tag:blogger.com,1999:blog-85884718035849533962024-03-04T22:12:04.439-08:00And Higher StillBChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comBlogger102125tag:blogger.com,1999:blog-8588471803584953396.post-35488751581515122252016-02-23T17:13:00.001-08:002016-02-23T17:21:29.412-08:00Republic Wireless: T+16 MonthsAfter two years of forgoing a cell phone entirely, I shacked up with <a href="http://www.republicwireless.com/" target="_blank">Republic Wireless</a> in November 2014. A year later, I've upgraded my phone and converted my family and several friends.<br />
<br />
Why the about-face?<br />
<br />
<b><span style="font-size: large;">$10 </span></b>for unlimited cellular calling and texting, no contract<br />
<b><span style="font-size: large;">1.5¢</span></b> per megabyte for 4G cellular data over the Sprint network<br />
<br />
Using Republic's advanced data management tools to keep most of my data going over wifi, my usage is generally around 330MB, yielding a bill of <b><span style="font-size: large;">$15 per month</span></b> (+$2 in taxes and fees).<br />
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Unfortunately, Republic's special firmware requires you to use one of their phones. Fortunately <a href="https://community.republicwireless.com/docs/DOC-2002" target="_blank">they're cool with used phones</a>, and I bought my Moto X 2013, later upgraded to a Moto X 2014, on Ebay at a substantial discount.<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijyf9AfrQrku4QvRZgStOd0T97HYywGfr3L9H6GfApP37UGH4EAI58TI09aoQ5sWWBTW3UIu4aHIh3QmpPatZt2bfGdYWCOzs-Npq6OaAZzn2Hhga6iy5q5ysrWQSp4ObHTQsLkUPkY1w/s1600/IMG_20160223_151228104_HDR.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEijyf9AfrQrku4QvRZgStOd0T97HYywGfr3L9H6GfApP37UGH4EAI58TI09aoQ5sWWBTW3UIu4aHIh3QmpPatZt2bfGdYWCOzs-Npq6OaAZzn2Hhga6iy5q5ysrWQSp4ObHTQsLkUPkY1w/s320/IMG_20160223_151228104_HDR.jpg" width="240" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">my venerable Moto X 2013; upgraded to the 2014 and this went to grandpa!</td></tr>
</tbody></table>
<br />
The Sprint network's coverage is <a href="https://republicwireless.com/tools/coverage-check/" target="_blank">great in the Bay Area</a>, but if you're worried it won't be so great in yours, Republic has a <a href="https://community.republicwireless.com/docs/DOC-1083" target="_blank">30-day money-back guarantee</a> on phones purchased from them. The phone makes calls and texts over wifi whenever it can, so it works great if your workplace also happens to be fifty feet underground.<br />
<hr />
<a href="http://www.andhigherstill.com/2013/11/my-objectivity-is-not-for-sale.html" target="_blank">I don't use affiliate links</a>, so I'm not telling you about Republic Wireless to make money—I'm telling you about Republic Wireless because Republic Wireless is awesome.<br />
<br />
It was very possible to spend over $100 per month just on cell phone bills in 2015. If you invested the money saved with Republic in <a href="http://www.andhigherstill.com/2013/10/index-investing-index-funds.html" target="_blank">low-cost mutual funds</a> instead, you'd be $1000 richer!<br />
<hr />
Other people talking about Republic:<br />
<rr><br />
• Mr Money Mustache - <a href="http://www.mrmoneymustache.com/2014/05/13/moto-x-vs-moto-g/" target="_blank">Republic Wireless becomes 50% More Frugal with the Moto G</a><br /> • Republic Wireless <a href="https://republicwireless.com/press/reviews/" target="_blank">review archive</a></rr><br />
<br />
If you're willing to pay a premium for a better phone and need worldwide coverage, check out <a href="http://www.mrmoneymustache.com/2015/09/20/google-fi-review/" target="_blank">Google Fi</a>.BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-67297943447877863442015-05-21T20:41:00.003-07:002016-02-23T17:54:33.889-08:00Stretch Your Emergency Fund with PuddlePersonal finance isn't just about building up net worth—it's also about making money available when you need it. Just like a business, you have to worry about your balance sheet <i>and</i> your cashflow statement. Having a lot of money locked up in investments isn't helpful when you need cash to cover expenses <u>today</u>.<br />
<br />
This is the logic behind the <b><a href="http://www.andhigherstill.com/2013/05/emergency-funds.html" target="_blank">emergency fund</a></b>—hold a couple months' expenses in fairly liquid form, like a savings account or US Treasury I Bonds, to smooth over unexpected changes in expenses and income. Establishing an emergency fund should be your first act before considering any other kind of investing.<br />
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How much money should you keep in an accessible place? To make that decision, you have to balance two opposing forces: the risk and cost of having too little, and the cost of not investing in something with a better return.<br />
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<ol>
<li>If your emergency fund falls short, borrowing money even for a short time can be very expensive. Just watch John Oliver's bit on predatory lending to see how bad payday loan interest rates can be:<br />
<br />
<iframe allowfullscreen="" frameborder="0" height="338" src="https://www.youtube.com/embed/PDylgzybWAw" width="600"></iframe><br />
<br />
As discussed in this video and a LOT of other media (<a href="http://www.slate.com/articles/life/family/2014/12/linda_tirado_on_the_realities_of_living_in_bootstrap_america_daily_annoyances.html" target="_blank"><b>1</b></a>,<b><a href="http://www.theatlantic.com/business/archive/2014/01/it-is-expensive-to-be-poor/282979/" target="_blank">2</a></b>,<a href="http://www.nytimes.com/2015/01/19/opinion/charles-blow-how-expensive-it-is-to-be-poor.html" target="_blank"><b>3</b></a>), payday loans frequently drag the working poor into a vicious cycle of high-interest borrowing. To combat this, ideally your emergency fund would be as large as possible.<br />
<br />
</li>
<li>The liquid assets in an emergency fund have generally poor returns compared to other investments. You lose out on the gains you could have made elsewhere, and this is the opportunity cost you pay for that liquidity. To combat this, ideally your emergency fund would be as small as possible.</li>
</ol>
So there is the tradeoff: a small emergency fund is inexpensive to maintain but may often fall short; a large emergency fund is expensive to maintain, and no emergency fund is big enough to cover ALL possible emergencies.<br />
<br />
Emergencies are, by definition, rare events. So why don't we get a couple people together to pool their resources? Congratulations, you've just invented...<br />
<hr />
<h3>
Accumulated Savings and Credit Associations (ASCAs)</h3>
<br />
In developing countries, villagers often band together to form <b><a href="http://investeddevelopment.com/blog/2012/04/the-benefits-of-informal-savings-groups/" target="_blank">accumulated savings and credit associations (ASCAs)</a></b>. A typical arrangement might look like this:<br />
<ul>
<li>Each member contributes as much as they want to the pool</li>
<li>Members can take loans from the pool</li>
<li>A member's withdrawal limit may be set by the amount and duration of their contributions</li>
<li>Loan duration and interest rates are set democratically by the group</li>
</ul>
<div>
To prevent problems, members of an ASCA should trust and respect eachother. To make an ASCA a better option than a loan shark or payday loan, interest rates are low or zero. An ASCA is a little bit different from an insurance contract, which typically allow withdrawals only for very rare events and doesn't require you to pay back the money you withdraw.</div>
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It's very important to note that while a well-run ASCA can help its members deal with temporary liquidity issues, this arrangement will NOT fix a broken balance sheet or long-term cashflow issues. All members should be 'good for the money' in the decided-upon loan duration!<br />
<br />
If you have a small group of friends and family, all you need to set up your own ASCA is a trustworthy treasurer, a spreadsheet, and the ability to quickly and easily exchange money. And time! Time to debate with them and agree upon a set of rules. Will the interest rate be zero? Should the loan duration be two weeks or six months? Can anyone withdraw as much as they want, or is the withdrawal limit dependent on how much they've contributed? What do you do if a member can't or won't pay back a loan?<br />
<br />
My ideal ASCA agreement looks something like this:<br />
<ol>
<li>No interest on loans.</li>
<li>A loan duration of two months. Liquidity issues should be fixable by next paycheck.</li>
<li>Non-paying members are ejected and socially ostracized. Family and close friends only!</li>
<li>Withdrawal limits according to a formula like this:</li>
<ul>
<li>the time value of the contributions, times some multiplier</li>
<li>a withdrawal limit cap proportional to contributions times some multiplier</li>
</ul>
<li>New members are sponsored by two existing members, who each agree to take on 1/3 of the new member's liability in the event of default; the group absorbs the other 1/3</li>
</ol>
<div>
The new member vetting clause can help assuage trust-related fears and allow an ASCA agreement to function between people who don't all know eachother.<br />
<br />
Sounds complicated, but it's easy to implement!</div>
<br />
<div class="gmail_chip gmail_drive_chip" style="background-color: whitesmoke; border: 1px solid rgb(221, 221, 221); color: #222222; cursor: default; font-family: arial; font-size: 13px; font-weight: bold; height: 18px; line-height: 1; max-height: 18px; padding: 5px; width: 396px;">
<a aria-label="|B$C| ASCA Agreement" href="https://docs.google.com/spreadsheets/d/1j4E67pR2c9S-JgQqDGhrY0k8mwsMLlImuh5vHt6U0Vc/edit?usp=drive_web" style="border: none; color: #1155cc; cursor: pointer; display: inline-block; max-width: 366px; overflow: hidden; padding: 1px 0px; text-decoration: none; text-overflow: ellipsis; white-space: nowrap;" target="_blank"><img src="https://ssl.gstatic.com/docs/doclist/images/icon_11_spreadsheet_list.png" style="border: none; padding: 0px; vertical-align: bottom;" /> <span dir="ltr" style="vertical-align: bottom;">|B$C| ASCA Agreement</span></a></div>
<div>
<span style="background-color: white; color: #222222; font-family: "arial" , sans-serif; font-size: x-small;"></span><br />
<hr />
<h3>
The DIY ASCA</h3>
</div>
<div>
<br />
Creating your own ASCA can be a little or a lot of work, depending on your requirements.</div>
<div>
<br /></div>
<div>
For small-scale efforts, you might trust one person to be the 'treasurer'. The treasurer holds the group's contributions, disburses loans, and updates the group on repayments. Simple! On the downside, the treasurer has a lot of responsibilities and transferring funds for loans might be slow.</div>
<div>
<br /></div>
<div>
For larger-scale efforts, you might consider opening a shared bank account for the group and issuing members a debit card to make withdrawals.</div>
<div>
<br />
<b> → PayPal</b></div>
<div>
<br />
One potential way to do this is to <b>open a no-cost PayPal Business account and give your group members access as 'employees'</b>. To make a withdrawal, group members can log in, transfer money to their own PayPal accounts, and then cash it out into a bank account or use a no-cost PayPal debit card (they'll also need to establish a no-cost PayPal Business account, but this is not a big deal) to draw on the funds. It may be possible to issue the group members their own debit cards to draw on this money directly without first transferring it to their own accounts, but I haven't looked into this.</div>
<br />
Downsides: you have to trust every group member implicitly, as there is no treasurer overseeing every transfer (maybe PayPal has a setting for requiringan administrative sign-off on transfers, but I haven't yet found it). You have to deal with PayPal, which has a long history of arbitrarily freezing accounts and <b><a href="https://www.google.com/#newwindow=1&q=paypal+screwed+me+over" target="_blank">generally screwing people over</a></b>.<br />
<br />
<b> → Credit Unions</b><br />
<br />
Credit unions are like banks, except they're staffed by reasonable people who don't necessarily want to screw you. You may be able to open a bank account for your merry band of ASCA participants and issue debit cards to allow them to draw on the funds.<br />
<br />
I called my lifelong bank, <b><a href="http://www.pennstatefederal.com/" target="_blank">Penn State Federal Credit Union</a></b>, and they were very helpful in helping me how to figure out what I would need to do. In short: I'd need to register the ASCA as an 'unincorporated association' with the state to receive a DBA (Doing Business As) name, then register this DBA with the IRS to obtain a Tax Identification Number (TIN). The IRS TIN process is entirely online and takes all of five seconds, but I suspect the state registration is going to require filing some sort of organizational charter, a list of officers, etc. With a basic business credit account, the money won't earn any interest and there's no need to also file for <b><a href="http://en.wikipedia.org/wiki/501(c)_organization" target="_blank">IRS 501(c) nonprofit status</a></b>. If you're up for a challenge and you <i>do</i> want that tax-free credit union interest, perhaps look into organizing under <b><a href="http://en.wikipedia.org/wiki/Benefit_society" target="_blank">501(c)(8) as a "Fraternal Beneficiary Society or Association"</a></b>. I'll look into this when I have more time (which, at the rate I'm adding projects, may be when I'm retired...)<br />
<br />
Downsides: most credit unions have membership requirements. At Penn State Federal it appears that all members issued a debit card would need to be members of the credit union, and would therefore <i>need to meet those requirements</i>. Some credit unions may be more open than others, so your mileage may vary.<br />
<br />
If you have any experience in this or ideas for other ways of implementing a DIY ASCA, I'd love to hear about it!<br />
<br />
My research notes on this topic are available on <b><a href="http://wiki.andhigherstill.com/w/Social_Saving_and_Borrowing" target="_blank">the Social Saving and Borrowing page on the AHS Wiki</a></b>.<br />
<div>
<span style="background-color: white; color: #222222; font-family: "arial" , sans-serif; font-size: x-small;"></span><br />
<hr />
<h3>
Puddle, the ASCA-in-a-Box</h3>
</div>
<div>
<br />
I learned about the ASCA concept through <b><a href="http://www.puddle.com/" target="_blank">Puddle</a></b>, financial technology startup that's trying to bring the ASCA concept to the US. By linking to your Facebook account and perma-banning people by social security number, Puddle hopes to filter out the troublemakers and make public ASCAs a thing. The <b><a href="https://www.puddle.com/team" target="_blank">Puddle team</a></b> includes the cofounders of <b><a href="http://kiva.org/">Kiva.org</a>,</b> and they have received money from <b><a href="https://www.gv.com/portfolio/" target="_blank">Google Ventures</a>.</b><br />
<br />
(The individual ASCAs in Puddle are also called puddles, but I'm gonna call them pools because I like that better.)</div>
<div>
<br /></div>
<div>
You can <b><a href="https://www.puddle.com/groups" target="_blank">take your chances in the public pools</a></b> or start your own public or invite-only pool. I haven't really done anything in a public pool, so I can't comment on them. You can also 'trust' other users to share your contributions, but how your share responsibilities in case of a 'trusted' member's default is not entirely clear to me. I am a pretty smart guy (finishing a PhD in chemical engineering in a year or so), so the fact that I don't entirely understand the system is a little unsettling. Puddle could really benefit from a series of simple, clear, case-study-based articles to explain the mechanics. With input from the developers, I'd be happy to write these articles!</div>
<div>
<br /></div>
<div>
By default, pools allow loans of three or six months with <b><a href="https://www.puddle.com/fees" target="_blank">a monthly fee proportional to the amount you borrow</a>:</b></div>
<div>
<br />
<table style="border: solid 1px; margin: 0px auto;"><tbody>
<tr><th>$ borrowed </th><th>APR</th></tr>
<tr><td>$70</td><td>17.1 %</td></tr>
<tr><td>$200</td><td>12.0 %</td></tr>
<tr><td>$600</td><td>8.3 %</td></tr>
<tr><td>$1000</td><td>8.0 %</td></tr>
<tr><td>$9800</td><td>7.6 %</td></tr>
</tbody></table>
<br /></div>
<div>
Keep in mind that those are <u>annual percentage rates</u>, while the max default loan duration is <u>6 months</u>. These rates are better than most people will get on a credit card, but still rather high. Late payments are <u>displayed to everyone in the pool</u> and assessed an additional fee. <b><a href="https://www.puddle.com/faq" target="_blank">The FAQ</a></b> explains that interest payments (and maybe fees?) are fed back into the pool to help cover money lost due to defaults, but the exact way this works (and Puddle's cut, if any) is unclear.</div>
<div>
<br />
Concerns aside, I crashed forward and created my own hidden invite-only pool:<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpWPVYYsgPS5ts-1g5stHHKyEeDWHVr-u25ubuK6IELv8cFI4yL3HxlAUz-p5ISAHM4QtghT04i1WsZKIZ1r3rzx6ppaHbdg1bl-hKBHZP0Hs8OTfRsH4MeCgNMAKepv20gMoqBm2MT18/s1600/masters-of-coin.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpWPVYYsgPS5ts-1g5stHHKyEeDWHVr-u25ubuK6IELv8cFI4yL3HxlAUz-p5ISAHM4QtghT04i1WsZKIZ1r3rzx6ppaHbdg1bl-hKBHZP0Hs8OTfRsH4MeCgNMAKepv20gMoqBm2MT18/s1600/masters-of-coin.png" /></a></div>
<br />
<div>
By default, pool contributors can borrow 5x the amount the they contribute, but the new pool creation dialog says:</div>
<blockquote>
<i>Leverage is set to be 5:1. Please contact us if you want to customize this setting after your group is created.</i></blockquote>
'Customize' is my middle name, so I <b><a href="mailto:support@puddle.com" target="_blank">contacted support</a></b> and asked to leave the maximum leverage at 5x and change the interest rate to 0% and the maximum loan duration to 2 months. They obliged!<br />
<br />
Our pool is coming up on a year old, and we've had three people borrow so far. All repayments have proceeded uneventfully and everyone involved has been pretty happy with the system. Barring discovery of a better alternative, we're planning to increase the number of members and the amount of money in our pool.</div>
<div>
<br /></div>
Puddle recently redesigned their interface and fees to make it simpler for financially unsophisticated users to get started, but I think this limits the appeal to power users like myself. What is Puddle's long-term plan? Could Puddle disappear tomorrow and take all of your money? Not likely with industry veterans and Google Ventures backing, but the lack of powerful management tools has motivated me to explore the DIY alternatives described in the previous section. The DIY options have serious drawbacks, so maybe actions speak louder than words: for now, we're sticking with Puddle!<br />
<br />
If someone from the Puddle team would like to comment on any of this, I'd love their perspective!<br />
<br />
<b>Puddle in the News</b><br />
<br />
Forbes - <a href="http://www.forbes.com/sites/ashoka/2013/08/05/creating-a-line-of-credit-with-friends-the-new-trend-in-finance/" target="_blank">Creating A Line Of Credit With Friends: The New Trend In Finance</a><br />
Collectively.org - <a href="http://collectively.org/en/article/this-diy-lending-company-trying-to-disrupt-the-broken-credit-industry/" target="_blank">This DIY Lending Company Trying To Disrupt The Broken Credit Industry</a><br />
<div>
Street Review - <a href="http://streetreview.com/puddle-big-splash-financial-mudhole/" target="_blank">Puddle: Big Splash or Financial Mudhole?</a></div>
<br />
<hr />
<h3>
ASCAs Have Promise</h3>
<br />
<span style="font-family: inherit; line-height: 1.38; white-space: pre-wrap;">Much has been written about how, when you're poor, you're always one step away from financial disaster:</span><br />
<div dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">
<ul>
<li><span style="color: black; font-family: inherit; line-height: 1.38; vertical-align: baseline; white-space: pre-wrap;">Pew Research Center: </span><a href="http://www.people-press.org/2015/01/08/the-politics-of-financial-insecurity-a-democratic-tilt-undercut-by-low-participation/" style="font-family: inherit; line-height: 1.38; text-decoration: none;"><span style="color: #1155cc; font-weight: bold; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">The Politics of Financial Insecurity</span></a></li>
