We Had A Bad Time (And Why That's Great)

Aug 30, 2016
Self Growth

Today's Toastmaster session was different than the rest, today we had a humor contest. One of the contestants, a former stand up comedian, delivered a wonderful set. He had the audience laughing over and over captivating his audience with his every word. However, he did say one thing that really stuck out to me: "Bad times make for really great stories."

The comic, John, was describing a time when he was performing in a tiny tavern where the audience consisted of 7 guys sitting at 2 tables. Everyone else was passed out, playing darts, or flirting with the bartender. So John starts doing his bit, sets up the audience, delivers his punchline...and silence. No a smile, not peep from the 7 guys. He was tanking hard. He looked over his audience, these were not the high society sophisticated type so he made his new joke more low brow, talking about dumb politics. He sets up his audience, delivers his punchline...and silence. One guy smiled... or perhaps he just twitched, it was hard to tell, the room was not well lit. Still no laughter could be heard. He felt he needed bring his comedy even lower, and delivered the most vulgar laced dirty joke he had in his repertoire. A couple of the guys looked surprised, and even looked at each other but still no laughter. This was possibly the toughest crowd he had ever had to perform in front of. There was not even a pity laugh thrown his way. John saunters away feeling absolutely defeated. The next day John went to a concert, and was recognized by one of the 7 guys at the bar. "Hey you're that comedian from the bar, I thought you were pretty good". John replied "Thanks" but in very much a thanks-for-the-charity tone of voice. "I have got a confession for ya, before your routine, I made a bet with my friends that whoever laughs first would have to buy a round for everyone." John could not believe it, the whole reason he was doing so bad and having such a bad time was because there was this bet going on in the back. The whole situation turned out to be a pretty funny story.

The idea that bad times are just good stories is a great concept. For many people we are too afraid to go for what we want because we are afraid we will have a bad time. This often means we will not even attempt that job or career or investment. We do not try because the risk of having a bad time is too overwhelming. Think about all those rags to riches stories that we have heard about and how wonderful they make us feel. If it was simply a story of riches to riches, we would not be very impressed. It is the hard times that help build and define who we are. Those are the stories that we can talk about, where we truly test our metal, and came out on the other end. We can use this tool to get us over what is holding us back. We know that if we succeed,  we win; if we fail, then we have a great story.

Anyone Got Bug Spray - Attempts at Coding Java

Aug 29, 2016
Self Growth


During the last few days, I have experimented with using Android Studios to design a new app. A customer had recommended using Udacity as a learning vehicle. Everything was so new and the whole process was exciting. I was able to create a simple greeting card and even got a tutorial application to run on my phone. Just Java 1.0 was up and running. I was so excited I shared the fledgling app with my brothers, who were not too impressed. Of course the app at the time was only able to calculate how much it would cost for x number of coffees if each coffee cost $5 but that was not the point, I had created it and it was working and it was wonderful. With a bit more tinkering, I was able to add some more functions then suddenly DOOOM! There was some type of bug in the code and now the app was no longer running. It was hard to distinguish where the bug was located and trying to figure out if I was missing a letter, a command, a definition, a comma or a some other tiny little mark. I tried doing Ctrl+Z to undo the damage but no luck. I searched and dug through forums and webpages for assistance, but what I tried likely broke it even further. At this point not only was my fledgling app no longer functioning, even the program for writing it was down as well. I was devastated. The  nuclear option would be the only way, uninstalling then reinstalling the entire system. I will have to start from the ground up, putting back the pieces of Android Studio to it's original glory before I can even hope to get my app going again. I wonder if they called this app Just Java because they knew we would need quite a few coffees to get it going.
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24 Hours is Not Enough

"All I want is to do better than I did yesterday"
Self Reflection Sunday
Aug 28, 2016

I am at a cross roads in my life and my career. One of my goals in life is to achieve financial independence, where I can set my own schedules and do as I wish and become the master of my own time and development. I recently came upon an opportunity, a one in a million chance to go for a higher paying job in a potentially better career. This job is with a big company, and the job security and to opportunity to work with other professionals is very tempting. The higher income would mean I can pay down debt faster, potentially investing more money earlier. However this new job would likely require much more time than my current job, likely meaning I will be working even when I am not on site Not having free time would also mean that I will be less likely able to create my income, and to invest in myself. How do I decide whether I should invest in a career working for someone else or invest in myself working for myself. There is no easy answer. The former is prestigious and the increased pay would mean I can get out debt faster. The latter is riskier, more likely to fail, but also has the potential to blossom into something I cannot even imagine and potentially get me to financial independence.

