Posts Tagged ‘lifestyle’

The Thought of Living Off Interest

Thursday, June 27th, 2013 by

Today I was talking to a person where it seemed like she will potentially have about a spare $100,000 as she has decided to downsize things like her housing. Of course this brought up questions such as what one would do with that extra money. It kind of made me think of that thought where if that amount is enough for a person to potentially get a lot of interest from a bank where they can simply live off of that.

Of course that is highly unlikely with a regular savings account. I remember when I was a kid I had this thought where all you would need is to save up $100,000 and from there your money could keep growing in a bank to the point where you don’t really need to work. This was based on the misconception of interest rates as I always saw banks advertising things like one or two percent interest that is paid out monthly. Basically, that is an annual rate that is paid out monthly as opposed to you getting like one to two percent of your funds each month.

I think for most they would probably need like $500,000+ and that is assuming the person is extremely frugal with a ton of stuff covered already as two percent of that is only about $10,000. Of course as time has passed I think it’s better to invest it in something if you have that much excess funds. Example, I would think investing in a property and renting it out would be a little more fruitful. Either way, I guess the thought of living off interest was a good way to get me to save early and not wanting to just spend my money on anything.

Forcing Your Products or Services Into Your Life

Wednesday, June 19th, 2013 by

I was thinking of a scenario today on how many times people get so initially motivated about some kind of business where they try to implement it into their personal life in anyway possible as a means to make it grow fast. An over exaggerated example would be if you had like a business that made refrigerators then you will start to try and force use a refrigerator for even the most trivial reasons such as placing a full fridge in your room for one glass of water as you think this way you can promote it more which would potentially mean more sales.

With that in mind it is kind of tough to read how so many people essentially lose all of their hard savings this way as usually the justification is that everyone says if you believe in your product or service then you need to do everything possible to show it works. To me the common sense answer would be like for any scenario in this nature if you took away any kind of potential financial gain for yourself would you still use the product or service.

There is a difference between wanting to promote something of value in order to make a sale to sustain a living versus cluttering your life with your own products or services as if it is a replacement to see if it is valued enough for people to want to buy it on its own merit. Self consumption in this case just doesn’t make sense and you are only hurting yourself I say.

What Is Financial Independence

Sunday, June 16th, 2013 by

I was reading some interesting points today when it comes to the notion of achieving financial independence as apparently a lot of people associate that phrase with simply how much you make. For example, if you make a million dollars a year then you have achieved financial independence. There was a point though saying how someone could make like two thousand dollars a year where they could be a person who achieved financial independence as it is based mainly on the notion if a person generates more income than their expenses.

That does make sense in many ways as a person who makes a million dollars a year could pretty much be in the same situation as a person who makes less due to spending habits. For example, a person that insists in buying a house worth ten million dollars and insisting in dining in the most expensive places each day. It should kind of make you think where if you are always so caught up about having to make more money maybe it’s more about reducing expenses as much as possible.

It must be weird to think like that based on what we are used to though. Example, instead of worrying that you must find a way to make like say one thousand a month to buy food it should be more about how can you reduce that expense to as little as possible even if it means growing your own food. Basically, financial independence is more about having no outstanding expenses at the end of the day as opposed to how much you make. Sounds more logical to me personally.

Spending Your Hard Earned Money To Entertain Others

Friday, May 3rd, 2013 by

I was kind of surprised today that I read how a person was trying to convince others that if you want to have fun in life then that means you have to spend money. For this example specifically, there was a hockey game and while people were there watching it and having fun one person was saying how people should all wager some bets as that is the only way to have fun.

I just had to think about that comment for second. While I recognize he could have just been saying that as a peer pressure way to get people to spend money, it’s actually not that uncommon for people to say if you don’t spend your money in ways like that then you are not enjoying life. I was even trying to think of this in a silly scenario such as a parent going to their kid’s sporting event where the fun and enjoyment should be about watching them compete and all only to then have two parents say they need to bet each other to make this fun.

In like high school this was things like cigarettes where people said if you don’t do it then you must not be having fun as you only live once. Speaking for myself, it didn’t make sense then and it doesn’t make sense now. I find that around a more mature age group of people this scenario is the same except the most common example is people say you either you spend all your money like how they do as well or else you are classified as having a boring life.

I think the main mentality I have developed to overcome this peer pressure type of mentality when it comes to spending money is that I recognize in many cases people say things like this because they want to live that experience through you, if that makes sense. For example, if you are the only one that has five thousand dollars to spare and you went with another person where you both saw this crazy TV that he/she can’ afford, them pressuring you to buy it would be almost the same as if they bought it themselves. So when you think about it, is you spending money in that case more for your entertainment or someone else’s?

I was even joking how isn’t it the other way around many times where if people want that kind of entertainment then they are usually paying the person to see them do it? Either way, it should be more about doing what is best for you.

People Freaking Out About Coffee Beans

Sunday, November 11th, 2012 by

Anyone else read those news stories lately about how apparently climate change may make coffee beans extinct by the year 2080? It was kind of interesting I thought reading stories about how people have no idea what to do now. For some people it seemed like it was the equivalent of a news report saying we are going to run out of clean water by 2080.

The solutions that people are thinking of were kind of neat to read such as some people saying how to survive longer they just need to move the crops to different areas every few years. The one thing I haven’t heard at all which is kind of surprising is how nobody seemed to wonder if they can simply replace the coffee drinking habit with something else if worst comes to worst. Kind of like how a business expands into different things in order to adapt to say consumer habits. Instead, people just said without it the world is doomed to have grumpy drivers in the morning and such. In a semi humorous way of course.

There were comments too that some people thought that they should start hoarding coffee beans now. I must say though, it would be interesting to see if that does happen where something that is so uncommon in so many people’s lives all of a sudden turns into a hot commodity. Kind of an interesting way to practice your thinking outside of the box solutions too in regards to what you think would work in these situations.