<li><span style="color: black; font-family: inherit; line-height: 1.38; vertical-align: baseline; white-space: pre-wrap;">Slate: </span><a href="http://www.slate.com/articles/life/family/2014/12/linda_tirado_on_the_realities_of_living_in_bootstrap_america_daily_annoyances.html" style="font-family: inherit; line-height: 1.38; text-decoration: none;"><span style="color: #1155cc; font-weight: bold; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Why Poor People Stay Poor</span></a><span style="color: black; font-family: inherit; font-weight: bold; line-height: 1.38; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="color: black; font-family: inherit; line-height: 1.38; vertical-align: baseline; white-space: pre-wrap;">(excerpted from </span><a href="http://www.amazon.com/dp/0399171983/" style="font-family: inherit; line-height: 1.38; text-decoration: none;"><span style="color: #1155cc; font-style: italic; font-weight: bold; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Hand to Mouth</span></a><span style="color: black; font-family: inherit; font-style: italic; line-height: 1.38; vertical-align: baseline; white-space: pre-wrap;">)</span></li>
<li><span style="color: black; font-family: inherit; line-height: 1.38; vertical-align: baseline; white-space: pre-wrap;">The Atlantic: </span><a href="http://www.theatlantic.com/business/archive/2014/01/it-is-expensive-to-be-poor/282979/" style="font-family: inherit; line-height: 1.38; text-decoration: none;"><span style="color: #1155cc; font-weight: bold; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">It Is Expensive to Be Poor</span></a></li>
<li><span style="font-family: inherit; vertical-align: baseline; white-space: pre-wrap;">New York Times: </span><a href="http://www.nytimes.com/2015/01/19/opinion/charles-blow-how-expensive-it-is-to-be-poor.html" style="font-family: inherit; text-decoration: none;"><span style="color: #1155cc; font-weight: bold; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">How Expensive It Is to Be Poor</span></a></li>
</ul>
</div>
With the right implementation, ASCAs could help people in the US as much as they've helped people in developing countries. Will Puddle be the implementation that succeeds? We'll have to wait and see!BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-25495391176957519912015-05-03T16:35:00.001-07:002016-06-01T18:11:49.470-07:00Earn 5.12% APY on $5000 in a Savings AccountYesterday, I got together with five fellow Mr. Money Mustache fans at Lake Merritt in Oakland to talk about money and life. This was the latest Bay Area Mighty Mustachian Meetup (BAMMM) event, which is to say I sent out an email on the <b><a href="https://groups.google.com/forum/#!forum/bay-area-mustachians" target="_blank">Google Group list</a></b>, posted in the <b><a href="http://forum.mrmoneymustache.com/meetups-and-social-events/sfbay-area/" target="_blank">MMM forum</a></b>, and created an event in a <b><a href="https://plus.google.com/communities/109606181421765828312" target="_blank">Google+ Community</a></b> and some people showed up. If you'd like to hear about (or better yet <u>plan</u>) future events, tap into one of those channels or (NEW) follow me on Twitter at <a href="https://twitter.com/BC_ChemE" target="_blank"><b>@BC_ChemE</b></a> and watch for stuff tagged with <b><a href="https://twitter.com/hashtag/BayAreaMMM" target="_blank">#BayAreaMMM</a></b>.<br />
<br />
<hr />
<blockquote>
<div style="background-color: #ffe599; border-radius: 5px; border: 4px dashed black; text-align: center;">
<b><span style="font-size: large;">⚠</span> IMPORTANT </b><b><span style="font-size: large;">⚠</span> </b><br />
<b><a href="http://www.andhigherstill.com/2013/11/my-objectivity-is-not-for-sale.html" target="_blank">I don't do affiliate links</a></b>, so I'm not linking this to make a buck.</div>
</blockquote>
<hr />
<h3>
The 5.12% Savings Account</h3>
<br />
<blockquote>
<div style="background-color: #ffe599; border-radius: 5px; border: 4px dashed black; text-align: center;">
<b><span style="font-size: large;">⚠</span> WELL THAT SUCKS </b><b><span style="font-size: large;">⚠</span> </b><br />
The week after I posted this, the Mango Money <b><a href="https://my.mangomoney.com/enrollment" target="_blank">sign-up page</a></b> was deactivated!<br />
The week after that, Union Plus <b><a href="https://secure.myunionprepaid.com/enrollment" target="_blank">sign-up page</a></b> was also removed.<br />
In August, the Mango Money signup page was back, but the terms have changed:<br />
the savings account interest rate is 6% <b>only with a $500+/month direct deposit.</b><br />
Otherwise, the interest rate is only 2%.</div>
</blockquote>
<br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1kg_V48_dpS6rP8dX1w-NHI6BeHcPsVzxpdbZH4kiPF4-TCdx6JN9Nijfck3yob3pafK0752e6ndzuPy9UXI_HGBOV6xw2c255L76cCq63cO8__eHQlaPe3fYVeWi4lHcR2Eja8nZj3M/s1600/mango-money.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1kg_V48_dpS6rP8dX1w-NHI6BeHcPsVzxpdbZH4kiPF4-TCdx6JN9Nijfck3yob3pafK0752e6ndzuPy9UXI_HGBOV6xw2c255L76cCq63cO8__eHQlaPe3fYVeWi4lHcR2Eja8nZj3M/s1600/mango-money.png" /></a><br />
One thing we discussed was the pain of holding cash in "high-yield" savings accounts that return, at best, 1% now. I used the opportunity to pitch <b><a href="http://www.andhigherstill.com/2013/05/emergency-funds.html" target="_blank">US Treasury Series I Bonds</a></b>, which I've always liked for emergency funds because they at least keep pace with inflation. Another attendee recently became financially independent (dunno if he wants to be publicly outed and not sure if he has a site) and had a more liquid solution with a better rate: a savings account associated with a prepaid debit card company called <b><a href="https://www.mangomoney.com/" target="_blank">Mango Money</a></b>.<br />
<br />
The vital details, culled from the <span id="goog_1922960694"></span><span id="goog_1922960695"></span><b><a href="http://wiki.andhigherstill.com/w/High-Yield_Savings_Accounts" target="_blank">AHS Wiki page</a></b> that serves as my open notebook for these projects:<br />
<br />
<a name='more'></a><ul>
<li>The savings account is FDIC insured and earns 6% on the first $5000</li>
<li>A $25+ monthly direct deposit is required to earn this rate</li>
<li>To qualify, set up free automatic transfers to Mango Money from your primary bank</li>
<li>To contribute to the savings account, you must load it through the prepaid debit card</li>
<li>The prepaid debit card has a $3 monthly fee, but no minimums</li>
</ul>
<div>
<br />
Sign up for the account, load the card from your current bank account, transfer that money to the card, set up automatic transfers from your existing bank account, and stop in occasionally to siphon off the interest (savings account balances over $5000 earn 0.1%).</div>
<br />
What's the total payoff if you store emergency funds in this way?<br />
<br />
<div style="text-align: center;">
<b>6% APY → 5.84% APR</b><br />
<b>($5000 * 5.84%) - (12 * $3 monthly fee) = $256, an annual return of 5.12%</b></div>
<div style="text-align: center;">
<br /></div>
That's a 1990's interest rate!<br />
<br />
If you have more or less than $5000 in the account, obviously the fees erode the return:<br />
<br />
<div style="text-align: center;">
<iframe frameborder="0" height="371" scrolling="no" seamless="" src="https://docs.google.com/spreadsheets/d/16sPHcXLA9Oi1SvB8DajXecUDpWnEzhb2X0_q2kOWjgI/pubchart?oid=1974232468&format=interactive" width="600"></iframe><br /></div>
<div style="text-align: center;">
<i><a href="https://docs.google.com/spreadsheets/d/16sPHcXLA9Oi1SvB8DajXecUDpWnEzhb2X0_q2kOWjgI/edit#gid=0" target="_blank"><span style="font-size: x-small;">Here's the data used to build this graph</span></a></i></div>
<br />
<hr />
<h3>
The 4.50% Savings Account</h3>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLre5PvLcayiIR4lo6JrkQnZDUjkQ0XXLK0BBcNzI-L1JlBVH0c4VPgPRZtTPNKZYPErlQYX0drqg_anz859XCvNnu_ppD1_3g29XqM0u5fsD528f0fVpxRZEUnYhoq4vXuuXEw1TBRN4/s1600/union-plus.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLre5PvLcayiIR4lo6JrkQnZDUjkQ0XXLK0BBcNzI-L1JlBVH0c4VPgPRZtTPNKZYPErlQYX0drqg_anz859XCvNnu_ppD1_3g29XqM0u5fsD528f0fVpxRZEUnYhoq4vXuuXEw1TBRN4/s1600/union-plus.png" /></a><br />
<br />
If $5000 is insufficient and you'd like to stash another $5000 at a decent rate, the same company offers a very similar deal with slightly different terms at <b><a href="https://www.myunionprepaid.com/" target="_blank">Union Plus Prepaid Card</a></b>. Pretty much everything is the same, but the advertised interest rate is 5.1% and the fee is $2/month.<br />
<br />
How does the math work out?<br />
<div style="text-align: center;">
<b><br class="Apple-interchange-newline" />5.1% APY = 4.98% APR</b><br />
<b>($5000 * 4.98%) - (12 * $2 monthly fee) = $225, an annual return of 4.50%</b></div>
<div style="text-align: center;">
<br /></div>
<div style="text-align: left;">
Not quite as good, but I challenge you to do better on an FDIC-insured savings account!</div>
<div style="text-align: left;">
<br /></div>
<div style="text-align: center;">
<br /></div>
<div style="text-align: center;">
<iframe frameborder="0" height="371" scrolling="no" seamless="" src="https://docs.google.com/spreadsheets/d/16sPHcXLA9Oi1SvB8DajXecUDpWnEzhb2X0_q2kOWjgI/pubchart?oid=506035922&format=interactive" width="600"></iframe><br /></div>
<div style="text-align: center;">
<i><span style="font-size: x-small;"><a href="https://docs.google.com/spreadsheets/d/16sPHcXLA9Oi1SvB8DajXecUDpWnEzhb2X0_q2kOWjgI/edit#gid=273492242" target="_blank">Here's the data used to build this graph</a></span></i></div>
<br />
If you have $10000 across both accounts, that's an overall APY of <b>4.81%</b>.<br />
<br />
<hr />
<h3>
References</h3>
<div>
<ol>
<li><a href="http://mangomoney.com/" target="_blank"><b>Mango Money</b></a> company site</li>
<li><a href="https://www.myunionprepaid.com/" target="_blank"><b>Union Plus</b></a> company site</li>
<li><b><a href="http://www.bogleheads.org/forum/viewtopic.php?f=2&t=94135" target="_blank">Bogleheads Forum</a></b> post on Mango Money (2012-04!)</li>
<li><b><a href="http://thefinancebuff.com/mango-prepaid-card-6-apy-savings-account-a-hidden-gem.html" target="_blank">The Finance Buff</a></b> review of Mango Money; mentions Union Plus (2014-05)</li>
<li><b><a href="http://thefinancebuff.com/union-plus-prepaid-card-5-savings-account-with-low-2-monthly-fee.html" target="_blank">The Finance Buff</a></b> review of Union Plus (2012-12!)</li>
</ol>
</div>
<div>
<hr />
<h3>
Updates</h3>
</div>
<div>
<b>2015-05-03</b></div>
<div>
<i>I signed up for Mango Money this morning, but I'll have to wait to receive and activate the card and deposit-verify my account before I can personally attest that this works.</i></div>
<div>
<br /></div>
<div>
<b>2015-05-06</b></div>
<div>
<i>It's been three days since I signed up. I haven't received the card yet, but the transfer was successful from my bank account to the card and then from the card to the savings account. I've established regular automatic transfers from my Ally Bank account, so we'll see if that successfully qualifies me for the 6% interest rate. If it doesn't, I've printed out the Direct Deposit form and I'll submit it to my employer and see what happens.</i></div>
<div>
<br /></div>
<div>
<b>2015-06-01</b></div>
<div>
<i>Just got my first 6% interest payment! It was a partial-month payment because I funded the account on the 7th, but it's the correct size. Deal verified! I'll update if anything changes.</i></div>
<br />
<div>
<b>2015-08-10</b></div>
<div>
<i>The Mango Money terms have changed! The interest rate is now only 6% if you direct deposit at least $500 per month; otherwise it's 2%. I have also discovered other services that offer a similar prepaid-card-plus-savings scheme: <b><a href="https://www.netspend.com/" target="_blank">NetSpend</a></b>, <b><a href="https://www.wunetspendprepaid.com/" target="_blank">NetSpend Western Union</a></b>, and <b><a href="https://www.brinksprepaidmastercard.com/" target="_blank">Brinks Money</a></b>. All three appear to be run by the same company, and offer a savings account interest rate of 5.0% APY on deposits up to $5k with no monthly fee. Thanks Danny @ <b><a href="http://dannymorebucks.com/">DannyMoreBucks.com</a></b> for the heads-up!</i><br />
<br />
<div>
<b>2016-06-01</b></div>
<i>Annnnd the easy money (mostly) comes to an end. Today </i><i><i><b><a href="https://www.netspend.com/" target="_blank">NetSpend</a></b>, <b><a href="https://www.wunetspendprepaid.com/" target="_blank">NetSpend Western Union</a></b>, and <b><a href="https://www.brinksprepaidmastercard.com/" target="_blank">Brinks Money</a></b></i> reduced the amount you can earn 5% on from $5k per account to $1k per account. It was fun while it lasted! Still, it's not a horrible way to earn 5% interest on a $4k emergency fund.</i></div>
<div>
<br class="Apple-interchange-newline" />
<hr />
<b>ERRATA: </b><i>On the first set of calculations, I misquoted the net annual return of the Mango Money savings account as 5.28%. This is because I incorrectly used the APY instead of the APR in the interest calculation. The APY is what you'll earn over the year due to compound interest, but compound interest does not apply in this situation because <u>the account balance is kept constant</u>. Thanks Jason for letting me know!</i></div>
<div>
<hr />
<br /></div>
BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-79301345903028973982015-04-07T16:44:00.000-07:002015-04-08T15:03:54.184-07:00Guest Lecture: Personal Finance 101This morning I had the opportunity to give a forty-minute presentation about personal finance basics to a Penn State freshman seminar class. One of my (many) long-term goals is to fix the lack of personal finance education at the high school and college level, so I jumped at the chance and dragged myself out of bed at 3AM to prepare a presentation.<br />
<div style="display: none;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpIWVWBJrFfFs6yGoDH1H2Z46_VRjw8Em-iKlnmRGPFXDqz_rslKb4zQewcndyTHMG-ebLjxPvDBgab6BROBPMbQWpHAdatwkj0H4eDYhDkHOEaSfyyKF4ZnL8SnbHL-bI9KHbzvT84Bk/s1600/pf101-screenshot.png" imageanchor="1"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpIWVWBJrFfFs6yGoDH1H2Z46_VRjw8Em-iKlnmRGPFXDqz_rslKb4zQewcndyTHMG-ebLjxPvDBgab6BROBPMbQWpHAdatwkj0H4eDYhDkHOEaSfyyKF4ZnL8SnbHL-bI9KHbzvT84Bk/s320/pf101-screenshot.png" /></a></div>
<br />
I gave and recorded the presentation using Google Hangouts On Air:<br />
<br />
<div style="text-align: center;">
<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/lz1_kvZCqOw" width="560"></iframe><br /></div>
<br />
The presentation is <b><a href="https://docs.google.com/presentation/d/1GztvmbL2ZyA6rpNm85mxaW7IhJt3U-uqRB93897qg58/edit#slide=id.p" target="_blank">here</a></b> and the spreadsheets referenced in the video are available <b><a href="https://docs.google.com/spreadsheets/d/1nyK1WVruH3N0_f7BSna5WEX1Y5W6mptc-DdKSZyZg6M/edit#gid=0" target="_blank">here</a></b>.<br />
<br />
Unfortunately the audio on the other end wasn't working, so I was not able to do the question-and-answer session that I had planned. In lieu of that, I'll follow up with the students using a Google Form to collect their questions and I'll post the answers here.<br />
<br />
I have been subscribing to a lot more YouTube content lately, and I like the concept of preparing a series of short personal finance videos to add at the top of my posts here. These videos could give the tl;dr version for people who prefer the sound of my voice to my writing style (<i>what a choice!</i>).<br />
<br />
My public speaking needs work, but to be fair this <i>was</i> 6AM my time...BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-24529250842076546232015-04-04T00:10:00.005-07:002015-04-04T00:10:55.117-07:00Save Your IRS Tax TranscriptsHave your taxes from previous years? Archive them! Collect all of your forms for each year, digitize them, and make sure they're backed up to the cloud—Google Drive, Dropbox, whatever. The IRS can audit<b> three to six years into the past</b> and you can file a corrected return up to three years back, so make it a habit to keep this information organized.<br />
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhan582r0uBWSq6rHZ4Uvjz_XEupHPXR-rQdug7hN69sFHedsKe34fEAJZaF74nOEBBRn5HQ0j0H2u5ELefiX2s1dHMqk4xcWbuECvOUv3WK3uXLDEkZIqGN3BFnn-xpeD_JlGtFBh9TbU/s1600/Pieter_Brueghel_the_Younger,_'Paying_the_Tax_(The_Tax_Collector)'_oil_on_panel%2C_1620-1640._USC_Fisher_Museum_of_Art.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhan582r0uBWSq6rHZ4Uvjz_XEupHPXR-rQdug7hN69sFHedsKe34fEAJZaF74nOEBBRn5HQ0j0H2u5ELefiX2s1dHMqk4xcWbuECvOUv3WK3uXLDEkZIqGN3BFnn-xpeD_JlGtFBh9TbU/s1600/Pieter_Brueghel_the_Younger,_'Paying_the_Tax_(The_Tax_Collector)'_oil_on_panel%2C_1620-1640._USC_Fisher_Museum_of_Art.jpg" height="415" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Pieter Brueghel the Younger's <i>The Tax Collector's Office</i>, 1640. I bet the IRS looks like this too.</td></tr>
</tbody></table>
If you're missing a year, or if you'd like to see what information the IRS has on your earnings for this or previous years, you can download tax account, income, and tax return transcripts online. Just head over to the <a href="http://www.irs.gov/Individuals/Get-Transcript" target="_blank"><b>IRS transcript website</b></a> and make an account! Transcripts are free and can be downloaded immediately. When you're doing your taxes for this year, this is an easy way to verify that you have all of the W-2s and 1099s that the IRS does.BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-91954281654174215642015-03-22T00:42:00.000-07:002015-03-22T00:42:52.475-07:00Save Money on Electricity with Alternative Pricing Plans<h3>
Knowledge is Power</h3>
<br />If you know how electricity prices vary over time, you may be able to use this to save money.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhvLdcCDco6HE23R7Hd2bzq_Ys4vtH24pvEVJS2BoXiWIhDvFM0s2ooSpMaGE6-dBiNOU-PVhtJlESb48Tw-Fw3MDjG57XF2z-cwCuatpc2Mmsf6UB4t6qLc0eQ3EYP4RcPma76xTuMpd4/s1600/Elster_Type_R15_electricity_meter.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhvLdcCDco6HE23R7Hd2bzq_Ys4vtH24pvEVJS2BoXiWIhDvFM0s2ooSpMaGE6-dBiNOU-PVhtJlESb48Tw-Fw3MDjG57XF2z-cwCuatpc2Mmsf6UB4t6qLc0eQ3EYP4RcPma76xTuMpd4/s1600/Elster_Type_R15_electricity_meter.jpeg" height="400" width="300" /></a></div>
<hr />
<h3>
The Theory</h3>
<br />
The electrical utility system is designed with a certain base output power that is sufficient to meet the demand for electricity almost all of the time. On hot and humid August afternoons when everyone is blasting the AC on high, electricity demand may spike above what the base capacity can supply. The utility company then has a couple options:<br />
<br />
0) Do nothing. The grid line voltage will drop, a state called a <a href="https://en.wikipedia.org/wiki/Brownout_(electricity)" target="_blank"><b>'brownout'</b></a>. This may successfully reduce power consumption, but it could also cause some types of equipment to malfunction or sustain damage.<br />
<br />
1) Manage demand with <b><a href="https://en.wikipedia.org/wiki/Rolling_blackout" target="_blank">rolling blackouts</a></b>. Demand is pruned by cutting off power to some areas of the grid; which parts are shut down is 'rolled' on a schedule, announced ahead of time if possible.<br />
<br />
2) Supplement the base supply with additional power by activating 'peaking plants'. These power plants may use designs that are less efficient and cost-effective than the base supply plants, but they can be quickly switched on and throttled, like a jet engine, to match fluctuating demand.<br />
<br />
And last, but not least:<br />
<br />
3) Manage demand with good old economics. If the utility company can collect time-of-use data with a <b><a href="https://en.wikipedia.org/wiki/Smart_meter" target="_blank">smart meter</a></b> and consumers are informed ahead of time that the price of electricity will be higher on certain days ('critical peak pricing') or at certain times of day ('time-of-use pricing'), they may adjust their behavior and temper peak demand.<br />
<br />
<hr />
<h3>
In Practice, with Pacific Gas & Electric</h3>
<br />If you are one of Pacific Gas & Electric's 5 million+ electricity customers, you can take advantage of two peak demand reduction programs: the <b><a href="http://www.pge.com/en/myhome/saveenergymoney/plans/smartrate/index/page" target="_blank">SmartRate Add-On</a></b> and the <b><a href="http://www.pge.com/sites/en/myhome/saveenergymoney/plans/tou/index.page" target="_blank">Time-of-Use Base Plan</a></b>. I started taking advantage of these last year and it saved me 30% on my summer power generation costs.<div>
<br /></div>
<div>
<b><a href="http://www.pge.com/en/myhome/saveenergymoney/plans/smartrate/index/page" target="_blank">SmartRate</a></b> is a 'critical peak pricing program' for reducing electricity demand during peak demand periods. You receive a <b>23% discount on your May to October electricity rate in exchange for accepting a 320% rate increase on hot summer days</b> (9-15 days per year) that are predicted to seriously stress the grid's capabilities. These peak demand 'Smart Days' are announced ahead of time and you can be notified by text or email, so you can plan to curtail consumption as much as possible.</div>
<div>
<div>
<br /></div>
<div>
<div>
What if you switch and you end up paying more? Your first year comes with free bill protection, so you'll only owe the lower amount.</div>
<div>
<div>
<br /></div>
<div>
On the <b><a href="http://www.pge.com/sites/en/myhome/saveenergymoney/plans/tou/index.page" target="_blank">Time-of-Use base plan</a></b>, the price of energy changes depending on the time and the season:</div>