Since my first self reflection, I have began several projects in addition to this blog. I know that being productive with my time is more important than idling by. My current projects include learning HTML to edit this blog, learning java to develop an android app, and learning to invest in real estate. Unfortunately none of these projects have been completed and are all partially done. I will need to revisit these project and complete them, turning them from a dream to something much more tangible. There never appears to be enough hours in day. My time get diverted to working, sleeping, eating, shopping for groceries, laundry, and the occasional Youtube and Facebook break. Admittedly I should cut out Youtube and Facebook to gain more time, perhaps by deactivating my WiFi as I used to do when I was in school, but unfortunately what I am trying to learn is also only available with WiFi on. I will need to figure out a way to focus my time an energy away from the distractions, or find a way to get the material I need to learn offline. One more step in learning to succeed.

Portland: The Land of No Sales Tax and Gluten Free

" Can we drink port at a port in Portland?"
Aug 24, 2016
Self Growth

Portland is a unique mix of hippie and hipster and the lines often blur as to what is what. The roadways are not the friendliest often with one-ways and bicyclist and bus only lanes at every turn. My driving experience in Portland was terrible but Portland does have some redeeming qualities. The food is good, the landscape is scenic, and the Saturday and Sunday market is huge.

Food is huge in Portland. You can find just about every cuisine you would care to enjoy and you will likely be able to find it gluten free. You can find gluten free pasta, bread, and even cake. I seriously have not seen so many gluten free options in my life. I took the opportunity to check out as many happy hours as I could. I typically favor food happy hours over drinks.  RingSide Fish House had one of my favorite happy hours which has mussels, chicken wings, and fish cakes; all of which were delicious. The service was top notch as well. Portland City Grill had a really nice view of the city just overlooking the river. The food here is subpar so I would only go here for the view and a couple drinks. Also, get here early as the good seating by the window fills up quickly. Finally Portland Seafood Company was a quaint little spot, the food and drinks were typical of bar food. It was not bad, but not exceptional either. And if you are interested in that gluten free cake, you can swing by Petunia's, a 50's style baker shop, that has a whole host of gluten free products.



Portland has some of the nicest scenery and you can really stop to smell the roses. The rose garden here was in full bloom  with nearly 10,000 roses of every variety. The entry is free and you just have to pay for parking which at the time I went was $1.60 an hour. If you pay by phone, you are able to add time, so you can pay for 1 hour, then add if you end up spending more time in the area. The zoo and the Japanese Garden are also within walking distance and you can enter for a fee. Beyond the rose garden is The Grotto, a religious park of sorts. It is dedicated to the Catholic faith and the Virgin Mary. I am not religious myself, but I still found The Grotto to be tranquil and relaxing. On my 3rd day in Portland, I attempted to visit Multnomah Falls. Unfortunately, everyone else in Portland must have had the same idea because the traffic going to the falls was terrible. As such, I was only able to drive past the falls and admire it through the windows of the car. However, the day was not lost because just a little beyond Multnomah Falls was Horsetails Falls. You are able to park right next to Horsetails and walk underneath the falls, giving you the best picture and experience for the time and energy invested. And going even further beyond Horsetails Falls, we reached The Hatchery located off the Columbia River. The Hatchery is in a secluded area, a complete contrast to what was happening at Multnomah falls.













 You cannot visit Portland without visiting their weekend markets. There are several throughout the week but the biggest ones are on Saturday and Sunday located near the water. You will find fun trinkets, wood workings, glass sculpting, and food truck. The event is so big, that it actually forms 2 separate market events, spanning roughly 4 blocks.

Unfortunately I was not able to make very good use of the no-sales tax benefit of shopping in Portland. I did pick up some much needed socks, but that was about it. For me I really did not need anything, and spending money just because there was no sales taxes did not make financial sense.

Self Reflection Sunday

Aug 21, 2016

I have spent the last week on vacation in Washington state and Oregon. I loved my time spent away, savoring the food and taking in the scene. I have some great pictures and memories of the sites we visited. But most of all I really had a great time catching up with friends. I met up with 2 friends in Seattle, one I have known since middle school and the other from grad school. It was great to be involved in each others lives again after it felt as we drifted apart with the passing days and months. We talked about our careers and plans. We talked money and mortgages and scared ourselves about how much like "adults" we were trying to be. It truly is the people in your life that makes life special and I am very grateful to my wife for helping make my dream of traveling come true. I have also found out that after being away for a week, that I am starting to miss home. I miss my bed and even my good old 2005 Honda, these rental cars just aren't the same.

I have been slacking on putting up new blog posts. I have started writing them to talk about my travels but they started running long. Also since my phone is too old to take proper pictures, I will have to wait until I get home to pull the pictures of the point and shoot camera before I can share them.

Sleepless in Seattle

"Oh the places you'll go..."
Aug 23, 2016
Self Growth

Seattle is such an amazing city, with a vibrant culture and a great mix of technology and nature. I was fortunate enough to spend a few unforgettable days in Seattle (and a few nearby locales) and this was what I discovered. 

