Archive for the ‘Gear’ Category

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Collaborative Consumption

Tuesday, July 26th, 2011

collaborative-home.png
(image credit: Collaborative Consumption)

But isn’t that like, communism, man?

Not exactly – people still own things and are making a profit from them, and that’s sort of the point.

Technology (i.e. the internet) is allowing regular people like you and me to share their skills, stuff or space with the world – for profit. New websites and services like TaskRabbit, SkillShare and Airbnb (and even old stuff like eBay and Craigslist) allow people to take advantage of stuff they own or stuff they can do by lowering barriers-to-entry.

But, wait, if, like, everyone can easily buy and sell stuff, isn’t that at least, like, socialism, man?

Not exactly.

Get Wellthy

Tuesday, July 19th, 2011


(photo credit: Pink Sherbet Photography)

Trying to get wellthy? No, friends, that’s not a typo – according to consumer trend tracker trendwatching.com, a hearty lung capacity and rock hard abs are becoming as important a status symbol as, say, a sweet ride or a fancy new iThing.

Witness:

• People are increasingly ranking physical fitness and health as an important component of their happiness.

• Around the world, people are using more mobile healthcare devices and apps – most of which are purchased by consumers, not doctors.

• Tons of new fitness “toys” – Wii Fit, Sleep On It, the Fitbit – have been hitting the market lately.

Looks like you’ll have to literally keep up with the Joneses these days…

How Not to Make Major Financial Decisions

Thursday, May 19th, 2011


(photo credit: BaronBrian)

Looks like wealthy Russians (and, yes, wealthy lunatics everywhere) are spending their nest eggs on underground apocalypse-proof nests. After all, the world is scheduled to be laid to waste on December 12, 2012. Or May 21, 2011. Depending on which irrefutable evidence you’re looking at.

But this seems like as good a time as ever to point out that basing your financial strategy on the ancient Mayan calendar is probably about as smart as trying to time the market. Base human emotions – fear, anxiety, and greed, for example – don’t mix well with financial transactions. (See Frank Murtha talk about it if you don’t believe us.)

Wait. Can you time the market?

Does traveling (or living) well have to mean spending a lot of money?

Thursday, May 12th, 2011

splashing-in-the-sea.jpeg
(credit: notsogoodphotography)

We read the Frugal Traveler section of the New York Times from time to time, though frugality is not something all our members are familiar with. But today’s article about spending a weekend in Rio de Janeiro for less than $100 sounded like a lot of fun. The kind of fun you might miss if you spent $2,000 instead.

In this case, the writer has an amazing experience for less than a Benjamin because he’s open to new (and potentially uncomfortable) experiences. So why not make it a point to travel the road less recently paved now and then?

Think about what you really want. Is spending the only way to get it? Is brand-name really worth more to you than generic? Can you see as much of a new city from a high-rise as you can from the street?

Now take a look at your Spend page – what do you spend most of your money on? Is that what makes you happy?

How much does A-Rod make just for being A-Rod?

Wednesday, April 6th, 2011

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(click image to see the whole thing)

Highlights:

  • - Every time Alex steps up to the plate, he earns $59,000
  • - A-Rod has the largest ever MLB contract package, worth $275 million over 10 years
  • - Even though he makes less money than A-Rod, Shaq makes way more money in endorsements

This may explain why every pro athlete seems to have their own foundation…

How much could A-Rod buy?

Why are gas prices so wildly different around the world?

Tuesday, March 22nd, 2011


(photo credit: Drew__)

If you’ve been in Europe recently, you’ve probably noticed all those extra digits in the price of “petrol.” In the U.S., we’re horrified at the idea of paying $4 a gallon for gas, but in Norway they’ve already blown past the equivalent of $9.

But… why? Is it harder to pump oil in to Norwegian gas stations? Is greater demand among the Norse driving prices up? Not even.

There are a few reasons, but according to Aaron Smith at CNN, it’s pretty much all about the government. Governments can either charge their citizens extra to buy gas (by taxing it) or the pay them to buy gas (by handing out subsidies, which lower the price per gallon).

Taxing gas is useful because the money pays for government programs. And handing out subsidies is useful if you want to keep your population happy. (You see this a lot in oil-producing nations like Saudi Arabia. It’s hard to be angry at the super-wealthy ruling elite when they’re basically paying for your gasoline.)