<div>
<br /></div>
<div>
From <b>November to April</b>, you receive an <b>18% discount</b> on weekends and weekdays</div>
<div>
except from 5-8PM on weekdays, when you receive a discount of <b>6%</b>.</div>
<div>
<br /></div>
<div>
From <b>May to October</b>, you receive an <b>18% discount</b> on weekends and weekdays</div>
<div>
except from 10:00-21:00, when the price <b>increases by 24%</b></div>
<div>
and 13:00-19:00 when it <b>increases by 85%</b>.</div>
<div>
<br /></div>
<div>
If your schedule means that most of your electricity usage happens off-peak, you can save a lot of money with this plan! You can even <b>stack the Time-of-Use base plan with the SmartRate add-on</b> for even more savings. Everyone wins: you save money on electricity and the utility company saves money on expensive peak power generation and storage systems.</div>
</div>
</div>
<div>
<br /></div>
<div>
If you don't have PG&E, call your utility company and ask them if they offer alternative pricing plans for their residential customers. These plans require the utility company to collect time-of-use data with a <b><a href="https://en.wikipedia.org/wiki/Smart_meter" target="_blank">smart meter</a>,</b> which have only been rolled out in certain markets.</div>
</div>
BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-28635469255118183402015-03-13T21:53:00.000-07:002015-05-08T04:17:49.483-07:00Complete Expense Tracking with Mint and OneReceiptIt's been almost exactly two years since I <a href="http://www.andhigherstill.com/2013/03/keeping-track-of-your-finances.html" target="_blank"><b>waxed poetically</b></a> about Mint (<b><a href="http://www.mint.com/">mint.com</a></b>) for expense tracking. Mint connects to your credit card, bank, and investment accounts and automatically pulls in and—with decent accuracy—categorizes your transactions. I still use Mint on a weekly basis and recommend it without reservation.<br />
<hr />
<h3>
Expense Aggregation with Mint is Awesome </h3>
<br />
The Mint team has also added billpay, a free credit score, and budgeting tools, but the transaction aggregation is the killer application for me. With a glance at the site or the Mint app (<b><a href="https://play.google.com/store/apps/details?id=com.mint&hl=en" target="_blank">Android</a></b>, <b><a href="https://itunes.apple.com/us/app/mint.com-personal-finance/id300238550" target="_blank">iOS</a></b>), I can check the cash in my checking account and verify it covers the total charges sitting on my <a href="http://www.andhigherstill.com/p/credit.html" target="_blank"><b>credit cards</b></a>. I can skim my recent transactions for unexpected fees, errors, and easy-to-forget repeating subscription charges. I can even download my entire transaction history, all the way back to January 2012 when I started using Mint, as a .csv file for further analysis in a spreadsheet or Python script.<br />
<hr />
<h3>
Travel Back In Time </h3>
<br />
Mint keeps track of your account balances on the last day of each month and this data is also exportable as a .csv file, so it's easy to look back in time and generate a net worth graph:<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjxsubez3Vw3EKPXXurJg0SExv9enPXFrmSZHyDJtRfk4qoN31mHFs3iYZK6lbe2SVy3YxAp1xukfiWmXK9-HSppLsJZO8dBK_b_eko74JTE1_-bE8uVLmlncXgPVvt760Rb0igvcJjI5g/s1600/-BC-+Net+Worth+-+2015-03+.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjxsubez3Vw3EKPXXurJg0SExv9enPXFrmSZHyDJtRfk4qoN31mHFs3iYZK6lbe2SVy3YxAp1xukfiWmXK9-HSppLsJZO8dBK_b_eko74JTE1_-bE8uVLmlncXgPVvt760Rb0igvcJjI5g/s1600/-BC-+Net+Worth+-+2015-03+.png" /></a></div>
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Mint usage automatically makes you more aware of what's happening with your money, and this increased awareness inspired a reformation of my spending habits... and the transformation of this site into a full-fledged finance blog. <br />
<hr />
<h3>
OneReceipt Makes Mint Even Better</h3>
<br />
The one piece of information that Mint doesn't capture is <i>what you actually bought</i> in a given transaction. This is sufficiently annoying to me that I anticipated it would annoy enough other people to rapidly precipitate a solution, so I've been sealing each month's receipts in a plastic bag and tossing them in a shoe box under my desk.<br />
<br />
All of my receipts. Since August 2011.<br />
<br />
FINALLY, a startup called <b><a href="https://www.onereceipt.com/" target="_blank">OneReceipt</a></b> has solved this problem. According to the timeline on the bottom of their homepage, they too have been thinking about this since 2005.<br />
<br />
∴ I am not crazy.<br />
<br />
OneReceipt roots through your inbox and scrapes electronic receipts, and their <a href="https://itunes.apple.com/app/onereceipt/id512999447" target="_blank"><b>iOS app</b></a> takes photos of paper receipts and uploads them to a server for optical character recognition (OCR) and processing.<br />
<br />
Turn <b>THIS</b>...<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbiek3swuxeUBVuT6ikDQTjXG0oLaeL5j1Bo6R30NUjRgXZ9CrKZIdFxcZYwfZUoI6fJly4QWZrVgiwIRwF3EtWtkUNLboHHUL2v9TZigQLVw6pnE7YOCZfTLXexEESs7QnmUOsBY-iXQ/s1600/Safeway+-+2015.02.08+.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbiek3swuxeUBVuT6ikDQTjXG0oLaeL5j1Bo6R30NUjRgXZ9CrKZIdFxcZYwfZUoI6fJly4QWZrVgiwIRwF3EtWtkUNLboHHUL2v9TZigQLVw6pnE7YOCZfTLXexEESs7QnmUOsBY-iXQ/s1600/Safeway+-+2015.02.08+.jpg" width="358" /></a></div>
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...into <b>THIS</b><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgL-6_GjQCB9x-WkezwHsxyRv9Av-aLGlvNn-l-Ine9a-er8FXQPcny0ne4D-Qr5NyHFHAAcleEf45BZmGPX5lxcT3cOvte0tHUkJaKnUNgRngkcAn4ObAUtBwRO2ZimTPMkUCjfOhxSUo/s1600/onereceipt.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgL-6_GjQCB9x-WkezwHsxyRv9Av-aLGlvNn-l-Ine9a-er8FXQPcny0ne4D-Qr5NyHFHAAcleEf45BZmGPX5lxcT3cOvte0tHUkJaKnUNgRngkcAn4ObAUtBwRO2ZimTPMkUCjfOhxSUo/s1600/onereceipt.png" /></a></div>
<br />
It got all of the items right! It sees discounts and tax! It can even get the timestamp!<br />
<br />
<b>It gets better.</b> Install the <a href="https://www.onereceipt.com/chrome/" target="_blank"><b>OneReceipt Chrome Extension</b></a>, fire up Mint, and:<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgnACwbx0a5cOuMOc-BfF5IPcN44g6bnCew60KoF7vPA_vERQPu2wVUtFuIjnWJVIdpVlGn6O9btbBfQ-nnxQnMl_YxeAUdwD2zCDTD0xstWMXAoOqqf32RlU7KgQLcT_bmRhPCm7zABAI/s1600/mint-onereceipt.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgnACwbx0a5cOuMOc-BfF5IPcN44g6bnCew60KoF7vPA_vERQPu2wVUtFuIjnWJVIdpVlGn6O9btbBfQ-nnxQnMl_YxeAUdwD2zCDTD0xstWMXAoOqqf32RlU7KgQLcT_bmRhPCm7zABAI/s1600/mint-onereceipt.png" /></a></div>
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<br />
And of course, since this is obviously my early birthday present, you can export all of your receipt information as a .pdf or .csv.<br />
<br />
Oh hell yes.<br />
<br />
Thanks OneReceipt!<br />
<br />
Follow the team on <a href="https://twitter.com/OneReceipt" target="_blank"><b>Twitter</b></a> or <a href="https://www.facebook.com/OneReceipt" target="_blank"><b>Facebook</b></a> or <a href="https://plus.google.com/109462136789981301612/about" target="_blank"><b>Google+</b></a> or whatever.BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-63749570252515576552015-03-04T17:11:00.004-08:002015-03-04T23:23:04.768-08:00Petition Your Employer for a Better 401(k)It's apparently 401(k) season over here at AHS, which is interesting considering:<br />
<ol>
<li> I don't personally have access to a 401(k) (Berkeley offers a 403(b) and a 457(b) instead, the latter of which I'm contributing to), and</li>
<li>I haven't written a comprehensive article on 401(k) plans.</li>
</ol>
But wait! That's not entirely true. The AHS Wiki has <b><a href="http://wiki.andhigherstill.com/w/401(k)" target="_blank">a very large page on 401(k)s</a></b>. It's not super-organized or 100% comprehensive, but it will probably answer your questions.<br />
<br />
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<a href="http://en.wikipedia.org/wiki/United_States_one-dollar_bill" imageanchor="1" style="margin-left: 1em; margin-right: 1em;" target="_blank"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi42t_4FhA1v3GKaIiJl1zd4AByaqRm0CbDMwl9lzEUQQaaR_NjObrDXV6tSHRJFYBhPtbfaApr170QOXiP8pghDcvM3t_mBSQnG3UZIyxwEWujiCn_AUTrcEgLUi3b4aDF9pP_cokEm6I/s1600/dollar-1862-cropped.png" height="281" width="640" /></a></div>
<br />
<i><span style="font-size: x-small;">As a general note, the AHS Wiki has a lot of information on topics that I haven't yet published articles on. I use it as a low-pressure drafting space to make my research immediately accessible to other people. Some pages are just <a href="http://wiki.andhigherstill.com/w/Philanthropy" target="_blank"><b>a link collection</b></a>, while others are in <a href="http://wiki.andhigherstill.com/w/Investing_for_the_Self-Employed" target="_blank"><b>an advanced state of development</b></a>. Feel free to <a href="http://wiki.andhigherstill.com/wiki-ahs/index.php?title=Special:UserLogin" target="_blank"><b>create an account</b></a> and contribute! </span></i><br />
<hr />
<h3>
A Bad Plan Can Cost You A Lot</h3>
Lately I've written about how states like <a href="http://www.andhigherstill.com/2014/09/a-few-billion-more-votes-for-index-funds.html" target="_blank"><b>CA</b></a> and <a href="http://www.andhigherstill.com/2015/03/pa-governor-tips-hat-to-index-funds.html" target="_blank"><b>PA</b></a>
are divesting from overpriced, underperforming actively-managed mutual
funds in their state pensions. As I've repeated endlessly (and upon
which <a href="http://www.andhigherstill.com/2013/10/index-investing-john-bogle.html" target="_blank"><b>John Bogle</b></a> has written many books), <a href="http://www.andhigherstill.com/2013/10/index-investing-index-funds.html" target="_blank"><b>index mutual funds</b></a> are the best way to keep your fees down and get your fair share of financial market returns.<br />
<br />
A <a href="http://www.bloomberg.com/news/2014-07-22/conocophillips-best-among-401-k-plans-with-facebook-last.html" target="_blank"><b>2014 study by Bloomberg</b></a>
classified some of the best and worst 401(k)s in the business, but they
primarily focused on company matching, not cost. Investment cost—the
annual fee, or 'expense ratio', that you pay to hold a stock, plus any
other management fees—is extremely important too: a high-priced 401(k)
plan <a href="https://personal.vanguard.com/us/insights/investingtruths/investing-truth-about-cost" target="_blank"><b>could cost you $100,000</b></a> over your lifetime.<br />
<br />
What if your company only offers high-priced garbage?<br />
<br />
Maybe your company isn't big enough to attract <a href="http://www.andhigherstill.com/2015/02/companies-sued-for-offering-bad-401ks.html" target="_blank"><b>Jerry Schlichter's</b></a> attention to start a lawsuit. How can you talk to your boss about improving the retirement plan?<br />
<br />
<hr />
<h3>
Campaigning For Improvement</h3>
<br />
The Bogleheads, an online forum for investing enthusiasts, have prepared <a href="http://www.bogleheads.org/wiki/How_to_campaign_for_a_better_401%28k%29_plan" target="_blank"><b>an article addressing this topic</b></a>. The punchline is that, under the Employee Retirement Income Security Act (ERISA), your company has a legal obligation (called "<a href="http://www.andhigherstill.com/2013/10/financial-advisors-and-fiduciary-duty.html" target="_blank"><b>fiduciary duty</b></a>") to make retirement account decisions that benefit employees. This duty includes <i>"paying only reasonable expenses of administering the plan and investing its assets" </i>and "<i>diversifying plan investments". </i>If your plan lacks low-cost index fund options, it fails both of these criteria!<br />
<br />
So: carefully document this noncompliance, draft a friendly letter to your company's fiduciary (listed in your 401(k) Summary Plan Document), express your concerns for employee welfare and the potential for corporate liability under ERISA (<a href="http://www.andhigherstill.com/2015/02/companies-sued-for-offering-bad-401ks.html" target="_blank"><b>Mr. Schlichter</b></a>...), quote some <a href="http://www.cnbc.com/id/102468940" target="_blank"><b>Warren</b></a> <a href="http://www.marketwatch.com/story/warren-buffett-to-heirs-put-my-estate-in-index-funds-2014-03-13" target="_blank"><b>Buffett</b></a>, and you have a shot!<br />
<br />
Have you or anyone you know ever tried this? Were they successful? I'd love to hear about it!BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-32449820625161835702015-03-03T17:25:00.000-08:002015-03-03T17:27:03.261-08:00PA Governor Tips Hat to Index FundsPennsylvania Governor Tom Wolf <b><a href="http://www.pennlive.com/politics/index.ssf/2015/03/read_the_full_text_of_gov_tom_1.html" target="_blank">announced his budget proposal today</a></b>, which included reversing the nasty cuts inflicted to public education by former Governor Ed Rendell.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNmZi4-vireKRMNCrhKKyLZYY11NEAqRev6h2QX4fe8CD3htUU2FKdYtrcYJVj2VOMZJBafNo8WHl3TaG3DV5rw7Y3RfAN7ctDJzmHIrGpmF9lfCh8doKMxzzRjYhlKrLFa-01yCyV4J0/s1600/tom-wolf.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNmZi4-vireKRMNCrhKKyLZYY11NEAqRev6h2QX4fe8CD3htUU2FKdYtrcYJVj2VOMZJBafNo8WHl3TaG3DV5rw7Y3RfAN7ctDJzmHIrGpmF9lfCh8doKMxzzRjYhlKrLFa-01yCyV4J0/s1600/tom-wolf.jpg" height="425" width="640" /></a></div>
<br />
On the finance front, PA is joining the ranks of states instituting pension reforms:<br />
<blockquote>
<i>We need a new approach - and we need to question the decisions that got us to where we are today. </i><i>For example, why are we paying Wall Street managers hundreds of millions of dollars to manage our pension fund?</i><br />
<i><br /></i>
<i>That doesn't help our middle class, it doesn't help our seniors, and it needs to change.</i><br />
<i>...</i><br />
<i>Believe it or not, as I mentioned earlier: our state has been wasting hundreds of millions of taxpayer dollars on Wall Street managers to handle state pension accounts.</i><br />
<i><br /></i>
<i>But studies have shown that simply investing this money in a safe, conservative account would produce a similar return over the long term while eliminating these excessive management fees.</i><br />
<i><br /></i>
<i>So, here's what we are going to do:</i><br />
<i><br /></i>
<i>We are going to stop excessive fees to Wall Street managers.</i><br />
<i>We're going to improve retirement security for state workers.</i><br />
<i><br /></i>
<i>With these and other improvements, we are going to save taxpayers nearly 1.3 billion dollars over the next five years while creating savings of 10 billion dollars in the unfunded liability.</i></blockquote>
In September, <b><a href="http://www.andhigherstill.com/2014/09/a-few-billion-more-votes-for-index-funds.html" target="_blank">the state of California announced it was pulling its public pension money out of hedge funds</a></b> and replacing many actively-managed funds with <b><a href="http://www.andhigherstill.com/2013/10/index-investing-index-funds.html" target="_blank">index mutual funds</a></b> to save the state money while improving returns for investors.<br />
<br />
Paying high fees to active fund managers who <b><a href="http://www.cbsnews.com/news/s-p-spiva-midyear-2014-active-versus-passive-scorecard-active-underperforms-again/" target="_blank">consistently fail to beat the market</a></b> is a loser's game.<br />
<br />
Read my <b><a href="http://www.andhigherstill.com/2013/10/index-investing-speculation.html" target="_blank">series on index investing</a></b> to find out how you can hold the entire market, cut your fees to nothing, and get your fair share of market returns. <b><a href="http://www.andhigherstill.com/p/contact.html" target="_blank">Contact me</a></b> if you need help getting started!BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-56275553896827556182015-02-24T11:12:00.000-08:002015-02-24T11:12:00.785-08:00Companies Sued for Offering Bad 401(k)sAn attorney, <a href="http://uselaws.com/attorney/17" target="_blank">Jerome 'Jerry' J. Schlichter</a>, has begun suing companies that only offer high-cost investments in their 401(k) plans.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi4NNQvnJ3OzQeM6_-xXJx2E7shwisPOfzhUipeNvYi3BOmt6-81xmxzvmWvghtqL4TUnKSfP74CAhQXoqNGaqgx2RtCN-AqWwwfPio20zGipl05hCwKipBQC7sMCOJCCxzLVPxvz6Klwo/s1600/jerry-schlichter.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi4NNQvnJ3OzQeM6_-xXJx2E7shwisPOfzhUipeNvYi3BOmt6-81xmxzvmWvghtqL4TUnKSfP74CAhQXoqNGaqgx2RtCN-AqWwwfPio20zGipl05hCwKipBQC7sMCOJCCxzLVPxvz6Klwo/s1600/jerry-schlichter.jpg" /></a></div>
<br />
Wall Street Journal: <a href="http://www.wsj.com/video/supreme-court-hears-case-on-401k-plans/A71AE87E-82F7-4C38-AAA1-19100B615068.html" target="_blank"><b>Supreme Court Hears Case on 401(k) Plans</b></a><br />
<br />
From the video:<br />
<blockquote>
<i>"He did a lot of research into big company 401(k) plans and found... he had a lot of questions about, 'why are they picking these mutual funds versus these mutual funds? These mutual funds are higher cost than these... maybe there's a better way that we can do this.' <b>So he started more than a dozen lawsuits.</b> ... The companies that he's reached settlements with have changed the mutual fund options in their plans, gone to lower-cost options, and agreed to disclose a lot more about what they're doing.<br /><br />
The broader implication is that fees are going to go down in plans. ... more index funds, more ETFs, that kind of thing."<br />
</i></blockquote>
He's arguing that only offering expensive investments is a <a href="http://www.andhigherstill.com/2013/10/financial-advisors-and-fiduciary-duty.html" target="_blank">breach of the plan manager's fiduciary duty</a> as defined in the Employee Retirement Income Security Act (<a href="http://www.dol.gov/ebsa/publications/fiduciaryresponsibility.html" target="_blank">ERISA</a>). Go Jerry!<br />
<br />
I've talked extensively about <a href="http://www.andhigherstill.com/2013/10/index-investing-index-funds.html" target="_blank">the importance of selecting low-cost investments</a>. The 401(k) is an important piece of the investing puzzle (<a href="http://www.andhigherstill.com/2013/09/financial-order-of-operations.html" target="_blank">after the IRA</a>), but some 401(k)s lock you into lousy, expensive investments for the duration of your employment. It's good to see that someone's doing something about this.BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-71124609143082926762014-09-20T14:45:00.001-07:002014-09-20T14:45:08.697-07:00A Few Billion More Votes for Index Funds<a href="https://www.calpers.ca.gov/index.jsp?bc=/investments/home.xml">CalPERS</a>, the California Public Employees' Retirement System, manages a cool $300 billion for the state's 1.6 million eligible employees. This is the second largest public pension fund next to the federal government's <a href="https://en.wikipedia.org/wiki/Civil_Service_Retirement_System">CSRS</a>, the Civil Service Retirement System. In the <a href="https://en.wikipedia.org/wiki/Mutual_fund#History">~$13 trillion US mutual fund industry</a>, this positions CalPERS as a heavyweight institutional investor.<br />
<br />
This serious amount of money adds weight to the announcement that CalPERS is <a href="http://online.wsj.com/articles/calpers-shows-masters-of-hedge-fund-universe-have-no-clothes-heard-on-the-street-1410903036">pulling out of its $4 billion investment in hedge funds</a> and <a href="http://www.investmentnews.com/article/20130619/FREE/130619874/calpers-switches-to-all-passive-dc-plans">replacing the actively managed mutual funds in its $2 billion defined contribution plans</a> with index funds. This will decrease the annual expenses associated with holding these funds by 89% (0.06%, from 0.52%).<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLeSdszFZvJjl1xXi92lKU4qebHkaj9wU9ghng-Gt76gKXzohhmkGT3QRmm0T7ed2EE-exFb6Iww5EdJn3JaVnhxPgf9rcfv9GWSZ_eX6nxLzCe9P5mES8JfcYZafhgXz1nQgchsyjq2s/s1600/1280px-CalPERS_headquarters.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLeSdszFZvJjl1xXi92lKU4qebHkaj9wU9ghng-Gt76gKXzohhmkGT3QRmm0T7ed2EE-exFb6Iww5EdJn3JaVnhxPgf9rcfv9GWSZ_eX6nxLzCe9P5mES8JfcYZafhgXz1nQgchsyjq2s/s1600/1280px-CalPERS_headquarters.jpg" height="472" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">CalPERS headquarters in Sacramento, CA</td></tr>
</tbody></table>
<br />
This is in line with the <a href="http://www.marketwatch.com/story/pensions-calpers-embraces-indexing-2013-10-03">announcement in October 2013</a> that the CalPERS board had adopted the following as one of its <a href="http://www.marketwatch.com/story/pensions-calpers-embraces-indexing-2013-10-03">ten "investment beliefs"</a>:<br />
<blockquote>
Calpers will take risk only where we have a strong belief we will be rewarded for it. Sub-beliefs:<br />
<ul class="articleList">
<li>An expectation of a return premium is required to take risk; Calpers aims to maximize return for the risk taken</li>
<li>Markets aren’t perfectly efficient, but inefficiencies are difficult to exploit after costs</li>
