One reason I’ve been writing less frequently lately is that my life has steadily transformed into a Personal Finance Bubble.
The people in my circle have become intentional with their finances, leading to abundant savings and a life free from financial stress. Positive ideas have naturally circulated among my longtime friends, and over the years, new acquaintances with similar principles have joined us.
This shift is so prevalent that it’s nearly commonplace for everyone in the neighborhood to have their own CNBC Make It feature*, which often goes unmentioned as we’re too busy assisting each other with home improvements or exchanging tips on the latest Craigslist bargains.
Since this has become my everyday experience, I’ve wrongly assumed that it reflects a general norm, believing that the principles of Mustachian living have become widely adopted in American culture. Good job, MMM, time to retire and step away from the keyboard!
This perspective changed last weekend during a brief trip to San Francisco, where I was confronted with the surprising reality of life beyond this bubble. It hit me that we still have significant work ahead. Both the Ultraconsumers and the Mustachians have much to learn about human behavior through the contrast of our lifestyles.
A recent “winter” day in the Bay Area
San Francisco, often referred to as “The City” by locals, is actually part of a sprawling megalopolis known as “The Bay Area.” These nicknames are revealing, suggesting that there’s only ONE bay and ONE city in the world, and consequently, we should all conform to their social and spending standards.
To outsiders like me, The Bay Area feels like a peculiar human science experiment, showcasing both our most beautiful and most absurd characteristics. Despite artificial boundaries, it is essentially one bustling urban environment that stretches across ten thousand square miles and accommodates eight million people living under a vast array of conditions.
The median home price hovers around $1.5 million, yet this figure obscures significant disparities since it includes “bad” neighborhoods where homes can be purchased for as little as $750k, provided one is okay with lengthy commutes and less-than-ideal surroundings. Meanwhile, nicer areas see prices starting at about $3M.
Residents have grown accustomed to $6.00 gasoline, $7.00 slices of pizza at casual eateries (if you shop around), and similarly high prices for various services. One new homeowner expressed frustration over a $90-per-hour charge his cleaning service imposed, while I happily covered a brunch bill for three ($148 with tip) at a modest, sunny patio eatery. One young finance professional inquired if he should downsize to a single seven-passenger Mercedes SUV to alleviate a second $1200 monthly car payment and free up a $200 parking space.
With such anecdotes, it’s easy for the average person to echo the typical Bay Area lament:
“This is just a high cost of living area, making it impossible to get ahead.”
However, as my visit continued, my outsider’s eye couldn’t help but spot several flaws in this narrative.
Similar to back home, I spent most of my free time with good friends, wandering through lovely parks and neighborhoods on foot. Sometimes, we walked simply to attend meetings, listening to others recount tales of frustrating car traffic or the delays and expenses of Uber rides. Fascinating.
At other times, we hiked along scenic coastal cliffs. These days filled with fresh air and countless steps left us feeling fit and healthy, filled with joy and an insatiable appetite, while bearing muscular legs—and it cost us nothing. Yet, we encountered individuals lamenting the difficulty of finding time for fitness or the impracticality of walking or biking in a city with steep hills. Intriguing.
We frequented local grocery stores, and I glanced at Costco prices in the vicinity, noting that, despite the high costs associated with nearly everything else, actual food prices were only slightly higher than those in the affordable Midwest where I reside. Odd.
Additionally, Northern California benefits from a climate that boasts year-round blooming leaves and flowers (often yielding free fruits and vegetables), with minimal need for heating or cooling in homes, and bike transportation remains accessible throughout the year, rarely facing more than mild rain or mist.
In my Canadian hometown, people would rejoice if they woke up in January to find the streets devoid of snow and shimmering with liquid water. We’d don swimsuits and revel in spontaneous block parties.
Conversely, in California, people dodge even the hint of inconvenient weather, rely on cars as their primary means of transport despite them being the slowest and priciest option, dine out frequently, view a $150 bottle of wine as a reasonable Friday treat, live far from workplaces, and enroll in activities located miles away from home. Consequently, even with the highest salaries in the nation, the average individual remains as financially unsettled as others.
On a grander scale, the California government epitomizes its lavishly spendthrift populace, continually erecting enormous roads and grand networks
The Crisis of Comfort
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