Self Reflection Sunday

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Oct 16,2016
Self Reflection

I love the classic story a Christmas Carol. I will always remember the 3 ghosts that appear in the story, the ghost of Christmas past, present, and Yet-to-Come. It has inspired me to write this post in it's honor.

Past
This past week I was successful in working out for 3 days. It was not easy as the rainy season has started so running outside was not an option, I am afraid of getting pneumonia (just look at what happened to Tiny Tim). I do not have time for pneumonia, and my medical coverage is minimum, so I also do not have money or coverage for pneumonia. Instead, I opted to workout at the nearby fitness center. Not quite as enjoyable as being outside but it will have to do.

I was less successful with the property analysis, again due to computer issues. I was able to conduct 50 analyses, but I was not done until today. No real estate team yet, I will have to double my efforts on that front. I will also need to learn how to generate capital for that initial down payment, most of the properties will require 20-25% down payment before the bank will lend out money. Also interest rates are much higher on a rental property than a primary residence, I will need to see if I can attempt to buy a second home, then rent it out. 

Present
I have decided. I will be making a phone and laptop purchase this year, preferably around Black Friday when the deals are out. I realized that the time lost due to my phone and laptop crashing is substantial, though I will still need to gather the funds to make the purchase. Most likely I will be buying a refurbished laptop and an older model phone to save money.

On another financial front, I have started looking into investing with Wealthfront. Wealthfront does robo-investing, where you take a short survey to determine your risk tolerance, and they create a portfolio for you to invest in with automatic adjustments. All the asset allocations are dictated by an algorithm or a computer. Typically I would never use a funds manager because the management fees of 1-2% is much too high. Repeated analyses have shown that index funds will beat mutual funds because the mutual funds eat away any earnings that may have been generated. The reason I am investing with Wealthfront is that the first $10,000 you have in it will be managed free. This means that if the fund is truly able to beat the market, then I will keep all of the earnings. After the initial free managed amount, then the management fee goes up to 0.25%, or less than a quarter of what most funds managers may charge. That 0.25% only applies to any amount above the free managed money. So if you have $10,000 managed free, and $15,000 portfolio, then your management fee is 0.25% of $5,000. If you are interested, you can use my link (Maslow's Wealthfront) to get an additional $5,000 managed for free.

The bank that handles my student loans sent me a letter recently, they are going to increase my interest rate. The interest rates increases roughly every 3 months, and has risen from around 2.85% to 3.75%. Each time that the interest rate increases, I have to reassess whether it is more worth it to pay down the student loan or invest the money. After a few rough calculations, paying back student loans at 3.75% is almost the same as generating 6.5% returns on investment for short term stocks and 5% returns on long term stocks held over a year. Typical stock returns are around 8% so we are getting real close to a break even point. The primary difference would be that paying back student loans is a guaranteed savings, which makes it very attractive. By my calculations, if the interest rate exceeds 4.75%, then it will be better to pay off the student loans. Here's to hoping the interest rate holds steady for a while.

This past week I was able to celebrate a friend's birthday. It is always good to be able to take time away from the debt and worries to be around friends even if just for a few hours. I also attended a Toastmasters International Humorous Speech Competition, and listened to some exceptional speeches. Each person had their own style and it was great watching and listening to them perform. I am proud to announced that members of my club took home 3rd place in evaluations and 1st place in speaking. Both speakers are incredible at what they do, and I look forward to learning from them.

Yet-to-Come
My life financial goal is to become financially independent, being able to work a job but not having to because I have revenue streams available. I would very much like to retire well before age 60 when my 401k and Roth kicks in, but I do have them just in case things turn sour.

For this coming week, I will workout for at least. I was also able to workout today, finally putting me ahead of schedule. I had not been starting my workouts until the middle of the week so starting early should give me more options later on. I will continue to analyze 10 more properties and learn to invest more. Finally, this week I will be the Toastmaster at my local Toastmaster's club. It will be my first time, and I am excited for the opportunity.