<li>Calpers will use index tracking strategies where we lack conviction or demonstrable evidence that we can add value through active management</li>
<li>Calpers should measure its investment performance relative to a reference portfolio of public, passively managed assets to ensure that active risk is being compensated at the Total Fund level over the long-term</li>
</ul>
</blockquote>
<br />
<hr />
<h3>
Sea Change (for the better)</h3>
<br />
Eight out of every $10 invested in mutual funds and exchange traded funds (ETFs) has gone into low-cost passively managed funds, according to the <a href="http://www.corporate.morningstar.com/us/documents/fundflows/AssetFlowsJune2014.pdf">Morningstar Fund Flows reports</a>. This makes sense, because active funds charge higher fees and <a href="http://www.andhigherstill.com/2013/10/index-investing-speculation.html">don't consistently beat passive funds even before fees</a>—over the past five years, 73% of actively-managed domestic large-cap mutual funds <a href="http://www.spindices.com/documents/spiva/spiva-us-year-end-2013.pdf">failed to match the S&P500</a>.<br />
<br />
If CalPERS and they Harvard MBA's they pay to manage their active funds can't do it, <b>what chance do you think you have at beating the markets?</b><br />
<br />
The evidence is clear: spending your own time or paying someone else money to pick stocks for you is a losing game. <a href="http://www.andhigherstill.com/2013/10/index-investing-index-funds.html">Lining your nest with index funds</a> is your best (and simplest, and cheapest) bet.<br />
<br />
<hr />
<h3>
In The News</h3>
<br />
Time: <a href="https://time.com/3397072/index-funds/">The Triumph of Index Funds</a><br />
Chicago Tribune: <a href="http://www.chicagotribune.com/business/sns-rt-us-pensions-calpers-hedgefunds-20140915-story.html">CalPERS dumps hedge funds citing cost, to pull $4 billion stake</a> <br />
NY Times: <a href="http://dealbook.nytimes.com/2014/09/16/with-calpers-quitting-hedge-funds-other-investors-reflect/">With Pension Fund Giant CalPERS Quitting Hedge Funds, Other Investors Reflect</a><br />
Marketwatch: <a href="http://www.marketwatch.com/story/pensions-calpers-embraces-indexing-2013-10-03">Pensioners: CalPERS embraces indexing</a><br />
Investment News: <a href="http://www.investmentnews.com/article/20130619/FREE/130619874/calpers-switches-to-all-passive-dc-plans">CalPERS switches to all-passive DC plans</a><br />
Forbes: <a href="http://www.forbes.com/sites/stevedenning/2014/09/16/are-institutional-investors-waking-up-calpers-exits-hedge-funds/">Why CalPERS Tired of Vampire Hedge Funds</a><br />
Forbes: <a href="http://www.forbes.com/sites/rickferri/2013/03/21/nations-largest-pension-considers-more-indexing/">Nation's Largest Pension Considers More Indexing</a> (2013)BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-48194019852082659702014-09-08T12:02:00.003-07:002014-09-09T08:35:13.400-07:00Task Management SystemsIn the preface to Starmus, a collection of lectures given by famous astronomers and physicists, Stephen Hawking warns that the <a href="http://en.wikipedia.org/wiki/Higgs_boson" target="_blank">Higgs boson</a> (aka the "God Particle") could destroy the universe by triggering "<a href="http://en.wikipedia.org/wiki/False_vacuum#Vacuum_metastability_event" target="_blank">catastrophic vacuum decay</a>".<br />
<br />
I have no idea what that is, but I currently live in the universe and that sounds bad.<br />
<br />
One more reason to get organized and get stuff done! <br />
<br />
<hr /><h3>Lots of experiments, lots of failures</h3><br />
This weekend, I looked back through my file archives and discovered that I've experimented with no less than 12 different systems for keeping track of and prioritizing tasks. They range from incredibly simple lists in text files to complex web apps, spreadsheets, calendars, email scripts, and even an SMS-based system.<br />
<br />
The only thing in common? I'm not using any of them now, so <b>they've all failed</b>.<br />
<br />
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I have dreams of whipping up a custom Task Management System (TMS) by gutting and restructuring a CRM (Customer Relationship Manager) like SuiteCRM, or even by learning some database stuff and building from scratch. But that's likely to be a huge project, and I have too many huge projects ongoing right now... which is really the source of the problem.<br />
<br />
In the short term, <b>I need something that works at least better than nothing</b>.<br />
<br />
<hr /><h3>What do you use?</h3>Before I get into the details of what I've used and what my requirements are...<br />
<br />
I will admit that I haven't done my homework on the latest and greatest task apps, but I wanted to ask for recommendations first. <b>So far, everyone I've talked to uses text files or no system at all</b>.<br />
<br />
So, what do you currently use? What works well for you, and what needs improvement? What else have you tried, and what do you want to try?<br />
<br />
The information I collect here will be aggregated on <a href="http://wiki.andhigherstill.com/w/Task_Management_System" target="_blank">the Task Management System wiki page</a>.<br />
<br />
(Didn't know this site had a wiki? Let's just say that I've been doing a lot of content management experiments over the last couple months!)<br />
<br />
<hr /><h3>TMS Requirements </h3>Sifting through the failures, I've formulated the following requirements:<br />
<ol><li><b>It must be accessible from anywhere</b><br />
<br />
My earliest systems were giant text files, collections of text files, and eventually spreadsheets. I could only access them from my home computer or device without necessitating a bunch of annoying file transfers.<br />
<br />
File synchronization tools like Google Drive and Dropbox, and eventually version control software like Git, has made it a lot easier to access any filetype from anywhere. These tools weren't nearly so ubiquitous in 2004, so at that time I migrated to webmail (and eventually, web calendar) apps.<br />
<br />
Mobile- or OS-specific apps aren't an option. Ideally, the system would live inside a browser and I could access it at, say, <a href="http://tasks.brandoncurtis.com/">tasks.brandoncurtis.com</a>.<br />
</li>
<li><b>It must allow rapid adding, editing, and removing of tasks</b><br />
<br />
Of the various task web apps that I've used, many fail because it takes way too many clicks to add or edit a task. Spreadsheet-based systems are nice because this can be accomplished with one click and some typing. If I were to adapt a CRM into a TMS, this would be a primary concern—I like the power of a CRM, but I don't want to compromise on ease-of-use.<br />
</li>
<li><b>It must allow straightforward attachment of files and links</b><br />
<br />
For a while, I used the Tasks tool built into Gmail and Google Calendar. This system makes it relatively straightforward to attach an email to a task, but there is no easy way to attach links and no Google Drive integration for files (and the interface is incredibly clunky). This is sad, because I think Google could make a great system that integrates Mail, Calendar, and Drive for task management... but I don't have time to wait for them to build this thing. I could potentially build something with <a href="https://developers.google.com/apps-script/" target="_blank">Google Apps Script</a>...<br />
</li>
<li><b>It must discern between 'priority' and 'urgency'</b><br />
<br />
All calendar-based systems have failed because many tasks don't HAVE a calendar due date, and for most others a calendar due date isn't sufficient for prioritization. The ideal system needs to keep track of calendar due dates (and allow sorting and display by date), but also needs to have a way to indicate (and sort, and display by) priority.<br />
</li>
<li><b>It must be quickly and easily reconfigurable</b><br />
<br />
Most task management apps don't allow reconfiguration at all. Is a particular feature extraneous to you? Sorry, no way to turn features on or off.<br />
<br />
This is one of the reasons that most of my systems have been spreadsheets: it's trivial to add an extra column, without disrupting the data already present in the sheet. If I knew enough to work seriously with databases... </li>
</ol><hr /><h3>Going forward</h3><br />
That's what I have so far! Whatever I decide on, I'll be sure to write more about it here.<br />
<br />
<b>Leave a comment and let me know what you use!</b><br />
<br />
(Don't use anything? That's important information too!)<br />
<br />
I'll check out your recommendations and update <a href="http://wiki.andhigherstill.com/w/Task_Management_System" target="_blank">the Task Management System wiki page</a>.BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-60052435800799068702014-06-22T17:17:00.001-07:002015-05-03T21:25:05.881-07:00Bay Area Mighty Mustachian Meetup (BAMMM)Another successful meetup!<br />
<br />
Nine of us gathered in <a href="http://goo.gl/vDQVNI" target="_blank">Mission Dolores Park</a> to hang out, trade tips, eat pasta salad, and get to know eachother better.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqKpz3VsTnPDPrJVRkiLzwDJ4xOALymGswF6eCst-4eLD0pMV-frHdhHQn00-b9bD4KDiezA6CeFBlUMfQZvl0y59htPYVQ272E5yNse4yaPc9s7Px-rEUr7F39iZWwNc5YIyztBWYs_s/s1600/BAMMM.14.06+-+07+.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqKpz3VsTnPDPrJVRkiLzwDJ4xOALymGswF6eCst-4eLD0pMV-frHdhHQn00-b9bD4KDiezA6CeFBlUMfQZvl0y59htPYVQ272E5yNse4yaPc9s7Px-rEUr7F39iZWwNc5YIyztBWYs_s/s1600/BAMMM.14.06+-+07+.jpg" height="480" width="640" /></a></div>
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(not pictured: Jonathan, who took off right before we thought to take a photo)<br />
<br />
After <a href="http://www.andhigherstill.com/2014/06/an-evening-with-mustachians.html">the meetup in Heron's Head Park last month</a>, we decided it would be worthwhile to organize additional meetups under the Bay Area Mighty Mustachian Meetup (BAMMM) banner. To facilitate this, we assembled a <a href="https://docs.google.com/spreadsheets/d/1Jd45RCxDQSVJbJb_zbe_aq3morJVlUqmCSMFxZa0Rhc/edit#gid=0">contact spreadsheet</a>, a <a href="https://groups.google.com/forum/#!forum/bay-area-mustachians">Google Group email list</a>, and a <a href="https://plus.google.com/communities/109606181421765828312">Google+ Community</a>. All should be publicly joinable—if you know anyone else who might be interested, forward this along!<br />
<br />
Some of the topics of discussion at yesterday's meetup:<br />
<ul>
<li>how we came to the frugality mindset and how it has affected our living situations</li>
<li>what we're doing wrong and how we might improve</li>
<li>what we hope to accomplish with the power of financial independence</li>
<li>contentious investing topics such as <a href="http://www.andhigherstill.com/2013/10/index-investing-speculation.html" target="_blank">stock picking</a>, <a href="http://www.andhigherstill.com/2014/05/real-estate-buying-vs-renting.html" target="_blank">real estate</a>, and <a href="http://www.andhigherstill.com/2013/05/emergency-funds.html" target="_blank">emergency fund provisioning</a></li>
<li><a href="http://ecomodder.com/" target="_blank">messing around with cars</a>, <a href="http://wiki.brandoncurtis.com/w/Electronics_Repair" target="_blank">baking broken electronics</a>, and <a href="http://biodieselhauling.blogspot.com/2012/01/buying-bikes-from-craigslist.html" target="_blank">Craigslisting bikes</a> for fun and profit</li>
<li>where Canada is superior to the US, and where it's clearly not (with a real life Canadian!)</li>
<li>our favorite stupid tricks for saving a dollar or two here or there (and how <a href="http://www.andhigherstill.com/2014/06/back-to-basics.html" target="_blank">they don't matter</a>)</li>
</ul>
The plan is to have another meetup somewhere in the Bay Area in July. If you have an idea for what we might do or where we might meet, send it out on <a href="https://groups.google.com/forum/#!forum/bay-area-mustachians" target="_blank">the email list</a>.<br />
<div>
<br /></div>
<div>
Hope to see you at the next one!</div>
BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-31739711030349524612014-06-20T15:20:00.003-07:002014-06-20T15:30:07.527-07:00Back to BasicsA lot of the advice you'll come across in life has an expiration date. This seems to be especially true in personal finance and lifestyle engineering spheres.<br />
<br />
This site is certainly not immune to the ravages of time. Browsing through last year's articles:<br />
<br />
<a href="http://www.andhigherstill.com/2013/06/high-efficiency-procurement.html" target="_blank">High-Efficiency Procurement</a>:<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWlDYOpdoIDoOPWjWNNuVrfdyO6vCogOnphkUaA72BZQI6U6CWWdH_aFYjKhUkt5Zx-Oaxwqv9Amx3VmJuF5qAXIbtXYcVodQd_8If9FO2QRFTuVzmsHnhh6kcbSVnnHFT1ICRdHl2gxI/s1600/List-alert.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWlDYOpdoIDoOPWjWNNuVrfdyO6vCogOnphkUaA72BZQI6U6CWWdH_aFYjKhUkt5Zx-Oaxwqv9Amx3VmJuF5qAXIbtXYcVodQd_8If9FO2QRFTuVzmsHnhh6kcbSVnnHFT1ICRdHl2gxI/s1600/List-alert.png" /></a></div><br />
<a href="http://www.andhigherstill.com/2013/10/the-0-landline.html" target="_blank">The $0 Landline</a>:<br />
<br />
<blockquote>"<a href="http://blog.flowroute.com/2014/02/20/dont-throw-your-obi-out-with-the-end-of-google-voice/" target="_blank">This leads us to the qualifiers for the Google Voice XMPP integration with OBi devices</a>. One Google Voice feature getting the axe is XMPP integration in Google Voice. Support for XMPP call delivery will shut off on May 15, 2014"</blockquote><br />
<a href="http://www.andhigherstill.com/2013/03/cashback-credit-cards.html" target="_blank">Cashback Credit Cards</a>:<br />
<br />
<blockquote>"<a href="http://creditcardforum.com/blog/citi-forward-card-review/" target="_blank">In 2013 Citi pulled the plug on the regular Forward card</a>, but continued to offer the application for college students until just recently — that too is no longer available."</blockquote><br />
Well shoot!<br />
<br />
(somewhat amazingly, all of the apps in the <a href="http://www.andhigherstill.com/2013/05/external-motivation.html" target="_blank">External Motivation</a> article still exist)<br />
<br />
<hr /><h3>So what's the punchline?</h3><br />
Little deals and tricks and hacks and tweaks come and go. I've watched strategies go up in smoke that used to save me a few bucks here and there.<br />
<br />
The net effect on my savings rate? Absolutely negligible. <b>If your financial strategy is based on stealing all of the after-dinner mints at restaurants and redeeming credit card points, you've got bigger problems</b>.<br />
<br />
At the end of the day? Financial independence is still based on <a href="http://www.andhigherstill.com/2013/05/mind-your-money-mustache.html" target="_blank">one extremely simple concept</a>, and <a href="http://www.andhigherstill.com/2013/02/financial-risk-or-you-cant-afford-not.html" target="_blank">you still can't afford not to invest</a>. Take care of <a href="http://www.andhigherstill.com/2013/10/budget-throwdown-average-american.html" target="_blank">those big, meaty double-digit percentage categories</a> in your annual expenses, and everything else is just details.<br />
<br />
The blogosphere is littered with great deals and neat tricks that don't work anymore. When you come across one, just scoop yourself <a href="http://www.andhigherstill.com/2013/05/thrift-is-beautiful-fermentation.html" target="_blank">another bowl of sauerkraut</a> and relax. Cheers to that!BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-19204492717040458462014-06-05T19:22:00.001-07:002014-06-23T10:34:02.040-07:00An Evening with The MustachiansYou only get one birthday a year. I spent mine with <a href="http://www.andhigherstill.com/2013/05/mind-your-money-mustache.html" target="_blank">Mr. Money Mustache</a>.<br />
<br />
<hr />
<h3>
Reclamation By the Bay</h3>
<br />
<a href="http://www.mrmoneymustache.com/2014/05/18/mmm-gatherings-san-francisco-and-portland/" target="_blank">The meetup</a> was planned for a Friday evening, 5pm, in a <a href="http://goo.gl/maps/4Zmah" target="_blank">small park</a> on <a href="http://www.sf-port.org/index.aspx?page=210" target="_blank">a reclaimed industrial site</a> along the Bay.<br />
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<tr><td class="tr-caption" style="text-align: center;">The EcoCenter environmental center at Heron's Head Park </td></tr>
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<br />
The location just happened to be convenient for MMM; him and his family were staying with friends nearby in the city. But to me it seemed symbolic of what this movement is all about: reclamation. Reclaiming our finances from the credit card companies and the student debt and the car loans and the mortgages. Reclaiming our time from the folly of the forty-hour workweek, from the office cubicle, from the hour-long commute, from two weeks paid vacation. Reclaiming our culture from the destructive insanity of consumerism, from those damnable Joneses, from the rotted-out carcass of the American Dream.<br />
<br />
I came out here to meet a man that has inspired me to change how I live, and to inspire others to carefully consider their own paths. I came out to meet those similarly inspired and see if we might build some community.<br />
<br />
I was not disappointed.<br />
<br />
<a name='more'></a><hr />
<h3>
Getting There is Half the Battle</h3>
<div>
<div>
<br /></div>
<div>
The trip out to the park was a long one. Google Maps told me I would need to be on a 3:30 BART train to make it from the East Bay to the meetup in time for it to start. I left work early and didn't feel particularly bad about it: it was my birthday, after all. Priorities!</div>
<div>
<br /></div>
<div>
Accompanying me was Melanie, my own Ms. Mustache—fellow grad student, rent-splitter, textile repairer, bike rider, and cash-stasher extraordinaire. She made PB&J sandwiches while I poured salsa into Mason jars. We grabbed a bag of tortilla chips ($4 for 5 lbs at Costco) and the remnants of my birthday cheesecake (homemade; ate the other half for breakfast), tossed everything into a bag, and jogged downtown to catch the BART.</div>
<div>
<br /></div>
<div>
Ninety minutes and one overfilled bus transfer later, and we arrived at Heron's Head Park. As soon as I stepped off the bus, I knew I had made an error in clothing selection—the wind was whipping over the Bay, and I had only a t-shirt and a short-sleeved button-down. No matter! It would keep me moving around to stay warm and meet new people.</div>
<div>
<br /></div>
<div>
Initially there were less than a dozen of us. Most had come by bike, but as we began the first of many introductions it became clear how varied this group was going to be: age 20 to 50, students and marketers and reporters and Army soldiers, pretty much evenly distributed over the Bay Area. A few had come even further—one guy <i>road his bike from Sacramento</i> to be there. Computer scientists, engineers, and tech people were overrepresented, but that <a href="http://www.mrmoneymustache.com/2013/09/17/a-one-question-survey-who-are-the-mustachians/" target="_blank">came as no surprise</a>—Silicon Valley is not so far away, and anything related to personal finance and lifestyle engineering will bring Keirsey's <a href="http://en.wikipedia.org/wiki/Rational_temperament" target="_blank">Rationals</a> out in force.</div>
<div>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgdhbi0z7zGOcSbwPYGM1ePaSr3ctYenWdhiDb9JNjzVBjErlR6pKiKAPjNagw6XkWSJSCUI8KYay-336t_Khw-ZPmhsWfPY_khQSh2c8HoZ205iqOhISF7Ti3WyNGSSYl2bg8l_IYgxT8/s1600/SAM_1371.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgdhbi0z7zGOcSbwPYGM1ePaSr3ctYenWdhiDb9JNjzVBjErlR6pKiKAPjNagw6XkWSJSCUI8KYay-336t_Khw-ZPmhsWfPY_khQSh2c8HoZ205iqOhISF7Ti3WyNGSSYl2bg8l_IYgxT8/s1600/SAM_1371.JPG" height="360" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Mustachians converge on Heron's Head Park</td></tr>
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<div>
<br /></div>
<div>
After about the fifteenth introduction, it became obvious that no one was going to remember anyone else's name. I found some notecards in my backpack, someone else had a Sharpie in their pocket, and a third produced a roll of medical tape from a bike bag. Nametags!</div>
</div>
<div>
<br /></div>
Thinking it might come in handy, I taped a notecard to a park bench and wrote "EMAILS (for future ???)" along the top. By the end of the night, the notecard had been joined by a sheet of cardboard, and I had 73 email addresses. Build it and they will come!<br />
<br />
<hr />
<h3>
"I thought you'd be bigger!"</h3>
<div>
<br /></div>
<div>
Running a little late, Mr. Money Mustache himself arrived.</div>
<div>
<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZUVMQb4kJW5ocQOok5nwMOTJx_vbsv2rZABBBKBoCqKbwNPheQ5KM6h4lqaSgH67dO_G63-bqxFpQIw7Oy68MLM4BgHvCgsz3OU4atJhVYx63dvNhNipUiySjBkcbuu711oOFLnlCMEo/s1600/MMM.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZUVMQb4kJW5ocQOok5nwMOTJx_vbsv2rZABBBKBoCqKbwNPheQ5KM6h4lqaSgH67dO_G63-bqxFpQIw7Oy68MLM4BgHvCgsz3OU4atJhVYx63dvNhNipUiySjBkcbuu711oOFLnlCMEo/s1600/MMM.jpg" height="480" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">MMM standing on a park bench (he's not, in fact, 10 feet tall) [photo by <a href="https://plus.google.com/110422524996173563771/posts" target="_blank">Asi Behar</a>]</td></tr>
