RSS Feeds
Facebook
Twitter
Daily Links: A Fool and His Money Edition Print
Wednesday, 28th October 2009 (by J.D.)This article is about Spare Change
On April Fools’ Day 2007, I posted a tongue-in-cheek article describing the lifestyles of the rich and stupid. This list of the dumb things people do with money in one of the most popular posts I’ve ever shared.
I’ve softened a little since then. Yes, I think that people do some stupid things with money, but I’ve decided it’s not my place to judge them. I’ve done plenty of dumb things myself over the years. (Though certainly not on the scale as Dennis Kozlowski, who threw a $2 million birthday party for his wife, a party that featured an ice-sculpture of the Statue of David that pissed vodka.)
All of this is prelude to the first link in our daily roundup. (Why do I still call it a daily roundup? It hasn’t been daily since 2006. It’s weekly, at best!)
The Boston Globe reports that former Boston Celtics star Antoine Walker is broke and in debt. Walker has earned $110 million over the course of his career. According to the article, top professional athletes often have a “burn rate” of $2 to $4 million per year. The mind boggles. This is a fascinating story. (For more like this, check out this fantastic article about how and why athletes go broke.)
In happier news, I love this analysis from C.J. Gill that explains how he got a free Mac Mini. The computer wasn’t actually free, but it saves so much energy over his previous computer (an HP Pavilion) that he’s saving $20 a month! The computer pays for itself in energy efficiency. (I’m sure there are energy-efficient PCs, too. This story is neat not because it’s about a Mac, but because it’s about taking the time to analyze cost patterns.)
Finally, Matt at Debt-Free Adventure has drafted a list of ways to save money when dealing with customer service reps. “While some CSRs are trained to try and dissuade you from your dream of reduced expenses, others wouldn’t mind giving you a break at all…as long as you treated them right! Here are a few tried and true pointers that I use every nearly every day.”
Before I go, here’s a list of money carnivals from the past week. These are a great way to find more info about saving and investing:
- Fabulously Broke hosted the Carnival of Personal Finance #227.
- Tom from the Canadian Finance Blog shared the Best of Money Carnival #21.
- JLP at All Financial Matters hosted the tiny tiny tiny Carnival of Debt Reduction #214.
- The Financial Blogger was home to Carnival of Pecuniary Delights #29.
That’s it for today’s this week’s links round-up. Now it’s time for me to head home. I’m heading out for chicken wings with my wife and her sister. Yum! Have a good evening, everyone.
October 28th, 2009 at 5:37 pm
“Yes, I think that people do some stupid things with money, but I’ve decided it’s not my place to judge them.”
If not you or us, then who will judge their behavior? Shall we let them continue in their clueless ways until they become dependent on public support? What is with the resistance to judging financial stupidity? It is not logical and says more about our own fears of being disliked.
October 28th, 2009 at 6:15 pm
“Yes, I think that people do some stupid things with money, but I’ve decided it’s not my place to judge them.”
That’s fine for you. Personally, I have no qualms about judging an action as long as I remember we’ve all done foolish things. Although I must admit, I am glad he WAS judged and is serving time!
October 28th, 2009 at 6:27 pm
It really isn’t that hard to imagine how athletes (or others who are ill prepared for sudden riches) lose it all. I think about how much education it took me to get where I am - the formal education and the financial education. All of that I had to get so I could obtain and keep my money. But if you had so much of it - why would you bother to educate yourself about it? After all it is easy for you to come by, right? Well it is while you are young and incredibly gifted.
So blowing through $55M, like Walker did, after taxes is just like living paycheck to paycheck…it’s just a really big paycheck.
October 29th, 2009 at 6:28 am
I just want to weigh in to say that I admire you for not judging. There are times when we need to gently point out to someone ways they can change for the better (I have friends who are considering bankruptcy and who could be making better choices — I have been thinking about how I can help them in that matter). However, I know from personal experience how easy it is to slide from “constructive criticism” to judgmentalism. Two signs that I am becoming judgmental: (1) When I spend lots of time griping about how horrible someone’s behavior is to others (or in my head, as in “I can’t believe he did such and such! What an idiot!”), rather than approaching that person gently, or (2) when I think of myself as better than that person.