Self Reflection Sunday

"The days are long but the years are short"
Sept 25, 2016
Self Reflection Sunday

Inertia is a powerful thing, this past Sunday I had promised myself to workout 3 days. Half way through the week I had not taken a step outside. On Wednesday, as tired as I was I forced myself to go out. Many people say the first day is the hardest, but really the second day is harder. On the second day you were already tired out from the first day and you have carry all your aches and pains on this new run. And the third day is harder still, having to carry days 1 and 2. And the 4th and 5th until one day it becomes easier. I doubt that I would ever notice it ever getting easier but perhaps much further down the road I will be able to appreciate how far I have come.

Fiscal responsibility, the requirement to keep you and your household afloat, is tiring. I see friends with many more toys and much nicer things and get envious. I keep looking at my budget and my budget never allows for it, invest first then save then spend. Those shiny toys are never an investment and definitely not a priority, I know they only cost money, and never bring in money. To spend and enjoy now or invest and enjoy later is a difficult. In the long run, investing for later makes more sense. Everything I have learned has taught me that. But the urge to spend what I have for some short lived fun is tempting. Each day having to do it is tougher than the last but I know if I can stay on the path that I am on, then I will be in a much more stable place in a decade. But it will take a decade... a decade of holding tight... no major expenses... no new toys... just slow and methodical. It will not be an easy decade but my choices are to invest and grow my income or spend now be stuck in debt forever. And when I have children, I can either pass on income or pass on debt.


For my real estate education, I have learned that math is a big component of it. Making sure that your purchase is a good purchase the second you buy it is a novel concept. Other people may hope for appreciation to build wealth, but after reading up, it seems good investors have no appreciation for appreciation. Real estate appreciation is icing on the cake, it should not be a factor deciding on whether or not to buy the property.

This past week I was able to run on 3 days and averaged 3 miles a day. This coming week I will continue the inertia and exercise for another 3 days.  I continue to sock away money towards stocks and savings, unfortunately those investments are currently down. I knew the risk I was taking and I have to be prepared to ride out the lows and hope for the highs. In the coming week, I will also aim to analyze another 10 properties. Most people will give up after 1-2 months, but I will promise myself to get through at least 100 properties.

Happy Mid-Autumn Festival (aka Mooncake Day)

" The mid-autumn festival isn't about the laterns or the mooncakes, it's about family... and who has the nicest lantern and the last piece of mooncake..."
Sept 18, 2016
Self Reflection

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The mid-autumn festival, also known as the harvest moon festival, also known as mooncake day is upon us and oh boy is it wonderful. The celebration is held on the the 15th day of 8th month of the lunar calendar. This year, the 15th happens to be on the same day as the gregorian calendar (the calendar we typically use), however it is a different month. As is typical with most Chinese celebrations, you will find people celebrating with bright colors, lanterns, and fireworks. But what sets this holiday apart are the mooncakes.

Mooncakes are seasonal treat, similar to fruit cakes, but infinite times better. Most are packaged in a decorative box containing 4 cakes, each about 3 inches wide. The most common and my favorite type of mooncake consists of lotus paste and one or two salted egg yolks inside. It is the duck confit of the baked dessert world, a rich decadent treat that is both sweet and savory. The filling should be thick and smooth, never oily or spoiled. The egg yolk should be hardy and fragrant. Though the lotus paste and egg yolk combination is the most common, mooncakes can come in whole host of different flavors. There are ones with nuts, sesame paste, wax gourd, red bean, and some are even chilled dessert style. Be especially careful to avoid durian, a smelly fruit delicacy, unless you know what you are getting yourself into.  If you have never had a mooncake before, I would highly recommend going to your local Chinatown or Little Saigon and picking up a box.

In my family, we like to cut the small cakes into 8 pieces. Potentially this is because 8 is a lucky number in Chinese culture.  It is also good practice because of how rich this treat is, you may become overloaded trying to eat a whole one by yourself. We would enjoy these mooncakes with tea and good times.

This year I am hosting the get together, so I am cooking up some up a Chinese classic, Memphis style baby back ribs... just like nana used to make. It will be paired with a side of salad, fresh fruits, apple cider, and madeleines. We are celebrating a little late, because this was the soonest we were able to bring the whole family together.

All this eating the last few weeks have made my face a look a little more moonish as well. Goal for this coming week is the work out for 3 days to get the blood going. I am furthering my research into real estate investments, and am looking to buy a place in the next few months. The whole prospect is scary but exciting.

