The Art of Money - Latest Comments

Re: Halloween Is Stupid and a Losing Investment

Travelernp — Sun, 30 Oct 2011 21:36:02 -0000

I actually LOVE Halloween. It is a time I can be someone other than myself. I have a few additional suggestions: 1) make a costume out of things that you have around the house, 2) rent, instead of buy, a costume (my last one cost me $45) or 3) use the costume at other themed parties or next Halloween. Would love to hear about some alternatives to the candy!!!

Re: How I Saved $576/year on Haircuts

Morgan Polotan — Sat, 29 Oct 2011 14:02:19 -0000

Come on, not all white guys look like cancer patients! In any case, you'd have to weigh that look against the amount of money you'd save by not getting a haircut...it all depends on your situation :)

Re: The Difference Between an Asset and a Liability

Morgan Polotan — Sat, 29 Oct 2011 14:01:28 -0000

Ken, I agree that for most people, their job is their only asset, and everything else is a liability. I believe if more people realized that, they would change the way they live. And spending is not a sustainable way to prop up the economy; most Americans need to de-leverage by paying down debt and actually saving some money. This will inevitably reduce economic growth in the short-term (something I believe we have to accept in order to avoid long-term crisis) but will setup the economy for success in the long term.

As far as MLM's, I generally don't have a favorable impression. I know Robert Kiyosaki advocates them, but they've never worked for me. For most of them, you're selling a physical product, which means you're competing with every Fortune 500 company out there. MLM's are based on the premise that you can leverage your personal relationships to sell products and services, but ironically trying to sell your friends and family something seems to decrease the trust in your relationships. That said, I've heard of people making a lot of money with them, so maybe it works for some people.

Re: How I Saved $240/year on my Cell Phone Bill

kenpolotan — Sat, 29 Oct 2011 12:50:13 -0000

Did you know that the US is the only country on this planet that has cell phone "contracts?" I've been to Europe and Asia and they don't have contracts there. Most plans are pre-paid. In fact, most cell phone services overseas are commoditized. In short, it doesn't matter which service you use - they're all the same. In these countries, customers can get any phone they like and have it turned on by any cellular service provider they like. So, what do these cell phone companies compete on? Mostly coverage and customer service.

Imagine that happening here. I can purchase any phone I like (iPhone) and have any of the three cell phone companies (AT&T, Verizon, T-Mobile, Boost, MetroPCS) turn it on for me.

But then again, those countries have truly "free markets."

Re: How I Saved $576/year on Haircuts

kenpolotan — Sat, 29 Oct 2011 11:24:40 -0000

If you're a black man, you can get away with a buzz cut. If you're white, you'd only look like a cancer patient. Wait, but if you're white and ripped, then you might be okay. ;D

Re: The Difference Between an Asset and a Liability

kenpolotan — Sat, 29 Oct 2011 11:22:46 -0000

Also read Robert Kiyosaki a while back. And yes, I like his very simple definition of asset and liability. It seems to me then, that for 99% of Americans, the only asset they possess is their job (it adds to their bank statement every month). And the rest are liabilities, including a house.

And this is where the problem lies: our society defines the house as equity, which adds to our supposed networth. Never mind that you have a mortgage. The pipe dream is that the house is actually making money, as its value appreciates in the market. Wrong! This, as we know now, is called the housing bubble. This is the American dream that was sold to the 99%. Bush declared that everybody should own a home. He even relaxed restrictions on credit. And the rest is history.

Going back to my earlier point, if a job is the only asset ordinary Americans have, what happens when the job goes away? Then, you're stuck with massive liabilities. And then what happens when jobs go away en masse - first, global outsourcing, then economic collapse)? So, I don't get it that this government's idea of an economic recovery is spending. First of all, many folks don't have the money to spend. And secondly, spending is not sustainable over the long term (as we now know).

Question: in terms of acquiring more assets, what are your thoughts on MLMs (multi-level marketing)?