</tbody></table>
<br />
He introduced himself by his real name, and prior to drawing a mustache on his name tag, some of the funnier moments occurred when people who didn't know what he looked like failed to realize who he was.<br />
<br />
One attendee with a leatherworking connection brought him a custom leather belt as a gift. "I had to guess on your size, so I picked 42 inches," he laughed. "I thought you'd be bigger!"<br />
<br />
<hr />
<h3>
A Very Cool Group</h3>
<div>
<br /></div>
<div>
Many others brought food and drink to share: pastries, homebrews, homemade hard cider, and things to grill. A few had been MMM readers since the beginning, but just as many had recently discovered the blog and come to the meetup to see what was up. Some had families, some were well underway in 'stashing for retirement, while others were just getting started.</div>
<br />
<div>
For the next four and a half hours, we milled about, meeting eachother and talking about the investments we were making, the skills we were building, the books we were reading, the strategies we were using to cut expenses, and what motivated us to live below our means and seek financial independence. Some wanted freedom to travel; some wanted time for family and community; some wanted security; others wanted to save the world.</div>
<div>
<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjhVWG864zMBFvTDM6hOLhNEEowNwTnE8f5-GI4i3BYM6dKdTeY6iyhdmOnf3-Qsoo_h7q-N2kZoPGnmBldS4mluYmMp1qzuJkqK6Kee7TYCNzkHHVBHLOcLzxhjTR60MP6LrUcR8NX8nw/s1600/SAM_1377.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjhVWG864zMBFvTDM6hOLhNEEowNwTnE8f5-GI4i3BYM6dKdTeY6iyhdmOnf3-Qsoo_h7q-N2kZoPGnmBldS4mluYmMp1qzuJkqK6Kee7TYCNzkHHVBHLOcLzxhjTR60MP6LrUcR8NX8nw/s1600/SAM_1377.JPG" height="360" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Over a hundred people showed up to the meetup</td></tr>
</tbody></table>
<div>
<br /></div>
<div>
Much discussion centered around the sharing economy: how we might do more with less by sharing rarely-used items with others in our communities. Members of <a href="https://peerby.com/" target="_blank">Peerby</a> and <a href="http://www.projectborrow.com/" target="_blank">ProjectBorrow</a> were there, and it reminded me of the experiments I've done with <a href="https://docs.google.com/spreadsheet/ccc?key=0AiEk9zzYZVLgdC1DM0ZyTmlmeElRTnh6eTE0NV83UEE&usp=drive_web#gid=0" target="_blank">web-of-trust–based peer lending systems</a>. Lending is an underutilized cost-cutting measure, and since most of us in this country already have so much stuff, I think there is tremendous room to grow the concept.</div>
<div>
<br /></div>
<div>
There were also journalists afoot, and a reporter from MarketWatch interviewed MMM. When Melanie mentioned that it was my birthday, they pulled both of us aside to talk about why we came to the meetup and what we were doing to save money. "Do you ever feel like you're missing out?, they asked. Not at all! Real life isn't the newest smartphone and a big house full of Ikea furniture. Real life is out here!</div>
<div>
<br /></div>
<hr />
<h3>
Wrapping It Up</h3>
<div>
<br /></div>
<div>
Mr. Money Mustache gave no speeches, preferring to mill around and talk to people in small groups. He never addressed the crowd directly, except to suggest that we move the party someplace warmer as the sun went down. We ended up at a bar a few blocks away; many people biked, and I caught a ride with one of the few drivers.</div>
<div>
<br /></div>
<div>
From the discussions at the bar, it was pretty much unanimous: we definitely wanted to meet up and do something like this again. Cycling, hiking, a skillshare, a potluck, a reading group, a stuff-I-don't-use-anymore swap, a volunteering event? I had the emails, and I promised to compile them and email everyone to get the planning started for next month.</div>
<div>
<br /></div>
<div>
Before I headed out a little before midnight, Melanie took the requisite photo of me with MMM:</div>
<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhftT6n6Qk59lVCeAJ4FX7QSdFIG2nIBJGxv4tEbAH2hVtykDKJNNDYQLmak09FSvtzEK8dwC_mdwZYgkbb3dJu17lym_f-o_KVnNEaamddGdoeb7lPfDAqlmvytONZ2N6Kqpvom73e3Cw/s1600/SAM_1384.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhftT6n6Qk59lVCeAJ4FX7QSdFIG2nIBJGxv4tEbAH2hVtykDKJNNDYQLmak09FSvtzEK8dwC_mdwZYgkbb3dJu17lym_f-o_KVnNEaamddGdoeb7lPfDAqlmvytONZ2N6Kqpvom73e3Cw/s1600/SAM_1384.JPG" height="225" width="400" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg4JAwuJqJiR9rWDsDEzK60u3sJvogsz8-j_xYsOkqZfLp_-UVL7J3RoqYSE5RQ-W5TdFBns2uIEfTZEuTchRpKPT7jN76GP7FARrpoJPi9htN1EPENX5bx9VJlKzNwbZtXuW_LuDXMViw/s1600/SAM_1385.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg4JAwuJqJiR9rWDsDEzK60u3sJvogsz8-j_xYsOkqZfLp_-UVL7J3RoqYSE5RQ-W5TdFBns2uIEfTZEuTchRpKPT7jN76GP7FARrpoJPi9htN1EPENX5bx9VJlKzNwbZtXuW_LuDXMViw/s1600/SAM_1385.JPG" height="225" width="400" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj10gSfmh4VRRCO6aEfcjqLnLl10GsJJqHOJ2HadvKtB-Gk-dgv3l0b_YTE8qEJY7wNZcyTN4VRGOZdpFhtc5Oh5QEkgR8Mn1u_dkrW1nszumQFRq1Z96_y2F5xZP_Ztlt4UIGp4zJmiZU/s1600/SAM_1382.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj10gSfmh4VRRCO6aEfcjqLnLl10GsJJqHOJ2HadvKtB-Gk-dgv3l0b_YTE8qEJY7wNZcyTN4VRGOZdpFhtc5Oh5QEkgR8Mn1u_dkrW1nszumQFRq1Z96_y2F5xZP_Ztlt4UIGp4zJmiZU/s1600/SAM_1382.JPG" height="225" width="400" /></a></div>
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<div>
<br /></div>
<div>
(she's a lot better at saving money than she is at operating my camera)</div>
<br class="Apple-interchange-newline" />
<hr />
<h3>
Going Forward</h3>
<div>
<br /></div>
<div>
Financial independence, early retirement, Mustachianism—whatever you want to call it, the concept is the same: spend less than you make and invest the difference, and you'll reduce your impact on the planet's resources, minimize your reliance on the social safety net, and eventually eliminate your reliance on a full-time job and free up more time for friends, family, community, and the projects that you really care about. MMM is an easy-going, genuine guy who figured this out and made sane living work for him. I want to make it work for me too, and I want to make sure that as many people as possible realize that it's an option.</div>
<div>
<br /></div>
We're living in—and I only learned this term later (thank you Craig)—what the Buddhists refer to as the <a href="http://en.wikipedia.org/wiki/Kali_Yuga" target="_blank">Kali Yuga</a>, the Age of Vice, the Fallen Age. Many of us have forgotten to consider what we really value and how our lives impact the world. Only 0.0015% of the Bay Area showed up to the meetup, but the people I met there and the things we talked about were encouraging. People are starting to wake up and realize:<br />
<ul>
<li><a href="http://www.raptitude.com/2010/07/your-lifestyle-has-already-been-designed/" target="_blank">Your lifestyle has already been designed</a>.</li>
<li><a href="http://www.mrmoneymustache.com/2012/09/18/is-it-convenient-would-i-enjoy-it-wrong-question/" target="_blank">Is it convenient? Would I enjoy it? Wrong question</a><u>.</u></li>
<li><a href="http://earlyretirementextreme.com/on-gratification.html" target="_blank">It's much more satisfying to say "I did that" than "I paid for that"</a>.</li>
</ul>
It's awesome to hang out in a group where not having a cell phone is 'cool', where learning how to do things yourself instead of paying for them is laudable, and where going car-free, reducing your rent, and cooking your own food are things to aspire to. I have high hopes for what we might accomplish if we put our diverse set of interest, abilities, resources, experiences, and connections to work.<br />
<br />
With the email addressed I collected and <a href="http://forum.mrmoneymustache.com/meetups-and-social-events/sfbay-area/100/" target="_blank">a post</a> on the MMM forum, we've set up a <a href="https://groups.google.com/forum/#!forum/bay-area-mustachians" target="_blank">Google Group</a> (email list) and a <a href="https://plus.google.com/communities/109606181421765828312" target="_blank">G+ Community</a> (social network share page) to share ideas and organize events for Mustachians in the Bay Area.<br />
<br />
The tentative plan is to hold a potluck meetup planstravaganza in <a href="http://goo.gl/maps/T1Nyl" target="_blank">Mission Dolores Park</a> on June 21st. Join the Google Group if you're in the area and want to stay in the loop!BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-10226257547293619332014-06-03T00:01:00.000-07:002014-06-13T17:42:27.286-07:00Save Money with Open Source Software<b>Open source software.</b><br />
<br />
You're almost certainly using some of it right now! Most of the visitors to the site browse here using Firefox, an open source project of the <a href="https://www.mozilla.org/" target="_blank">Mozilla Foundation</a>; the second runner up is Google Chrome, which is just the Google-branded version of the <a href="http://www.chromium.org/" target="_blank">Chromium browser</a> open source project.<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLAWTTCyBfjbMBrojFS-KEYQMXHPWfuMZl-DT9drqnZScsNmxzOdJWFpyJ3QvdyixNJ5PPXmsY6IWYPtsu-2S5ovz9zjyl7Lw88OxZsHAGFP5B3K6akzBB_SKDJcGlxCsLJpOFk2GVWlc/s1600/firefox_logo-wordmark-horiz_RGB.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLAWTTCyBfjbMBrojFS-KEYQMXHPWfuMZl-DT9drqnZScsNmxzOdJWFpyJ3QvdyixNJ5PPXmsY6IWYPtsu-2S5ovz9zjyl7Lw88OxZsHAGFP5B3K6akzBB_SKDJcGlxCsLJpOFk2GVWlc/s1600/firefox_logo-wordmark-horiz_RGB.png" height="162" width="400" /></a></div>Other open source projects you may have heard of:<br />
<br />
GNU/Linux (operating systems)<br />
<a href="http://en.wikipedia.org/wiki/WordPress" target="_blank">Wordpress</a> (blogging tool)<br />
<a href="http://en.wikipedia.org/wiki/Mozilla_Thunderbird" target="_blank">Thunderbird</a> (email client)<br />
<a href="http://en.wikipedia.org/wiki/Blender_(software)" target="_blank">Blender</a> (3D graphics)<br />
<a href="http://en.wikipedia.org/wiki/VideoLAN" target="_blank">VLC</a> (media player)<br />
<a href="http://en.wikipedia.org/wiki/FileZilla" target="_blank">FileZilla</a> (FTP client)<br />
<a href="http://en.wikipedia.org/wiki/Adium" target="_blank">Adium</a> (chat client)<br />
<a href="http://en.wikipedia.org/wiki/Pidgin_(software)" target="_blank">Pidgin</a> (chat client)<br />
<a href="http://en.wikipedia.org/wiki/Audacity_(audio_editor)" target="_blank">Audacity</a> (digital audio editor)<br />
<a href="http://en.wikipedia.org/wiki/FrostWire" target="_blank">FrostWire</a> (P2P filesharing)<br />
OpenOffice/<a href="http://en.wikipedia.org/wiki/LibreOffice" target="_blank">LibreOffice</a> (office productivity suite)<br />
<a href="http://en.wikipedia.org/wiki/Mediawiki" target="_blank">MediaWiki</a> (wiki software that runs Wikipedia)<br />
<a href="http://en.wikipedia.org/wiki/PhpBB" target="_blank">phpBB</a> (internet bulletin board)<br />
<a href="http://en.wikipedia.org/wiki/GIMP" target="_blank">GIMP</a> (graphics editor)<br />
<a href="http://en.wikipedia.org/wiki/Notepad++" target="_blank">Notepad++</a> (text editor)<br />
<a href="http://en.wikipedia.org/wiki/HandBrake" target="_blank">HandBrake</a> (media transcoder)<br />
<a href="http://en.wikipedia.org/wiki/Calibre_(software)" target="_blank">Calibre</a> (ebook manager)<br />
<a href="http://en.wikipedia.org/wiki/LaTeX" target="_blank">LaTeX</a> (document preparation system)<br />
<a href="http://en.wikipedia.org/wiki/Sage_(mathematics_software)" target="_blank">Sage Math</a> (computer algebra system)<br />
<br />
...and <a href="http://en.wikipedia.org/wiki/List_of_free_and_open-source_software_packages" target="_blank">the list goes on</a>.<br />
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Even if you don't think you have any installed, most of the computers that host webpages are running the <a href="http://httpd.apache.org/" target="_blank">Apache HTTP Server</a>, an open source project. Proprietary software also reuses chunks of open-source software to accomplish common software tasks without having to write everything from scratch. And that's one of the greatest things about the open software movement: it creates a huge bank of code that anyone is free to draw from, study, and incorporate into their own projects—once something is 'done right', the product is available to everyone, for free, forever. This is in contrast to many proprietary software projects, where corporate policy is to <a href="http://en.wikipedia.org/wiki/Apple_Computer,_Inc._v._Microsoft_Corp." target="_blank">patent every feature and algorithm</a> to keep anyone else from using it for 17 years.<br />
<br />
<a name='more'></a><hr /><h3>What is Open Source Software?</h3><br />
The 'source' in 'open source' refers to the source code, which is the text that a programmer writes. The source code is then often 'compiled' into the program that you run. If you only have the compiled program, you can't easily see how it works or make changes to it—you need the source code to do that. In open source projects, the source code is publicly available.<br />
<br />
When talking about open source software, you may also see the terms "Free and Open Source Software" (FOSS) and "Free, Libre, Open Source Software" (FLOSS).<br />
<br />
According to the <a href="http://www.fsf.org/" target="_blank">Free Software Foundation</a>:<br />
<blockquote>“Free software” means software that respects users' freedom and community. Roughly, it means that the users have the freedom to run, copy, distribute, study, change and improve the software. Thus, “free software” is a matter of liberty, not price. To understand the concept, you should think of “free” as in “free speech,” not as in “free beer”.</blockquote>Richard Stallman, founder of the Free Software Foundation and the GNU Project, lists four freedoms that are preconditions for free, open source software:<br />
<blockquote>0) The freedom to run the program as you wish, for any purpose<br />
1) The freedom to study how the program works and change it as you wish<br />
2) The freedom to redistribute copies<br />
3) The freedom to distribute copies of your modified versions to others</blockquote>Free software communicates these freedoms to users with a <a href="http://en.wikipedia.org/wiki/Free_software_license" target="_blank">free software license</a>. In contrast, proprietary software licenses restrict how software may be used and prohibit modification and redistribution.<br />
<br />
<hr /><h3>Why Do People Use Open Source Software?</h3><br />
As mentioned above, many people use open source software and don't even realize it!<br />
<br />
For those seeking financial independence? Simple: it's free! Never pay for software again.<br />
<br />
Many computer enthusiasts turn to open source solutions for greater software choice, customizability, and (this may surprise you!) ease of use. Used to hunting around on the Internet to find .exe files to install the software you want? A .exe could theoretically be <u>anything</u>, and this is where people run into trouble and end up installing viruses, malware, keyloggers, browser hijackers, and other garbage. In Ubuntu Linux, a popular open source operating system, you search for the software you want in the Ubuntu Software Center:<br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2f3EpNh8bkWO380TCtDdot7d3nVRScMV95NuFl8oDXp6nVyofwX7FeDqPrrtI9nrRn2IdIC6IXwLdM7QaQvlvZlcc9wNji4AuJaVnRN8SO5dcUZdlu7GumKrXnyopH1fY2xM2wB61Awc/s1600/Software+Center.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2f3EpNh8bkWO380TCtDdot7d3nVRScMV95NuFl8oDXp6nVyofwX7FeDqPrrtI9nrRn2IdIC6IXwLdM7QaQvlvZlcc9wNji4AuJaVnRN8SO5dcUZdlu7GumKrXnyopH1fY2xM2wB61Awc/s1600/Software+Center.png" height="640" width="607" /></a></div><br />
Like an App Store, one click and it's installed! Software updates <i>for every installed program</i> are also handled through a single interface.<br />
<br />
This is just one example. Simply put, it's easier for an experienced user to configure a fully-open system to look and act exactly how they want it to.<br />
<br />
Some people use it to do amazing things in resource-limited situations. Rob Litte, a teacher I met at Maker Faire, created three computer labs for students in the Oakland public schools by installing open source operating systems (Ubuntu Linux) and software on computers he rescued from county salvage. Many open source software packages are designed to use limited computing resources, so it can take old hardware that can't run the latest Microsoft and Apple operating systems and turn it into perfectly usable systems for learning and play.<br />
<br />
Other projects that seek to improve computer access, such as the <a href="http://ewastecollective.org/" target="_blank">Alameda County Home Computer Placement Program</a> and <a href="http://one.laptop.org/" target="_blank">One Laptop Per Child</a>, also use open source software on their machines. These programs would not be possible if they were required to spend hundreds of dollars per computer to install Windows and Microsoft Office.<br />
<br />
Many governments (<a href="http://siliconangle.com/blog/2014/03/18/your-u-s-government-uses-open-source-software-oss-and-loves-it/" target="_blank">parts of the US</a>, <a href="http://www.finance.gov.au/policy-guides-procurement/open-source-software/" target="_blank">Australia</a>, <a href="http://opensource.com/government/14/5/city-vienna-open-source" target="_blank">Austria</a>, <a href="http://www.theguardian.com/technology/2014/jan/29/uk-government-plans-switch-to-open-source-from-microsoft-office-suite" target="_blank">soon the UK</a>, <a href="http://en.wikipedia.org/wiki/List_of_Linux_adopters" target="_blank">many others</a>) have switched to open source software to improve cost savings and interoperability. Open source software is more likely to adhere to open interoperability standards, so documents and data created using open source software is much more likely to be accessible by anyone.<br />
<br />
It can also be argued that it is harder for governments and organizations to hide spying and surveillance systems in open source software. By definition the source code is publicly viewable by anyone, so it would be much harder to sneak in malicious code without it being found.<br />
<br />
Customizability, performance, cost savings, security, philosophical reasons... all kinds of people come to open source for all kinds of reasons.<br />
<br />
<hr /><h3>Why Do People Contribute to Open Source Software?</h3><br />
Most open source software is developed by large teams of volunteers who collaborate over the Internet. Why would someone write software for no pay and release it for free?<br />
<br />
Lots of reasons:<br />
<br />
<ol><li>Makers, scientists, and entrepreneurs who want to create new tools</li>
<li>software engineers looking to improve their skills</li>
<li>computer enthusiasts interested in working on a public resource to 'give back'</li>
<li>hackers (<a href="http://en.wikipedia.org/wiki/Hacker" target="_blank">the good kind</a>) building a reputation</li>
<li>security experts, designers, and artists practicing their craft</li>
<li>problem solvers interested in challenging problems</li>
</ol><br />
Contributing to an open source project doesn't just have to mean writing software. Many people volunteer to write and improve software documentation, maintain websites, answer questions in forums, test new versions, create audio and visual assets for programs, and more.<br />
<br class="Apple-interchange-newline" /> <hr /><h3>Want to Learn More?</h3><br />
Whatever operating system you're currently running, there is open source software available to you. Check out some of the software listed above, and read more about the open source movement on the <a href="http://www.fsf.org/" target="_blank">Free Software Foundation</a> website.<br />
<br />
If you'd like to go a little deeper, consider trying out an open source operating system. <a href="http://www.ubuntu.com/" target="_blank">Ubuntu Linux</a> is a good place to start! You can <a href="https://help.ubuntu.com/community/Installation" target="_blank">install Ubuntu</a> right alongside your current operating system, or try it out on an older computer that no longer runs the newest operating systems. The online documentation is excellent, and the vast majority of hardware will work right out of the box. Microsoft is no longer supporting Windows XP, so this is the perfect opportunity to try something different and breathe some new life into an old system.<br />
<br />
Questions? Leave them in the comments!BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-57128585174143040252014-06-02T00:01:00.000-07:002014-06-13T17:42:21.659-07:00Financial Independence and the Maker MovementHad he attended <a href="http://makerfaire.com/bay-area-2014/" target="_blank">Maker Faire</a>, P.T. Barnum would have had some different ideas about "The Greatest Show on Earth".<br />
<br />
<div style="text-align: center;"><iframe allowfullscreen="" frameborder="0" height="315" src="//www.youtube.com/embed/pU8YXxfxBo4" width="560"></iframe><br />