Self Reflection Sunday 9/11

Aug 11, 2016
Self Reflection

This week, I took a step back and looked at how fortunate I have been. I live in the greatest country in the world because my parents took a chance over 20 years ago to start a new life. We have been fortunate and have enough to eat, have shelter, and clothing. Although I still have concerns about the future and investing, I have to take a step back and appreciate how lucky I have been in life. Statistically the odds may have been against me, growing up poor and with my parent both working 10+ hours a day 7 days a week. I never thought I would have to chance the chance to explore San Diego, Portland, and Seattle just to have enriching experiences. I am fortunate enough to have my parent give me their 2005 Honda, which still runs great, to have road trips. I do not need a shiny new car, though I would like to have one in the future; I will have to earn it first. It is incredible that we live in a time where we can travel hundreds of miles away and still make it back from our trip to sleep in our own beds at the end of the day. We have technology that will GPS us all the way there and tell us what the good sites and food are. We are truly fortunate and living in a great time.

I only posted one new article this week on the blog regarding investing versus gambling but it was one that I was proud of. It made me realize how important information and education truly are. This week I have been focused on creating a business plan and learning more real estate investing. Both processes require lots of forethought and calculations. I really wished someone would have taught me this stuff back in high school.

Today is also the anniversary of the 9/11 terrorist attacks on the twin towers. It was such a heart breaking moment that will forever change US policy, diplomacy, and rhetoric. Those people in the towers were just going about their day to day lives to have something so heinous happen. Unfortunately we cannot control the universe, so we have to make the most of our time on earth.

I am planning a few more road trips coming up, and will get some pictures on here as soon as I can. Fun times ahead and I am feeling very fortunate for what I have. But there's no resting now, I am going to strive to do more and live even better.

Self Reflection Sunday

"The one investment that will always generate returns is investing in yourself"
Sept 4, 2016

Last week I was attempting to figure out what is the best course for my career, either going for that 1 in a million chance to become further specialized in my field or taking a side route. After a long period of discussion with my wife, I have settled on the side route. Normally this would be because I was too lazy or unmotivated to work for this other job, but this time it is because I want to take that time and energy to invest in myself.

Working in my field is great but all the financial advice I have gotten have led me to the conclusion that diversifying your income stream is best. And since there are only so many hours in a day, and days in a year, I know that passive income through stocks, technology, and real estate will be my goal. I have started using Robin Hood for stock investing, Android Studios to learn app building, and Bigger Pockets for real estates.

I will not allow myself to use the time I would have had needed to simply relax and enter a vegetative state, I will improve and develop. I want to be able to retire early, work only if I want to, not because I have to.

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.

Oh how great it will be to be worth nothing

"Oh how great it will be to be worth nothing"

Sunday 7/31/2016
Self-Reflection

I am a 29 year old, recent graduate with nearly $200,000 of debt. I have a good job and I am happy at my job but I know I must constantly work to improve myself and hence this blog was created. I wanted a medium to express myself and document my progress that Facebook may not be adequate for. Looking down my list of examples I must say that I am in most need of Safety, specifically Financial Safety. As is with many new graduates, my debt greatly outweighs my assets, meaning my net worth is far less than zero. That homeless person asking for change has a cup worth more than I am at the moment. I can only hope to chip away at my debt and increase my assets, allowing me to eventually be worth nothing. I can only chuckle when I think about "Oh how great it would be to be worth nothing".  Yet truly I believe that having my assets equal to my debt is going to be a milestone. The hope of course is that eventually I will be worth much more than nothing.

Though I have a good job right now, no one can predict the future, and we never know when a truck will come careening through and introduce us to Saint Peter. Perhaps, even worse may be that the truck just leaves us terribly injured, unable to work, unable to provide, and sucks away at the savings and no one is able to care for the family. The road in life is highly unpredictable and I refuse to let lack of planning be a reason for turning unfortunate events into catastrophic events. I believe good financial planning can insulate us from life's speed bumps.

It is because of the uneasiness of my financial future that my next few posts will be geared towards increasing my Financial Safety.