Wow, the end of July, really? We’re there. Thought it would be a good time to reflect upon the annual goals I set, way back when. Given the turn we’ve taken with the economy and the level of uncertainty, combined with my decision to walk away from business school sponsorship and take on debt to go back to grad school….. I haven’t made much progress.
Financial:
1 – Get to three-months of expenses in my emergency fund. (ALMOST)
2 – Once we get a dog, transfer all automatic savings over to grad-school and wedding-funds, split evently – save $2000 in total towards these goals. (NOPE)
3 – Become a loan expert and secure a great loan package for grad school. (YES!)
4 – Stretch: Max out 2008 Roth by April deadline (KNEW THIS WOULDN’T HAPPEN EARLY ON)
It makes me feel like I haven’t gotten a lot done. And yet, different goals and items to manage come up, and there are lots of ways to stay productive. Overall my net worth is moving up – and not too much further to go to reach my goal, so I feel good about that!
Friday, July 31, 2009
Thursday, July 30, 2009
Gregg Easterbrook's: The Progress Paradox
Subtitle: How Life Gets Better While People Feel Worse
Highly Skimmable. The best four lines in the book that kind of say it all: “Portable carpeted dog steps” – These are the things that make us unhappy – the blur of needs and wants caused by rampant materialism.
The major causes of WHY people feel worse while life gets better:
1.The unsettled, nonlinear character of progress: while things do get better, there are stops and starts. While healthcare is improving, we still have the AIDS epidemics, etc.
2.Fundraising only happens at the extremes. Politicians couldn’t get very much money out of you if they represented inevitable progress. When right-wing personalities claim that Democrats are ruining the world, and vice versa, they’re doing so as a means to coax funding from your wallet.
3.Crises raise the self-importance of the elite (and boost ratings) - and thus, the elite generate their own crises.
The one thing I didn’t like about this book was the lack of solutions or constructive thinking about how to reverse the trend. The one theme that seems to recur in all of these happiness tomes (I’ve read quite a few) is referent anxiety (i.e. keeping up with the Jones’s). There’s a great deal of debate about referent anxiety and costs and benefits to society. For example, there is less referent anxiety in a stagnant economy – but one would argue this isn’t necessarily advantageous to a country’s citizens. Easterbrook’s main example was that of Scandinavian countries, whose “socialism-lite governments have moved everyone to middle class – something vaguely like a society in which everyone has a 3BR and a Honda accord”. Sign me up?
Highly Skimmable. The best four lines in the book that kind of say it all: “Portable carpeted dog steps” – These are the things that make us unhappy – the blur of needs and wants caused by rampant materialism.
The major causes of WHY people feel worse while life gets better:
1.The unsettled, nonlinear character of progress: while things do get better, there are stops and starts. While healthcare is improving, we still have the AIDS epidemics, etc.
2.Fundraising only happens at the extremes. Politicians couldn’t get very much money out of you if they represented inevitable progress. When right-wing personalities claim that Democrats are ruining the world, and vice versa, they’re doing so as a means to coax funding from your wallet.
3.Crises raise the self-importance of the elite (and boost ratings) - and thus, the elite generate their own crises.
The one thing I didn’t like about this book was the lack of solutions or constructive thinking about how to reverse the trend. The one theme that seems to recur in all of these happiness tomes (I’ve read quite a few) is referent anxiety (i.e. keeping up with the Jones’s). There’s a great deal of debate about referent anxiety and costs and benefits to society. For example, there is less referent anxiety in a stagnant economy – but one would argue this isn’t necessarily advantageous to a country’s citizens. Easterbrook’s main example was that of Scandinavian countries, whose “socialism-lite governments have moved everyone to middle class – something vaguely like a society in which everyone has a 3BR and a Honda accord”. Sign me up?
Tuesday, July 14, 2009
Health Care Costs Ex-Insurance
At the beginning of this year, I decided to keep a running list of what I would have to pay for all of my health-care-related expenses if I didn’t have insurance. That’s the retail sticker price. So far, the tally has been pretty enlightening, as itemized below... the biggest expense was actual my very generic Rx.
Retail for my Generic Rx $59.99 x 12 months = $719.88
OverTheCounter Meds = $42
Contacts = $114
Annual OB/GYN visit = $180
Dermatology Screening *EST* $175
Dermatology – Routine Removal *EST* $450
Dental Exam - *EST* $150
Dental Cleaning - *EST* $140
TOTAL Year To-Date: Closing in on ~ $2000
Retail for my Generic Rx $59.99 x 12 months = $719.88
OverTheCounter Meds = $42
Contacts = $114
Annual OB/GYN visit = $180
Dermatology Screening *EST* $175
Dermatology – Routine Removal *EST* $450
Dental Exam - *EST* $150
Dental Cleaning - *EST* $140
TOTAL Year To-Date: Closing in on ~ $2000
Sunday, July 12, 2009
Blogging for the Sake of Learning (and/or Getting a Job?)
