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How to get rich without getting lucky

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Re: How to get rich without getting lucky

#281

Earlier quoted context omitted.

At this current point in time, you are both correct. It's gotten to the point where I'm genuinely starting to wonder if this state might be permanent, even though it's theoretically "impossible" because there will "always" be a reversion to the mean.

Yeah. It's gone on long enough that I'm wondering the exact same thing. Of course, if it doesn't, that return to mean is going to be a real bitch to ride out.

What mean exactly? Companies are more profitable than x years ago, our economy is bigger, etc. The mean you think exists perhaps doesn’t?

Re: How to get rich without getting lucky

#282

Earlier quoted context omitted.

If I recall right, Mr. M.M. defines retirement basically as financial independence, regardless of how you spend your time. Working because you want to is very different from working because you have to, so I'll buy it. And as far as I know, he and his wife earned their money in tech jobs. The math is believable: let's say your household makes $130,000 a year (which I haven't done), and lives on $30,000 a year (which…

No you need to work 15-20 years, depending on tax rates. Unless you meant 130k after tax (which is doable today for many engineers).

This is a very important point because taxes affect decisions around money.

For example, the ability to contribute to a 401k plan can defer $18,500 a year from taxes per person (more if over age 50, and more if there is a company match). For someone with a $130k gross, the employer having a 401k plan or not could affect the choice of which job they choose.

Re: How to get rich without getting lucky

#283
post #214

Earlier quoted context omitted.

> Investing works mostly because of the current trend of artificially propping up the stock market. This belief could cost you a lot of money.

it can also save him from wasting even more.

If so, it's likely we are all so far screwed as to not make it worth planning for. Global economic collapse is not much better than giant asteroids.

This is not to say I don't think we are in a large bubble.

Re: How to get rich without getting lucky

#284

Earlier quoted context omitted.

I've always had a theory that there are some variable luck factors that we can control. Meeting driven, creative and important people is a huge multiplier for luck. It, perhaps more than anything I've done, has changed my life for the better. I had a solid job in Mobile, AL working for an ad agency. Although, it felt isolating from the tech world. To combat that I started a publication interviewing designers and entr…

> To combat that I started a publication interviewing designers and entrepreneurs just to stay plugged into the community. > So much good has come from a couple years and dozens of interviews. I met a co-founder, was paid to host a similar podcast and have made a ton of friends around the world. Not to mention, I might not be working as a designer had I never started doing interviews. This is a really cool idea that…

Appreciate the interest! The idea came from a combination of a few different factors.

I was bored. There were only a handful of designers and no tech people in Mobile. I was (and still am) a big fan of Andrew Warner and Mixergy. I was listening to a show and had this epiphany—what's stopping me from doing something similar?

Nothing.

Sure I couldn't go out and interview Bill Gates. But I had friends that were working on interesting things and started with them. I worked in various editor positions for the school paper in college and had an interest in niche publications. That was about all the prior experience I had.

As for an alternative:

—Make a list of people that you're genuinely interested in. It's helpful if they are in an industry you want to be in.

—Come up with a list of questions you'd like to ask them.

—Find their Twitter handles or email addresses.

—If they live in your city send them a tweet or email saying why you admire them, and ask to buy them a coffee. If not, see if they'd be open to a 15-30-minute call.

—Follow-up with them occasionally.

I have a friend who is about a year into her career as an occupational therapist. Recently she was asking questions about how she could get ahead. The above is what I recommended. I think it's a valuable exercise regardless of career.

Re: How to get rich without getting lucky

#285

Earlier quoted context omitted.

I have no mustache and was born with no silver spoon, Had to work my way through college. This approach to building wealth worked for me.

It is impossible to 'work your way through college' now unless you are making $50k/year part-time. State schools start around $10k/year just for tuition. All in costs are $30k/year+. I'm so glad I went to school 15 years ago. Students today are totally screwed.

College tuition has sort of switched to "sliding scale". For example, 40% of UC Berkeley undergraduate students pay zero in tuition despite the sticker price.

Re: How to get rich without getting lucky

#286

I got rich in Silicon Valley from my equity compensation. I bounced around various companies and startups. Two of them were successful and had public offerings. Of those two, one was spectacularly successful. Sure, luck played a role. But my pure grit and tenacity also played a role. Taking on hard bugs and solving them played a role: I solved a lot of hard bugs that others couldn't solve. Spending Saturday afternoon…

> Having some talent at hiring and managing people helped. Luck. > Spending my teenage years writing clever little programs in 6502 assembly language on my Commodore 64 instead of smoking weed and partying helped. Lucky enough to grow up with access to a computer in a time when that wasn't common. > Having a strong knack for math and computer science helped. Luck again.

Are you saying everything is luck? come on...

My dad taught me about investing when I was a teenager. I actually applied this for the next 20+ years. Was this luck?

Re: How to get rich without getting lucky

#288

The highest probability for success for the 'everyday person': - Earn as much as you can from your own work. Take a 2nd job, change to a higher paying job, ask for more responsibility and a raise at your current job, go back to school for a more lucrative degree, ... - Spend much less than you earn. Economize, share an apartment, buy an inexpensive car, shop at Trader Joe's and Costco, .... - Learn how to invest. Thi…

Read MJ Demarco’s book “Unscripted” and you might come away with the opposite opinion.

Re: How to get rich without getting lucky

#290

Earlier quoted context omitted.

> They tend to hide the fact that they went into the process with an inheritance to fund their their nest egg and are working nearly full time in their "retirement" as paid frugal advocates. Whoah, do you have evidence of this? I mean, yeah, some people have certain advantages, but if they are being paid for advocacy and if it's a trust-fund baby thing that would be really interesting. On balance though, I'm not real…

I think when people describe 'the ideal way to live financially' they are looking at the problem as though they have to solve it all in one go, all at once. That's overwhelming, often leads to a sort of, yo-yo pattern of extreme frugality and extreme luxury. Frugal living are habits that accumulate gradually, as are any other habits one aims to develop. Eventually you don't have to think about them, things converge n…

Is that yo-yo pattern bad?

Periods that are more frugal help you appreciate the pleasures of higher-end lifestyles while realizing that not having them isn't a catastrophe.

Plus the hedonic treadmill is a bitch. Someone earlier in this thread regretted his parents not having experienced certain things. Truly, it's a crying shame to die without having had truly fancy delicious dinners, for example -- that one time is almost priceless. But once a month is a nice, expensive habit. Twice a week you don't care anymore.

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