Are you in Canada? Lots of Canadian references. Apropos of that chart, an anecdote: I remember in 2010 when I spoke to my then-girlfriend's parents, who were solidly middle class but lived conservatively, they told me that most of the people they knew who had nice things funded it through debt. They weren't richer, in other words, just more indebted.
I preach the same thing: most people who appear rich are simply highly indebted. I know many people who fit that description. Most are staying afloat by borrowing against home appreciation combined with good luck. I foresee many working well into their 70s...not by choice. You a fellow Canadian?
Yes, I am. I bounce back between Southern Ontario and Northwestern Ontario. You?
For me, the challenge is to contend with the push to live that way, not out of any desire for "stuff" or an inflated lifestyle, but out of the kind of practical and psychological necessity that stems from being a social creature. When so many people are irrationally exhuberent, in other words, it kind of revises the value of rational conduct. Consequently, I wonder if one is either very smart in being rational, data-based (e.g., by paying attention to PE ratios or the fundamentals of the housing market) or very stupid by going against the very strong currents of an irrational society.
If I could answer that with confidence I'd probably be on a beach right now. There are no bounds for human herd mentality, particularly when supported by big money. I think it requires constant vigilance to ensure we're not the last to grab a chair when the music stops. But that's easier said than done. Important to recognize and understand our own weaknesses so we are prepared for that day.
Are you in Canada? Lots of Canadian references. Apropos of that chart, an anecdote: I remember in 2010 when I spoke to my then-girlfriend's parents, who were solidly middle class but lived conservatively, they told me that most of the people they knew who had nice things funded it through debt. They weren't richer, in other words, just more indebted.
I preach the same thing: most people who appear rich are simply highly indebted. I know many people who fit that description. Most are staying afloat by borrowing against home appreciation combined with good luck. I foresee many working well into their 70s...not by choice. You a fellow Canadian?
Yes, I am. I bounce back between Southern Ontario and Northwestern Ontario. You?
For me, the challenge is to contend with the push to live that way, not out of any desire for "stuff" or an inflated lifestyle, but out of the kind of practical and psychological necessity that stems from being a social creature. When so many people are irrationally exhuberent, in other words, it kind of revises the value of rational conduct. Consequently, I wonder if one is either very smart in being rational, data-based (e.g., by paying attention to PE ratios or the fundamentals of the housing market) or very stupid by going against the very strong currents of an irrational society.
If I could answer that with confidence I'd probably be on a beach right now. There are no bounds for human herd mentality, particularly when supported by big money. I think it requires constant vigilance to ensure we're not the last to grab a chair when the music stops. But that's easier said than done. Important to recognize and understand our own weaknesses so we are prepared for that day.