Archive for July, 2007

$100,000 The Magic Figure?

Thursday, July 26th, 2007 by

I was talking to someone who was excited to have reached his goal of achieving around $100,000 in pure savings as he mentioned that is all he will need to be able to live and generate an income by investing in various things while at the same time providing him with a good nest to try other business ideas should he decide to do so. Of course, he didn’t mean not having to do anything anymore. In general, it allows him to basically derive his income solely from using what he has to create a cycle of income while sustaining a decent lifestyle. I’ve actually heard from quite a few other people who use the same dollar figure too.

Assuming you are responsible with money, I am almost inclined to say that $30,000 to $50,000 will allow you to accomplish the same thing in this day in age with so many options out there on what you can do. You just have less room for mistakes and need to be more diligent on what you do with your funds. This route is kind of interesting too as most people would normally only think of saving that much money as simply a way to not have to work when you say get to a very old age. Comes down to lifestyle choice I guess.

Natural Skills As A Reason To Not Try

Wednesday, July 25th, 2007 by

About twice this week I have heard someone say that they were unable to do certain things as good compared to others or that they are restricted from doing so as a result of not being born with a certain skill. An example was someone saying that he was not very good at speaking in front of a lot of people and that some people are just born with that skill to do so. Just to make sure he wasn’t saying that in a metaphoric way, he did indeed clarify that there are skills that you have to be born with to succeed.

I never understood that belief as for the most part the choices you made and life experiences that you have had are what molds you into who you are I’d say. To clarify too I don’t think this is the same thing as say growing up and not being able to see physically, which is something different in my opinion.

Kind of makes you want to throw water at people to wake them up when they say they can’t achieve something because they weren’t born with a certain skill set. Using the speaking in front of a lot of people as an example, while that is not something that phases me nowadays, I know more than enough people who can vouch for how timid I was before. The same thing goes for say starting a business as I often hear the point on how you have to be born with a certain skill to be successful at it. How can anyone truly believe that?

When it comes to things like these, I’ve never met a person who said that all of their skills literally just came naturally as they worked and learned new things everyday to become skilled in something. I think an important thing to keep in mind too is that if you are trying to accomplish something, don’t rule out the possibility of doing things differently based on your skill levels. For example, if you and someone’s else’s goal was to travel six blocks down the road in say a minute, if he was super athletic I’m sure he can just sprint down there. If you are more of the inventor type, then maybe you can make a quick bike of some sort and accomplish the same.

Like the say, most things can be taught and learned through a process. You just have to be willing to do it.

Currency Trading

Tuesday, July 24th, 2007 by

Looks like there are so many news sources here today that are talking about the Canadian dollar against the US Dollar as apparently it hasn’t been this close in almost three decades. For those who don’t know, it is currently at $1.03552 to the U.S. dollar or basically one Canadian dollar is 96.57 cents U.S.

This kind of reminded me on how one of my friend trades currency as a way to make money. While this may not technically be the best way to explain it, essentially what you are doing is converting your money into a different currency in hopes that it will go up like a stock. A quick example would be say someone from the US converting $1000 US into Canadian dollars right now. If for some odd reason next week one Canadian dollar becomes equivalent to say $1.20 US, the person essential made 23.43 cents for every dollar they converted which in this case would mean about $234.30. Of course, it could go the other way around for the worst too.

I’ve never actually done this myself, but my friend thinks that it is a great way to make extra money and is one of the more straight forward things people can do.

Such A Thing As Too Young To Learn About Finance

Monday, July 23rd, 2007 by

Today I saw my nephew, who is a little over a year old, and it was cute to see him attempting to walk by himself. As expected, he tried to cling on to everything around him when needed and he kind of reminded me of a mini Spiderman as he tried to walk along the walls to balance himself. This made me think on how earlier on he wasn’t really given the opportunity to walk around at his own house, but whenever I saw him I would try to help him walk. Yes, that made him very hyper active and excited to see me all the time.

The interesting thing I thought though is that similar to learning to walk, managing your money and finances also takes baby steps to learn and doing it sooner can help. A lot of people I ask though say that they never really had to do any kind of money management until their late teens or older. At the same time, they weren’t really encouraged to do so since traditionally your focus should ideally be on other things without having to worry about money to get by.

It’s kind of interesting to see now that there are actually schools that specifically try to teach young kids about finance or an attempt to add it in as a school curriculum. I personally don’t see how it is something that can be say too stressful to learn at a young age, which a lot of people are afraid of it seems. I mean, it doesn’t mean the way you teach someone young is to say make that four year old pay for his own meal as that would be ludicrous. Like they say, learn to walk then run.

Career And Educational Choice When Being Funded By Others

Sunday, July 22nd, 2007 by

Today I was told about an unfortunate scenario that is taking place with someone who is apparently within my very distant family tree I guess you can say. In a nutshell, basically the parents wanted their daughter to go into a specific field, which from what I was told was something in chemistry, and in an effort in wanting to give her the best they paid to have her go to the US for schooling (They live in Hong Kong normally).

The conflict came in as she did not want to get into that field as she had no real passion for it nor was it something she was good at, but the parents insisted and so she went ahead with it. Now the interesting thing is that she was suppose to graduate this year, but the parents soon learned that she couldn’t due to not having enough credits. The story that I heard was kind of interesting as apparently midway during her schooling she switched directions and took courses in a field that she was actually interested, which was business related I was told, in which the parents didn’t know. So not only won’t she be graduating, but she has to leave the country soon because of the way the school Visa works and so she is trying to cut communication directly with the parents for as long as possible as she fears she would be say scolded over it. Almost sounds like a soap opera huh?

This sure was a complex situation I thought. In general, for the most part I would say that it is obviously better to get into something you are passionate about. The other view for this would be that if you are given so much and agreed to go through with it in the first place that you should at least follow through with it. I know quite a few people who chose their careers mainly because of the income potential as people had to sacrifice a lot financially to be able to give them the ideal education and so they felt like that was a way to ensure that it won’t go wasted so to speak. I only know one person who kept changing paths during his schooling as it was “too hard” and money didn’t seem to be an issue. While it isn’t exactly the same, it kind of reminds me of say a business and investor relationship.

For these types of situations though, I guess the bottom line is that I am more inclined to say that you should really think hard right from the start before getting into something because it can be a very black and white scenario in the working and business world. For example, if you agreed to do something for someone and you went ahead and took the money, rarely will you be able to backtrack from that without some kind of serious repercussion regardless of how dramatic the situation may be. So learn and work towards what you have a lot of aspirations in, but I’d say at the same time if other people are helping you financially then you owe it to them and yourself to be honest from the start. That means even if they are pushing you to do something that you disagree with, then it is your responsibility to either not accept it from the start or try to compromise in the beginning before doing anything.