Thursday

To my son

To my son, "Lorand Daniel", on his first day of birthday.


"It is never too late to be what you might have been." You can start today to create the life you were meant to live, one small step at a time.
George Eliot (writer)



Or perhaps, "one big step from time to time."
Daniel O
Posted by at No comments:

Monday

The Story of Stuff

"From its extraction through sale, use and disposal, all the stuff in our lives affects communities at home and abroad, yet most of this is hidden from view. The Story of Stuff is a 20-minute, fast-paced, fact-filled look at the underside of our production and consumption patterns."


The Story of Stuff is an interesting short film, particularly in its last half. Writer and narrator Annie Leonard explains that the “golden arrow of consumption” is the heart of the modern economic system, a system that’s really only existed since the 1950s.

After World War II, planned obsolescence was incorporated into the production of consumer goods. Whereas quality and long life had once been a selling point, now things were intentionally designed with shorter lifespans. Obviously, this increased the rate of consumption.

Even more powerful, however, is the notion of perceived obsolescence. Perceived obsolescence is most obvious with regards to fashion. I suspect most readers try to divorce their purchase decisions from the clutch of fashion because they understand just how insidious it can be. Who wants to be seen wearing clothing from 1993?

But perceived obsolescence goes beyond just fashion. How many of you geeks still have your first iPod? Why did you move to a new one? Was anything wrong with the old one? Or were you, on some unconscious level, unwilling to be seen carrying around that brick anymore? (I’m guilty of having upgraded my iPod because my old one seemed out-of-date, so don’t think I’m condemning anyone.)

What is the cost of all this? Leonard says that 99% of the stuff we harvest, mine, process, transport, and consume is trash within six months. Only 1% of the materials used to produce consumer goods (including the goods themselves) are still used six months after the date of sale.

Here’s the best part of The Story of Stuff chapter five, “Consumption”:




Taken from "Get Rich Slowly" blog.
Posted by at No comments:

The Importance of Action!

People have goals in mind, but their present circumstances seem to be far from their intended destination. These two points are so far apart, in fact, that people are afraid to begin moving. Because the distance seemed overwhelming, they are paralyzed.

The importance of action

I used to feel this way, too. I would look at the enormity of my debt — $20,000! $30,000! — and I would stop before I could even begin. This was, of course, completely self-defeating. The most important thing you can do to achieve your financial goals (or any goal, for that matter) is to take action. It matters little which action you take so long as you begin moving in the right direction. You might, for example:

* Start a RRSP account.
* Open a high-yield savings account.
* Cancel your cable television.
* Read a book about the stock market or go back to school.
* Learn to bake bread.

Don’t be paralyzed because you don’t know the best path to take. Pick one good path and follow it. Whatever your financial goal, that first small step is the most important. It leads from inaction to action. It leads to the future.

Closing the gap

While I was thinking about this yesterday, I stumbled upon a video from This American Life’s Ira Glass. On the surface, it seems completely unrelated to personal finance. And maybe it is. But I think that in these five minutes, Glass gets to the heart of success with any goal:



Ostensibly, Glass is speaking about story-telling. (Which is why I was actually watching this.) But what he’s really talking about is the process of mastery, of building skills and achieving goals.

Glass says that when you begin any endeavor, you’re a novice. You have a clear vision of what a successful person would do or be (debt-free, for example, or have a million dollars), but your own efforts aren’t anywhere near what you define as success. Maybe you still spend money on videogames or on handbags. Maybe you eat out too much. Whatever the case, there’s a gap between your view of success and your present abilities.

“A lot of people never get past that phase,” Glass says. “A lot of people at that point, they quit.”

But to succeed, you can’t quit. To achieve your dreams, you need to keep stumbling along. Nearly anyone who is successful, says Glass, goes through a period of months or years where they can tell that what they’re doing isn’t as good as they want it to be:

You gotta know that’s totally normal. The most important possible thing you can do is do a lot of work. Do a huge volume of work…It’s only by actually going through a volume of work that you’re actually going to catch up and close that gap, and the work you’re making will be as good as your ambitions.

Or, translated into the language of personal finance, keep practicing frugality. Keep saving money. Keep reading about the stock market. It’s only by continuing to do these things that they become habits, and it’s only by developing these habits that you’ll be able to meet your financial goals. Don’t be discouraged if you stumble. You will make mistakes. You need to fight your way through these. “You will be fierce,” Glass says. “You will be a warrior.”

