Uneccessary frugality?

[Andrey Y.]

Something that I have been pondering. For those of you who had/have a solid paying job and ability use your hard earned money to have some fun (travel, going out to nice places, piloting, presents for kids/spouse, etc.) whatever your vices are, did you: Find yourself cutting back on the pleasures of life that cost money, after getting into RE? As a very early RE investor myself, I can see one falling into the trap to cut back spending in their personal life in order to save cash for capital for future RE projects and the like. Have you experienced this, one way or the other?

[Andy Luick]

I've always led a fairly frugal life and still do.  My kids and I shop at garage sales and consignment stores...we buy a ton of our furniture for the shared housing program this way.  They understand the value of a dollar.  We still enjoy lots of things and there are tons of things we can do together that aren't expensive.  It's all about priorities.  You're in one of the most expensive real estate markets in the country....so you have to be frugal to get going.  My family lives well but we never own/buy the latest and greatest.  Funny thing...we were headed to a garage sale shortly before a vacation to FL (timeshare/rental) and my 6 year old piped up from the backseat "Dad, we can't go to the garage sale...we have to save our money for Florida!"  I'd say he's another real estate investor in the making.  I've made my kids a part of the business...they earn a couple of bucks as child labor and often go with me to me investors, property owners & renters.  They have learned the difference between cheap & frugal!  They also know that they will be given a property to rent/manage when they are in high school through college.  My high school junior is already taking about how he will manage it and looks at real estate in towns with colleges he is considering.

The real issue I think is making sure it's always about family first which sounds hypocritical coming from a divorced guy!  It isn't about the money you scrimp and save to fund real estate deals...it's the time spent AWAY from family.  I don't play golf....I don't go to sporting events very often....not part of a men's drinking/bar group.  I invest in real estate, relationships, business and in my family.  Family is always first for me and those who work in our businesses.  Celebrate your wins with something special....a reward for your efforts.  A ton of people get divorced or lose their families because they stopped investing in those.  Like everything else.....strike a balance and enjoy your life!!