Comments on: The consumer, the ower and the owner http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/ Common sense advice on money saving tips, how to get out of debt, high interest savings accounts, cd rates, money market accounts, mortgage rates, money management and more. Wed, 19 Jun 2013 13:15:48 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Tyrone Biggums http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3214112 Tyrone Biggums Wed, 09 Jan 2013 19:42:08 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3214112 I also absolutely love those Starbucks Gingerbread Lattes (fat free, no whip). But like the author, I generally limit my Sbux consumption to the holidays. I still get sticker shock when I see a $4.50 medium sized Latte. I also absolutely love those Starbucks Gingerbread Lattes (fat free, no whip). But like the author, I generally limit my Sbux consumption to the holidays.

I still get sticker shock when I see a $4.50 medium sized Latte.

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]]> By: Ely http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3176902 Ely Thu, 27 Dec 2012 18:15:24 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3176902 This is SO HARD!! I did some research years ago when I was first beginning to invest. We ended up buying a few shares of green energy, but only with our fun money. I need my retirement accounts to grow and be strong, and the few shares that I buy or don't buy would have a less-than-negligible impact on the companies in question. So I invest in things that pay and make my social choices with my day-to-day spending instead. I think that makes a much bigger difference. This is SO HARD!! I did some research years ago when I was first beginning to invest. We ended up buying a few shares of green energy, but only with our fun money. I need my retirement accounts to grow and be strong, and the few shares that I buy or don’t buy would have a less-than-negligible impact on the companies in question. So I invest in things that pay and make my social choices with my day-to-day spending instead. I think that makes a much bigger difference.

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]]> By: Ely http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3176892 Ely Thu, 27 Dec 2012 18:07:51 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3176892 We bought Starbucks when it was $5/share and everyone said they were going under. Not only has the stock price shot up and stayed, but now they pay dividends as well. Timing is everything - though being psychic would be nice too. ;) We bought Starbucks when it was $5/share and everyone said they were going under. Not only has the stock price shot up and stayed, but now they pay dividends as well. Timing is everything – though being psychic would be nice too. ;)

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]]> By: partgypsy http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3176772 partgypsy Thu, 27 Dec 2012 16:49:49 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3176772 pack of 365 brand organic black tea which is $4 for 80 bags works out to 5 cents a cup (or less, if you use the bag for more than one cup). Can even splash out and add a little sugar or honey for a little extra. I want to save money and have an enjoyable hot drink. pack of 365 brand organic black tea which is $4 for 80 bags works out to 5 cents a cup (or less, if you use the bag for more than one cup). Can even splash out and add a little sugar or honey for a little extra. I want to save money and have an enjoyable hot drink.

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]]> By: Wm http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3176072 Wm Thu, 27 Dec 2012 04:29:13 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3176072 Great post! I agree that we spend a lot of bucks on stuff we don't need and stuff that is actually harmful to our health and general well-being. If we could save all the money we spend on chocolates and junk food and what not, we could use it on wiser choices like buying shares of the company or better yet, buying fruits and veggies, which is not only easy on our health, but studies have actually shown people eating fruits and veggies instead of fried food feel more positive and optimistic about the future. Great post! I agree that we spend a lot of bucks on stuff we don’t need and stuff that is actually harmful to our health and general well-being. If we could save all the money we spend on chocolates and junk food and what not, we could use it on wiser choices like buying shares of the company or better yet, buying fruits and veggies, which is not only easy on our health, but studies have actually shown people eating fruits and veggies instead of fried food feel more positive and optimistic about the future.

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]]> By: rosarugosa http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3175942 rosarugosa Thu, 27 Dec 2012 01:45:06 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3175942 Well said as always, Robert! Well said as always, Robert!

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]]> By: Kathleen, Frugal Portland http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3175832 Kathleen, Frugal Portland Thu, 27 Dec 2012 00:15:27 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3175832 This also answers the question "what do I do with extra money -- invest or pay off debt?" if you never, ever want to be an ower, then the answer is clear. Pay off debt, then invest your $37. This also answers the question “what do I do with extra money — invest or pay off debt?” if you never, ever want to be an ower, then the answer is clear. Pay off debt, then invest your $37.

