Monthly Archives: October 2017

Geographic Reappraisal – Real Estate October 2017

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This business insider article about an SF Bay Area house that sold $1 million over asking caught my eye.

Here in Boulder, we’re up 100% over the last seven years. Most of the increase has happened in the last 2.5 years.

Notwithstanding our big local increase, the “coasts” and luxury vacation markets look expensive from here.

The coasts look even more expensive when I factor in…

Schooling – Can I use the local schools? If not then my cost of living jumps by $25,000 per kid, per annum, after tax – see the linked article – public, in-state education will save my family $1 million per kid.

Tax Base vs Legacy Liabilities – How heavily taxed is the location? How large are the legacy liabilities (health care and pension) from former city, county and state employees? The large cities of the oldest parts of the US look awful in this regard.

Other costs of living – Cali always surprises me when I run the numbers. I suspect it’s similar in places like New York and Seattle. Costs are 50% more expensive for the rest of my budget.

I am not recommending that you sell. I’ve made a decision to hold through the next recession.

However, the relative trade into “states with great lifestyles” strikes me as attractive — North Carolina, Montana, Idaho and Colorado.

If you are considering taking-the-leap…

Live where you don’t need to leave — can I create a long-term, year-round, local life here?

When I worked in international finance the “top guys” had homes in three or four countries. That kind of overhead has two negative impacts on your life: (1) your ethics are easier to purchase; and (2) you’ll need (at least) an extra decade of full-time office work.

Kill your commute — can I live within an easy walk, or a short ride, of where I spend my time?

When I was thinking about moving to Cali, I plotted my life in Google Maps. I did the same thing for my prospective life in Palo Alto. That gave me two geographic “triangles” and I calculated real estate and family costs inside the triangles.

Finally, surround yourself with people that live a life you’d like to follow. I do best with an active, outdoor life in a location with abundant sunshine.

This last point is important — know what you want — know where you do best.

Applying Wealth Wisely

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A reader recommended a book about Living with a Seal. The book is an entertaining read, but I did find myself swearing far more than usual afterwards (burpee test!).

The book is about a marathoner who spends a month training with David Goggins (former seal). Having done extreme training, I think it’s safe to assume the rest of the guy’s life was on hold during his month with Goggins!

Complete control of your schedule and the ability to focus on one thing for an extended period of time.

Whether you want to train with a seal, start a business, write a book or simply get really, really good at something… the ability to control your schedule is the starting point for your journey.

Can you take a month “off” to focus on “one thing”?

A month is a good unit because it’s about what it takes for me to start a new business, write a book or bump my level up in anything.

As an elite athlete, I’d spend 13-week blocks focusing on my sport. By that time, I was already good, and seeking to become the absolute best I could be.

You need time because a second use of wealth is accessing, then following, the ACTIONS of world-class teachers.

Advice without action is entertainment.

I’ve been guilty of throwing money and other people’s time at anything I found unpleasant. It can be a winning strategy but it was a band-aid for unnecessary complexity in my life choices.

If you’re a do’er then work towards control of your schedule so you can learn-by-doing alongside the best.

Parenting is similar to learning to swim — we’re not going to become world class on a couple hours per week!

Make sure your mentors have the sort of lives, and character, that you’d like to emulate.

Chose wisely!