Chapter 13: Don’t Worry, Traditional Is Good Too!
“There are those who make things happen, there are those who watch things happen, and there are those who say ‘what happened?’” – Robert Kiyosaki
I know that this book pitches some fairly unconventional ideas. Not wrong, per se, but definitely different. While the aim is to shake us from our societal slumber, and realize that there’s more to life than what traditional people tell us, it’s not bad to be traditional.
As long as traditional, after exploring all your options, both physically and psychologically, is what you really want, then who am I to tell you otherwise? If “traditional,” and by that I mean the way we’ve been raised to view success and wealth, is how you extract the most value from your life, then by all means, go for it!
And while I’ll challenge you to embrace the Principle of Emotional Wealth no matter your view on life, it’s totally fine to take a traditional route to Time Wealth and Location Wealth, as long as you know that’s what provides you with the most happiness and satisfaction in life. Be honest with yourself.
No matter how traditional or unconventional your personal Principles of Wealth are up to this point, for some, traditional Location Wealth is the way to go.
With this strategy, the maximization of your Location Wealth doesn’t rely exclusively on the sharing economy or life on the road. It’s what you’re traditionally used to when you think of becoming location rich.
While becoming a vagabond or an Airbnb vagabond focuses on the extraction of value through freedom, traditional Location Wealth focuses on the extraction of value through the slow accumulation of smart, location specific investments.
Think about it this way: You decide, during your journey through Emotional Wealth and Time Wealth, that your Location Wealth should be one of long-term investments and homey living situations.
You gain true Emotional Wealth through the identification and pursuit of your passion, with the love and support of your friends and family. Through your emotional riches, you discover that being a “corporate person” for a big tech company like Google is how you want to spend your time.
And who could blame you? With workplace slides, Nerf gun wars, and wifi busses, how could you not be intrigued with what Google offers?
For you, the work project that lets you extract the most value from your time is to climb the corporate ladder at Google. The environment is too fun to pass up, and the smart, funny, and motivated people you meet while working there increase your Emotional Wealth.
So, when it comes time to pursue your Location Wealth, it’s not so much location independence you want, but rather a bachelor or bachelorette pad where you can host all your new work friends. Hey, bachelor pads are sweet, and for some, they provide more Location Wealth than even the most exciting of travels.
With a Google salary, it’s entirely possible to buy a place as a long-term investment. Now, we won’t get into the inflated housing market in Silicon Valley, but for the sake of this example, lets assume that you’ve been living with your parents for a year or two to build your nest egg.
So after two grueling years with your parents (I kid…kinda ), it’s time to invest in your first home! You can’t wait to see the look on your friends’ faces when they see the color of your marble counter top, or the size of your shower.
For you, through an identification of your Emotional Wealth and Time Wealth, this is what Location Wealth means. It might be traditional, yes, but as long as you extract the most value from your new pad, then “traditional” doesn’t matter.
So what now, get a roommate? Well, with Silicon Valley mortgages, you might have to get two!
As you continue to climb the corporate ladder at Google, your salary will increase and you’ll be slowly but surely paying down the equity on your home, owning more and more of it. And although traditional Location Wealth is the strategy for you, it would be nice to live somewhere else, no?
Not to mention the investment potential of a second location!
With Google-money in hand, you look for a second spot. New York, maybe? With a Google satellite office out there, it would make sense, both personally and professionally. Maybe too expensive? I hear South Carolina is nice too, no joke.
Regardless, through a focus on Emotional Wealth, Time Wealth, and Location Wealth that are all in alignment, you create the opportunity to buy a second home as an investment property.
Then, you can let your imagination run a little “nontraditional.”
Using some of the principles of Airbnb vagabonding, you can rent out one of your properties while living in the other. You can have a traditional long-term tenant if that suits you, or you can take a more unconventional route of short-term renters. Either way, you’ll be multi-location independent and have a work project that makes you money.
Add that work project to your Google career, and you’ve started to build a strong collection of work projects that will only further increase your Time Wealth. You can then decide to live in either location, or neither! Think about how much money you could be making by renting out two locations and vagabonding for a little while!
The possibilities here are literally endless. Once you’ve invested in your first property, you can combine principles from vagabonding and Airbnb vagabonding to create a Location Wealth that’s perfect for you.
You could even do it in reverse. Start with a vagabonding or Airbnb vagabonding strategy to build your nest egg (Yes, I know, that’s traditional wealth. Well, it matters, however small!), and then invest in a property once you have the means.
If you had a collection of location independent projects that made you $3,500 a month, and traveled on less than $1,000 a month, within a year you’d have enough for a sizeable down payment on a place in a smaller market (not Silicon Valley, sorry).
Then, you could call that place “home,” and live there for however long you want, before renting it out and hitting the road again. Again, the possibilities are endless! All that matters is you do what resonates with you.
Get intentional about the type of Location Wealth you want. Is it true location independence to own a sweet bachelor pad, or somewhere in between? Use your emotional riches to guide you. Create Time Wealth so you have the opportunity to pursue your Location Wealth in the best way you see fit.
Be intentional, have focus, and know that no matter how traditional or non-traditional your Principles of Wealth are, as long as they give you the most value in life, then they’re conventional…for you.