Posted by Canadian Dream on July 28, 2010
Occasionally I will end up reading a post by another blogger that total rings a bell with my own life. I recently had that experience when I read a post by JD over at Get Rich Slowly called Downshifting: The First Day of the Rest of My Life. I can complete sympathize with being overloaded in life and the utter freedom of finally having some time again. I can can really relate to the concept of being rich in time rather than just rich in money. Over the last month I finally feel like I’ve recharged my batteries for the first time in months.
So how did I recharge my batteries? Well that was easy while on a recent trip I made sure of one thing above all else. I would do absolutely nothing related to work for one full week. No day job work, no trustee job, no writing … absolutely nothing other than minor things like washing the car. It was like heaven for the first few days but by the end I knew my batteries were starting to get charged as I was getting creative bursts where I was itching to start writing again.
Now that I’m back at the house I’ve been digging into my ‘fun’ work with a vengeance during this last week of my vacation. I’m actually looking forward to writing again and managing to get some work done and some much needed planning on how to get to finish off several outstanding projects that I’ve been working on. It’s sort of refreshing to be able to sit down at a computer with a smile on my face and look forward to writing something like this post.
I think also my family can tell I’m back so to speak. I’m smiling more and much easier to be around and much less likely to get angry over silly things like spilling a drink at the table. I’ve also just enjoying the simple things like having time to read a book strictly for entertainment rather than a book review or research.
This is exactly why I wanted to ‘retire early’ and now I’m getting it now rather than waiting 13 years or so for it to happen. Time is not refundable and so I’ve taken to watching were mine is going a bit more carefully lately to ensure I’m enjoying life and still working towards my dreams as well.
So how are you charging up your batteries this summer? Vacation away from home? Resting around the house?
Posted by Dave on July 27, 2010
In the past couple of weeks, I have had a couple of discussions related to “things” my wife and I were looking into buying. In both cases, the question of the purchase came down to the question of function versus form of the thing we are looking at.
The first item we were looking into buying was a charcoal barbeque. We decided to purchase a simple Weber model that had a 22” grill that cost $120. It came with a 2-year warranty and reviews on it were highly positive from what I could see. Prior to purchasing it though, I noticed a smaller portable grill that cost $30 that I asked my wife if she would think about buying – turns out she was not a fan at all. I asked her why, and she stated that it would be ridiculous to have to be squatting down to cook on the grill and would just look silly. My question to her was basically whether the meat that we wanted to eat (cooked on a barbeque) would still end up cooked, which it obviously would – for $30 compared to $120.
We ended up buying the larger, more expensive model mainly because it would be inconvenient to cook for a larger group of people on the smaller, cheaper barbeque – which is probably when we would use it the most.
In the same vain, we are looking for a freezer to put the half of a cow we recently bought and will be ready by the end of the summer. We need about a 9 cubic foot freezer to accommodate the cow, as well as the pig that I want to buy at some future point. There have been several of these listed on kijiji at approximately $50 – $100 depending on the listing (tax free). A new model will end up costing $400 plus taxes. Initially, my wife (who seems like she is being picked on here, but as always is the one that I have these kind of discussions with) was against getting such an appliance, as a 5 or 10 year old freezer does not look as nice as a new one, and it would be going into our basement living area rather than a dusty corner somewhere. [Editor's Note: Another consideration is the amount of energy a new one would use vs the old one. Don't save cash up front to pay it out in a lifetime of energy costs.]
In this situation, I think we will end up buying used. A freezer is a very simple appliance, and a new one is not significantly more efficient than a used one – we could buy 4 used freezers for the same price as a new one. To make it look nicer, or more fun we’ll probably paint it with chalk-board paint, which would allow my wife to draw all over it (which is something she enjoys doing).
Those are two situations where the alternative would do exactly the same thing as a newer, more expensive model and cost significantly less. I think at least keeping an alternative in mind can allow for significant savings on purchases, rather than just going out and buying the shiny new thing. Obviously, neither one of these purchases are life or death in nature (both are what I would classify as luxuries) but do stand as an example of looking for something that carries out the same function that you’re looking to carry out.
Do you have any examples where you found a cheaper alternative? Did it work out, or do you wish you would have gotten the exact thing you initially wanted?
Posted by Robert on July 26, 2010
Although I’m a stockbroker, I don’t think everyone should invest in the stock market. There is no “one size fits all” solution to invest for the future. But I have noticed one thing in common among successful investors: they own what they know.
An entrepreneur owns her business. She works in her business, she understands her business and she has control over her business. If she wants a better return, she can change her strategy, hire different people or increase her offerings. She will have a reasonably good idea of the value of her business and she’ll be willing to sell only for a fair price. Otherwise, she won’t worry about the price people are willing to pay to buy her business, because she’ll be focused on earning a profit.
A stock market investor owns stocks. He knows how to read companies’ financial reports, he knows what common indicators to look for and he knows how to question management. He is comfortable owning a variety of businesses and he probably has a good idea of the value of each. He is unlikely to panic and sell his shares during a crash and unlikely to overpay during a bubble, because he understands each one.
A real estate investor owns real property. Whether she’s a real estate agent or a landlord or a developer, she is familiar with the local market for real estate. She understands what people value and what they don’t, she understands the difficulties of buying, selling and renting and she’s willing to borrow large amounts of money to make a profit in the real estate market. She’ll have clear ideas about the value of her properties, and she will only be willing to make a deal that seems reasonable to her.
A collector has knowledge about certain items. Whether it’s sports cards, coins, stamps, old cars, art or anything else, he understands the rarity and value of certain objects. He also knows who else is in the market and is able to buy and sell profitably.
It is possible to profit by buying, owning and selling a variety of things. People who have little or no knowledge are less likely to profit. People who have no knowledge at all should “invest” in safe vehicles such as GICs, savings accounts and savings bonds. This way, they are guaranteed a return with certainty and don’t risk losing money by making a mistake. Then, little by little, the saver can learn about and start investing in one area. As their knowledge and confidence grow, it makes sense to allocate more and more capital away from savings toward investment.
What do you know about? How does it affect your investing?