Seattle is fully immersed in nature. As we traveled along the highway and trekked from point A to B, it is impossible to miss the number of trees and flowers all around. Just looking around it feels as if this city sprang from a dense forest of evergreen pine trees. Even within the heart of the city you will find parks scattered throughout and flowers graced on the sides of buildings. 

(The great wheel, 2 coliseums, and Mount Rainier spotted off the pier)

Seattle is full of art everywhere. According to a fun fact that was obtain during a Duck Boat tour around the city, 1% of all property tax is used towards public art. As a result there are fun random art pieces scattered about the city. There is the metallic tree at Olympic sculpture park, the Fremont Troll that lives under the bridge waiting for the three Billy goats gruff, and the glass workings in Chihuly Gardens. Of course these are big sites but you will see quite a few interesting pieces all throughout the city with unfamiliar names. 

Seattle is full of interesting architecture. I had the chance to check out the 10 stories that formed the Seattle Public Library. Each floor had its own function, whether it was the cafe or reading room or job resource center. The entire building is covered in windows allowing in the maximum amount of natural light without being overwhelming. The interior often showcased the art that the city is known for. Located in the heart of the city is the iconic Space Needle which overlooks both the Chihuly Garden and EMP. Chihuly Garden features a number of glass sculptures big and small. They range from the size of a small hand basket to a 12 foot tower. All the pieces are full of vibrant colors and interesting shapes. It offers some great photo opportunities like having glass sculptures and the space needle all in one shot. The EMP building showcases a number of rock legends. The building is easily recognizable and not recognizable. You know you are there because you will be standing at a bright red building with a number of twists and turns. If you are not familiar with it, you may not be able to recognized it was designed based on Jimmy Hendrix's broken guitar. These are a few of the architectural styles you can see while in Seattle but there is more to come. Amazon for example has a new building under construction, which looks like a golf ball. It's unique design will definitely help their creative team think different. 

Seattle is full of great food. Located by the water, the city offers some of the best seafood around. You can swing by Taylor's to have one of their succulent oysters, my wife loved it and we just happened to get in right at happy hour. We were also taken by a friend to enjoy cioppino and fish & chips at Steelhead Diner. This was possibly the largest bowl of seafood I have ever had. After dinner, we walked next door to grab some of Rachel's Ginger Beer, which is a definitely not what you find in the grocery aisle. The come in a number of flavors including guava, pineapple, and mango mate. If you so wish, they have spirits available to liven things up even more.

(Oysters on the Half Shell at Taylor's)
Seattle was an amazing experience which we were fortunate enough experience. It is so full of great art and food and we cannot get enough. We also benefited from not having rain while we were there which from my understanding is unheard of.

Self Reflection Sunday

Aug 14, 2016
Self Reflection

This past week I was able to write 6 of 7 days, with 2 financial articles, 1 on personal safety, 1 about Pokemon (which should be a category all on it's own), and updates on the website design. This week was also one where I had multiple friends and family visit from out of town which was wonderful to for catching up and going out, but also took time away from working this blog. I have no regrets on spending that time with them, but it does challenge me on how I can be productive when there are other priorities available. I have learned to blog from my phone, which is great for when I have a few spare minutes when I am on the go. This means I can keep working even when I am not home. This coming week will be full of meeting up with friends and exploring out of state. I have always wanted to travel, so I am taking advantage of this time while I am still young to make it happen. I will take a hit on my budget but time lost is time I will never get back. I am saving a little on hotel costs by staying with friends for half the time and Airbnb for the other half. Goal for this coming week is plenty of pictures for the photo album and a handful of blog posts.

A Fate Worst Than Death

"Steven Hawkins without the genius brain" 

Aug 13, 2016

Accident Prevention

It may be hard to believe there is a punishment worst than death, since avoiding death has been hard wired into our DNA since the beginning of time. It is the reason we get up in the morning, it is why we eat, drink, and even breathe. And while many of us while fear death and perhaps the afterlife, there are things in this life that may be even more scary. For some people, it is public speaking; for me, it is a debilitating injury. A debilitating injury is one what will leave you alive but severely handicapped. It would be more than an arm or a leg, it would be perhaps 2 arms and 2 legs or brain damage. Imagine being Steven Hawkins without the genius brain, that is my fear. I will explain why debilitating injuries are so scary, and a way we can minimize the impact.

To me, death is simple, living is much harder. For the individual, death is the end of everything. It is when you no longer have to worry about eating, drinking, looking good, being smart, getting along with other, or going to work. A sudden death may be heartbreaking for loved ones, but for the individual they really could not care any longer. Your friends and family will go through a period of mourning but eventually everything will get back on track and life will continue for them. Living is much tougher. You have to worry about your next meal, your next paycheck, and your friends and family. You are constantly working to adapt to a changing world, a changing environment, and changing times. You need and want to care for them in whatever way you can. If you are dead, there is no nothing you can do, there is no choice. If you are alive, then you can choose, and your decisions will ultimately affect you and others around you. But I do not envy death, and I am learning along the way what it takes to not just be alive but to also live well.

