Expanding World
Posted on July 25, 2007 - Filed Under Philosophy |
A peculiar trend has occurred in my thinking. I want to toss out and see what others may think.
Kind of a theory which fits the facts.
In college, my world consisted of twenty dollars. Everything was in terms of twenty. Twenty dollars would feed me for a week. Twenty dollars would fill my car up with gas. My paycheck, as paltry as it was, provided me with a bunch of "twenties" with which to maintain my limited college lifestyle.
After college, my world expanded a tiny bit into the "hundreds". My student loan was in the hundreds. My car payment, credit car payments, etc. were all in terms of hundreds. My paycheck was broken down into hundreds to pay for all of these bills. My greatest challenge was to ensure I had enough "hundreds" to cover all the "hundreds" going out the door.
Now with these two pieces of real estate, I think in terms of thousands. Everything I look at is in terms of thousands. My mortgage payments are in the thousands, my rental income is in the thousands.
I feel myself scraping against the "ten thousand" point. With the purchase of the next set of properties, sometime early 2008, my finances will move me right against the realm of the "ten thousands".
It is no small stretch of the imagination that advanced real estate investors, like Donald or Steven Wynn, are moving in the "millions" frame of mind.
Thoughts? Opinions?
What frame do other investors deal in?
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8 Responses to “Expanding World”
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Generally I think in thousands or in percentage points of net worth. 1% is currently $4500. So my usual minimum investment in something is going to be 1%. 5% is a big commitment.
There are a few investors out there (Buffett, Murdoch) who think in billions.
Ha! I remember the day I became a “thousandaire”! I was so excited! Then I started thinking in “commas”. Now I just hope never to see a minus sign!
Yes, the “thousandaire” landmark was an important milestone in my life too.
This is a nice progression that you’ve laid out. I think it quite accurately describes most people’s journey in life, although few move beyond the thousandaire level.
I’m just a thousandaire living in a millionaire world . . .
Well, today, I’m thinking in terms of what it will take to fix the house I’m thinking of buying. I’m thinking in terms of ten thousands with varieties of five thousands. Oh, I hope it will be $25,000 to fix the place. But, the contractor says it will be $30,000, which means I should count on it taking $35,000. Crap.
“Thousandaire” is not exactly what I was looking for. Suddenly this feels very small!
Trisha, this is why I feel myself bumping against the ten thousand mark. Writing the 10% downpayment on this house was the larges check I ever wrote. The money and budget for the refurb was always in terms of tens of thousands. It is interesting to note: somehow you always manage to find the money.
“It is interesting to note: somehow you always manage to find the money.”
This is the part that interests me the most. This can be harder than finding WMD in Iraq sometimes.
I believe you’ve hit upon a good idea here. I haven’t been able to get over the anxiousness regarding my recent acquisition and changes in my life. I’ve had a feeling where I’ve been waiting for the rug to be pulled out from under me. I wasn’t able to figure it out until I just read your post.
I have moved from flirting with the thousands to deep into the thousands. I’m positive that subconsciously I knew the transition had occurred and it made me nervous. I wasn’t able to shake it but upon reading this post I feel like I’ve got a handle to overcome it.
Engineer, the reason why it’s hard is because it’s a different way of thinking.
Patrick, thanks for the note! I was excited when I realized this transition had occured. And I’m glad this post gave you something to identify the change in yourself.