But to begin, you need to take action. You need to take that first step. You need to begin walking in the direction of your dreams.

Article taken from "Get Rich Slowly"
Posted by at No comments:

Thursday

A Glimpse at the Spending of the Average American




On Saturday, The New York Times published a brilliant chart illustrating the spending of the average American:

“Each month, the Bureau of Labor Statistics gathers 84,000 prices in about 200 categories,” the paper writes, “like gasoline, bananas, dresses and garbage collection.” These numbers form the Consumer Price Index, one common measure of inflation. And this graphic makes that information accessible.

This chart is neat for several reasons:

The circle itself represents 100% of the average consumer’s spending. The circle is divided into eight large shapes, each of which is divided further into a number of smaller shapes. The size of each shape represents an estimate of what the average American spends on the category it represents. For example, gasoline is the largest shape in the transportation category.
Each shape is color-coded by the change in prices for that category between March 2007 and March 2008. The three dark red shapes (representing price increases of more than 40%) are all petroleum products. But eggs — with a 29.9% price increase — are close behind.
Hovering over any shape will reveal the category name, the share of spending from the average budget, and the amount by which prices have changed in the past year.
You can use the “zoom in” tool to get a better view of the action, and then drag the chart around to look at different categories. It’s only by doing this that you can see lettuce has its own category, and that the green, leafy stuff has declined in price by 3.2% over the past twelve months.
I’ll confess to feeling like a total geek because I spent twenty minutes exploring the different numbers. I even started taking notes and making extrapolations and comparisons.

For example, Americans, as a whole, spend three times as much money on cigarettes as they do on financial services. Actually, because we know that 0.7% of expenditures are made to cigarettes, and because we know that 21% of Americans smoke, then (if my math is right) about 3.5% of a smoker’s expenses go to cigarettes. (Note that I’m not criticizing. At one time, comic books accounted for 7% of my own expenses.)

I would love to find more charts and graphs like this one. (The New York Times has a history of producing great charts and graphs, such as their graph of home values from 2006 and their rent vs. buy calculator.)

[The New York Times: All of inflation's little parts]

Article taken from the Get Rich Slowly blog
Posted by at No comments:

Saturday

Global Warming!



How to Talk to a Climate Skeptic

Below is a complete listing of the articles in "How to Talk to a Climate Skeptic," a series by Coby Beck containing responses to the most common skeptical arguments on global warming. There are four separate taxonomies; arguments are divided by:
Individual articles will appear under multiple headings and may even appear in multiple subcategories in the same heading.

Stages of Denial

A. There's nothing happening

1. Inadequate evidence
2. Contradictory evidence
3. No consensus
B. We don't know why it's happening

1. Models don't work
2. Prediction is impossible
3. We can't be sure
C. Climate change is natural

1. It happened before
2. It's part of a natural change
3. It's not caused by CO2
D. Climate change is not bad

1. The effects are good
2. The effects are minor

3. Change is normal

E. Climate change can't be stopped

 1. Too late
2. It's someone else's problem
3. Economically infeasible

Scientific Topics

A. Temperature
B. Atmosphere

C. Extreme events

1. Temperature records
2. Storms

3. Droughts

D. Cryosphere

1. Glaciers
2. Sea ice
3. Ice sheets
E. Oceans
F. Modeling

1. Scenarios
2. Uncertainties
G. Climate forcings

1. Solar influences
2. Greenhouse gases
3. Aerosols
H. Paleo climate

1. Holocene
2. Ice ages
3. Geologic history
I. Scientific process
Types of Argument

1. Uninformed
2. Misinformed
3. Cherry Picking
4. Urban Myths
5. FUD
6. Non Scientific
7. Underdog Theories

8. Crackpottery

Levels of Sophistication

1. Silly
2. Naive
3. Specious
4. Scientific
The comments of Gristmill users reflect the opinions of those individuals only, and do not necessarily reflect the viewpoints of Grist, its staff, its board members, their psychotherapists, or their aestheticians. Got it?

Gristmill

http://gristmill.grist.org




Posted by at No comments:
Subscribe to: Posts (Atom)