Too Rich To Be Rich
My word of mouth network sent me a new client a few weeks back. Basic stats are couple, mid-50s, GI of $400K. I give them credit for realizing they needed some help. They are the perfect examples of what I call "Too Rich To Be Rich".
I'm a firm believer in controlling spending. It's not that you should deprive yourself of things you need or even things you want. It's just that you control it to make sure you're saving as much as you can and more importantly not wasting what you work so hard for.
In this case I'm just now scratching the surface of the ridiculous waste. That's not because the clients are irresponsible. Of course that's not the case - they are both highly successful professionals who are being highly rewarded for their work.
The thing is, they work so much so often that they are wasting the fruits of their labor. Not taking vacation is a big one I'm trying to remedy. I'm trying to teach them that doing that is the same thing as working FOR FREE.
And then there're the little things that add up like having three ISPs (never cancelled them) and all the premium channels on a cable TV that is never even turned on (they're always working). Stop doing this and annual savings come out to almost $1500.
Small change for someone who makes $400K a year? Well, maybe, but to me it's just the opposite of what should happen when you work that hard. It's like they are rich in spite of themselves.
Top all that off with a savings plan that is nearly 100% in large cap US equities and it's borderline sad. Working 80 hours a week and making that much money should not lead you to ask "Will we have enough to retire?".
These are people who need to pay someone to get them in line and keep them there. Sure, they're smart folks who could learn to invest and save wisely. But, they never will because they work so much. So, they are losing a hell of a lot more than it costs to hire me.
That's just good business in my book.
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I'm sorry, but I don't approve of the posters advice about taking vacations. Not everyone needs them, and they do cost a pretty penny. .
Hi James, thanks for reading. By "vacation" I meant paid time off of work, not travel. As in, these people get 4 weeks of paid time off work per year and don't take it, thus they are working those 4 weeks for free. They can only roll over 2 weeks per year, so at least 2 weeks are wasted.
