In response to some recent feedback

TL;DR - Finally decided on a title for this newsletter and discovered my why.

Thanks to all of you who have given me feedback, it is much appreciated. The most common piece of feedback has been: “I think you need an actual title for this.” All of you are right. Without a title or a unifying theme, there is no anchor to these discussions. I couldn’t settle on something before I launched, so I just launched and hoped that sometime along the way I would figure out the unifying theme of these newsletters. I didn’t want to wait for my “aha” moment to do something that scared the shit out of me.

After a lot of discussions and even more thought, the title of my newsletter is “Take it Back.” Take what back? Take your life back, take your finances back, take your happiness back, take it all back. I want to arm the rebels (you guys) with information and tools that help you all take back control of your life. We’ll figure it out together.

Relatedly, I came across this video while scrolling twitter, and it helped clarify my “why”.

What else is there to say other than…

People decided that they didn’t really want to work anymore during COVID. Bullshit. I know that all of us worked harder during COVID than we ever have in our lives.

We need to see unemployment rise. Well unfortunately this is something that many government agencies and market analysts agree on. The Fed can’t stop talking about how they need higher unemployment so that they can drop interest rates (so that you can afford to buy that house with the job you no longer have).

We need to remind people that they work for the employer, not the other way around. Employees feel that the employer should feel lucky to have employees work for them, as opposed to the other way around and that sentiment has to change. Listen to what he is saying. He’s talking about all of us. We should feel lucky to work for someone who could lay us off in a blink of an eye. In reality, the respect should go both ways. Your employer should feel lucky that they have your skillset and work ethic, and you should feel privileged to have a job that helps to pay the bills.

So what do we do? Invest our time and our money developing skills and wealth so that we can enjoy our lives on our own terms. Work hard with purpose. We can enjoy life working for someone; we can enjoy life working for ourselves; but first we must be financially bulletproof. That is the only way we can keep our eye on what matters: our own happiness. Figure out what happiness means to you. Create a plan for how you can achieve that happiness. Spend less than you make. Invest the rest according to your plan.

If happiness is waiting till you’re 65 to enjoy the fruits of your labor when you are retired, then make a plan for it. If happiness is taking a sabbatical in the middle of your thirties (like I did) and traveling the world, then make a plan for it. If happiness is taking a chance on your own small business or a pivoting to a new career, then make a plan for it. Whatever it is, move. Don’t let inertia take over your life. Otherwise, we run the risk of waking up one day working for someone like Tim.

And now, back to your regularly scheduled programming. This is the first of what I hope is many "Weekly TIBs” (credit to my brother in law for putting a logo together).

TIB5: Play stupid games; win stupid prizes

TL;DR - Status has real value, but make sure you are calculating that value appropriately. If you are miserable but making lots of money, it is unlikely that spending more money chasing status will make you happier.

One of my banker friends recently told me about one of the more interesting "rites of passage" they have these days.

The tradition? First year bankers take their year-end bonus checks and buy a 10-15k dollar Rolex watch.

The reason? The status that it conveys. Not only are Rolexes a universal symbol of affluence and wealth, in the banking world specifically it communicates a powerful message: you survived. You made it through one of the most grueling professional training programs you can subject yourself to.

Your reward? Enough money to buy a Rolex to say to the world that not only are you on the path to becoming part of the wealthy elite in this country, but it's also a symbol of your ability to "eat the shit" at work to get paid handsomely.

The irony of this tradition is that many of these analysts hate their lives and hate their jobs. While the social status gained by buying a Rolex in that circle is undeniable, what is the true COST of that watch if you really are miserable where you are? I'm sure there are plenty of bankers who participate in this ritual and absolutely love their lives, adore their jobs and cannot wait to move up the ranks over the course of their career. However, I bet there are just as many who participate in this ritual who hate their lives. For those individuals, let's calculate the true cost of participating in this status-seeking behavior.

You might say the true cost is whatever the watch is worth. But is that right? Money can't be both spent and saved at the same time. So spending it on a watch means you are giving up the opportunity to save or invest it. So what? Well, if you are miserable and looking for a way out, money saved and invested might help you get closer to a financial position that allows you to leave a job that you dislike, or pivot away from a career you find unfulfilling. For that unhappy person, spending money on a Rolex in exchange for the status that comes with it is a tricky thing to justify. Why? It might cost you investment gains that could help you leave a miserable job or start a new career.

What is the point of all of this? It's just to help rethink your situation if you feel that there aren’t any avenues to escape a bad situation. When I first shared the idea for this newsletter with a friend, he pushed back on my views significantly because he believed that I was totally dismissing the real value that people place (and rightfully so) on social status. After all, we live in a social world. How we order our lives is part of who we are, so to just say "oh all that stuff is unimportant" would completely miss the mark.

I want to make clear that I am NOT dismissing the importance of social status. My only belief is that most people severely underestimate the true cost of chasing social status. I don’t think they factor in the opportunity cost associated with the chase. You're not just giving up the hours worked or the money spent. You're also giving up the hours that could have been spent doing something more enjoyable (and sometimes more lucrative). You could have used that money for something else that aligns with something that makes you happier.

When I joined my law firm, I was told by countless people "oh man you're set, work for 25 years, make partner and you get to retire at 50". Similar to the Rolex watch, making partner at a law firm carries with it significant social status. When you walk into a dinner party and say you are a partner at a law firm, in three seconds you've conveyed to the world that you (1) are wealthy, (2) highly educated, (3) work very hard and (4) is a part owner in a business. These are all valuable things in our society, and being able to convey that to people without having to tell them all of these things gives you class. Nobody will fault you for just matter-of-factly stating what you do for a living. You're telling people all of these great things about yourself without bragging. This makes you classy. So no wonder everyone told me that all I had to do was suck it up for 25 years and I'd be set.

However, I think all of these people missed the mark. I wasn't just giving up 25 years of my life. I was also giving up 25 years of my life that I could have spent being more present with my family and friends. I was giving up 25 years that could be devoted to a career I found more interesting and enjoyable. Some lawyers love their job, and that's great. But if you don't, can you imagine continuing down this 25 year path and thinking 25 years was all you were sacrificing?

Social status is important. But remember to properly quantify (1) what social status is worth, (2) what it does for you and (3) what the true cost is. If you are unhappy, chances are no amount of social status will change that. That realization is the first step to taking our lives back and being more intentional about what makes us happy.

^{Disclaimer: Nothing contained in this website and newsletter should be understood as investment or financial advice. All investment strategies and investments involve the risk of loss. Past performance does not guarantee future results. Everything written and expressed in this newsletter is only the writer's opinion and should not be considered investment advice. Before investing in anything, know your risk profile and if needed, consult a professional. Nothing on this site should ever be considered advice, research, or an invitation to buy or sell any securities. Rohan Muralidhar is not a licensed securities dealer, broker or US Investment adviser or investment bank. This newsletter is not an offer to buy or sell, nor is it a solicitation of an offer to buy or sell or to participate in any advisory services or trading strategy.}