Archive for the ‘money’ category

Switching Gears…

June 28, 2009

Today I sat down to answer the age old question: How broke am I? Well, it turns out pretty broke. I have a serious problem: I like spending a lot of money……especially on travel. “Ohh you need someone to go to Paris with you? Sure I’ll go!!!”

My location independent lifestyle affords me the ability to do what I want, when I want. So I do that and I end up spending a lot of money. Not so good. I’ve pretty much spent all that I’ve earned this year, which isn’t good. Next week, I meet with my accountant to figure out how I’m going to pay my taxes and what I am going to owe. I’m also going to figure out how to write off my travels as a business expense…I mean after all, I run travel websites and all.

Realizing that if I don’t save any money soon my trip to Europe is not gonna go as smoothly, I’ve decided to shelve some of my trips around the US while I am. I’m going use the fact I’m staying with my parents to really start saving money. No more freewheeling spending. Sticking to the budget.

I leave for Europe on August 23rd and by then I want to save 5,000 dollars as a rainy day fun. That way in case I have any dip in income, I’ll have some money. It’s also a wake up call that, maybe I should go and spend all my money. I’m at the point in life where I should have a savings. I don’t. Maybe it’s time to do one adult thing….

Advertisements

Why Stocks Are a Suckers Bet

March 14, 2009

I don’t really buy stocks anymore. I don’t believe in them. I used to believe in them and that they were a great long term investment but the truth is they aren’t. The recent collapse is proof that the only people who win aren’t the long term investors. If you invested your money in the last ten years and still have it in the market, you haven’t made a dime. I cashed out my stocks before the bubble. Don’t let people fool you- people knew this was coming. The writing was all over the wall. The second Lehman tanked and BOA said they were seeing a rise in credit card delinquencies and mortgages too, I knew that a few banks were going to go. I personally didn’t think it would be this bad but it was bound to happen. You can only live on credit for so long (are you listening federal government?) I did not lose anything. If I still had money in, it would be worth less than the initial investment.

I always tell my parents about this but they never listen. They lost a lot. I’ve been telling them for years on how to invest but they don’t listen. Actual, no one does but that’s ok- I follow buffet and soros and I generally do good. The reason? I don’t invest in the long term and I will never hire a financial planner. If those guys are so good, why are they still working? Soros and Buffet work for themselves. Why is some good telling you what to invest in and not doing it himself? hmmm hmmmm. Yeah, no thanks.

Moreover, the last decade has shown us that history doesn’t repeat it self in the market. Past performance is not a good indicator of future performance. Stocks did great since the depression. They haven’t done so how lately. People who invest in the long term get screwed. Because as Jon Stewart pointed out there are two markets: there is the market that people tell you about- “buy and hold” and then there is the real stock market- the one that happens every day and is transactional. This is the one where people buy and sell for sheer profit and cash out at the end of the day. Buffet holds ownership and preferred stocks not common stocks. Banks do the same. Day traders do the same. Why? Because they understand how it works.

And you don’t. I don’t either. Why do you want to put all your eggs in a basket you don’t really understand? The common person has little sense in investing in stocks. People pour over financial reports everyday. Do you? I don’t. Who has the time!

I do invest in stocks. But only a small small small small few. Why because I know those places. Think about the future of the world. What’s the future hold? No idea. But two things will happen: we need more water and renewable energy will be big. Oil or not, climate change will be a big issue and we’ll need renewable resources. There isn’t a lot of water in the world and the US itself needs BILLIONS in infrastructure investments. Good places to go? These two sectors. I also put a little money in Asia/India stocks just to see.

But I could lose it all which is why I only put a small amount of money in this. The stock market is all a gamble and I’m not going to gamble my savings away. I do that enough playing poker. I don’t know why anyone else would.