My dad always wanted to have a million dollars. He didn’t want it for the sake of having it just sit there, he wanted to collect safe and secure interest on that million so that he could have it made.
10%. He figured that if he had that much money he ought to be able to easily get 10% on his money. So dear old dad aspired to collect 100K annually by just sitting there doing nothing.
To just sit there and have it made? Really? You don’t have to do anything and you just get food and shelter and some luxury. Many would consider that being dead because you are not out striving and risking and having all sorts of emotions and adventures. Dead.
If one has wealth one should use it to first be in a good place yourself and then to help others around you. Those are my morals all nice and tidy. First make me OK and then emanate that OK-ness outward. In this way, the world I immediately experience is indeed a better place.
But I have grown up with this sense of having a big pile of cash from which I gain interest and have it made. That is ingrained in me, conditioned.
Can we compromise?
Cathy and I have already rescued two households from financial ruin. Coincidentally, each was paying $1400 each month for a roof over their head and was not really making ends meet and each is now paying to us $250 instead. I round off. I did this in each case by selling a residence to the household while they ducked out of their previous commitment. Depending on your politics you might cheer me for stopping money from going to a big financial institution and instead putting a lesser amount into my own pocket.
Charity with benefits.
In each existing case we’re getting 4% on an outstanding sum of 25K. I grew up expecting that interest on a savings account. On 50K outstanding we’re getting $150 each month in interest. We have it made in the sense that our money is making money. Such good lazy capitalists we are!
We could be doing more of this. The above two situations are stable and have been for about a year. So this evening we move toward doing it again.
There is a divorced young man who went through bankruptcy only because of a recent divorce. Even though he has reliable income he was recently financially wiped out and has no credit.
Bottom line, this guy wants to buy a house and somehow I am in the banking real estate business. I never in my life intended this. He needs about 70K and coincidentally that is approximately how much we have in the credit union that is not insured. If we grant him this loan of 70K he gets a house and we get 4% interest.
Today we are all going to look at a house together. I need to see the house because if my divorced young man defaults on his loan then I get this house. So I need to accept that I might end up owning this place instead of collecting interest.
So that is today’s grand adventure. It is about meeting someone new, examining a house we’ve never seen, weighing the risk of 70K, and celebrating our anniversary.