Debilitating injuries are worst than death, because it is seeing something, and wanting to do something, but not being able to do it no matter how much you wish it so. If I suddenly become injured, I have no idea who would take care of my family. Who would put food on the table or shelter to live under. It is unlikely that we would be able to continue paying the mortgage which will likely mean having to sell the house. If the injury was less severe, perhaps I can do a desk job or something that has less pay, but a a truly debilitating injury can prevent even that from coming true. I would go from someone who is active and able to care for others, to someone who is left to depend on others. That would be the worst part for me, that I could not care for those around me. Even worst, others would be obligated to care for me.I may not be able to feed or clothes myself, never mind trying to use the restroom. And though your spouse or family member may be able to care for you for a period of time, chances are they will get worn out with the passing months and years. Your spouse may have to start picking up extra shifts at work to pay for the additional medical expenses, but at the same time worry about having someone to care for you at home. That feeling of helplessness is likely the scariest part of disability. 

The uncertainty of when injuries can occur is the second part that makes it scary. Injuries can literally come from anywhere. A few years back, there was a leak in a septic tank aboard an airplane. the leak opened up in mid air and as all that septic water came falling down from thousands of miles in the sky, it froze over before crashing down to the earth. There is no way we could plan to prevent these events from happening. It would not have matter if you are a vegetarian who did yoga 5 days a week, if that septic ice block hit you, you are sure going to feel it. 

Although no one can predict when an injury will occur, you can minimize the impact an injury can cause. The first part of minimizing injury is actually to be active. While it would be unwise to play around on the freeway, staying active with regular exercise will minimize injuries from falls and bumps. Regular exercise is important for stemming of many of the diseases that affect modern man.  For bigger injuries, health insurance will be vital. America's broken health system means that you are really only okay if you are really poor and covered by Medicaid or really wealthy and can absorb the brunt of an illness. Otherwise health insurance is going to be necessity for medium level injuries. The insurance will cover your standard broken leg or course of therapy for pneumonia which would otherwise be prohibitively expensive. 

For debilitating injuries, you need disability insurance. Disability insurance for most people when they are young is relatively inexpensive. Most disability insurances will cover you for about 60% of what you make, but because disability benefits are not taxed, your take home is about the same. So if your monthly income is $1000 and you get injured, then your insurance kicks in and pays you $600 a month tax free or until you turn a certain age such as 65. That $600 is likely close to what you would have taken home after federal, state, and social security is taken out.  Disability insurance is important for anyone without enough income to retire. The idea is to generate enough income while you are young that can support yourself for years to come without working. Once you have enough saved up then you will no longer need disability insurance. 

Death is scary but disabilities are frightening. They can make you feel helpless and are unpredictable. The good news is there are ways to minimize the impact of disabilities including exercise, health insurance, and disability insurance. 

Site Layout Updates

"Leave it to the professionals....wait that's me..."

Aug 11, 2016

Self Growth

The internet as a whole is pretty impressive, lots of design and interactivity. So far this blog has maintained a simple template which is fine to start but I will need to work on it for it to become a professional looking site. I plan on incorporating more pictures and videos in my posts to make them more interesting. Also posts will have tags which will allow the reader to quickly sort through any given topic. Soon you will be able to sort through all the financial literature simply by clicking Financial Safety.

This process will take some time since learning HTML will be necessary to have the site look the way I want it to. In the mean time some links may not work 100% correctly and the layout will be a work in progress as I figure what would look the best. With that said, I feel I may end up learning a bit about how to code web pages when all this is said and done and I will be looking to contribute a few hours each day to that task.

Locked doors

"A lock is only good if you use it"
Aug 10, 2016
 Personal Safety / Health and Well Being

(garage door side lock:source)

Just the other day, my neighbor's car was stolen. What made this particular incident especially worrying is that the car was parked inside a closed garage, the neighbors were home, and they had no idea until morning came. This meant that the thieves were able to get inside the house and get out with a very valuable item without anyone knowing for hours. It was fortunate that the thieves only wanted the car, because much worst could have happened.

Many of us leave our homes for hours throughout the day. During these times, our homes are vulnerable for invasion. Thieves may enter and take our jewelry and electronics, they may steal our passports and identities, and can damage what we have worked so hard to create. Our home is supposed to be our safe place, the place where we can lay our heads and be at ease. After a home invasion, the sense of security may be the biggest thing lost.