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]]> By: Matt at Healthy N' Wealthy http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3175572 Matt at Healthy N' Wealthy Wed, 26 Dec 2012 21:49:20 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3175572 Wow, good for you. Thanks for sharing. That was a very unfortunate time for many people who bought stocks, and I'm sure it wasn't fun watching it crash. But even then, you still picked one of the few stocks that was actually a good investment back then. Bravo. Wow, good for you. Thanks for sharing. That was a very unfortunate time for many people who bought stocks, and I’m sure it wasn’t fun watching it crash. But even then, you still picked one of the few stocks that was actually a good investment back then. Bravo.

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]]> By: Matt at Healthy N' Wealthy http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3175562 Matt at Healthy N' Wealthy Wed, 26 Dec 2012 21:45:47 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3175562 Wait, you don't think that learning Holden Caufield's thoughts on the world or how to bake a cake are more important than learning how to manage life's resources? That's crazy talk John! Wait, you don’t think that learning Holden Caufield’s thoughts on the world or how to bake a cake are more important than learning how to manage life’s resources? That’s crazy talk John!

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]]> By: EMH http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3175552 EMH Wed, 26 Dec 2012 21:45:09 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3175552 I bought Hain in 2006 and it has definitely been a winner for me. I purchased it because I buy so many of their products. I didn't do much research beyond what I kept seeing in my grocery cart and people around me. Whole Foods opened three stores near me and Jewell started an "organic aisle" during that time that was stocked with many Hain products so I figured the trend would continue. Luckily, it has but you are right, it is getting beaten up right now. Still, I love their products, their mission, and it is a company I can stand behind. I bought Hain in 2006 and it has definitely been a winner for me. I purchased it because I buy so many of their products. I didn’t do much research beyond what I kept seeing in my grocery cart and people around me. Whole Foods opened three stores near me and Jewell started an “organic aisle” during that time that was stocked with many Hain products so I figured the trend would continue. Luckily, it has but you are right, it is getting beaten up right now. Still, I love their products, their mission, and it is a company I can stand behind.

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]]> By: John http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3175462 John Wed, 26 Dec 2012 21:17:32 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3175462 A very clear, simple and concise explanation of basic finance. This is what should be taught to kids in school in just this manner. A very clear, simple and concise explanation of basic finance. This is what should be taught to kids in school in just this manner.

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]]> By: tracylee http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3175442 tracylee Wed, 26 Dec 2012 21:14:54 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3175442 Thank you, Meg, for saying exactly what I was thinking! I am sure you said it more eloquently that I could have written! Investing is very challenging for me because I want to put my money into places I believe are socially responsible. If I don't believe in it or support it (like Coke), I don't want to be an owner of it. I realize this decision may not be the best for my returns, but the health of my community is also important to me. Will we ever starting placing value on health and wellness and less on consumption and GDP. I'd love to see some posts on socially responsible/environmentally responsible investing, if the editors are listening. Thank you, Meg, for saying exactly what I was thinking! I am sure you said it more eloquently that I could have written!

Investing is very challenging for me because I want to put my money into places I believe are socially responsible. If I don’t believe in it or support it (like Coke), I don’t want to be an owner of it. I realize this decision may not be the best for my returns, but the health of my community is also important to me. Will we ever starting placing value on health and wellness and less on consumption and GDP.

I’d love to see some posts on socially responsible/environmentally responsible investing, if the editors are listening.

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]]> By: Matt at Healthy N' Wealthy http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3175352 Matt at Healthy N' Wealthy Wed, 26 Dec 2012 20:38:34 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3175352 I didn't pull the trigger on Hain at 35 and now I'm kicking myself. Would you mind sharing how you came to invest in Hain? I, too, like their products, and I also like their CEO Irwin Simon. He addressed the growing importance of healthy eating and gluten-free products in the 2009 Annual Report, and I thought that that was a prescient and accurate analysis. They also have a great relationship with Whole Foods, which I did buy :) But, like I said, I didn't buy Hain :( Hain is getting beaten recently, so this may be a good entry point... I didn’t pull the trigger on Hain at 35 and now I’m kicking myself. Would you mind sharing how you came to invest in Hain?

I, too, like their products, and I also like their CEO Irwin Simon. He addressed the growing importance of healthy eating and gluten-free products in the 2009 Annual Report, and I thought that that was a prescient and accurate analysis. They also have a great relationship with Whole Foods, which I did buy :) But, like I said, I didn’t buy Hain :(

Hain is getting beaten recently, so this may be a good entry point…

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]]> By: Eileen http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3175292 Eileen Wed, 26 Dec 2012 20:00:13 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3175292 Thank you, Robert...I understand now! Great post. As good as the old GRS. Many thanks. Thank you, Robert…I understand now! Great post. As good as the old GRS. Many thanks.