</div><div style="text-align: center;"><span style="font-size: x-small;"><i>a keyboard player jams in a Faraday cage on two huge audio-modulated solid state Tesla coils</i></span></div><br />
Two weeks ago, I spent the day wandering a maze of wonders down in San Mateo.<br />
<br />
There were robots that looked like art and robots that <i>made</i> art. There were 3D scanners and 3D printers and 3D printers printing more 3D printers. There was homegrown algae and homebrew and homebrewed indie electronics for homebrewing. There were Tesla coils and drones and homemade radios and solar cookers and container houses. There were artists, scientists, educators, engineers, and musicians. There was teaching and learning and exploring and building and doing.<br />
<div><br />
In a word? There was Making.<br />
<br />
<a name='more'></a><hr /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidLmXqfbsfc3_tmxWTuKXsxb2broMNx0-Hs9nthwoce6KKhDcOp7F9zMjU0g6rADx2_tju21z05QEpdzlg6OmIAqk-S0C9GWK-pwva9FyrGnGLI-XLxcj-ZS5u_J84bHSPjffWRuikLkA/s1600/maker-faire-bay-area-2014-9th-annual-38.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidLmXqfbsfc3_tmxWTuKXsxb2broMNx0-Hs9nthwoce6KKhDcOp7F9zMjU0g6rADx2_tju21z05QEpdzlg6OmIAqk-S0C9GWK-pwva9FyrGnGLI-XLxcj-ZS5u_J84bHSPjffWRuikLkA/s1600/maker-faire-bay-area-2014-9th-annual-38.jpeg" height="320" width="320" /></a><br />
Making is one thing the world could use a heck of a lot more of. These Makers are combining old ideas with new (and <a href="http://makerfaire.com/makers/solar-steam-powered-printing-press/" target="_blank">old</a>) technology to <a href="http://makezine.com/2014/04/10/pro-snowboarder-mike-basichs-off-grid-diy-home-in-the-sierras/" target="_blank">push the boundaries of 'do-it-yourself'</a>. They're getting people excited about <a href="http://www.arrl.org/technology" target="_blank">science and engineering</a>. They're <a href="http://www.sparkyswidgets.com/" target="_blank">creating new tools</a> and <a href="https://www.manylabs.org/" target="_blank">sharing their ideas and their designs</a>, not primarily for money but for the love of creating and sharing. They're <a href="https://sites.google.com/site/robertlitteportfolio/" target="_blank">making great things happen with limited resources</a> and teaching the next generation <a href="http://earlyretirementextreme.com/on-gratification.html" target="_blank">how much better it feels</a> to say "I made that" than "I purchased that".<br />
<br />
And many of these Makers have full-time jobs and do all of this stuff on the side.<br />
<br />
How cool would it be if they had more time to share what they've learned? How cool would it be if we all had more time to explore and to learn and to Make?<br />
<br />
Good news! This is entirely possible. All you have to do is solve the Personal Finance Problem.</div>BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-30265345476786611642014-06-01T11:34:00.002-07:002014-06-13T17:41:46.023-07:00Save Money on PrintingAhh, the inkjet printer: a burning moneypit of frustration and despair!<br />
<br />
Printing is terrible. Here are some tips for reducing the pain.<br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="http://upload.wikimedia.org/wikipedia/commons/thumb/0/03/Hoe's_six-cylinder_press.png/1024px-Hoe's_six-cylinder_press.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://upload.wikimedia.org/wikipedia/commons/thumb/0/03/Hoe's_six-cylinder_press.png/1024px-Hoe's_six-cylinder_press.png" height="376" width="640" /></a></div><br />
<a name='more'></a><hr /><h3>Do You Need to Print That?</h3><div><br />
</div><div>Can you scrawl it on a notecard? Can you bring it up on your electronic device? Can you close your eyes and remember it?</div><div><br />
</div><div>If so, don't print it. Printing depletes resources and costs you money.</div><br />
<hr /><h3>Rarely Print? Stick it to The Man!</h3><br />
By 'The Man', I mean wherever you work.<br />
<br />
Most office jobs will probably let you print a shopping list or a map every now and then without any trouble. If your personal printing volume is low, the capital cost of a printer is unlikely to be worth it, and inkjet cartridges will likely dry out and gum up on you before you have a chance to use them.<br />
<br />
<hr /><h3>Choosing a Printer</h3><br />
<b>1. The most expensive printer is often a free printer</b><br />
<br />
You may come across a fairly new-looking printer on the curb, find some mail-in rebate, or even get a printer for free bundled with a computer or digital camera. Beware! Printer manufacturers have to make money somewhere, and many do so by killing you on ink.<br />
<br />
A couple months ago, I found a brand-new-looking Epson NX130 in its original box on the street. Upon hooking it up at home, it absolutely refused to print—even in black and white!—because one of the ink colors had run out. I tried refilling the cartridges, but no luck: the cartridges contain a microchip that automatically disables them after a certain amount of printing. I hunted around for software reset solutions and even spent $2 on a cheap piece of junk that purported to reset the chip (it didn't work), but nothing was successful. The owner had thrown this printer out when the ink ran dry, and for good reason.<br />
<br />
Don't assume that a cheap printer means cheap printing: <a href="http://www.amazon.com/dp/B007ZLALUG/" target="_blank">genuine Epson black ink</a> alone is 6.5 cents per page!<br />
<br />
<b>2. Don't need color? Buy a laser printer!</b><br />
<br />
Even using a best-in-class Brother inkjet printer with <a href="http://www.amazon.com/Brother-Printer-LC103BK-Yield-Cartridge/dp/B0095ZBUGY/" target="_blank">an economical high-capacity black ink cartridge</a>, you'll end up paying at least 3.5 cents per page; with lesser brands and smaller cartridges, the cost is easily tripled. Inkjet printers also suffer from clogged jets that can require frequent cleaning of the print heads, wasting ink. "Standard capacity" inkjet cartridges only print 150-200 pages, while "high capacity" are still only 400-600 pages. If you're printing in color, double the cost and quadruple the frequency you'll need to mess with cartridge refilling or replacement. Color cartridges are <a href="http://www.amazon.com/dp/B0095ZBTZQ/" target="_blank">typically sold in three-packs</a>, so be prepared to accumulate unwanted cartridges of whatever colors you print less frequently.<br />
<br />
Contrast this with <a href="http://www.amazon.com/dp/B003YFHCKY/" target="_blank">high-capacity laser printer toner cartridges</a>: 2,600 pages at 1.5 cents per page or less, with no jets to clog nor print heads to clean. There is a good reason why businesses that print a lot overwhelming choose laser printers!<br />
<br />
What about color laser printers? More colors, more problems. <a href="http://www.amazon.com/dp/B00439GOL8/" target="_blank">Color laser printers cost twice as much</a> and <a href="http://www.amazon.com/dp/B00CDJ2BVC/r" target="_blank">color toner is expensive</a>.<br />
<br />
<b>3. Need color? Buy an inkjet with refillable cartridges!</b><br />
<br />
Printer manufacturers are screwing you on ink.<br />
<br />
They do things like engineering ink cartridges to be <a href="http://freedomtoprint.com/2010/07/13/review-inside-the-cc641wn-hp-60-xl-60xl-black-ink-cartridge-cracked-open/" target="_blank">mostly empty</a> and putting proprietary microchips in their cartridges to <a href="http://en.wikipedia.org/wiki/Inkjet_printer#Business_model" target="_blank">stop printing when there's still ink left and prevent refilling</a>. Printer ink is <a href="http://visual.ly/printer-ink-most-expensive-liquid-world" target="_blank">one of the most expensive liquids</a> <a href="http://www.infographicpost.com/most-expensive-liquids-printer-ink-wins/2012/04/26" target="_blank">in the world</a>!<br />
<br />
Keep your printing costs reasonable by selecting a printer that will allow you to <a href="http://www.amazon.com/dp/B003D7NSPG/" target="_blank">refill the cartridges</a>. Ideally, this means no microchips and no printing 'hard cutoff'—the printer should allow you to attempt to print, even if it thinks that one or more of your inks are low! Brother and older-model HP printers tend to meet these requirements, but your best bet is to double-check the specific model that you're interested in to make sure.<br />
<br />
If you print very often in color, consider a <a href="http://en.wikipedia.org/wiki/Continuous_ink_system" target="_blank">continuous ink system</a> with refillable tanks, like this one for the <a href="http://www.amazon.com/dp/B005HFJFK4/" target="_blank">Epson Artisan</a> inkjet printer.<br />
<br />
<hr /><h3>Always Choose The Frugal Setting</h3><br />
Inkjet printers often call it 'Fast Draft' while laser printers might list it under 'Toner Saver'. Whatever it's called, turn this setting on! You will probably do this in the printer's software; in Ubuntu 14.04, it's listed under Print Quality in Printer Options:<br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi20pFubT3tRoyH1Hy0InR4y3ER-WKPX4RzUU9rsQO7bwzR5TRJ2riw9jKirF-NQi9S1LBgvO7xD65JEJPd_D9AQKiqP9oaHjECxeSZT8AgoHgK3sCOYoq3978B0Kc54Mw0nhx3lhY9Z3c/s1600/FastDraft.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi20pFubT3tRoyH1Hy0InR4y3ER-WKPX4RzUU9rsQO7bwzR5TRJ2riw9jKirF-NQi9S1LBgvO7xD65JEJPd_D9AQKiqP9oaHjECxeSZT8AgoHgK3sCOYoq3978B0Kc54Mw0nhx3lhY9Z3c/s1600/FastDraft.png" /></a></div><br />
Inkjet printers love to soak the page with precious, precious ink, and choosing Fast Draft will help cut down on this. The grays will be lighter and the colors won't be as brilliant, but on all printers I've tried the pages are still very readable. The number of pages you can print between ink or toner refills may be greatly increased, and your pages will print even faster!<br />
<br />
<hr /><h3>Common Sense Printing</h3><b><br />
</b> <b>1. Only print the parts of a document that you need</b><br />
<br />
Install an adblocking extension to avoid wasting ink or toner on big colorful blocks of advertisements.<br />
<br />
Only need the text from a recipe with photos? Copy and paste it into a text document and print that.<br />
<br />
Only need a chunk of a document? Use a screenshot tool—most operating systems come with one—to take a screenshot of the area you need; copy that into a document and print from there.<br />
<br />
Always use 'print preview' to see if you can leave off that last page! It might just be the site footer.<br />
<br />
<b>2. Print multiple pages per side</b><br />
<br />
Diagrams, slide decks, and even text may still be perfectly readable when printed two or more to one side of a sheet of regular 8"x11" paper. Some programs may give you the option to do this when you print from them, or you may need to dig into your printer software's settings to find the option.<br />
<br />
<b>3. Use cheap paper, duplex your print jobs, and reduce the margins</b><br />
<br />
The ink isn't your only running cost to print: you're paying for the paper to print on, too. If the stuff you're printing is usually used once and then <strike>thrown out</strike> recycled, might as well buy the cheapest paper you can find—in bulk online, you can get paper for $0.01/sheet, shipped.<br />
<br />
If your printer has a built-in duplexer, you can print to both sides of the sheet and cut your paper use in half. You can turn duplexing 'on' by default in the printer software. Fast Draft / Toner Saver mode improves duplexing by reducing page bleed-through.<br />
<br />
Last but not least: reduce your margins! Google Docs, LibreOffice, and Microsoft Office all default to margins that are excessively large. Push the margins out and print more per page.<br />
<br />
<hr /><h3>Cost-Effective Printers and Supplies</h3><blockquote>None of these links are affiliate links, so I'm not incentivized for recommending them.<br />
As always, buy used whenever possible.</blockquote>For a good duplexing laser printer, try the <a href="http://www.amazon.com/dp/B00450DVDY/" target="_blank">Brother HL-2270DW</a>.<br />
<div><br />
</div><div>Paper? Try <a href="http://www.amazon.com/dp/B00BB5DJU6/" target="_blank">GP Spectrum Multiuse</a>—$15 for 1500 sheets.</div><div>Ink refills? Try <a href="http://www.amazon.com/dp/B003D7NSPG/" target="_blank">Cartridge Ink Refill Kit</a>—refill a 15mL cartridge 40x for $16.</div><div>Toner refills? Try <a href="http://www.amazon.com/dp/B004WSO73W/" target="_blank">Brother High-Yield Toner Refill</a>—$5 instead of $45 for <a href="http://www.amazon.com/dp/B003YFHCKY/" target="_blank">a new cartridge</a>!</div><div><br />
</div><div>If you <u>must</u> buy a color inkjet printer, make sure it supports DIY cartridge refills! Cartridge World, a manufacturer of refilled cartridges and refill kits, <a href="http://www.cartridgeworldlhc.com/?id=55" target="_blank">highly recommends Brother inkjet printers</a> for their lack of refill-preventing technology. Older-model HP, Epson, and Canon printers are less likely to have cartridge microchips and other nonsense, so buying used can pay off.<br />
<br />
Myself? I do 90% of my printing for free at work, and I have an older HP Photosmart C4780 that accepts ink refills and will print indefinitely, even if it thinks a cartridge is empty. Here's to not wasting money on trivial things!</div>BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-49527043281908978152014-05-24T02:42:00.002-07:002015-07-27T12:58:29.891-07:00Real Estate: Buying vs. RentingBuying a house is a critical component in the American success narrative... which should automatically make you suspicious.<br />
<br />
If homeownership is nothing else, it's popular. Through all of the economic gyrations of the past 50 years, ownership rates have consistently stayed within a few points of 65%:<br />
<a href="http://en.wikipedia.org/wiki/Homeownership_in_the_United_States" imageanchor="1" target="_blank"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgBjildZetd0D3somNxqAbveQh9cwNpVhlV3OFhk96lDnqFxLQmAe4nkCk4i0NU39Vvawe9tIFODw91UcV3nDEVDeCsUnv4_2iz6DsXcx6RALYfBK30OqgSnymHQqS5KuQ6Jxw1JpMQQUc/s1600/Historic_U.S._Homeownership_Rate,_as_of_2014.svg.png" /></a><br />
<br />
Does the omnipresent "housing is a great investment" advice jive with reality?<br />
Let's look at some numbers.<br />
<br />
<a name='more'></a><hr /><h3>History</h3><br />
Housing has gotten more expensive, even after you adjust for inflation:<br />
<br />
<iframe frameborder="0" height="371" scrolling="no" seamless="" src="//docs.google.com/spreadsheets/d/1ByhkJgcsuIxht_4OpxVqzPhuCDBWk3G8lbJ1W_MDzz0/gviz/chartiframe?oid=502187660" width="838"></iframe><br />
<br />
As <a href="http://www.andhigherstill.com/2013/10/budget-throwdown-average-american.html" target="_blank">I've mentioned previously</a>, housing costs now account for a third of the average household's expenditures:<br />
<script src="//ajax.googleapis.com/ajax/static/modules/gviz/1.0/chart.js" type="text/javascript"> {"dataSourceUrl":"//docs.google.com/spreadsheet/tq?key=0AiEk9zzYZVLgdENncEpkd2VGZEJiOHBpRjFCTFktRFE&transpose=0&headers=0&range=A20%3AB26&gid=7&pub=1","options":{"titleTextStyle":{"bold":true,"color":"#000","fontSize":16},"legendTextStyle":{"color":"#222","fontSize":"14"},"animation":{"duration":500},"colors":["#3366CC","#DC3912","#FF9900","#109618","#990099","#0099C6","#DD4477","#66AA00","#B82E2E","#316395","#994499","#22AA99","#AAAA11","#6633CC","#E67300","#8B0707","#651067","#329262","#5574A6","#3B3EAC","#B77322","#16D620","#B91383","#F4359E","#9C5935","#A9C413","#2A778D","#668D1C","#BEA413","#0C5922","#743411"],"width":730,"is3D":false,"hAxis":{"useFormatFromData":true,"title":"Horizontal axis title","minValue":null,"viewWindow":{"min":null,"max":null},"maxValue":null},"vAxes":[{"useFormatFromData":true,"title":"Left vertical axis title","minValue":null,"viewWindow":{"min":null,"max":null},"maxValue":null},{"useFormatFromData":true,"minValue":null,"viewWindow":{"min":null,"max":null},"maxValue":null}],"pieHole":0,"booleanRole":"certainty","title":"The Average American","height":360,"focusTarget":"series","tooltip":{"trigger":"none"}},"state":{},"view":{},"isDefaultVisualization":true,"chartType":"PieChart","chartName":"Chart 13"} </script><br />
<br />
What else is happening to the average household? It's getting smaller:<br />
<br />
<iframe frameborder="0" height="371" scrolling="no" seamless="" src="//docs.google.com/spreadsheets/d/1ByhkJgcsuIxht_4OpxVqzPhuCDBWk3G8lbJ1W_MDzz0/gviz/chartiframe?oid=864073679" width="600"></iframe><br />
<br />
While the average house is getting bigger:<br />
<br />
<iframe frameborder="0" height="371" scrolling="no" seamless="" src="//docs.google.com/spreadsheets/d/1ByhkJgcsuIxht_4OpxVqzPhuCDBWk3G8lbJ1W_MDzz0/gviz/chartiframe?oid=1059468627" width="600"></iframe><br />
<br />
Which is leaving each member of that shrinking average household with MUCH more space:<br />
<br />
<iframe frameborder="0" height="371" scrolling="no" seamless="" src="//docs.google.com/spreadsheets/d/1ByhkJgcsuIxht_4OpxVqzPhuCDBWk3G8lbJ1W_MDzz0/gviz/chartiframe?oid=437200757" width="600"></iframe><br />
<br />
When you normalize by home size, the price of a house per square foot has actually remained constant:<br />
<br />
<iframe frameborder="0" height="371" scrolling="no" seamless="" src="//docs.google.com/spreadsheets/d/1ByhkJgcsuIxht_4OpxVqzPhuCDBWk3G8lbJ1W_MDzz0/gviz/chartiframe?oid=2067736835" width="838"></iframe><br />
<br />
This begs the question: are homes today more expensive because the value of real estate has risen, or just because <b>new homes today are 2.35x larger than they were in 1950?</b><br />
<br />
(And what the heck are people doing with all of that extra space? Why, they're filling it with junk and <a href="http://www.andhigherstill.com/2014/02/storage-units-unfortunate-trend.html">renting a storage unit</a> besides!)<br />
<br />
<hr /><h4>Don't Forget Opportunity Cost</h4><br />
<blockquote>"Buying is great: once you pay off the mortgage, you don't have to pay anything!"</blockquote><iframe frameborder="0" height="371" scrolling="no" seamless="" src="//docs.google.com/spreadsheets/d/1ByhkJgcsuIxht_4OpxVqzPhuCDBWk3G8lbJ1W_MDzz0/gviz/chartiframe?oid=768044403" width="768"></iframe><br />
<br />
This may be true if you live in a cave, but real houses come with maintenance, property tax, and insurance costs that erode your returns. Worse yet: real estate values have never kept pace with the stock market over the long term. Once you take into account the opportunity cost of buying a home instead of investing elsewhere, the graph looks markedly different:<br />
<br />
<iframe frameborder="0" height="428" scrolling="no" seamless="" src="//docs.google.com/spreadsheets/d/1ByhkJgcsuIxht_4OpxVqzPhuCDBWk3G8lbJ1W_MDzz0/gviz/chartiframe?oid=807101887" width="689"></iframe><br />
<br />
Not so clear-cut anymore!<br />
<br />
This graph also takes into account the quantitative effects of another nasty feature of real estate: transaction costs on the order of 5-6% that the seller is responsible for covering. I'm definitely not the first person to question the investment value of a home: this Thursday is the one-year anniversary of <a href="http://jlcollinsnh.com/2013/05/29/why-your-house-is-a-terrible-investment/" target="_blank">an excellent article by Jim Collins</a> on this topic. (There are ways around this! Just ask <a href="http://www.mrmoneymustache.com/2012/11/23/real-estate-investment-madness/" target="_blank">Mr. Money Mustache</a>—if you happen to know someone with a real estate license, this gigantic transaction cost can be made to disappear).<br />
<br />
These graphs only reflect the lifetime costs associated with a single set of parameters. <a href="https://docs.google.com/spreadsheets/d/1ByhkJgcsuIxht_4OpxVqzPhuCDBWk3G8lbJ1W_MDzz0/edit#gid=0" target="_blank">Make your own copy of my spreadsheet</a> and try some different numbers. The New York Times published a similar <a href="http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html" target="_blank">buy-vs-rent calculator</a> in 2014.<br />
<br class="Apple-interchange-newline" /> <hr /><h4>The Point I Mean To Make</h4><br />
In a purely quantitative sense, either option can come out ahead depending on your circumstances. Real estate can have a place in a well-thought-out portfolio, but the emphasis here is on the <u>thinking</u>: don't <u>assume</u> a house is a good investment for you, and don't <u>assume</u> that buying a house is something that you inevitably must do. Housing is a very expensive category, which means that <u>this is where you have the opportunity to save the big money</u>.<br />
<br />
<b>"You pays your money and you takes your choice."</b> Do the math and consciously acknowledge what your decisions are going to cost you in the long-term.<br />
<br />
How do buying and renting compare qualitatively, from a quality-of-life perspective? How about <i>philosophically</i>? <br />
<br />