It’s fine to bring up examples of what not to do, but when it is done with grace (”I’ve done stupid things, too”), that keeps the example from becoming judgmental.
So, way to go!
October 29th, 2009 at 6:51 am
Kate: When the behavior of others affects me personally, I’m all over it. That includes reckless financial behavior the leads to dependency on government. I trust from your comment that you have not judged the failed car companies and financial institutions who have been sucking our tax dollars by the trillions. When my stupid behavior impacts you, you have my permission to judge it.
October 29th, 2009 at 7:02 am
may i suggest that you have your links open in a new window?
great links - don’t like having to back up to continue on.
October 29th, 2009 at 7:47 am
This post reminded me of how I’ve handled CSR’s poorly in the past. I tend to think of whoever’s in front of me at the time as BEING the company, and I hate it when they say “I didn’t do it”. Since they are the company rep in front of me, I think they ARE the company and should take personal responsibility for the situation.
Ok, taking a deep breath…
It’s so obvious that if I can get them on the same side of the table as me, so to speak, then “we” can find the best solution.
Why is it that some things seem so obvious once they’re pointed out?
That’s why I read GRS - for these Ah-Hah moments.
October 29th, 2009 at 7:49 am
I think there are two types of judgment: the one where you judge a person, and the one where you judge an action. It also depends on what the judgment is. For example, if you spend $1,000,000 to buy a candy bar, I could say, “You shouldn’t do that” or I could say, “I’m not going to do that.” Both are judgments, but the first one is attacking you, while the second is making a decision on my action after seeing yours.
(Although I’d probably ask you why you were buying it. There could be a very good reason for it.)
October 29th, 2009 at 9:30 am
Don’t beat yourself up over the term “Daily Links”. You are posting them on a day. Good enough. The Daily Show isn’t daily either ‘) But no one is busting their chops over it.
October 29th, 2009 at 3:08 pm
I don’t think that $20 a month savings is realistic. The guy only looked at his electric bill and assumed the difference was entirely due to the computer change. That ignores all his other electric use as a factor. He probably saves $5-$10 a month with the Mac Mini.
October 29th, 2009 at 4:19 pm
Thanks for the link back, JD.
And as a fellow blogger, you can afford a little slack once in a while. You’re only human!
October 30th, 2009 at 7:31 am
@5:
I see what you are saying, and there are two things you mention that I have no problem with: (1) You are judging institutions, not individuals, when you talk about failing financial institutions, for example. I have no problem with judging an institution. (2) You also talk about judging behavior, and I have no problem with that, as long as the focus is on the behavior, not the person. Just as it would be wrong for me to tell me child “YOU are bad,” vs. “What you did was wrong,” I think we need to do the same with adult individuals. It’s the difference between saying to a person, “Spending more than you earn is causing problems. Here are something you can do about it,” and “You are in this situation, because you are bad. I’m better off than you, because I am good.”
It’s a fine line, but it is one I feel called to try to live (and I often fail). If we don’t judge behavior, then anything goes. But if we err on the other side, and judge people, then we should expect no mercy when we ourselves fail. And we all fail.
November 2nd, 2009 at 7:43 pm
saying you saved $20 a month on electricity by buying a mac mini may be the most ridiculous thing I’ve ever heard.
November 3rd, 2009 at 8:46 pm
I love this one: save money when dealing with customer service reps.
I worked graveyard at a hotel front desk while putting myself through college. When setting prices for a room, I had over a $70 range (or more) that I could quote prices from. Your room could be $70-$140. I could even put you in the whirlpool suite for those prices.
What was my pricing criteria? One: all military were given the $70 rate. Two: how much I liked you
Anyone with a bad attitude was instantly given a higher rate, if I decided we had any rooms available at all (it was graveyard, there are some parties you just don’t want to clean up after).
I had guidelines from the hotel to follow and always kept in mind that our profit had a direct effect on our jobs. But never! underestimate the power of the person at the desk!