Thinking even more about giving up the blog, I realize that I do still LOVE and believe in the idea of devoting significant time to a public forum to house thoughts, reflections, and more than anything a slow climbing path towards being an expert on some discrete finite topic. It is very much in line with Malcolm Gladwell’s ideas in Outliers on effort – similar to the "10,000 hour rule" espoused by a lot of writers at the New Yorker and various publications.
You can only become truly knowledgeable… or, phrased more positively….. you can actually become an EXPERT with just really hard work and time in front of you. Which provokes me to ask myself, what do I really want to perfect within myself? What could I become an expert in, and where could I develop myself through practice and effort and time?
I’ve had so many side interests – while I love writing and want to maintain that with a certain level of ferocity, I find that too private to actually blog about. I started getting really interested in wine and really would love to take advantage of opportunities to learn more. I have a good start on a tracker of my tasting notes… but then, I would post on that more sporadically, and there are SO many wine blogs out there, that mine would be, once again, the least knowledgeable and interesting voice out there!
I COULD use it as a professional opportunity to start practicing for case interviews, since I've determined I may want to break into management consulting after grad school. A case interview a day! That actually has the potential to create a real following, based on the lack of real, free resources or forums out there. Another sort of more general business school blog could be lumped into that as well – which would actually be FUN to maintain.
I think we’ve got some changes afoot....
You can only become truly knowledgeable… or, phrased more positively….. you can actually become an EXPERT with just really hard work and time in front of you. Which provokes me to ask myself, what do I really want to perfect within myself? What could I become an expert in, and where could I develop myself through practice and effort and time?
I’ve had so many side interests – while I love writing and want to maintain that with a certain level of ferocity, I find that too private to actually blog about. I started getting really interested in wine and really would love to take advantage of opportunities to learn more. I have a good start on a tracker of my tasting notes… but then, I would post on that more sporadically, and there are SO many wine blogs out there, that mine would be, once again, the least knowledgeable and interesting voice out there!
I COULD use it as a professional opportunity to start practicing for case interviews, since I've determined I may want to break into management consulting after grad school. A case interview a day! That actually has the potential to create a real following, based on the lack of real, free resources or forums out there. Another sort of more general business school blog could be lumped into that as well – which would actually be FUN to maintain.
I think we’ve got some changes afoot....
Saturday, July 11, 2009
Collisions in Twittering and Blogging
True, Suze Orman is the only personal finance guru/resource I’ve been following on twitter, so I can’t say that I have an exhaustive perspective on this, but I am scrolling TweetDeck on my phone often enough to concur with much of the media that nothing much insightful or thought-provoking gets written about on twitter. Even Suze is reduced to chatting it up about Michael Jackson and Sarah Palin.
It is really difficult to find anything that is actually value-added in any of these 140 characters (times 140 updates per day).
(Full Disclosure: I do have a twitter account under my real name, and I strive to post things that are interesting and value-added and truly undiscoverable by any other forum or unknowable to my friends through any other way. But I mostly fail as evidenced by last 5 tweets:
1.A picture of cupcakes I baked for the 4th of July
2.My disappointment that I didn’t get the house I wanted in Palo Alto
3.Excitement over attending an Indian wedding
4.Disappointment at the ultimate winner of the last season of Biggest Loser couples
5.My mixed emotions over the yuppiedom of owning those little metallic spice racks)
Then again, when I scroll my Google Reader for the latest on personal finance blogs, I truly am – scrolling. I can get the gist of most posts and updates in a few lines, and then I’m on to the next thing.
Which leads me to conclude…. As I go back to school and have less and less relevant topics to post on related to personal finance, would twitter be a better forum for my pf thoughts and insights???
Lately, I’ve been doing quite a bit of muddling over the state of the blog and the worthiness of keeping this up. The background updates and tracking I’ve done as a result are hugely value-added to me, and I don’t want to lose that. But perhaps I can distill the minimal value I create for others into a 140 character update.
I think I’ll tweet about it….
It is really difficult to find anything that is actually value-added in any of these 140 characters (times 140 updates per day).
(Full Disclosure: I do have a twitter account under my real name, and I strive to post things that are interesting and value-added and truly undiscoverable by any other forum or unknowable to my friends through any other way. But I mostly fail as evidenced by last 5 tweets:
1.A picture of cupcakes I baked for the 4th of July
2.My disappointment that I didn’t get the house I wanted in Palo Alto
3.Excitement over attending an Indian wedding
4.Disappointment at the ultimate winner of the last season of Biggest Loser couples
5.My mixed emotions over the yuppiedom of owning those little metallic spice racks)
Then again, when I scroll my Google Reader for the latest on personal finance blogs, I truly am – scrolling. I can get the gist of most posts and updates in a few lines, and then I’m on to the next thing.