Renting has a lot going for it, which I'll expand upon in a future article.BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-28438635729917887702014-02-24T10:33:00.001-08:002014-06-13T17:41:38.537-07:00Storage Units: An Unfortunate TrendSelf-storage facilities: they seem to be popping up in urban and suburban regions everywhere, appearing like weeds after the rain on low-value land on the outskirts of town. They run specials like "first month's rent is only a dollar!", enticing new customers with the promise of a few extra square feet of off-site closet space.<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuSGC12jQPZckq4kak2ddEQO1GSjVHvmkTFo13oXeCZKB-yzvvBQnEzqXRzhfhzR5OiYg3jEGM0pVw4unYIto9NRm-Q1MnqDRxNAih1Azc3Gwc1tiX70XL0X10tereR68pq4vk9CP3nMY/s1600/Self_storage_units.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuSGC12jQPZckq4kak2ddEQO1GSjVHvmkTFo13oXeCZKB-yzvvBQnEzqXRzhfhzR5OiYg3jEGM0pVw4unYIto9NRm-Q1MnqDRxNAih1Azc3Gwc1tiX70XL0X10tereR68pq4vk9CP3nMY/s1600/Self_storage_units.jpg" height="480" width="640" /></a></div><br />
<a name='more'></a><hr /><h3>The Rise of Self-Storage</h3><br />
I don't remember seeing self-storage places around town while I was growing up. Has self-storage become a <b>national trend</b>, or is it just advertised more heavily nowadays?<br />
<br />
I couldn't find the graph I really wanted to visualize the trend, so I did some creative Googling through a number of real estate trade journals and came up with this (<a href="https://docs.google.com/spreadsheets/d/13wnLL4tlKtlhCuYNl12Jh60gPNMarVrgMnVCvT_WziA/edit#gid=749938680">original data</a>):<br />
<iframe frameborder="0" height="470" scrolling="no" seamless="" src="//docs.google.com/spreadsheets/d/13wnLL4tlKtlhCuYNl12Jh60gPNMarVrgMnVCvT_WziA/gviz/chartiframe?oid=1418105978" width="759"></iframe><br />
Self-storage square-footage in the US approximately doubled from 1990 to 2000 and then again from 2000 to 2013, while the US population only increased 25% over the entire period. The rise in self-storage is a very modern trend!<br />
<br />
The United States population as of 2012 was around 314 million, while the total square footage of rentable self-storage space reached 2.3 billion. This means that that there are around 7.3 square feet of self-storage in this country for every man, woman, and child—enough for everyone to comfortably stand inside at once!<br />
<br />
According to the nonprofit Self Storage Association trade group, the growth in self-storage is an American-only trend: while <b>the US has close to 50,000 self-storage facilities</b>, the entirety of Europe (population 740 million, ~235% of the US) has only 1,600. <b>Germany</b>, which has over a quarter the population of the US, <b>got its first 10 self-storage facilities in 2002</b> and even now has only 100.<br />
<br class="Apple-interchange-newline" /> <hr /><h3>Self-Storage Uses</h3><div><br />
</div>Self-storage is typically marketed for the temporary storage of belongings during a life transition such as a move, marriage, divorce, or death. According to the Self Storage Association, however, most users plan on staying for extended periods of time:<br />
<iframe frameborder="0" height="371" scrolling="no" seamless="" src="//docs.google.com/spreadsheets/d/13wnLL4tlKtlhCuYNl12Jh60gPNMarVrgMnVCvT_WziA/gviz/chartiframe?oid=1708525680" width="663"></iframe><br />
The average customer ends up staying 12-18 months, and many stay for years. If you have a bunch of junk sitting in storage in another state, it may just seem easier to keep paying the rental bill than to rent a truck and take care of it once and for all.<br />
<br />
<hr /><h3>The Cost of Self-Storage</h3><div><br />
</div><div>According to the nonprofit Self Storage Association trade group, the average 10'x10' non-climate-controlled self-storage unit rented for $115 per month in Q3 2013 (climate control would set you back an extra $30 per month). At an average US household size of 2.64 people (2011) and an average per-person self-storage allotment of 7.3 feet, this means that the average US household is on the hook for around $22 per month ($265 per year) in self-storage fees.</div><br />
On its own this doesn't sound terrible, until you take into account that one-tenth of households are responsible for all self-storage usage. For these households, this brings the monthly bill to $220 per month ($2650 per year).<br />
<br />
Did I mention that 47% of these renters have an <b>annual household income of less than $50,000</b>?<br />
<br />
<hr /><h3>Self-Storage: Don't Do It</h3><br />
As I'll discuss in an upcoming article, the median square footage per household member of a new home has tripled from 1950 to the present. And yet, many manage to fill this space with junk and insist on renting a little more. A month or two of storage to tide you over can quickly become a multi-year investment on stuff that you obviously don't use. What deck chairs, end tables, and dish sets could possibly be worth the $41 per <u>square foot</u> it costs to rent one of these units for three years? Even your Beanie Babies and Pokemon cards are unlikely to appreciate at those rates.<br />
<br />
The truth is, <b>it would be nice to have a little less junk around the house</b>. But don't pay to store stuff you don't need: <a href="http://www.andhigherstill.com/2013/05/thrift-is-beautiful-stuff-you-already.html" target="_blank">use it, sell it, or give it away</a>!<br />
<br />
<div></div><hr /><h3>Resources</h3><div><br />
</div><div>The Onion: <a href="http://www.theonion.com/articles/local-selfstorage-facility-a-museum-of-personal-fa,1768/" target="_blank">Local Self-Storage Facility A Museum Of Personal Failure</a></div>The New York Times: <a href="http://www.nytimes.com/2009/09/06/magazine/06self-storage-t.html" target="_blank">The Self-Storage Self</a><br />
Slate: <a href="http://www.slate.com/articles/arts/culturebox/2005/07/selfstorage_nation.html" target="_blank">Self-Storage Nation</a><br />
AlterNet: <a href="http://www.alternet.org/story/86998/too_much_stuff!_america's_new_love_affair_with_self-storage" target="_blank">America's New Love Affair With Self-Storage</a><br />
<br />
BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-18535013516987609872013-11-03T15:17:00.001-08:002013-11-08T10:58:03.652-08:00Ten Internet Points To You, Sir!If all has gone according to plan, the blog should have just surpassed 50,000 views. We are ten months into the project, so it's about time!<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhWoULS0i1fiSICHoNvHynsTr1jBTzcUY1ZNrkfzu90jRh947-d0R3OPAKowcmaI7xrrq8yiFtnOjL0jEWhYX9OEpS6v5ecT9qxqKMmUomoV1dbCjP5jKKvifDENDeGfTENvpuyYAysTdg/s1600/AwYeahBaby.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhWoULS0i1fiSICHoNvHynsTr1jBTzcUY1ZNrkfzu90jRh947-d0R3OPAKowcmaI7xrrq8yiFtnOjL0jEWhYX9OEpS6v5ecT9qxqKMmUomoV1dbCjP5jKKvifDENDeGfTENvpuyYAysTdg/s320/AwYeahBaby.jpg" width="269" /></a></div>
<br />
<a name='more'></a>Thank you to all of my loyal—and not-so-loyal—readers. I strive to make this blog worth both of our time, and I think that recent efforts to clean the place up are really starting to pay off. We got here without guest posts or artificial hit-increasing techniques, and now <a href="http://www.andhigherstill.com/2013/11/my-objectivity-is-not-for-sale.html" target="_blank">the advertisements and affiliate links are gone for good</a>—sometimes <a href="http://www.andhigherstill.com/2013/10/experiment-write-every-day.html" target="_blank">sitting down and just writing a lot</a> pays off.<br />
<br />
How should you celebrate? By subscribing to receive new posts by <a href="http://feeds.feedblitz.com/AndHigherStill" target="_blank">RSS</a> or <a href="http://www.feedblitz.com/f/?Sub=905224" target="_blank">email</a>, by following me on <a href="https://twitter.com/BC_ChemE" target="_blank">Twitter</a>, and by resharing your favorite articles with friends on <a href="http://www.facebook.com/" target="_blank">Facebook</a>, <a href="http://plus.google.com/" target="_blank">Google+</a>, and whatever else you use, of course!<br />
<br />
<div style="text-align: center;">
<b><span style="font-size: large;"><blink><span style="color: red;">Ten</span> <span style="color: orange;">Internet</span> <span style="color: yellow;">Points! </span></blink></span></b><b><span style="font-size: large;"><blink><span style="color: lime;">Ten</span> <span style="color: blue;">Internet</span> <span style="color: #a64d79;">Points to</span> <span style="color: #674ea7;">everyone!</span></blink></span></b></div>
<div style="text-align: center;">
<br /></div>
BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-5006349353045069142013-11-02T00:01:00.000-07:002013-11-08T15:11:19.406-08:00My Objectivity Is Not For SaleI am done with affiliate linking and advertising.<br />
<br />
I was reading another blog yesterday, specifically a review of a product I have been considering purchasing. I had been to this site many times before. The author's points struck me as fairly convincing, and I was leaning more and more into the 'make the purchase' column.<br />
<br />
And then, there it was: <b>the paid affiliate link.</b> No deal.<br />
<br />
<a name='more'></a><br />
<hr />
<h3>
The Problem</h3>
<br />
<b>Opinions are cheap.</b> If someone, especially an Internet personality that I don't know personally, gives me any reason to suspect that their recommendation is unreliable, I will simply go elsewhere. Self-interest is a pollution that corrupts reader perception and trust wherever it touches, and it can make even the most convincing and objective-sounding efforts look like sheisty peddling.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg21mHJ2XOYH40FBJ-bHpdUDOi6XSiU_i8zV76jijDpoC-Q3LZmvZou-radF8efkkxkdNl40qM2cjYN7MKpQmW5Kym33v0ETdxVIXDm-G1yPruPSnqKbItz27FFPjG6zZ41PTaC2MtihJ4/s1600/Screenshot+from+2013-11-01+17:08:15.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg21mHJ2XOYH40FBJ-bHpdUDOi6XSiU_i8zV76jijDpoC-Q3LZmvZou-radF8efkkxkdNl40qM2cjYN7MKpQmW5Kym33v0ETdxVIXDm-G1yPruPSnqKbItz27FFPjG6zZ41PTaC2MtihJ4/s1600/Screenshot+from+2013-11-01+17:08:15.png" /></a></div>
<br />
I've regarded affiliate linking as a fun way to be rewarded for recommending products and services that I <i>actually recommend</i>. But that's really the problem: regardless of my actual intent, it gives my audience <b>a substantive reason to doubt my honesty</b> and suspect that I am putting my own self-interest above their own.<br />
<br />
<hr />
<h3>
The Solution</h3>
<div>
<br /></div>
In my defense, my advertising density is extremely low compared to many other popular personal finance blogs, and you won't find 'website advertising earnings' anywhere in my financial independence plan. But now I realize that half-measures don't accomplish my goal. My perceived objectivity and my reputation are not for sale.<br />
<br />
I will be removing all advertising and replacing all affiliate links over the next week or so. Please <a href="mailto:brandon.curtis@gmail.com" target="_blank">let me know</a> if I miss any!<br />
<br />
What will happen if, ten years from now, this site hits the big time and I realize I'm giving up on thousands of advertising dollars per month? Why, I'll get creative and <b>come up with ways to make money</b>—selling a book or consulting services or something—<b>that don't require sacrificing any of my credibility.</b><br />
<br />
<hr />
<h3>
A Note to the Big Guys</h3>
<div>
<br /></div>
<div>
While I'm new to the personal finance blogging community, it's beginning to become apparent to me that self-interest is the major factor interfering with accomplishing our stated goal: improving people's lives by educating the wider public about money. Instead of working together to create high-quality, definitive guides, we instead rehash the same ideas over and over again to keep people coming back to our sites. <b> If the focus was more on the mission and less on pageviews and affiliate earnings, the situation might be different.</b></div>
<div>
<br /></div>
<div>
I realize that part of this is due to the fact that we all have slightly different ideas about what we should be recommending. At the same time, wouldn't it be much more effective to run a point-counterpoint on Obamacare or index mutual funds or Personal Capital <b>instead of writing essentially the same article 100+ times</b>?</div>
<div>
<br /></div>
<div>
Perhaps I'm being naive, but I think the concept has merit.</div>
<div>
<br /></div>
BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-11959490115461653412013-10-31T23:59:00.002-07:002013-11-08T10:59:54.201-08:00Experiment 01: Write Every DayThis site has seen a lot of action lately! October encompassed 31 posts in all, one for every day of the month, bringing the total for the year to 80. I'm not going to count the words for you, but it was quite a lot of them.<br />
<br />
So, what was the point of this exercise?<br />
<br />
This was <b>Experiment 01: Write Every Day</b>!<br />
<br />
The result: <b><span style="color: #38761d;">overwhelming success</span></b>.<br />
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgql9SUzpbZu-yBca-ekxpka7AMAwmdRXtTpnSU4rG6QhraQ5R5VfjghDm7lcMpACFycPookV_ZrNkQyzmdY-yzWLx2VK7J9hmX-aLYHsqpqhXLCkekEU90KdaNlxfbpes0CvbfNj2nAfY/s1600/my+favorite+pen+.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgql9SUzpbZu-yBca-ekxpka7AMAwmdRXtTpnSU4rG6QhraQ5R5VfjghDm7lcMpACFycPookV_ZrNkQyzmdY-yzWLx2VK7J9hmX-aLYHsqpqhXLCkekEU90KdaNlxfbpes0CvbfNj2nAfY/s400/my+favorite+pen+.jpg" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">my brainstorming-and-initial-drafting weapon of choice, believe it or not</td></tr>
</tbody></table>
<br />
<a name='more'></a><br /><br />
<hr />
<h3>
Case Studies, Book Reviews, and Experiments</h3>
<br />
I didn't come up with the idea to do these myself; I noticed that other successful bloggers, such as <a href="http://www.andhigherstill.com/2013/05/mind-your-money-mustache.html" target="_blank">Mr. Money Mustache</a>, <a href="http://jlcollinsnh.com/" target="_blank">Jim Collins</a>, and <a href="http://www.andhigherstill.com/2013/09/raptitude.html" target="_blank">Raptitude's David Cain</a>, have used them to good effect. I'm sure some of these guys have paid good money on blogging web courses and how-to books and seminars, which is something I'm just not willing to do; instead, I'd rather shop around, figure out what seems to work, and adapt it to my own purposes. <b>The result: this site</b>.<br />
<br />
If you have a case study, book, or lifestyle experiment you'd like me to look into, <a href="mailto:brandon.curtis@gmail.com" target="_blank">shoot me an email</a>.<br />
<br />
<hr />
<h3>
Experimental Design</h3>
<div>
<br /></div>
<div>
Now, about the Experiment itself!</div>
<br />
<b>The Hypothesis</b><br />
<br />
Using the strategies espoused in <a href="http://www.andhigherstill.com/2013/10/book-review-how-to-write-lot.html" target="_blank"><i>How To Write A Lot</i> (the subject of Book Review 02)</a>, I should be able to write an article of typical length and post it to this blog every single day of the month of October.<br />
<br />
I have no personal experience with (and a little bit of automatic disdain for) word counts or other silly metrics, so I selected the article-a-day goal as a reasonable starting place. In a Raptitude experiment of a similar sort, <a href="http://www.raptitude.com/experiment-log-no-12-%E2%80%93-write-1000-words-a-day/" target="_blank">David lamented that his selected word count requirement was likely his undoing</a>.<br />
<br />
The pace stayed reasonably frantic, ensuring that I felt a constant pressure to write every single day in order to keep up. I counted on my (sometimes disconcertingly high levels of) perfectionism for quality control—under no circumstances do I want to fill this site up with a bunch of filler garbage.<br />
<br />
<b>The Setup</b><br />
<br />
I considered many possible options to further grease the Slide of Success: <b>a rewards system</b> (each week I am successful, reward myself with a nice craft beer beyond what I would typically spend); <b>a punishment system</b> (if I fail to complete the task, donate a non-negligible sum to a charitable organization that I don't agree with); various <b>schemes for increasing my social accountability</b> (telling a whole bunch of people and encouraging them to call me out in a very public way if I failed to deliver). Those who've read some of Tim Ferriss' books (4 Hour Work Week, Body, Chef) will recognize these strategies as being among his favorites, and <b>they sound like they should be effective</b>.<br />
<br />
However, my personal experience has shown that <b>I am far more likely to do something when I focus on the desired outcome itself</b>—the regular writing habit—and that <b>artificial motivating factors are often much less successful than I anticipate</b> (and short-lived even when they are). In August, for example, <a href="http://www.brandoncurtis.net/2013/08/looking-back-moving-forward-july-august.html" target="_blank">I made a proclamation of intended accomplishments</a> to friends and family on my personal blog... and then completely failed to deliver or even follow up. I have a long history of this particular type of failure, and <b>I've begun to suspect that telling lots of people what I plan to do somehow jinxes the proceedings</b>.<br />
<br />
As it turns out, <b>this concern is backed up by experimental evidence</b> in the academic field of psychology. This point deserves is important enough to deserve its own article, so I won't dilute it by going into too much detail here. Suffice it to say, <b>I decided to avoid any public announcements and keep this goal to myself</b>, only telling people about it if they specifically asked about my suddenly-increased post frequency.<br />
<br />
<hr />
<h3>
The Results</h3>
<br />
So what <i>did</i> this experiment accomplish? I finally wrote down lots of stuff I've been meaning to write down. This will save me a significant amount of time, as I can forward people to my articles instead of answering the same questions over and over again.<br />
<br />
This month's writing haul includes:<br />
<br />
<b>Article Series</b><br />
Index Investing<br />
The 529 Plan<br />
Budget Throwdown<br />
My Investments<br />
<br />
<b>Finance Basics</b><br />
Correcting Roth IRA Overcontributions<br />
Hooray, a Raise! DON'T BLOW IT.<br />
Financial Advisors and Fiduciary Duty<br />
<div>
The Debit Card Trap</div>
Free Credit Scores<br />
The Sky Is Falling!<br />
<br />
<b>Thrift Ideas</b><br />
The $0 Phone Plan<br />
The $0 Home Phone<br />
<br />
<b>And Higher Still Labs</b><br />
Case Study 01: Dividing Household Expenses<br />
Book Review 01: Happy Money<br />
Book Review 02: How To Write A Lot<br />
<br />
<b>History and Current Events</b><br />
The Citizen's Dividend<br />
<div>
<br /></div>
This experiment also provided a great opportunity to validate the principles in <a href="http://www.andhigherstill.com/2013/10/book-review-how-to-write-lot.html" target="_blank">Book Review 02</a>.<br />
<br />
<hr />
<h3>
The Discussion</h3>
<div>
<br /></div>
Posting every day this month required writing significantly more than I have ever written before. I quickly found that, practically, it was just a matter of:<br />
<br />
<b>1) Keeping a big list of article ideas and draft snippets</b><br />
I created a Google Doc for organizing my ideas, and carried notecards around with me so that I could capture article ideas that I had throughout the day. This way, when it was Writing Time, I already had plenty of ideas to choose from (and sometimes even some links and a drafted paragraph or two!). I collected far, far more ideas than I could write about in one month, so I will continue to use this list (and this approach) in future months.<br />
<br />
<b>2) Making it a habit to sit down and DO IT</b><br />
The strategic core of <i>How To Write A Lot</i> was the de-magicalization of the writing process. The writing process is more dependent on sustained hard work (akin to mowing the lawn or shoveling snow) than it is on flashes of brilliance and inspiration. This is great news, because it means that anyone can write more simply by committing to write more—'writer's block' simply isn't a thing, and no magic is required to get the job done.<br />
<br />
<b>I definitely found this to be true.</b> By setting a regular deadline and committing myself to meet it... I succeeded! Sometimes this meant hurriedly throwing together a typo-infested page or two on the way out the door to a concert, but I made it happen. This skill will be invaluable in future writing projects (like, oh right, my PhD thesis).<br />
<br />
If you want to write more, I definitely recommend <a href="http://www.andhigherstill.com/2013/10/book-review-how-to-write-lot.html">checking out this book</a> and trying its recommendations for yourself.<br />
<br />
<hr />
<h3>
Future Work</h3>
<div>
<br /></div>
<div>
This site has many new readers as a result of this project, and <b>I've found posting these articles and watching the page hits count up to be highly addictive.</b> Most of the feedback I've received has been very positive, and it feels great to help people by sharing what I've learned. If you have feedback for me, <a href="mailto:brandon.curtis@gmail.com">shoot me an email</a>—I respond to all emails that aren't overly self-promotional.</div>
<div>
<br /></div>
<div>
