April 2008

Lost Wedding Ring

Are you emotionally attached to your wedding ring? What would you do if you had lost it?

I was quite surprised to see this flier posted on several neighborhood trees. I had lost my wedding ring several years ago, and it never occurred to me to go out of my way to find it. It was an inexpensive, simple, white-gold band. I didn’t even bother wearing it all that often.

I still don’t bother wearing my replacement wedding ring most days. I just don’t attach that much emotional significance to my ring. It seems to me that the strength of my marriage has nothing to do with this, or any other, symbol.

What about you? Is your wedding ring important to you? Do you wear it every day? And if you ever lost it, would you be willing to pay a reward that’s higher than the rings’ actual worth to the person who finds it?

Euro bills and coins
Photo by marcelgermain

In this slowing economy, how can you protect your money from the four major financial risks associated with the an economic slowdown?

In this article, I will take a look at a few tips that were offered by Money Magazine, and add my own recommendations for mutual funds that have worked very well for me.

Inflation

Inflation erodes your investments and hurts your purchasing power. To protect your investments, allocate a percentage of your portfolio into a natural resources fund. I’ve been very happy with T. Rowe Price’s New Era PRNEX. Do keep in mind that the fund is not risk free, especially after gaining nearly 30% a year for five years.

Recession

A recession is loosely defined as six or more consecutive months of a slowing economy. The biggest risk in a recession is not necessarily to your investment portfolio – your portfolio should bounce back nicely in the bull market that will follow a bear market.

The biggest risk in a slowing economy is earning less, losing customers, or being laid off. The best way to prepare is by having a well-funded emergency fund. Three months’ worth of living expenses is a minimum. A full year makes a lot of sense during a recession. Money should be completely liquid, so a money market account is a better choice than a CD. Another option is a high-interest savings account such as the ING Direct Orange Savings Account.

Dollar collapse

The best hedge against a dollar collapse: a foreign stock fund. We hold at least 20% of our portfolio in foreign stocks. We’ve been very happy with Dodge & Cox International Stock Fund (DODFX). Again, no guarantee as to future performance. We also have some exposure to China, Japan and Europe, in addition to holding Vanguard’s Emerging Markets Vipers (VWO).

Credit Crunch

In a slowing economy, it is getting more and more difficult to get a loan – mortgage, car, even a credit card. If you are a homeowner and have enough equity in your home and a decent credit score, you can set up a HELOC (home-equity line of credit) now as a safety net for an uncertain future. Personally, I hope that a tightening credit situation will finally nudge Americans in the direction of borrowing and spending less, and saving more.


I am not a financial adviser. Prior to taking any action, please do your own research.

blog-widowThe New York Times, in a highly controversial article, said on Sunday that high-stress blogging is costing bloggers their health, even their lives.

The article describes bloggers as “toiling under great physical and emotional stress” and states that “bloggers complain of weight loss or gain, sleep disorders, exhaustion and other maladies.”

Darren Rowse of Problogger chose a positive title for his post about the article: On Being a Healthy Blogger. He points out that people in all occupations can get stressed and suffer from ill health, but does admit that blogging has addictive properties and bloggers can pretty much spend day after day at home, in front of their computer, not venturing out much, eating junk food at their desk and not getting any exercise.

No doubt, there is a constant pressure on bloggers, and especially top bloggers, to keep producing quality content. Leo of Zen Habits recently asked his readers to be understanding as he lightens his posting schedule in an attempt to meet a book deadline. He said, “that means that you won’t see as many in-depth posts from me. However, don’t unsubscribe or go anywhere!”

Amy of Crunchy Domestic Goddess says, “I realize I haven’t had much in the way of substance on my blog so far this week, but I’ve been enjoying the warmer temps and trying to live more in the moment with my kids. I’m still working on finding that perfect balance between being mommy, working, and blogging. I haven’t figured it out yet.”

A sobering example of blogging exhaustion is that of RockstarMommy, who had a high-quality blog with a large audience and decided, out of the blue, to shut it down, explaining that “a once light-hearted hobby has turned into a chore that sucks up every last ounce of my free (and sometimes not-so-free) time, leaving my family competing with the internet for my attention and me not living REAL life and all the things I’ve always said I wanted to do with it. Some people are able to find the real life/internet balance. I’ve tried many times and have failed each and every one of them. My family is waiting for me and I’m not going to waste away our lives on this machine anymore.”