There are some steps that can be taken to improve home security.
1. Make sure everyone in the house is aware of home security. All it takes is one careless person leaving a door or window unlocked to make your home more vulnerable.
2. Lock all your doors and windows, do not open them for unknown people, and make sure you get the latch in the garage. Many garage doors will have a manual latch available to prevent it from being raised.
3. Remove hidden keys and ladders from the outside of the house. These items are accessible to the world, which means the world will be accessible to your home.
4. Add intimidating signs  such as any spare ADT or other home security system signs or Beware of Dog
5. Get a security system to monitor your home 24/7 but it does have a recurring cost
6. For sliding window and doors lay a pieces of 2x4 or pvc pipe in the railing of sliding windows and doors to act as a secondary security device to prevent opening
7. Keep valuables well hidden with special care to hide jewelry and personal documents (passports, social security cards, etc)
8. Keep valuables out of sight from the world, the general assumption is if you have nice things on the outside, you have nice things on the inside

It will be easy to get lost in your day to day life that you may forget to guard your home. It will only take 1 time before you will feel violated, and there is only a small chance that you will get your things back and the perpetrator gets caught. You will not be able to prevent every robbery or break-in but if your place looks tougher to get into, then burglars will pick an easier target. Protect yourself and protect what's yours.

Pokémon Go for a Good Cause

Pokémon Go has taken the world by storm and even if you didn't know about Pokemon before, you can be sure you will soon be running into someone playing Pokemon Go or a business looking to benefit from the number of players wandering about. One of the more interesting things to come out from Pokemon Go are the actual benefits that come from the game. With literally thousands of people playing the game, some people have found ways to use the excitement and energy as a force for good.

 

(Picture courtesy of Muncie Animal Shelter)

Muncie Animal Shelter in Indiana for example has encouraged people to take shelter animals out for walks as their human partners hunt down virtual pets. Not only was this good exercise for the human and animal, in a few instances it even led to the adoption of an animal that would never have found a home. The program has generated great media coverage for the shelter.

 

 The other cool thing to come out of people running around looking for Pokemon is that people can also simultaneously run around donating to charity. One of my favorite charity apps is Charity Miles. Charity Miles teams up with sponsors to donate money to a non-profit organization of your choice just for walking or running around. So far I have contributed miles and money to the American Diabetes Association and The Nature Conservancy. To date, thousands of dollars have been donated to good causes, but imagine what it can be if all the Pokemon Go players joined in on the action. I like this app because it is simple to use, it gives to a good cause, and it requires no sign up.

Who would have known that Pokemon would have such great benefits. It is amazing what is possible when people are energized and excited, even if it is to hunt down virtual reality creatures.

Make $120 A Year the Easy Way

"There may be no such thing as a free meal, but we can still eat cheap"

Aug 8, 2016
Financial Safety

For my first actual post about generating money, I will reveal something to you that I have done for the last few months. I wanted to make sure this technique works before recommending it to others and so far it has been successful. This technique generates up to $120 a year,
which is not huge, but it is great in terms of ROTI (see previous post on ROTI).

I am a fan of the benefits you can get from credit cards.One of my favorites is the from Bank of America, the Better Balance Rewards Card. The Better Balance Rewards Card gives you a $25 credit for every quarter if you pay off your balance at the end of each month. This card is great for everyone who does not currently carry a balance. It gives you an additional $5 if you have a Bank of America Checking account for the funds to be deposited into, netting you a grand total of $10 a month or $30 a quarter or $120 a year. You get the reward even if you spend less than $30 a quarter using the card, so this is what I do to maximize the returns while minimizing the work.

1. Open up a Bank of America checking account
2. Open up a Bank of America Better Balance Rewards Card
3. Sign up to have your rewards deposited into you checking account
4. Make a small purchase each month using the credit card or get an automatic monthly subscription such a Netflix.
5. Pay off the card in full by the end of each period
6. Receive your bonus at the end of each quarter

Netflix costs $8.99 a month but you get $10 a month in benefits which nets $1.01 a month. At this point you can forget about the accounts as the account literally pays for itself. Do not use the card for any other purchase since $30 back is most you can get. Before I had Netflix I would buy 1 soda or 1 bag of chips with the card each month, which would net me about $9 a month. Having a subscription nets a lower return but requires less monitoring, and therefore is better in terms of your Return on Time Invested.

Man Cannot Survive on Delayed Satisfaction Alone

"Flush you water-heater every 6-12 months"

Aug 6, 2016
Family

Took an easy day and enjoyed a Tmobile Tuesday deal with a heavily discounted ticket from Fandango to watch Suicide Squad alongside my lovely wife. Overall the movie was a nice distraction from work and always having finances on my mind. It did make me realize that even though we can be mindful of our futures, we should also take time away to enjoy right here right now. Also, I realized that entertainment can be obtained without breaking the bank and there are deals to be had for those willing to look.