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]]> By: EMH http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3175162 EMH Wed, 26 Dec 2012 18:01:08 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3175162 I use this system as well. I try to "buy what I know" when it comes to stocks and that way, I don't feel too guilty for purchasing those products. If I am craving something salty, then I will grab a bag of Terra chips instead of Pringles since I have stock in Hain. I think all of you should also buy a bag of Terra Chips or sip on some Celestial Seasonings tea! :) I use this system as well. I try to “buy what I know” when it comes to stocks and that way, I don’t feel too guilty for purchasing those products. If I am craving something salty, then I will grab a bag of Terra chips instead of Pringles since I have stock in Hain. I think all of you should also buy a bag of Terra Chips or sip on some Celestial Seasonings tea! :)

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]]> By: Matt at Healthy N' Wealthy http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3175152 Matt at Healthy N' Wealthy Wed, 26 Dec 2012 17:57:13 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3175152 A+ article Mr. Brokamp. Thank you. I've read about people who quit smoking, and bought stock in cigarette companies with the saved money. They've done really well. If you're OK with owning a cancer creator, then Altria is yielding over 5% right now, and Philip Morris is yielding almost 4%. Maybe use that logic to quit Coke and buy some KO? Also, don't worry about your coffee. Researchers have been trying in vain to prove that it's unhealthy, and they can't. Most research to date shows that it's actually good for you <a href="http://www.medicalnewstoday.com/releases/111598.php" rel="nofollow">(even 5 cups a day!</a>. It's simply the cream and sugar that are unhealthy. Drink it black and you're good to go. I'm debating whether to buy Starbucks of Dunkin Donuts stock. I'll probably go with Starbucks because I like Howard Schultz. He's been on CNBC a few times and seems like a really bright guy. Plus, the stock has a lower valuation. I'll have to read more about both. I like coffee companies because when we figure out that our food is causing most of our diseases, people are going to have to give up a lot of their favorite things. They'll be thrilled to not have to give up coffee. I disagree with this statement: <i> As you may have heard, almost two-thirds of our economy is driven by consumption.</i> The economy is driven by production and savings, not consumption. Consumption is the end game, like eating. Eating doesn't save you from being hungry: hunting and foraging do. Anyone can eat. I did a <a href="http://www.healthynwealthy.org/2012/12/does-consumer-spending-drive-economy.html" rel="nofollow">blog post</a> about this if anyone'es interested. Americans are brainwashed to think that depleting their savings is good for the economy, and that China benefits from our consumption. Hopefully we figure out real economics before we're forced to. A+ article Mr. Brokamp. Thank you.

I’ve read about people who quit smoking, and bought stock in cigarette companies with the saved money. They’ve done really well. If you’re OK with owning a cancer creator, then Altria is yielding over 5% right now, and Philip Morris is yielding almost 4%. Maybe use that logic to quit Coke and buy some KO?

Also, don’t worry about your coffee. Researchers have been trying in vain to prove that it’s unhealthy, and they can’t. Most research to date shows that it’s actually good for you (even 5 cups a day!. It’s simply the cream and sugar that are unhealthy. Drink it black and you’re good to go.

I’m debating whether to buy Starbucks of Dunkin Donuts stock. I’ll probably go with Starbucks because I like Howard Schultz. He’s been on CNBC a few times and seems like a really bright guy. Plus, the stock has a lower valuation. I’ll have to read more about both. I like coffee companies because when we figure out that our food is causing most of our diseases, people are going to have to give up a lot of their favorite things. They’ll be thrilled to not have to give up coffee.

I disagree with this statement:
As you may have heard, almost two-thirds of our economy is driven by consumption.

The economy is driven by production and savings, not consumption. Consumption is the end game, like eating. Eating doesn’t save you from being hungry: hunting and foraging do. Anyone can eat. I did a blog post about this if anyone’es interested. Americans are brainwashed to think that depleting their savings is good for the economy, and that China benefits from our consumption. Hopefully we figure out real economics before we’re forced to.

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]]> By: krantcents http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3175132 krantcents Wed, 26 Dec 2012 17:36:14 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3175132 I managed to get through this season without spending too much and saw my retirement savings increase too. Slow and steady is a good thing! I managed to get through this season without spending too much and saw my retirement savings increase too. Slow and steady is a good thing!