This was a great experience, but the time investment was more than I will be able to stably maintain. Going forward, <b>I will continue to stoke my writing habit and commit to an average of three articles per week through the end of 2013.</b> That should cut the work roughly in half, and is well within my writing capacity for the weekend mornings. I like the concept of regular postings, and I don't want to reduce article quality just to meet an overly-ambitious target.</div>
<div>
<br /></div>
<div>
If you have a topic request or a case study you'd like me to look into, <a href="mailto:brandon.curtis@gmail.com">send it my way</a>!<br />
<br /></div>
BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-49239715687196860662013-10-30T10:01:00.000-07:002013-11-08T15:11:17.508-08:00Book Review 02: How To Write A LotAfter the success of <a href="http://www.andhigherstill.com/2013/10/book-review-happy-money.html" target="_blank">the first book review</a>, I'm at it again. Our second book review victim is <b>"How to Write a Lot"</b>, by Dr. Paul J. Silvia.<br />
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><span style="margin-left: auto; margin-right: auto;"><a href="http://www.amazon.com/How-Write-Lot-Practical-Productive/dp/1591477433"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhckOQivAK3vtu5PDyr6uvd_Ze9rVWWp8AANt-MxfcI426yXFJ8jzdr-pCCz0dSqapejMQ7oRA2NM9v6Gj-nFCRmXaEhMrj2cFA94JZ9iNmJbIYdjeCuPNjJX6oXDsQz3Ym21l0KJCSGs8/s1600/how+to+write+a+lot+.jpg" /></a></span></td></tr>
<tr><td class="tr-caption" style="text-align: center;">click the image to buy it on Amazon (don't worry, I don't profit!), or check your local library</td></tr>
</tbody></table>
<br />
Paul is <a href="http://www.uncg.edu/~p_silvia/" target="_blank">a psychology professor at the University of North Carolina</a>. This book is primarily aimed at an academic audience—the subtitle is "A Practical Guide to Productive Academic Writing"—but it's lessons are applicable by anyone struggling to write at the desired volumetric rate.<br />
<br />
<a name='more'></a>This book breaks the process down in seven sections:<br />
<ol>
<li>Specious Barriers to Writing a Lot</li>
<li>Motivational Tools</li>
<li>Starting Your Own Agraphia Group</li>
<li>A Brief Foray Into Style</li>
<li>Writing Journal Articles</li>
<li>Writing Books</li>
</ol>
This book is concise, well-written, and Does What It Says On The Box: ★★★★★, highly recommended.<br />
<br />
<hr />
<h3>
Introduction</h3>
<div>
<br /></div>
<div>
Paul does an excellent job of introducing of framing the problems of the typical writer:<br />
<div class="bigblock">
Writing is hard, and I constantly fantasize about all of the writing I'm going to do over a long weekend or a vacation. The long blocks of potential writing time continue to pass by, and I always seem to have much less to show for it than I anticipate. Most of my writing projects are completed at the last possible second, and I have a backlog of writing projects that I've never managed to make much progress on.</div>
The book's stated goal is to strip away the magical mysticism (and associated fear and superstition) surrounding the writing process and reduce it to what it really is: sitting down and moving a pen or punching a keyboard. Writing a lot is a habit just like any other, and the book seeks to show you how to train yourself in that habit.</div>
<div>
<br /></div>
<hr />
<h3>
Specious Barriers to Writing a Lot</h3>
<div>
<b><br />
</b> <b>"I can't find the time to write"</b>, aka "<b>I need long periods of time to write"</b><br />
<br />
Discard the poisonous 'finding time' mentality—ALLOT time. Binge writing is unsustainable and incompatible with your real-world responsibilities—make a schedule to write regularly and adhere to it. Other people will not necessarily respect your writing time, so you're going to have to defend it.<br />
<br />
<b>"One more analysis/one more article/one more <other excuse>, then I'll start writing"</b><br />
<br />
All of the preliminary work that you need to do to successfully write something—data analysis, reading other articles, preparing figures—falls under the domain of 'prewriting'. Break this procrastination habit by doing prewriting during your regularly-scheduled writing time; otherwise you'll never 'find the time' to do any of it.<br />
<br />
<b>"I need a new computer/nicer chair/better pen before I can write more"</b><br />
<br />
No you don't. Plenty of novels have been written on particle board desks and folding chairs.<br />
<br />
<b>"I'm waiting until I feel like writing/feel inspired"</b><br />
<br />
How's that going for you? You bought this book, so probably not so well.<br />
<br />
You're probably never going to feel inspired to write up an operating procedure or an instruction manual, but these are things that sometimes need to be done. Writing is not a mystical inspired activity—in many ways, it has more in common with mowing the lawn or shoveling snow than it does with any epiphany-driven activity. Serious writers become better writers by writing a lot on a regular basis. There are no shortcuts.<br />
<br /></div>
<hr />
<h3>
Motivational Tools</h3>
<div>
<br />
<b>Set goals for your writing project</b><br />
<br />
Figure out everything you are interested in writing in the next year and write it down. Prioritize these projects. Then write down the steps you'll need to take to complete your first project, and prioritize these steps. Set a specific, focused, concrete goal for your <b>scheduled</b> writing time, and get to it.</div>
<div>
<br /></div>
<div>
<b>Monitor your progress</b></div>
<div>
<b><br />
</b></div>
<div>
Use a notebook or make a text document or a spreadsheet to keep track of your progress toward your writing goals. Record when you write, whether or not you meet your goal, and any other information you might like to track. Reward yourself for your successes, but never by skipping scheduled writing!</div>
<div>
<br /></div>
<div>
<b>Writer's Block</b></div>
<div>
<b><br />
</b></div>
<div>
Academic and technical writers do not rely on 'inspiration' and cannot get writers block. My favorite quote from the entire book: <i>"Novelists and poets are the landscape artists and the portrait painters; academic writers are the people with big paint sprayers who repaint your basement."</i></div>
<div>
<br /></div>
<hr />
<h3>
Starting Your Own Agraphia Group</h3>
<div>
<br />
'Agraphia' is the pathological loss of the ability to write. An Agraphia Group is essentially a social support group for those struggling to write more.</div>
<div>
<br /></div>
<div>
Meet briefly once a week and set writing goals as a group. Stick to writing goals only! By making yourself accountable to others, you're more likely to accomplish your stated goals.</div>
<div>
<br /></div>
<div>
Establish some sort of social reward system (baked goods?) for success, and 'strongly encourage' the slackers to pick up the pace.</div>
<div>
<br /></div>
<div>
Consider having the group read books on writing, such as <i>On Writing Well</i> (Zinsser, 2001) or <i>Junk English</i> (Smith, 2001).</div>
<div>
<br /></div>
<div>
Drink exorbitant quantities of coffee.</div>
<div>
<br /></div>
<hr />
<h3>
A Brief Foray Into Style</h3>
<div>
<br />
Academics especially tend to have very poorly-developed writing style. They overcomplicate things to sound smarter, using big words and convoluted phrasing when simplicity would suffice.<br />
<br />
Omit needless words. Simplify sentence structure. Only use abbreviations when they actually simplify your writing. Understand and utilize parallelism. Learn and practice proper usage of the colon, semicolon, hyphen, em-dash, and en-dash. Reel in inappropriate comma usage. Avoid passive, limp, and wordy phrases. This chapter includes plenty of examples, and sparked my ongoing love affair with the em-dash (—).<br />
<br />
Above all: write first, revise later! You can tweak all you want, but focus on getting the superstructure down before you worry over what color to paint the walls.<br />
<br /></div>
<hr />
<h3>
Writing Journal Articles</h3>
<div>
<br />
Guidelines on how to structure an academic journal article and how to manage the writing and review process. A good overview, but not really relevant to non-academics.<br />
<br /></div>
<hr />
<h3>
Writing Books</h3>
<div>
<br />
There are many possible reasons for writing a book: understanding a field better, understanding your <i>own thinking</i> about a field better, conveying ideas that are too complex for other, shorter media.<br />
<br />
The process is fairly straightforward: find a coauthor who complements your knowledge and style and writes a lot, outline the book, and then write it! Organize your progress and resources by chapter, and work your way through sequentially. Don't bother writing the introduction until you've finished everything else: the final product will almost certainly look totally different from what you originally imagined.<br />
<br />
This chapter also includes advice about approaching a publisher and signing a book contract.<br />
<br /></div>
<hr />
And that's it! An ironically short book on writing more, but the tenets are simple.<br />
<div>
<br /></div>
<div>
This all sounds very good in theory, but how does it work out in practice? How have I put this book's lessons to work in my own life? <b>Check back in tomorrow for an extended discussion.</b></div>
<div>
<br /></div>
BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.comtag:blogger.com,1999:blog-8588471803584953396.post-63700053916852201432013-10-29T23:58:00.003-07:002013-11-08T11:04:37.289-08:00My Investments: SkillsEducation has been my primary business over the last twenty years, but it's been far from my only scheme in the works: I've made a huge effort to use every spare minute to develop a wide-ranging collection of hobbies and skills. While I'm counting on leveraging my formal education to finance this Project (i.e. life), it's these other hobbies and skills that will make the process of achieving financial independence (and the Golden Age that will proceed it) a hell of a lot of fun.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjS93s8qpN4wk2NcJLY_ys2gKNzb-pxkB9cgaUDJ5BvbtxO6Ib6BccYHguFEF93ItzTF0EgJzUyZbwzC-yPs6SMltecqloqvVMXnUBSKUFaOAzD0dQhqt8hDXinWaUtYg-KOR0X3Bb8NDA/s1600/IMG_1796.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjS93s8qpN4wk2NcJLY_ys2gKNzb-pxkB9cgaUDJ5BvbtxO6Ib6BccYHguFEF93ItzTF0EgJzUyZbwzC-yPs6SMltecqloqvVMXnUBSKUFaOAzD0dQhqt8hDXinWaUtYg-KOR0X3Bb8NDA/s640/IMG_1796.JPG" width="640" /></a></div>
<br />
Some of these thing save my money directly; others have the potential to actually <i>make</i> me money. Nearly all of them save me money indirectly by allowing me to have fun at little or no direct cost.<br />
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<a name='more'></a><br /><br />
<hr />
<h3>
Transportation Is Fun</h3>
<br />
The <a href="http://www.andhigherstill.com/2013/10/budget-throwdown-average-american.html" target="_blank">Average American</a> spends 17.5% of their income on transportation. What's worse, <b>most of what this money buys them is misery</b>: long, stressful commutes in bad traffic, burning up dollars, burning up time, and starting the day off on the wrong foot before they're even at work. (We've already discussed how living further from work to buy a bigger house in the suburbs <a href="http://www.andhigherstill.com/2013/10/book-review-happy-money.html" target="_blank">is a tragically common mistake</a>)<br />
<br />
In contrast, my commute is 15 minutes of pure fresh-air, wind-in-my-hair joy. It's pretty much stress-free, the only fuel I'm burning is the breakfast I just had, and it's just enough exertion to wake me up in the morning. <b>Bicycles are amazing</b>, and they'll save your wallet, your health, and your sanity if you're smart enough to live within bike commuting distance of your work.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZRdUvthXo-Q4XC2e1NuW6o4gfKL_Tnox_KVScyYryB13o8CmNGJpd0EY0HTOy0vJS-izHQyZLSmoqKqBA0qeeMbd3BFPvEvLf0qjsHRP_JVKEv9lPQST8BQAsfWfbYIxGmUTyhsPD-EA/s1600/IMG_2098.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZRdUvthXo-Q4XC2e1NuW6o4gfKL_Tnox_KVScyYryB13o8CmNGJpd0EY0HTOy0vJS-izHQyZLSmoqKqBA0qeeMbd3BFPvEvLf0qjsHRP_JVKEv9lPQST8BQAsfWfbYIxGmUTyhsPD-EA/s640/IMG_2098.JPG" width="640" /></a></div>
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When I interned in South San Francisco as an undergraduate, <a href="http://goo.gl/maps/3dges" target="_blank">my bike commute was eight miles each way</a>; it was hard the first few times, but within a few weeks I wasn't even thinking about the difficulty. I thought I was pretty badass, until I bragged about it to an older coworker... who was doing eighteen.<br />
<br />
Contrary to popular belief, bikes <a href="http://www.mrmoneymustache.com/2011/10/20/mmm-challenge-try-getting-your-groceries-with-a-bike-trailer/" target="_blank">can haul all manner of things</a> and work just fine <a href="http://www.mrmoneymustache.com/2012/09/26/lighting-up-the-bikes-for-the-darker-half-of-the-year/" target="_blank">in the dark</a> and <a href="http://www.mrmoneymustache.com/2011/11/03/how-to-ride-your-bike-all-winter-and-love-it/" target="_blank">in almost any weather</a>. Unlike a car, <b>most of the things that can go wrong with a bike can be fixed for only a few dollars</b> with basic tools and a few minutes of your time.<br />
<br />
Seriously, <a href="http://www.mrmoneymustache.com/2012/05/07/what-do-you-mean-you-dont-have-a-bike/" target="_blank">get yourself a nice bike</a>.<br />
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<hr />
<h3>
Food Is Fun</h3>
<div>
<br /></div>
The <a href="http://www.andhigherstill.com/2013/10/budget-throwdown-average-american.html" target="_blank">Average American</a> spends 12.8% of their income on food. This doesn't seem so bad, until you notice that <b>nearly half of this money is spend on restaurants and fast food</b>. I'm sure some of that restaurant food is great, but most of it is overpriced, overprocessed, nutrient-poor garbage. Sadness!<br />
<br />
<b>Learn to cook.</b> Find a few simple dishes that you enjoy and really master them—it doesn't take two hours and twenty ingredients to make something delicious. Take leftovers to work. Make some <a href="http://www.raptitude.com/2009/06/how-to-make-exceptional-chocolate-chip-cookies/" target="_blank">exceptional chocolate chip cookies</a> or <a href="http://www.mrmoneymustache.com/2013/04/18/the-amazing-waist-slimming-wallet-fattening-nutrient/" target="_blank">a tasty omelet</a> of some <a href="http://www.mrmoneymustache.com/2012/03/29/killing-your-1000-grocery-bill/" target="_blank">home-made homefries</a>. Impress your friends, impress potential mates, impress yourself, <a href="http://www.andhigherstill.com/2013/06/thrift-is-beautiful-food.html" target="_blank">save big piles of money</a>, and take control of what you consume. After all: <b>you are what you eat</b>.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjgzcXz5O_syd_NCGCfqixCN8tAGjm0l-iOfhbRoboL0ZMryX5KJg7AH5Lt5TO-faZZGvBuqJ1SYhxTfvopcQ9Q6A06P_3-Nanly1IKjk3t5W18CH5BesJ1ZptCcXxKtUk03y_kwXg4dyk/s1600/IMG_0520.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="480" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjgzcXz5O_syd_NCGCfqixCN8tAGjm0l-iOfhbRoboL0ZMryX5KJg7AH5Lt5TO-faZZGvBuqJ1SYhxTfvopcQ9Q6A06P_3-Nanly1IKjk3t5W18CH5BesJ1ZptCcXxKtUk03y_kwXg4dyk/s640/IMG_0520.JPG" width="640" /></a></div>
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<br />
If you want to try something really crazy, consider some at-home gardening, <a href="http://www.andhigherstill.com/2013/05/thrift-is-beautiful-fermentation.html" target="_blank">food fermentation</a>, or even <a href="http://www.squidoo.com/grow-shiitake-mushrooms" target="_blank">grow your own mushrooms</a>. If you want to try some alcoholic beverages you'll never find anywhere else, give homebrewing a shot—the topic of a future article!<br />
<br />
<hr />
<h3>
Building And Fixing Things Is Fun</h3>
<div>
<br /></div>
<div>
When something electrical or mechanical device stops performing its intended task, <b>most people will throw said device directly into the trash</b> without a second thought. They'll then get on Amazon and spend their hard-earned cash on a new one.</div>
<div>
<br /></div>
<div>
Meanwhile, I will dig said device out of the trash, <a href="http://www.ifixit.com/" target="_blank">open it up</a>, replace a blown fuse, unstick a mechanism, repair a broken contact, and have my very own brand new device for nothing. I have come upon a decent fraction of my belongings in this fashion.</div>
<br />
<b>Consumer products are not magic:</b> they have components inside that obey the usual laws of physics. If you learn enough about the practical aspects of these laws—an inevitable side-effect of an engineering degree and an incessant need to take things apart and put them back together again—and acquire a few basic tools, it's rather rare that something will be broken beyond repair in your hands. As a side-benefit, <b>your friends and coworkers will think you're a wizard</b>, news of your feats will spread, and people will journey to you to lay their downed devices at your feet. If you're clever, you can make all kinds of connections (and even dollars) this way.<br />
<br />
Some enterprising folks <a href="http://www.mrmoneymustache.com/2012/04/27/nicer-legs-and-some-new-carpentry-skills-for-only-15-bucks/" target="_blank">develop these skills</a> to the point of building <a href="http://www.mrmoneymustache.com/2012/01/11/getting-started-in-carpentry-tools-of-the-trade/" target="_blank">furniture</a> or <a href="http://www.mrmoneymustache.com/2012/04/16/unlock-your-inner-mr-t-by-mastering-metal/" target="_blank">serious metal things</a> or <a href="http://www.mrmoneymustache.com/2011/07/20/get-rich-with-carpentry-and-home-renovation/" target="_blank">houses</a> or <a href="http://www.brandoncurtis.net/2013/08/the-new-lab.html" target="_blank">mad scientist tools</a>. Last time I checked, <a href="http://www.instructables.com/" target="_blank">Instructables</a> and <a href="http://www.wikihow.com/" target="_blank">WikiHow</a> had about a hundred liftimes' worth of ideas. Become a <a href="http://en.wikipedia.org/wiki/Maker_culture" target="_blank">Maker</a>, and you're no longer restricted by what other people want to sell you. The sky's the limit:<br />
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<hr />
<h3>
Electricity And Silicon Are Fun</h3>
<div>
<br /></div>
<div>
In tenth grade, I built my first desktop computer. Later that year I built my first website, and not long after I began learning to program (in C++, if you must know!). Inevitably I became a hardcore overclocker, dedicated to running computer hardware as far past its design specifications as physically possible. I eventually replaced my computer's stock components with a custom-built liquid cooling system and became a regular contributor to several online overclocking forums, where my 'watercooling basics' guide received over 80,000 views. I helped several friends design and install similar systems. In college, I built over fifty computers for friends, family, and businesses.</div>
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<div>
<br /></div>
<div>
These weren't things that my parents did or that I was originally exposed to in school—<b>I decided on my own that these were skills that I would like to possess.</b><br />
<br />
I made the up-front investment of time and effort, and now all kinds of really cool technology stuff is pretty trivial: I can register a domain name and have a website up and running in a few minutes; I can configure a computer to boot Windows, Mac OS, and Linux on the same machine; I can throw together a bit of Javascript and make that neat little time counter in the right sidebar; I can run this website and reach thousands of people all over the world with just a few minutes of typing per day. This sort of knowledge takes the resources you already have—which probably include a computing device and an Internet connection, if you're reading this—and vastly increases their value by opening up the realm of possibility.<br />
<br />
<hr />
<h3>
The Outdoors Are Fun</h3>
<div>
<br /></div>
<div>
The whole world is outside. It's amazing what you can find out there, if you spend some time really looking.</div>
<div>
<br /></div>
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<div>
Walking through the woods and silently soaking it all in is the one thing I don't make nearly enough time for.</div>
</div>
<br />
<hr />
<h3>
Invest In Yourself</h3>
<br />
The financial aspect is a crucial piece of this Project, and it's something that's not often talked about in regular conversation—that's why this blog has, thus far, focused on the technical aspects of the investment process.<br />
<br />
But don't forget about the bigger picture. <b>Don't just pay to have everything done for you—invest in your own capabilities with the same fervor you invest the money you save.</b> What's the point of financial independence if you have nothing of interest to fill the time with?<br />
<br />BChttp://www.blogger.com/profile/09753844565742017187noreply@blogger.com