On a side note, my water heater broke. Took out a good chunk of time trying to figure out how to fix it which is why my last post was late. However, it did help me think about the idea of ROTI. I spent approximately 3 hours reading online and watching Youtube videos on repairing and relighting the heater but no luck. I know a repair would be several hundred dollars and a replacement could be nearly $1000 but I do need hot water. Got a suggestion to have PG&E come out and look at it for free before hiring a repairman. It definitely helps to talk to the experts and many of them will offer suggestions on what to do even before they come out to your house. One thing I did learn is that you should flush your water heater every 6-12 months for maintenance. Hopefully that little tidbit pays off in the future.

Return on Time Invested

"Time is money... No, it's NOT"
Aug 5, 2016
Financial Safety

We live in a society that highly values money but rarely do we talk openly about it. And because we do not talk about money, there are many misconceptions about money. As the old adage goes "Time is Money". At first glance this statement may appear to be true but really it is deceiving.

Money is infinite, time is not. The amount of money you can have is infinite. You can earn it, steal it, borrow it, lend it, or gift it. The amount of time you have is limited and everyone is given exactly one lifetime. Money has no actual value, it's value is only equal to what people attribute it to be. $1 can be equal to a singular apple or a pound of tea, a cup of sugar, and a quart of milk (as was the case in the 1900's).  Time has an absolute value and it is the same for everyone. No matter what you do, there will always be 60seconds in a minute, 60 minutes in an hour, and 24 hours in a day. It does not matter whether you are rich or poor, famous or unknown, 1 minute for me is the same as 1 minute for you. You cannot speed up time nor slow it down. You are not able to buy more time, nor can you borrow or lend your time out. Time is yours to use however you choose. Which is why one of the biggest punishments we have is called doing Time, because now we are losing something we can never get back.

Money is important, it allows us to acquire other resources that we need. Money allows us to buy food for the table, gas for the car, and luxuries that we could never produce ourselves. Money is the common denominator for resources which is the ultimate goal in survival.  The money itself may not be important, but the resources and the ability to obtain resources using money certainly are, especially if those resources are food, clothing, healthcare, and shelter.

People often get too fixated on the absolute value of money even though we know it's value can change at any moment. We may wish to have a million dollars, but if apples costs a million dollars a piece, all of a sudden we would much rather have 2 apples than be a millionaire. Confronted with the idea that money is not real and time is finite would cause some people to use up their money to enjoy time now. They may justify it by saying that they are enjoying the moment in their finite life but often they overlook or underestimate what they need in the future. They are happy or even proud to go through life with very little money and resources available. They say they do not wish to have money dominate their life. To this I agree with their sentiment but not their approach. One of the biggest shortcomings to that state of mind is that the person may not be ready to handle an unforeseen circumstance. You may not need much in terms of income on your average day to day, but if you get hit by a bus, having those extra funds may make the difference between in terms of quality of life thereafter. The best way to not need money is not by neglecting money but rather to have more money than you could ever need. The best way to have more money than you could ever need is to generate the maximum amount of money you can within a given period of time, which we will refer to as Return on Time Invested.

Return on Time Invested looks not only at the amount of money you can earn but also on how long it would take to earn that money. It is why people get an MBA because they believe that even though there is a cost of time and money up front, in the long term their ROTI is going to be higher. 

We can compare a few examples. A person coming out of high school earning $10 an hour, working 8 hours a day, has a ROTI of $80/day or $3.33/hour. We must remember there are 24 hours in a day and if you work 8 of them each day then your ROTI is lower than your hourly pay. We can contrast that to a college graduate who earns $30 an hour by working an 8 hour day but had to be in school for 4 extra years not earning an income.The college graduate would have 4 years of $0/hr. During the first 4 years, the high school student has a higher ROTI than the college student since the college student has no income. However in year 5,the college student would  have a ROTI of $10/hr ($30/hr x 8hrs/day x 1day/24hrs) but a cumulative ROTI lower than the high school student. By year 6 both would have the same cumulative ROTI and after that the college student would have a higher ROTI. The college student had taken a short term lost, for a long term increase in ROTI. The reason we always look at a 24 hour day is because some sources of income can operate 24 hours a day, such as a website. If a website is about to generate $5 an hour, even though it is lower than the $10 an hour someone may get from working at a job, at the end of the day, the website will have generated a higher ROTI ($5/hr vs $3.33/hr).

By looking at the ROTI, you can assess not only monetary value of something but also the time value. You can decide how to best invest your time which is very limited, to maximize your rate of income and hence resources. If you maximize your ROTI, then even if you are behind in the short term, you will be ahead later down the road.