Which leads me to conclude…. As I go back to school and have less and less relevant topics to post on related to personal finance, would twitter be a better forum for my pf thoughts and insights???
Lately, I’ve been doing quite a bit of muddling over the state of the blog and the worthiness of keeping this up. The background updates and tracking I’ve done as a result are hugely value-added to me, and I don’t want to lose that. But perhaps I can distill the minimal value I create for others into a 140 character update.
I think I’ll tweet about it….
Friday, July 10, 2009
24 Hour Trip to NY for $150
Heading to New York to see friends this weekend for literally, only 24 hours. And I’ve set a budget for myself of $150. How could I do that much damage in that little amount of time, right? My hotel was through a free night award, so I’m good there – and planning to pack plenty of breakfast-y snacks for my plane ride in. So the only things I am really talking about are:
2 cab rides into/out of the city, plus a metrocard refill: $50
Saturday drinks with Gals: $15
Saturday drinks with another friend: $20
Dinner/Drinks on our planned excursion out to the new Citi field (tickets comped by my friend): $65
I’ll report back later… probably, on where I went wrong!
2 cab rides into/out of the city, plus a metrocard refill: $50
Saturday drinks with Gals: $15
Saturday drinks with another friend: $20
Dinner/Drinks on our planned excursion out to the new Citi field (tickets comped by my friend): $65
I’ll report back later… probably, on where I went wrong!
Thursday, July 9, 2009
Oh, the Bonus Money Dilemma
Was running around the lake with the Guy the other day when he brought up the subject of “what he was going to buy with his bonus money.” Oh, what luxury. Oh, what eye rolling. The Guy makes twice as much money as I do. He owns his place (where I also live, at a significantly subsidized rate), has a reasonable mortgage, and we live a modest lifestyle (thanks mostly to my influence).
Clearly, his question galled me, just a bit. But when I asked him all of the basic saving questions, he had decent answers, and it was clear that he felt pretty safe in his financial condition, despite the chaos around us. He has a four month emergency fund, he has some $60K in investments towards future goals of either starting a business and/or downpayment for a house. Basically he has a remote idea of those goals, and a remote idea of what they could cost, but those are not itemized and he’s not tracking his progress toward them, because: 1) he feels comfortable and 2) these goals are far off.
After reflecting – long after we completed our run – the whole episode just reinforced to me the importance and need for having a detailed financial plan and continually checking-in on where you are. Even though it can be frustrating and discouraging at times, it helps to guide your decision-making in almost every situation, from should I go out for dinner tonight to when should I retire… from where should I put my next $1 to where should I put my next $15,000.
Our whole discussion if of course, quite illustrative of lifestyle inflation as well. The Guy was in part distressed because everyone else around him was making a big purchase or at least saving towards a big purchase, and he has no need for any big purchases at the moment! What a world we live in!
It also made me realize how excited I will be to reset my financial goals post-B-school – when I actually have a higher income and more resources, and when the Guy and I will likely be combining our finances to work towards these things together!
Clearly, his question galled me, just a bit. But when I asked him all of the basic saving questions, he had decent answers, and it was clear that he felt pretty safe in his financial condition, despite the chaos around us. He has a four month emergency fund, he has some $60K in investments towards future goals of either starting a business and/or downpayment for a house. Basically he has a remote idea of those goals, and a remote idea of what they could cost, but those are not itemized and he’s not tracking his progress toward them, because: 1) he feels comfortable and 2) these goals are far off.
After reflecting – long after we completed our run – the whole episode just reinforced to me the importance and need for having a detailed financial plan and continually checking-in on where you are. Even though it can be frustrating and discouraging at times, it helps to guide your decision-making in almost every situation, from should I go out for dinner tonight to when should I retire… from where should I put my next $1 to where should I put my next $15,000.
Our whole discussion if of course, quite illustrative of lifestyle inflation as well. The Guy was in part distressed because everyone else around him was making a big purchase or at least saving towards a big purchase, and he has no need for any big purchases at the moment! What a world we live in!
It also made me realize how excited I will be to reset my financial goals post-B-school – when I actually have a higher income and more resources, and when the Guy and I will likely be combining our finances to work towards these things together!
Wednesday, July 8, 2009
End of Employment Money Wrap-Up
As I wrap up at my current employer and get ready to head back to school, I’m having to learn a lot about the loose ends of my finances as well. I’m rolling over my current 401(k) into a Traditional IRA account – which will be taking a considerable hit, given that I’m giving up the unvested portion (which is currently $5,068) – and thus setting the foundation for all future company retirement plans that I might begin and rollover.