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]]> By: Joanna @ Our Freaking Budget http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3175062 Joanna @ Our Freaking Budget Wed, 26 Dec 2012 17:10:46 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3175062 Thanks for sharing! It's a great reminder on how to look at money and making your money work for you. Hopefully 2013 will bring opportunities for me to balance out some of my consumerism with a bit more ownership! Now off to get a Coke from my fridge... ;) Thanks for sharing! It’s a great reminder on how to look at money and making your money work for you. Hopefully 2013 will bring opportunities for me to balance out some of my consumerism with a bit more ownership!

Now off to get a Coke from my fridge… ;)

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]]> By: LeRainDrop http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3175032 LeRainDrop Wed, 26 Dec 2012 16:52:44 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3175032 Robert, thanks for the clear, illustrative analysis of the three segments of market players. The way you show it makes a lot of sense. Good reminders that (1) I never want to be an "ower," (2) I want to keep consumption to a relative minimum (i.e., not more than I personally feel I need, plus a little want), and (3) I'm looking to grow my ownership share in certain funds, which is best done by sticking to points (1) and (2). :-) Robert, thanks for the clear, illustrative analysis of the three segments of market players. The way you show it makes a lot of sense. Good reminders that (1) I never want to be an “ower,” (2) I want to keep consumption to a relative minimum (i.e., not more than I personally feel I need, plus a little want), and (3) I’m looking to grow my ownership share in certain funds, which is best done by sticking to points (1) and (2). :-)

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]]> By: Meg http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3174892 Meg Wed, 26 Dec 2012 14:36:55 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3174892 This makes sense to me if all you care about is making money, and since this is a personal finance blog, it seems legitimate to present that perspective. However, all of the reasons it's bad for you to buy cokes are also reasons it's bad for other people to buy cokes (garbage generated, adding to their waistlines/tooth decay, putting them in debt, etc.), and if you buy coke stock you are supporting people who try to convince other people to buy lots of coke (through ad campaigns etc.) and then profiting from it. That's why I always hesitate about buying stock in certain companies--if I care about other people, why would I support (and profit from) an organization trying to convince them to do things that are bad for them? This makes sense to me if all you care about is making money, and since this is a personal finance blog, it seems legitimate to present that perspective.

However, all of the reasons it’s bad for you to buy cokes are also reasons it’s bad for other people to buy cokes (garbage generated, adding to their waistlines/tooth decay, putting them in debt, etc.), and if you buy coke stock you are supporting people who try to convince other people to buy lots of coke (through ad campaigns etc.) and then profiting from it.

That’s why I always hesitate about buying stock in certain companies–if I care about other people, why would I support (and profit from) an organization trying to convince them to do things that are bad for them?

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]]> By: Sam http://www.getrichslowly.org/blog/2012/12/26/the-consumer-the-ower-and-the-owner/comment-page-1/#comment-3174802 Sam Wed, 26 Dec 2012 13:00:36 +0000 http://www.getrichslowly.org/blog/?p=157662#comment-3174802 I don't drink much soda, but when I do I drink it at work (once or twice a week, if that) so work pays for it. I'm a fan of the gingerbread lattes as well. And since I'm mentoring a younger professional in my organization, I have a mentor budget and one of the things we do is head out to Starbucks for coffee and a chat so, you guessed it, work pays for at least half of my holiday lattes. Don't worry about work, they make out fine. I put in 10-12 hours day so that "free" soda once or twice a week is paid for by me. And the mentoring activity pays off if my mentee sticks around for a few extra years. Plus they are investing tons of other money in her training. The $500 mentor budget is small change compared to the other costs. For me, tracking my spending from day to day in Quicken provides these same kinds of messages. I get a little chart at the end of each month and its a sobering message to see how much I'm spending on ordering in for lunch on a day to day basis. I don’t drink much soda, but when I do I drink it at work (once or twice a week, if that) so work pays for it.

I’m a fan of the gingerbread lattes as well. And since I’m mentoring a younger professional in my organization, I have a mentor budget and one of the things we do is head out to Starbucks for coffee and a chat so, you guessed it, work pays for at least half of my holiday lattes.

Don’t worry about work, they make out fine. I put in 10-12 hours day so that “free” soda once or twice a week is paid for by me. And the mentoring activity pays off if my mentee sticks around for a few extra years. Plus they are investing tons of other money in her training. The $500 mentor budget is small change compared to the other costs.

For me, tracking my spending from day to day in Quicken provides these same kinds of messages. I get a little chart at the end of each month and its a sobering message to see how much I’m spending on ordering in for lunch on a day to day basis.

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