Credit Where Credit is Due

August 3, 2016
Financial Safety

While reading through a number of financial advise columns and journals, I often read a recurring theme, the idea of shredding your credit cards. People often discuss about incurring debt far in excess of what they earn, such that interest payments alone was taking up a sizeable chunk of each paycheck. And as the interest payments add up and spending is not reined in, then people get stuck in perpetual debt, never earning enough to dig there way out. However I got to thinking, are credit cards all bad? Are they really a bane on society, that we would all be much better off without? The conclusion I have drawn is an absolute 'NO'.

I will preface all this by saying that if you do not have a budget (I have examples of budgeting techniques in a previous post), then you should not have a credit card. If you are going to carry a balance then you should not have a credit card. The high interest rates on most credit cards will contribute to keeping you in debt for longer than you have to and if it is not something you can afford at this very moment, then you really should consider not buying it. But if you have a disciplined budget and pay off your cards at the end of each month to avoid accruing interest, then there are a few benefits to having a credit card. 

Cash Back
Often times the biggest factor that separates a credit card from cash or even a debit card is the Cash Back Reward. The Cash Back Reward returns a percentage of each purchase back as cash. The reward can typically range anywhere between 1-5% and on occasion may squeak up higher. I would recommend getting yourself a simple to use cash back cards such as the Citi Double Cash Back card which gives you 1% when you make a purchase and another 1% when you make a payment (2% total). 2% may not sound impressive but try considering it next to a savings account. Even the best savings accounts right now are offering near 0% return on money, the best one I can find offers only around 1%. The Citi cards allows you to double that return each time you swipe your card. Again don't swipe that card unless you have the money available at this very moment. If you are able to time your purchases such as during a 5% cash back bonus period for the Discover It card, then you can redeem even more from your purchases. 5% is 5 times higher than most savings accounts, more than sales tax is some states, and is pretty close to what some people get from picking stocks. Plus this is actual returns, and you are not taxed on this reward. Let's assume you had $100 available and you want to buy a $100 item. If you paid with cash, you will be left with $0. If you paid with the Citi card you will get 2% back meaning you are left with $2. And if you wait for the Discover bonus period, then you can have $5. Repeat this with every purchase and every meal and your cash back can really add up. If you are afraid that having cash back will only spur you to spend more then consider moving your cash back rewards to a savings account. At that point you would not have to worry about returns on investment and you can think of that savings as money you would have lost if you had paid cash. (although I possess these cards used in the example, I received no compensation for writing this article). 

Safety
Credit card purchases are much safer than cash. If you had to go to the store and someone robs you of your credit card, then no worries the card is replaceable. If someones robs you of your cash, then even if the police catches that person, it is unlikely you will ever see that money again because it would have been spent or stashed away. There is always the chance that someone may steal your credit cards and spend frivolously but you are not responsible for those transactions and you will get your money back. 

Portability
Credit cards are by far much more portable than cash which is especially important if you are making a big purchase. Have you ever tried to buy a new laptop using $20 bills? It does not fit neatly into your wallet. Also what about getting change when something cost $5.01 or $7.25. You are left with a pocketful of metal which jingles around alerting passerby's that you have money on you. You might only be able to convince them that noise is coming from your keys a couple times. Plastic is just so nice and sleek in these situations. 

If you cannot keep a disciplined budget or pay off your full bill then you should not use a credit card. But if you are able to, then  the cash back reward, safety, and portability may convince you to use plastic.

Confidence in the Palm of Your Hands

(Presented at Toastmasters International)
Aug 2, 2016
Social Groups

What are the traits of a great speaker? Passion? Yes. Humor? Yes. And…? Cajones! That right, a great speaker needs confidence. Often time confidence takes a long time to develop, with constant training and repetition. But what if there was a way to gain a quick burst of confidence, and without the use of drugs or a DUI. What if I can show you how to help bridge the gap between when you first speak to when you become a master. The key to accessing this confidence is through self-hypnosis. In this speech I will explain why hypnosis work and how you can use it as a tool to build confidence.

Scientists have known that hypnosis works for decades now, however they prefer to use the term placebo effect. The placebo effect is the idea that you can give someone something that has no effect but still generate a very real result simply because the subject believes it works. And this holds true for all experiments, in any study and in every clinical trial. It is the reason why a patient given a a placebo in a depression study will suddenly start feeling much better. The placebo effect is so important that a study is considered useless if it does not control for the placebo effect because there would be no way to assess what caused by the treatment and what was caused simply by the patient believing. Self-hypnosis is the simply utilizing that placebo effect to your own advantage. It is allowing you to make something real simply by believing that it is real.

