Tuesday, April 07, 2009

The Daily Dish | By Andrew Sullivan (April 06, 2009) - The View From Your Recession:

We rented, despite the constant drumbeat from friends and family who said renting was "throwing away" money. All the places we liked in DC to buy were too expensive at the time. I did not bother with 401K, as I was unconvinced it was such a great deal everyone was making it out to be. We lived good, but also kept stashing away money in savings account. Three years ago I wiggled my way into being re-located by my company to the largest city in Latin America to open an office. Wife and I jumped at the chance, even though it was a huge risk personally and professionally. My company sent me with little resources, so by necessity, I set up a very cost effective operation. I had no other choice.

Three years later, and my wife and I are still based in same city abroad and are doing better financially than any other time in our lives. We have zero credit card debt. I have job security, because the cost effective operation I set up here is now the "model" my company is using for other international offices as they look to ways to cut costs, as most companies now days. Meanwhile, my two cousins back in the USA who were urging me to buy a home for so many years, have foreclosed on their homes. One declared bankruptcy. All my friends over the years who said I was stupid and throwing money away by not taking part in any 401k plans, have seen their 401k's value crash.

3:36 AM