Also, I had 10 random shares of company stocks that were given to me as an award. (As of today, worth somewhere between $580 - $600). I’ve had to go through multiple calls with company HR representatives to have them tell me that I need to contact the designated Shareholder Services company to actually set up an account before I could do anything else. Conceivably, because I don’t have a broker I could hand them off to? Anyway, all of this made me realize just how easy it is to have money lost out there in the ether.
I’m very tempted to cash out the 10 shares completely, so that:
#1) I won’t have random unaccounted company shares hanging out there
#2) the stock is pretty high vs. where we’ve been tracking the past few years, so I’m not convinced keeping my money there is going to provide some hefty return, and
#3) so that I can partially fund the purchase of a new computer for business school without jacking my student loan bill any higher.
All very tempting rationales…. More to come on this!
Also, I had 10 random shares of company stocks that were given to me as an award. (As of today, worth somewhere between $580 - $600). I’ve had to go through multiple calls with company HR representatives to have them tell me that I need to contact the designated Shareholder Services company to actually set up an account before I could do anything else. Conceivably, because I don’t have a broker I could hand them off to? Anyway, all of this made me realize just how easy it is to have money lost out there in the ether.
I’m very tempted to cash out the 10 shares completely, so that:
#1) I won’t have random unaccounted company shares hanging out there
#2) the stock is pretty high vs. where we’ve been tracking the past few years, so I’m not convinced keeping my money there is going to provide some hefty return, and
#3) so that I can partially fund the purchase of a new computer for business school without jacking my student loan bill any higher.
All very tempting rationales…. More to come on this!
Thursday, July 2, 2009
Does it Ever End? More July Goals
When I think about the personal value I get out of this blog and the personal drive and energy it adds to my life, one of the most important things is public goal-setting. I realize they’ve taken up a larger share of the posts….. but so, be it. One of my best tactics of late is to get more aggressive about setting goals for different time horizons. So in addition to my main savings goal from yesterday, here are my new July Goals.
Daily Goals
Read a minimum of 5 articles in the WSJ (or equivalent) each day.
Weekly Goals (4 of these, 1 for each week)
Read and log notes about Portuguese wines.
Finish reading all of my library books and return them.
Re-read my novel and stories and write a planned writing schedule for August.
Pick up boxes and pack up all books; also make a total packing list.
Monthly Goals
Complete the rest of my 5K Training schedule and find a race in Palo Alto to run.
Complete all B-School prep required (mainly Accounting and Finance workbooks).
Daily Goals
Read a minimum of 5 articles in the WSJ (or equivalent) each day.
Weekly Goals (4 of these, 1 for each week)
Read and log notes about Portuguese wines.
Finish reading all of my library books and return them.
Re-read my novel and stories and write a planned writing schedule for August.
Pick up boxes and pack up all books; also make a total packing list.
Monthly Goals
Complete the rest of my 5K Training schedule and find a race in Palo Alto to run.
Complete all B-School prep required (mainly Accounting and Finance workbooks).
Wednesday, July 1, 2009
Reflecting back on June
NetWorth up to $43,971! +4% from last month, on the strength of my company stock price, and tiny bumps in my retirement fund. I guess I haven’t done so horribly this month – especially given the fact that I made TWO major purchases this month – the IPhone 3GS and a new Schwinn Hybrid from Costco. When I reflect back on my June goals, I feel like I was able to accomplish quite a fair amount, in every single category of my life except for my finances. What I didn’t do this month was to fully fund my ING Savings, so my liquid emergency fund has remained pretty stagnant at this point.
I finished planning the OutWest Roadtrip, Completed 3 weeks of training for a 5K, and brought a good deal more joy into my life… But I did NOT fully fund my ING Savings account (which is putting in my $450 a month contribution).
Not to get myself too down, my #1 July goal is to not only fully fund my ING account the usual $450, but to bump it up another $400 as well. Hopefully my impending month of unemployment will help catalyze me all the way there. The major cuts in spending are going to be coming from clothing (no major purchases), alcohol (I will not enter our premium wine store, nor will I allow the Guy in there… we are drinking what we have!), gas (just filled up my tank at the end of this month + carpooling) and entertainment (my home made fun this month will be packing up our stuff!)
I finished planning the OutWest Roadtrip, Completed 3 weeks of training for a 5K, and brought a good deal more joy into my life… But I did NOT fully fund my ING Savings account (which is putting in my $450 a month contribution).
Not to get myself too down, my #1 July goal is to not only fully fund my ING account the usual $450, but to bump it up another $400 as well. Hopefully my impending month of unemployment will help catalyze me all the way there. The major cuts in spending are going to be coming from clothing (no major purchases), alcohol (I will not enter our premium wine store, nor will I allow the Guy in there… we are drinking what we have!), gas (just filled up my tank at the end of this month + carpooling) and entertainment (my home made fun this month will be packing up our stuff!)
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