort of lottery and most of them ending up having problems, both personal and financial.

I also heard plenty of unhappy spouse stories and possible divorces among some of them. Well, it all sounds familiar no matter what class you happen to be attending.

I remember somebody saying this a long time ago when they were speaking of “rich” people having the same problems as not rich people, “rich folks have the same problems as everyone else, they can just arrive at their problems in style.” ;)

written by Bill Stevens

Jul 10

I used to tell my kids when they were getting close to the ripe old age of independence, around 18 to 21 years of age, “Don’t get caught up in life.” They’d say, “What does that mean?” Then I’d present the list:

  1. When you’re in college or just starting out on your own you buy a pet(s).
  2. When you’re in college or just starting out on your own you get involved in a deep relationship.
  3. When you’re in college or just starting out on your own you buy a house because you think renting is bad.
  4. When you’re in college or just starting out on your own you buy a car and you live on campus.
  5. on and on…adding more and more stuff in your life that you have to manage and focus your time on.

I would then compare that to someone their age who had the ability to just pick up and go. Go to a job interview clear across the country and be able to accept the job with very little resistance from the “getting caught up” list. Move to another country for a while to study or accept an internship or even a long-term job.

TiredHowever, getting caught up for some people has resulted in completely acceptable lives that they still would do the same way over again if they had the chance. Someone in my family was married years ago when they were young and both students in college. Popping babies out every two years, three times (three kids in other words). Debt collectors calling constantly that went unanswered. Sometimes never really knowing how or when things where going to get paid.

Thirty years later, one spouse works while the other stays home on the acreage that’s worth well over $400,000.00 in the Midwest. What happened? The magic of time allowed the working spouse to pursue their passion in a business field where company’s would pay for them to finish college, even a master’s degree, so they’d be more valuable to the company and other companies they moved to. Raising the level of your marketability. The spouse was “caught up”, if you will, in a career that would blossom with time.

I still preach to young folks, “don’t get caught up so you’re frozen from not pursuing all the many angles in life when you’re starting out.” It’s tough enough, let alone adding extra stuff on to your life to make it harder than it already is to start out on your own.

written by Bill Stevens

Jun 27

PassportA young person I know received $20,000.00 at 18 years-old. The grandfather had left thousands of dollars to his young grandchild when the grandfather passed away, while the grandfather’s son, the uncle of the 18 year-old watched over the money that was in a mutual fund until the child was of legal age to receive the money.

“The money is to be used for college”, the grandfather said. However, there were no rules, no stipulations and no guidance. The uncle gladly turned the money over to the 18 year-old when it was time for college. So, the young bright-eyed 18 year-old announced, “I’ve decided to go to Europe this summer before college starts. I’ll never have this time again.”

Oh no!!

So off they went, the 18 year-old and best friend. It was all over in a matter of weeks. Great times, photographs, stories, new experiences, you name it. Nothing could have been better.

Ready for college, the 18 year-old moved out of mom and dad’s house and into…”my own house. Everybody knows you’re throwing away money when you rent. Besides I have down payment money.”

Got a hand-me down car from mom. Bought a cell phone and plan. Needed to be safe driving around. Text messaging guaranteed closeness to all. Internet access to transfer pictures, videos, and get email. “Everyone has it.”

Fast forward, the 18 year-old is now 26. Called mom and dad the other day, “I need a $1,100.00 brake job.” On the third car between 18 years-old and 26.

“I don’t have enough money or credit. I know I went from college to a professional job of my choice. I know my finances went from nothing to something. I know in college I was earning $0.00. Now I earn $30,000.00 a year with full benefits.”

Ouch!!

This Old HouseOh the house? New water heater, had to have professional tree trimmers come out and cut down a big tree that was about to fall on the neighbor’s house. New plumbing in the only bathroom in the house. The bathroom roof needs to be replaced because it leaks every time it rains.

I’m sure there’s more.

written by Bill Stevens