Problogger recently asked readers about their blogging mistakes. One reader comment made me do a double take. The reader said, “the biggest mistake I’ve made cost me lots of traffic and the highest ranking on Google in my niche. I didn’t pre-post content in advance just in case something came up where I couldn’t. I came down with the flu in the middle of February this year, and I didn’t post on my blog for 10 days because I was bed ridden. I can’t believe how my traffic fell off so rapidly. What a painful lesson it has been”.

When I read that comment I thought, “You may be a blogger, BUT YOU ARE A PERSON, not a robot. You are entitled to have a life – which sometimes includes vacations, and illnesses, even REST – outside of blogging.”

As a blogger for hire, I too struggle with balancing blogging with “real life.” Blogging is fun and rewarding, and most definitely addictive. But my real life must come first.

Photo credit: DBarefoot

bling-waterWould YOU pay $40 for a bottle of water?

Bling H2O water cost $40 for a 750 ml bottle. Seriously.
Samuel Adams’ Utopias costs $120 for a 24oz bottle.
Lambda olive oil costs $182 for 1,000 ml.

While many people are being as frugal as they can, there is a completely opposite trend of outrageously overspending on luxury foods that, some say, are no more than beautifully packaged and cleverly marketed basic food staples.

As the American economy slows down, and people struggle to creatively cope with ever-rising costs, the sales of luxury foods are up 17% over the past two years, compared with 4% for overall food sales.

Joel Stein thinks that while some of these gourmet foods are good enough that it actually makes sense to buy them if you can afford it, paying $40 for a bottle of water never makes sense.

I haven’t tried any of those luxury foods. But I wonder: if a food item is priced at ten times the price of a generic item, is it really ten times better? Is a $700 pair of Dolce & Gabbana skinny jeans 10 times “better” than a $70 Calvin Klein pair?

And how should we define “better” anyway? Better-tasting food? Higher quality clothes? Don’t these prices in fact represent a hefty premium that is paid for the designer label and fancy packaging? How much are people willing to pay for the designer label? And, if you can afford it, should you even care about consumerism or should you just spend away to your little hearts’ content?

I wish I had the answers, but I don’t. If I can’t afford something, I don’t buy it. That’s easy enough, and thanks to this approach, I never got into credit card debt. But in other areas, my personal choices are probably somewhere in the middle. I am not nearly as frugal as I could be, but I am trying to simplify, buy less and avoid paying “designer premiums.”

Photo by bbaunach

My First Hate Mail!

by MomGrind

hate-mailI had to read it twice to make sure it wasn’t a mistake or a joke, but sure enough – the email was filled with hate and profanity, and it was addressed to me. I received my first hate mail yesterday!

The writer/ hater, who is apparently female and (shockingly) chose to remain anonymous, is quite annoyed with me in general, but she finds my personal finance posts and my nutrition/ diet posts especially offensive.

According to her, I am a “rich, skinny bitch who has no f_____ idea about real people with real problems.” She generously adds a valuable piece of advice, saying that I “seriously need to shut the f___ up” and stop dishing out advice about topics I know absolutely nothing about.

Since I am fairly new to the blogging game, I wasn’t quite sure how to handle this, so I turned to fellow bloggers to see how they cope with hate mail.

This is what I found:

Naomi Dunford of IttyBiz is delighted with hate mail just as much as she enjoys her supportive readers. She says, “to all of my readers – every day, you delight me. Your comments and your hate mail and your fan mail and your Tweets and your blog posts make this whole work-from-home lunacy the most rewarding thing I’ve ever done… I am very, very grateful for all of you.” It looks like Naomi likes the interaction and attention – good or bad.

Scott H. Young thinks that “if you’re not getting hate mail, you’re writing probably sucks“. He adds, “It took me a while to realize this, but hate mail can actually be a sign you’re doing something right. Truly awful stuff gets ignored.” I find it mildly encouraging to think that I am not writing “truly awful stuff.”

Mad Kane embraces hate mail too and sees it as part of the freedom of speech. She rhymes, “I never will fret over hate mail I get: this is freedom, for better or worse.”

So, hate mail is just part of the game? I should not be alarmed at all? According to Scott, I should even congratulate myself on receiving it. Well, I am not exactly going to frame that email and hang it on the wall, but I think I will start a “hate mail” folder and save those emails. In a way, they are proof that people read, react and respond.

