Friday, February 13, 2015

The Third Option


It doesn't have to be this way. Not everything is life is mutually exclusive.

But for the sake of comparison, if you had a choice, which option appeals more to you?

a) Earn $250,000 a year, have a 70-hour work week, a $1,000,000 home and a $70,000 car. Your life is centered on the weekends. For every 5 days, you get 2 days off (you're technically trading 60% of your time for 40% of free time). Because of those large commitments, you will need to work till you're 65 before you can call it quits.

b) Earn $60,000 a year, have a 48-hour work week, a $200,000 home and take the train to work. Your life is centered on the weekends too, but you place 50% of your income in a bucket system that compounds at a rate of 8-10%. You retire comfortably at 35. 


If I'm forced to choose between these 2 options, it's the easiest decision I'll ever have to make.

Option B, hands down.

Now, of course, life is full of opportunities and we have more choices than just A & B. Again, remember that not everything in life is mutually exclusive.

It's not always "either this, OR that".

The third option, is this:

Earn like A, spend & invest like B.

That's simply, badass.





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7 comments:

  1. Option 3 is my preferred choice for now. Option 3 is really Option 2 on the "Juice" if you know what I mean.

    Great post!

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    1. I can see that you're totally rocking Option 3 ;) or should I say Option 4 in your case (with the rental + side biz flowing in).

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  2. Definitely don't let that lifestyle creep in. Earn the max, save the max.

    Good, short simple post.

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    Replies
    1. Exactly, and welcome to this little white space of mine Adam!

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  3. I definitely agree that not everything in life is mutually exclusive. Option 3, yes please. Thank you for such a dynamic post. I'm glad I read your interview over at genyfinanceguy.com, I'm looking forward to following your blog!

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    Replies
    1. You're most welcome Alyssa and welcome to this little white space of mine!

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  4. Option 3 is definitely for me ;) haha
    Liking your work here Josh
    Keen to see where you're at once I get caught up on your articles :)!

    ReplyDelete