As a lifelong New Yorker, NYU student, resident, and employee of the city, at age 21, I’ve made my way across the whole island dozens of times at this point and have unpacked every nook and cranny there is to know about this vibrant overpriced place. And it never gets old.
If there’s a trend to follow or an idea to become a seed investor in, NYC is your spot.
If you want to feel pressurized and competitive, this is also the ideal place.
Don’t worry, you get used to it after a while and can eventually tell who does it for show versus to truly live a better quality of life.
There is only so much in our control and one of the remarkable things about city dwellers is that their competition doesn’t seem to bother them anymore. Over time you accept the fact that you are on your own path with your own set of values. Your energy, attitude, and focus are in your control, and the rest act as systematic factors that cannot be diversified away.
NYC is the best playground you can explore to better understand how close your dream life really is to reality. Whether it be living here or climbing the invisible ladder as high as your neighbor or someone you pass on the street, there’s always more you can yearn for. As long as it’s in a healthy way, you will keep swimming.
Lately, there’s been a lot of pent-up demand brewing. Bars are packed, taxis are full, and marinas are docked. Yes, docked with boats. Let me explain the wild trends.
Departed
I heart New York is an understatement. As with everything and everywhere, there are fun and nasty parts however one of the most intriguing and revolutionary things about the Big Apple is that there are all walks of life and everyone is on a mission. If you have a dream to attain anything, you will spot someone passing by who can teach you how to get there. And maybe you should learn their secret since this is no cheap place.
This summer there’s no more FOMO left to squeeze. Wealthy New Yorkers who fled the city for some land and water bought into the Hamptons by now and those who want to savor a bit more of it during the weekdays officially rushed into owning a yacht.
Yes, a yacht — a useless boat that costs $12–50k per month to dock in the Battery Park West Side marina. Many of these owners include crypto holders, plumbing founders, and even residents of Billionaire’s Row. As gifts for living in the tallest residential vacant skyscrapers in the Northern Hemisphere, they received a yacht.
Lately, I’ve been noticing more yachts than usual in a city that relies best on foot. There’s no surprise spending is through the roof given consumer demand is hot and in 2022 most Americans are wealthier than compared to pre-pandemic times. An influx of yachts could make sense given warmer weather is only here for a short stretch of time in the Northeast and if you have the means to bring the Hamptons to the city, why not dock it!
Personally, there would be no reason to own a boat in the first place but let’s say I had a thrill for it that originated from my imaginary private school country club rowing days. Buying things for the sake of owning them is more of a liability than anything but for ultra-wealthy New Yorkers, they do it anyway. Many pay upwards of 60x the median rent for properties so a yacht is not even considered a splurge.
At this point in my life as a New Yorker witnessing rising income inequality, evictions, and record-high inflation eating the most vulnerable’s paychecks, it would leave a distaste in my mouth to own such an obnoxious toy.
If there’s anywhere in the world where you question people’s financial choices, it will be in New York. In a packed place, getting into people’s business and sharing their PPE (property, plant and equipment) is common.
Everyone’s values are different but on the Hudson, a boat is a waste of space and time no matter who you are.
Gone are the days of stealth wealth? Only time will tell. I hope not.
Spending Spree
The rise of yachts and helicopter pads only reveals one thing. People are bored and are overspending for the sake of it. After all, during a bear market, to reduce wasted potential and sunken costs, it is actually more advantageous to live it up. If you were prudent enough to establish that cash buffer during the good times, taking a pause when everything requires more effort to recoup economic losses is a prudent move and can be a great catalyst to pushing forward.
In sum, if there’s anything you can learn from New Yorkers’ crazy lifestyles and the recent trends of the top 10% it is:
A — Your dream life and reality aren’t that far away; the grass doesn’t look greener on the other side anyways
B — The more money you have, the more problems occur especially with where to store and safeguard your tangible liabilities
C — We are closer to being best friends with billionaires than we believe. The most recent example is between Pete Davidson and Kim Kardashian. They happened to meet on SNL and are now dating, flying private, and eating caviar with Jeff Bezos! You have more luck walking up to that docked yacht and start picking up conversation than approaching a doorman at a luxury residential building and asking to meet residents at the exclusive gym.
Even a few years ago, it would be tough to find someone out in the wilderness as a billionaire or in the top 10%. Now with all the extreme pent-up demand, constant uncertainty, shifting consumer sentiment, re-retiring plans, and the immense demand for real-life again as recession fears loom, everyone is attempting to live their most luxurious lives again and are buying what they don’t need.
When it comes to owning that toy you always wanted, remember to never act out of your emotions and think through a full-market cycle (~10 yrs) to decide how something will really impact your situation down the road.
It certainly is tempting to accumulate more when you earn more but that limits your potential in the long run. The goal should be to serve others besides yourself and see what you are capable of not consuming. To learn firsthand what miserable wealth versus fulfilled rich includes, New York isn’t a bad spot. There’s a clear difference right in the dock.