Photo credit: sardonica

kids-watching-tvI’m sure you won’t be shocked if I tell you that research shows that too much TV is bad for you.

The study found that despite the sharp rise in our standard of living in recent decades, Americans today are not happier than they were in earlier generations: a large percentage of the people surveyed were likely to spend a big chunk of their day in an unpleasant state.

According to the study authors, this is because people don’t incorporate enough “engaging leisure and spiritual activities”, such as socializing, exercising or reading books, into their day. Despite having more leisure time than ever before, time spent on engaging leisure activities has actually declined over the past four decades.

Instead, there’s been a significant increase in the hours devoted to what the authors call “neutral downtime,” which is mostly watching television. Watching TV may be low-stress and moderately enjoyable, but people aren’t mentally engaged the way they are when they’re exercising or socializing.

Not surprisingly, the study authors suggest that people stop watching too much TV. They say that people would feel better about their lives if they spend their leisure time doing something more interactive and engaging than watching television.

Photo by moritz

berries2

If you are trying to lose weight, and are aiming for a healthy weight loss, try to avoid fad diets and counting calories.

Instead, follow these simple tips for losing weight gradually and keeping the weight off:

Don’t call it a “diet”

If you look at this as a temporary ordeal that you have to go through in order to lose weight, then go back to your old habits, you will do just that: suffer through a few weeks of limited food intake, then go back to your old habits and regain all the weight you’ve lost. Instead, you should aim for a lifestyle change. Make changes gradually. Incorporate a healthy new habit once a week, or once a month. Once you have incorporated a habit into your routine, such as drinking 8 glasses of water per day, move on to the next habit.

Set realistic goals

This is related to the previous point. Pace yourself: the journey to achieve a healthy weight loss is a marathon, not a sprint. If you set unrealistic goals, such as losing 10 pounds in 2 weeks, you will set yourself up for failure. Instead, decide on small, attainable goals, such as losing 1 pound per week.

Never Skip breakfast

Breakfast not only keeps you from being ravenous and overeating come lunchtime, research also shows it helps jump start your metabolism earlier in the day, so that you burn more calories overall than if you started eating later in the day.

Don’t eat too few calories

If you don’t eat enough, your body will go into starvation mode and will become extremely efficient at using the calories it does get. The result: a slower metabolism, which will make it harder to lose weight.

Avoid eating too little during the day

If you are ravenous by the time you get home, you will likely overeat at the dinner table. Instead, spread your food intake over the entire day. It is a good idea to have 3 meals and 2 small snacks every day.

Incorporate exercise into your routine

Exercise burns calories and builds muscle mass, which burns more calories than fat tissue, even while you rest. Exercise also makes you feel good, tones your muscles and helps you stay healthy. Even if you can lose weight without exercising, you should incorporate exercise into your routine for health reasons. And if you must have a shallow reason to exercise, remember that it is completely possible to be thin and flabby.

Focus on your health, not on your looks

Sure, we all want to look good. Most people would lie if they said that they are losing weight only for health reasons. But focusing only on looking good is a mistake. You should lose weight only if you are overweight to begin with, and you should lose that weight and exercise regularly because it will make you healthier and will improve the quality of your life.

Don’t focus on the numbers

Try not to focus on the number you see on the scale. Try not to weigh yourself too much (once a week should be enough for most people). If you focus too much on your weight, normal weight fluctuations could discourage you to the point of giving up. Instead, try to focus on how you feel. Are you feeling strong and healthy and energized now that you are eating better? Do your clothes fit better?

Don’t rely on diet foods

Since you are aiming for a lifestyle change, it is important not to rely too much on diet products which are expensive and often unhealthy. Instead, try to eat small quantities of high quality, nutritious foods. Remember Michael Pollan’s excellent advice: ‘Eat food. Not too Much. Mostly plants.’

Don’t be too strict

Since healthy weight loss is a long-term thing, it is important to allow yourself a treat once in a while. Whether it’s a small treat once a day, or a bigger weekly indulgence, is up to you. The idea is, that if you want to be able to do this long-term, you have to allow yourself a treat now and then.

Don’t fall for a fad diet

You’ve probably heard about many of them: cabbage soup diet, fruit juice diet, grapefruit diet, Atkins, South Beach, and more. They don’t work long-term because they are too restrictive, or weird, or both. Remember: to achieve healthy weight loss, Eat food. Not too much. Mostly plants.

Photo credit: The Wandering Angel