Not buying that $600,000 Manhattan apartment must have hurt in retrospect when you saw them climb to $2 million, but how could you have known? And what about people who bought at the peak because they expected continued appreciation? What about people who held off on buying because they kept expecting a bust that never came until prices had tripled? How could any of them have known (not just guessed)?
When it comes to real estate, it seems awfully hard not to be a fool!
SavingDiva
· 1 year ago
Excellent post! As the "smart" daughter in my family, I'm constantly picked on for not having any common sense (the microwave baffled me until I was 18) but can answer almost any Jeopardy question (good memory). I would prefer not to list the foolish things that I've done because my list is much longer. However, I think the main point to be made about foolish choices is that you learn from them. Yes, I own quite a few Juicy Couture items. Now, I don't spend money on brands, but on quality clothing. Plus, I still wear my Juicy sweatpants around my apartment!
Danny Tsang
· 1 year ago
We all do foolish things at some point. For some reason they don't seem foolish at the time. I think the key to avoid further foolish actions is patience. I realized that I made many foolish mistakes in the past in all areas of life because I was impatient and I rushed things. Now I do a ton of research, and I'm known to sometimes over analyze the smallest things. You're right, the only way to improve ourselves is to keep learning. Cool post Steve. Have a good week
Aura
· 1 year ago
"I think the main point to be made about foolish choices is that you learn from them." -SAVNIGDIVA
It's difficult to learn from foolish choices if we never take the time to sit down and reflect back on them. As someone who usually thinks she's doing the right thing at the time, it takes me a while to realize when I've done something foolish. Making a list like Steve did really helps.
As for finances, I'm stuck with a huge student loan, so I'll be paying that off for the next several years. I'm still trying to decide whether the extra schooling is worth it.
Ben
· 1 year ago
I recently saw a movie that had a nice quote in it: "A fool and his money are lucky to get together in the first place." Your post made me think of that and laugh but I can definitely relate.
Big fan of your site, and the snark. Ben
Four Pillars
· 1 year ago
I like Ben's quote - lol.
Anyways - I am the epitome of #7 - very complacent (with respect to my career at least).
Great post.
Mike
Four Pillars
· 1 year ago
I just noticed your new byline - very nice!
financialgal
· 1 year ago
Being foolish is only human. The trick is to learn from past mistakes, instead of getting hung up on the "why was I so stupid" factor. Last summer I helped a family member manage and close a retail business. I was new to the trials and tribulations of small business, having only worked as a professional trained to write reports and do research, not manage employees and make a profit. After the experience was over, there were a million things that I obsessed over, beating myself up about why I did this instead of doing that. However, I also realized that I had learned what NOT to do in business. Failure and foolishness is the best education, for those who want to learn.
Alex Le
· 1 year ago
Nice post.
Nonetheless, being a "fool" at the time can save you a lot of money too. Think about the time when you were about to invest in something then got cold feet towards the end and flaked out. It turned out that the "opportunity" was a flop and you could have lost tons of money. Not just money but it occurs almost everyday in your life. That's why you take chances.
I think the only way to attack this is to constantly think and evaluate your options and what you are having. Not being greedy is good, and so is being greedy. Not thinking is bad though, and not realizing that you were only a fool earlier is the worst!
Steve (Brip Blap)
· 1 year ago
@Hunter: Oh, of course I couldn't have known, but I guess that's the trick to smart investing/wealthbuilding/getting rich, etc. - seeing something others don't. It probably doesn't make me a fool so much as just "average," but somebody knew - somebody bought. But you're right that it's all a question of timing as to whether you look like a fool or a genius - but part of being a genius is mastering timing!
Steve (Brip Blap)
· 1 year ago
@Saving Diva: I can recite lyrics to 80s songs nonstop but I can't remember my to-do list for a day (thanks, Vitalist)...go figure!
Steve (Brip Blap)
· 1 year ago
@Danny: Similar to the comment I made to Hunter, right - timing and patience (or timing and rapid action) can make the difference between seeming smart and seeming foolish. Over analyzing is my current problem, too, and I'm trying to build SOME sense of urgency back into my decision making.
Steve (Brip Blap)
· 1 year ago
@Mike (Four Pillars): Thanks - and thanks! and there's nothing wrong with being complacent with your career, as long as it's letting you meet your other goals. You're pursuing other goals - blogging, staying fit, having kids - so it's not like you're just treading water. I don't view my career as a central part of my life, either - in fact, I'm trying to minimize it.
Steve (Brip Blap)
· 1 year ago
@financialgal: Of course, being foolish is only human - sometimes being foolish IS human. :)
Steve (Brip Blap)
· 1 year ago
@Alex Le: Oh, sure, failing to take chances is sometimes the best decision in retrospect, although I would say (as you're getting at) making the conscious decision not to do something is a lot, lot better than just getting lucky through inaction.
NapaEats
· 1 year ago
You don't measure a fool by the end result. You measure the fool by how the decision was made. People come up with explanations to fit patterns which is why talk after the fact is cheap. You make the best decision you can at the time, and then you see what happens.
Take your real estate example. I live in the Bay Area. Those people who bought in 2003 and sold in 2006 look smart. But there are far more who went through that same decision making process on very similar data in mid 2005 and now look like fools.
There might be a few truly wise or truly foolish in each group that deserve their label. But overall, what separated one group from the other is basically luck.
All Comments
When it comes to real estate, it seems awfully hard not to be a fool!
It's difficult to learn from foolish choices if we never take the time to sit down and reflect back on them. As someone who usually thinks she's doing the right thing at the time, it takes me a while to realize when I've done something foolish. Making a list like Steve did really helps.
As for finances, I'm stuck with a huge student loan, so I'll be paying that off for the next several years. I'm still trying to decide whether the extra schooling is worth it.
Big fan of your site, and the snark.
Ben
Anyways - I am the epitome of #7 - very complacent (with respect to my career at least).
Great post.
Mike
Nonetheless, being a "fool" at the time can save you a lot of money too. Think about the time when you were about to invest in something then got cold feet towards the end and flaked out. It turned out that the "opportunity" was a flop and you could have lost tons of money. Not just money but it occurs almost everyday in your life. That's why you take chances.
I think the only way to attack this is to constantly think and evaluate your options and what you are having. Not being greedy is good, and so is being greedy. Not thinking is bad though, and not realizing that you were only a fool earlier is the worst!
Take your real estate example. I live in the Bay Area. Those people who bought in 2003 and sold in 2006 look smart. But there are far more who went through that same decision making process on very similar data in mid 2005 and now look like fools.
There might be a few truly wise or truly foolish in each group that deserve their label. But overall, what separated one group from the other is basically luck.