Living in a high cost of living area can come with a lot of upsides, but there are also a few issues. Living in a high cost of living area can be great when it comes to making friends, connections, and learning new things. It can also be great for building and creating a life of focus and human connection. You meet people who are extremely productive and are able to maintain positive attitudes all the time. You meet people who are incredibly intelligent and want to do things that make the world a better place. But you don’t always meet long term thinkers. This is because in high cost of living areas, the results of your own labor aren’t immediately obvious.
The Problem with High Cost of Living Areas: Short Term Thinking
The reality of the world is that while quality of life tends to be high in high cost of living areas, so do stress levels. High cost of living areas are teeming with economic productivity, and you need to be able to keep up if you want to succeed or live comfortably. This means that people aren’t able to plan ahead of time. They need to win now. It’s really hard to succeed in this kind of an environment. Nobody’s thinking clearly. So, you should be aware of this fact as you work your way through life. If you’re in a high cost of living area, you’re dealing with people who are living in the here and now. They aren’t necessarily good role models, and chasing their approval isn’t necessarily wise. A good chunk of people living in well-to-do areas are in the process of creating a cycle of poverty, while many of the others are working with inherited cash. A lot of them can afford to stick around while they’re young, but old age will soon see them searching for greener pastures. So, remember this point as you move through high cost of living areas
Share and pool costs wherever you can
This might be painful in the short term, but it’s a great way to build wealth over time. If you can share and pool costs with either family members or loved ones, you’re going to be able to think longer term. Whatever you build, will have been built with careful planning and forethought. Pooling costs is the best way to give yourself breathing room. Don’t be in a rush to escape your parents’ house. It can be annoying with people who are older and possibly out of touch, but you should think longer term than that.
Focus on net worth over income
If you want to live well long term, focus on your net worth over your income. Focus your energy on creating things that make it easier for you to get wealthy. If you’re in a poor country, you’ll realize one day that you don’t have to work 60 hours per week to put a roof over your head. If you work really hard, you’ll have a savings rate, something most people won’t be able to say for themselves generally speaking.
Think in 10 to 20 year time frames
If you want to really get ahead, teaching yourself to think in 10-to-20-year time frames is going to be key. If you can think in these kinds of time frames, you’re highly likely to make a bunch of money. The reason for this is that most people can’t. It’s really as simple as that. If you operate in 10-year time frames and are trying and even half-right, you’re highly likely to see outstanding results. It doesn’t matter what you’re doing as long as it makes sense. Most people are not taking an active role in shaping the future.
Don’t play status games
Those who are intent on playing status games are highly likely to create problems in theirs and other people’s lives. Most people live in the here and now. They can’t evaluate the things around them properly and can’t see how they’re going to affect the future. People playing status games want to buy new things, wear cool stuff, get into glamourous businesses and industries.
Ignore most people; it’s better to entertain yourself alone than be surrounded by the masses
A lot of interactions have zero value. Absolutely none. Just normal people playing status games. If anything, they can be destructive. If you want to smoke and drink, are under the age of 30, and on your grind; go ahead. In my opinion, it’s better than interacting with the bulk of people you meet outside.
Learn
The more you know, the more you are able to evaluate consequences. It might seem counterintuitive, but a lot of people who live in high cost of living areas are incredibly ignorant. This is because they simply don’t take the time to learn anything properly. They’re too busy making money in the short term to invest in their futures. Learn as much as you can and get your degree, even if you eschew short-term gain. To keep it simple, if you’re not in poverty, you should be doing your damnedest to learn a real skill in an organized manner. It’s more important than getting rich, as far as I’m concerned. Knowledge is portable, and can be built on. Think long term and learn something, for your own sake.
Be generous; it’s better to tip big than “have a blast”
If you’re able to tip big, you’re going to have more friends, and more people will be on your side. You’ll become a pillar of the community, even though you’re not going to look as cool. This is a way of hedging your bets. When you make it, you’re going to be considered more impressive and be protected. If you fail or run into problems, you’re going to have people on your side as you “go down”.
Provide value
High cost of living areas are full of scammers and charlatans. The way you set yourself apart, besides by being frugal, is by providing a lot of value. The more value you can provide, the better off you’re going to be amongst your client base and peers. Provide a lot of value and you’ll always be able to write your own ticket. The world wants people who can help the world.
High cost of living areas are paradoxical. On one hand, you’ll meet the best people ever. On the other, people tend to be incredibly myopic. It’s up to you to understand when the average (or above average) person is in the right, and when their thinking becomes fallacious. But generally speaking, you should ignore those living in high cost of living areas. Not because they aren’t smart and don’t know stuff, but because they’re just not thinking long term.
Thanks for paying.
