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No offense, but how do you get $120,000 into credit card debt with the claimed $30,000 per week consulting income.
by mythrowaway99 10y ago
No offense, but how do you get $120,000 into credit card debt with the claimed $30,000 per week consulting income.
- vinceguidry 10y agoHe explained it in the article, though it was easy to miss. If you need a large amount of cash for something, and a lot of smaller figures coming in, you pay for everything with revolving debt and let your receivables stack up in a bank account. It's one way to save up money for a down payment on real estate, maybe the only way if your lifestyle is close to your income.
- grobbles 10y agoI am the proud owner of the Brooklyn Bridge. Might you be interested in buying it? The giant consulting dollar nonsense was always total bullshit.
- deleted 10y ago[deleted]
- jldugger 10y agoI can't imagine anyone accepting a downpayment when you have a downpayment's worth of revolving debt.
- thefalcon 10y agoThat's why Debt-to-Income ratio is a thing. If you're someone who's typically adverse to debt but willing to make an exception in the case of real estate, and you're living close to your means (while renting), then it can seem to make sense to get your necessary down payment (plus closing costs etc.) through revolving debt. As long as your DTI remains below the cutoff, lenders are happy to let you do it.
- sjg007 10y agoYep, quite common. Cheaper than a cash advance too... however it's changing now with 3% down...
- sethev 10y agoThis post is about 2016. Did you miss the part where he was spending all his time on not-consulting?
- clarky07 10y agoby running a startup that didn't turn out to be profitable and not actually consulting? He stopped consulting a few years ago iirc.
- notabeliever 10y agoThen why did he go work for Stripe? Is Strip paying him better than 30k/week?
- sjg007 10y agoStock options?
- ekidd 10y agoI guess only another consultant could understand this, but no matter how you slice it, $30K/week consulting rates will never translate into $1.5 million/year. You won't even get close, and you'll break your heart trying. You can't bill the hours you spend finding clients or networking or redoing your website or waiting around through four months of utter doldrums before being overbooked and killing yourself to keep your promises. Don't get me wrong, I love consulting and I've done a lot of it. But sometimes you just want solve problems and get predictable checks, even if your effective hourly rate works out lower. When I pay my lawyer $300/hour for contract work, all I can think of is, "How does the poor guy make a living?" Because I've seen the grim reality of the math. My lawyer works damm hard for that nice office. At least patio11 had a weekly rate (or maybe a per diem), and not an hourly rate.