The Financial Value of Having Friends

Well it wasn't a barn raising, but when my friends came over today they certainly helped me out. By the time they left there were two shelving/storage units installed and a large item moved from my house to the garage. Not rocket science but all things I can't do by myself. And without friends or family I would have to pay for help.

Boston Gal had a recent post about the underground economy and how it helps the urban poor survive. The articles she found talk about the sense of community and responsibility that goes with these arrangements.

I think that no matter who you are, there is benefit to having friends. It can save you money, put a few extra dollars in your pocket or just make life a whole lot easier. In friendships it all goes around and comes around, which is how economics works too. And though that's not why we have friends nowadays, it is certainly one of the reasons that people had to get along with their neighbours in times past.

Now, if you'll excuse me, I'm going to go fill my new shelves....

Money and the Single Woman

Today I read two articles in two very different places that said that single women were more likely to buy houses than single men. While one article did mention that this was related to the women wanting to have the stability, comfort and creative outlet of a home, both articles also focused on the financial aspect of this move being a draw.

I wondered about this for a while. I own my house (with the bank) and it has been very good for me financially, but I didn't know that it would be so great at the start. In fact, it was very financially stressful for a few months following both times I bought. But I knew that home ownership was a good long run financial decision and that appeal was always there. And really, I figured that everybody knew that and felt that way. So why would men be less drawn to owning a home while they are single?

Anyway, I decided to chalk it up to women being smarter than men :) because I don't really have an answer for it, but it raises some other interesting issues. For example, I know that statistically speaking my net worth is above most other people's of my age group. So that means that I am quite likely to meet men with less money than me as potential dates or mates. Perhaps far less money, and maybe even with debt. That kind of bothers me because I'd like to feel like there was some sort of financial equality in a prospective marriage. I even wonder if I might be more likely to stay single because of my financial status. Ironic...

Today's billable hours: 5.0
Today's contracted hours: 1.5

Patience, that difficult virtue

The future sure seems a long way off sometimes.

Of course, not every day. Some days, I am convinced that I will retire very young and live a lovely lifestyle with everything falling neatly into place. Those days, the future is a welcoming place that is rising up to meet me. The path is clear and smooth and free of hidden twists or dangers.

But then there are the days when I feel like I will be on the hamster wheel forever. On those days, retirement is a moving target and will inevitably lead to a diminished lifestyle, my job will never let me go and my investments will all go down. Way down. This is a future that is moving further away from me each time I try to look at it. Too many of these days spells insanity.

And where does the truth lie?

Money fools us by coming with numbers to measure it. Like time, in which we assume that a minute is always the same length until we have to wait in line for the toilet, one dollar is not always the same as another. Some dollars are heavily taxed, some taxed more lightly and some are not taxed at all. Some dollars are well spent and provide great value and some are wasted. Some dollars grow and some dollars shrink. Some provide benefit to us and some provide benefit to others. And we can't always tell the difference at first glance.

You see, on my optimistic money days and my depressed money days my net worth may possibly be the same number. But in one case I like that number and in the other I don't. And in both cases I still don't know what the future truly holds for me, which is why I come to the topic of patience. In life, and especially in finances, patience is key. With some patience and flexibility the future will work itself out. After all, I will get a chance to respond to any and all circumstances that befall me by modifying my plans and practices.

And that is the key insight. The far future goal is to keep your eye on the ball. It will come at some point, but the path is made of hundreds or thousands of small decisions and minor adjustments along the way. The near future and the present are what you work with on a daily basis to make these adjustments. With good stewardship in the present, the future will take care of itself, so spend your attention on what you can directly work on, and do not let your focus falter.

You will also have a lot less "hamster wheel" days.

Today's billable hours: 7.5
Today's contracted hours: 1.0

The Value of Things: Part 2

Today I helped my grandmother to go through some of her possessions in an effort to downsize. This is in preparation for a move to a smaller space and it is a move that requires as much mental preparation as physical. Many of the things that we looked at were once used all the time, such as a wide assortment of dishes for entertaining. Letting go of such items is deeply symbolic of the changes in her life and was met with a mixture of sadness and relief.

I left for my house at the end of the afternoon with four teacups. My grandmother already downsized her collection a few years ago (she tells me she once had a hundred teacups) and today we brought it from about 30 down to ten. The ten she kept were all "good" teacups that had been kept separate from the regular teacups and were all in very nice shape, showing little sign of use.

The ten I left behind were lovely, but I am also very pleased with the four that I took. For me, they will now be a symbol of my grandmother and they are also quite beautiful in their own right. I will use these teacups with great pleasure knowing where they came from. I am equally pleased to know that for the last years of her life my grandmother will be using her "good" teacups. I hope that she too takes pleasure from seeing them out more often and enjoying them with her friends and family.

I felt that the teacups were good lesson in value for a few reasons. First, the teacups that I received were probably quite expensive, but to me they are valuable because they came from my grandmother. Second, the downsizing of the teacups shows again the lesson that smaller quantities of higher quality often provide better value to us. And finally, because it reminds us that value comes from using something to improve your life. Hoarding something out of sight is as good as not having it at all. It's just the same as putting your money under your mattress!

Today is Saturday. No hours worked today.

The Value of Things

Oscar Wilde: "A cynic is a man who knows the price of everything and the value of nothing."

Today I added a Quote of the Day to my blog. I remembered the Oscar Wilde quote above and went looking for the source on the internet and found this site that provides the service for free. It seems like a great little service. I was able to select the themes of the quotes (I chose money and success to match the theme of the blog) and within 2 minutes I had the whole thing set up. Brilliant!

My topic today was prompted by a discussion about real estate at lunch time, and how some people seem to want absolutely enormous houses. Neither I nor my lunch companion felt that this was a good thing for us. My comment was that I would rather have a small house with exactly the right things in it. To me, extra space does not provide value on its own - it is what we are able to do with our space that matters. If there is enough space to live your life comfortably, then there is enough space.

I think that a focus on value is something that we all need reminding about from time to time. Spending more does not always guarantee a better product and spending less is not always a savings if it ends up costing you time, money, lost opportunity or other disadvantages. The true test should also include "Is it worth it?" This is also the reason that spending on an appreciating asset such as quality stocks or real estate is always a good use of money.

Today's billable hours: 3.5
Today's contracted hours: 3.0