To make hypnosis work for you, you only need to follow these 4 easy steps.  Step 1: Think about that time you felt wonderful, felt on top of the world. Did you get a high score on your favorite video game or was it when you held your child for the first time. If you cannot think of a situation like that in your life, then draw inspiration from someone else life. It could be when Stephen Curry made the buzzer winning shot to clinch the game or when NASA landed a satellite on an asteroid that was careening a thousand miles an hour through space. How cool was that?! Step 2: Summon up and shroud yourself in that positive energy and excitement of that moment and focus on how it feels. Try to remember every part of that moment, as if you are reliving those exact same moments. Step 3: Ground that feeling in an object or movement so that you can conjure up that feeling whenever you choose. You can see other people doing this instinctively such as when a student reaches for their lucky rabbit’s foot right before finals or when martial artists bow right before they begin their fight. They are summoning the memories and energy that had before, bringing it to their current situation. For toastmasters, I suggest that we ground our trigger in something more fundamental, a hand shake… Step 4: Release your trigger, activate your trigger and gain an instant burst of confidence. Toastmasters, if you ground your trigger then you will get that burst of confidence and energy right before you come up here to speak, right as you shake the hand of the person introducing you and you will be filled with that same energy and confidence as during the best day of your life.

There is no substitution for training and repetition when it comes to public speaking, but confidence should not be the limiting factor for a great speech. So if you get nervous about coming up here, and you feel your hands tremble and knot form in your throat, then just follow the 4 easy steps: think about a wonderful moment, summon the good energy of that moment, ground your energy in a hand shake, and then trigger it as you step up. Voila, instant confidence at the palm of your hands. You may find it hard to believe, but trust me, it works.  

Budget Budget Budget

"Do not save what is left after spending, but spend what is left after saving" - Warren Buffet
Aug 1, 2016
Financial Security

No financial plan can be complete without a budget of some sort. There are definitely different ways to go about it but the goal is always to keep track of what you earn vs what you spend.

I have found several budgeting strategies: Zero Sum, Buckets, and Save-Spend.

 Zero Sum strategy means that you want to keep your spending below your expenses and at the end of the month always having a balance greater than $0. Having a positive balance means that your income has exceeded your income. Anything that remains at the end of the month can go into a savings account or be invested or be rolled over to the the next month. Of all the strategies, this is the most basic and therefore easiest to manage. However, it does have it's limitations. The biggest limitation to the Zero Sum strategy is that it does not prioritize saving and investing. Often times if we do not save first before spending, we end up not saving anything at all. In my younger days I used to use the Zero Sum budgeting strategy. At the time, I had no debt and no big goals for my financial future so this strategy worked decently. I was also only working part time so I did not feel as if I was even able to save what little money I had earned for the future. I would not learn until much later in life that if I had saved and invested earlier, I would be much more well off financially than I am today.

A second form of budgeting is the Buckets method. In the Buckets method, you would put your money into separate buckets for each type of spending. So $500 for rent, $300 for eating out, $100 for shopping, etc. If a given bucket runs out of money, then too bad, you will have to do without until you refill it the following month. Anything left at the end of the month is used to pay down debt, save, or invest. The Bucket method is very helpful in accessing what exactly you are spending money on. It requires discipline to maintain that level of spending on each category and often it may be tempting to dip into other buckets when one bucket runs low. The down side to the Buckets method is the lack of flexibility. If one month your cell phone bill runs high, then you may not have enough in your bucket to pay off the bill. At that point, you may have to reconsider how much you place into each bucket and may have to borrow from your other buckets which also throws off your budget.  Also, some systems can become overly complicated when you get too many buckets. You may end up with buckets for car payments, house payments, insurance, gas, internet, tv, phone bill, eating out, playing games, movies, etc and become difficult to maintain in the long run. Many people have had success with the Buckets method and it is a strategy that Dave Ramsey's the debt guru advocates. If you are able to sustain it, the Buckets method is a great way to pay down debt and invest in the future.

The final technique to budget is the Save-Spend method which mean you save or invest a certain percentage then you are free to spend the balance however you please. The typical breakdown would be 20% savings, 30% miscellaneous expenses, and 50% fixed expenses. Fixed expenses are expenses that do not fluctuate much month to month and often include housing, student loan payments, and utilities. 20% savings means money that will either be put into a savings account, 401k, Roth IRA, or some other form of investment. That leaves 30% remaining to spend however you wish, meaning travel, eating out, dining out, etc.By investing first and preparing for your fixed expenses, you are able prioritizing your future. You may have to pass up on that new TV, but you will have funds available for retirement. This method also helps you figure out how much you can buy to live on, such that if your fixed expenses exceeds 50% of your budget, then you must find a way to reduce your expenses or increase your income.

Of the 3 methods, the one that works the best for me is the Save-Spend method. The Zero-Sum method is good but part of financial planning is planning for the future. I know that if I spend first, I will likely not have enough money to save and invest for later. The Buckets method may be helpful, but because it is complicated, I do not believe I would be able to commit to it for many months to come. The Save-Spend method offers me the flexibility that I need, so that if I ever want to see if I can afford a new toy, I can just look at how much I have left after I have put away what I needed.