The moral of the story: Stuff is only worth what someone says it’s worth. $3 or $10, you still need it to make your Hummer go.

How much do you think you should pay to fill up your gas tank?

Sharing the Stuff That Drives Electric Cars

Wednesday, March 9th, 2011

“Xatori, a Silicon Valley software start-up, aims to create a network of electric car enthusiasts who make their household power outlets and home chargers available for drivers who need to top off their battery or who find themselves out of range of the few public-charging stations currently available.”

What do you think?

Would you ever pay for a total stranger’s gas? What about letting them charge their phone in your garage?

Are electric car owners just more generous?

This Fall, Look Forward To High, High Prices!

Friday, February 18th, 2011


(photo credit: Thing Three)

“Most” consumer goods are about to get a lot pricier - food, clothing, appliances, you name it. Why? Commodities, demand, and labor! Here’s what that actually means for you…

  • The cost of raw materials, like cotton, wheat, and metal, has increased wildly in recent years. These raw materials are traded on exchanges kind of like stocks, but they’re called commodities. Just like stocks, the prices of commodities changes frequently.
  • When commodity prices shoot up, it’s more expensive for companies to make their products, and that cost gets passed on to you, the consumer.
  • Besides the price of materials, there’s the cost of people. Workers overseas now demand higher wages than they used to, and with more money to spend, there’s an increased demand for certain goods (like cars and meat). That all adds up to more expensive products.
  • Retailers have been holding off on raising prices to keep customers during the recession, but they say they can’t hold out anymore.
  • Will rising prices lead to inflation? Stay tuned.

Facts & Figures

  • Unemployment in the U.S. is still at 9%, and wages have risen less than 2% in the past year
  • Some brands planning to raise prices include: Nine West, Anne Klein, Victoria’s Secret, Polo Ralph Lauren, Whirlpool, Kraft, Starbucks, Sara Lee, Brooks Brothers, and Hanes
  • Inflation has been low – about 1.4%, but economists expect the rate to rise to 2.5% 2011

Best Quotes

“Consumers are not exactly in the frame of mind or economic circumstances to say ‘Oh, pay whatever they ask.’ There’s going to be pushback.” – Joshua Shapiro, Chief U.S. Economist at MFR Inc.

“These companies are constantly walking a tightrope on how far do I go. Do I offset with price or other cost cuts, or do I just take it and have it eat into my profit margins?” – Jack Russo, Consumer Goods Analyst at Edward Jones

What do you think?

Do you know what goes into the price of the products you buy? Did you ever imagine that the price of popcorn at the movie theater could be connected to weather in the Midwest and a commodites trading floor in Chicago?

When Your Investment Portfolio Includes A Striker, A Keeper, And A Few Mid-Fielders

Wednesday, February 16th, 2011

“A group of U.S. investors made an offer to UniCredit SpA, co-owner of AS Roma, to acquire the three-time Italian soccer champion.

They are proposing to pay as much as 130 million euros ($178 million) and are seeking a 50 million-euro credit line for AS Roma from UniCredit after the purchase, Italian newspaper Il Messaggero reported Jan. 28. Movsesian declined to provide details of the offer.

He said it would be “an honor” to buy the team, and revealed it would be “trophy asset” as well as an investment.”

What do you think?

Do you know how much return you could get on a soccer team? Is buying a team more or less risky than buying a stock?

Americans Open Wallets Wider Than They Have In Three Years

Wednesday, February 2nd, 2011

The financial times they are a’changing. At least, that’s what these new statistics would have us believe…

  • In 2009, the American GDP (gross domestic product – a measurement of economic activity) dropped more than it had in sixty years. But like a phoenix made up of economic statistics, it rose back up in 2010.
  • We can’t know the exact cause, but the numbers say that people earned a little more, saved a little less, and spent a little more than they had in recent years.
  • Since consumer spending makes up almost three-quarters of all economic activity in the U.S., this is good news. But there are still those issues around high unemployment and a trashed housing market…

Facts & Figures

  • Consumer spending represents 70% of all economic activity in the U.S.
  • In 2010, spending rose by 3.5% – 0.7% of that was in December alone
  • The last time spending rose that high was in 2007 (pre-recession)

What do you think?

Have you been spending more lately? Do you think the economy will recover faster depending on where you spend your money (at independent stores versus chains)?

(Check out this week’s Today at TILE for a closer look at signs of life in the economy.)

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