You and Your Company

We all hold companies to high standards of financial reporting. When it comes to the publichly held companies, they must have standard reporting practices such as quarterly statements and GAAP accouting. They are stringently judged by analysts, speculators, investors and the market in general. If they don't do well in a particular quarter, the stock often drops (which brings up another concern for another time). On the other hand, if the company has strong revenue, low expenses, good accounting practices and reporting, usually a company and its stock will do well.

What about You?

For all the time you spend analyzing charts, ticks and reports, do you put in the same time and emphsis in your own "company?" You are a small (or large) company in and of yourself. You have revenue (income), expenses (expenses), and budgets to keep track of it all. Or you should.

If a company spends more money than it makes and it doesn't change or get help, it will go bankrupt. If you spend more money than you make, you too will go bankrupt. If a company doesn't keep records of its activities, it will not know how much or little it makes or has. The same with you. If you don't keep track of what you make or spend, you will have no idea if you have money or not. Is this a good way to go about something that is so important?

A company may seem more important becasue it is bigger and makes more money, but you are your own company and are importatnt to yourself or your family. Run your finances like a company. Hold yourself to high standards when it comes to taking note of what comes in what goes out, and how it goes out.

This leaves us with some final questions. In what state are your finances? Are you an Enron or a Google (GOOG)? Would anybody purchase shares in your company?

Would you?

Oil: The New Luxury Good

With oil at $130+, people are bracing themselves for a rough time for the remainder of the year. With the summer approaching, a large travel season, people will most likely be opting for fun nearer to home. Big box retailers as well as mom and pop shops are already feeling the heat, and its not from the sun. With rising costs of raw materials and less consumer spending, producers are being pinched on both ends. How can you, the consumer, survive with this "new" luxury good on the market?

For one, you can treat it as a luxury good and consume less of it. In tough times, people often reduce or stop altogether their consumption of luxury goods, and with oil at such unconscionable levels, we could almost consider it a luxury good. Although oil or gas demand is relatively inelastic, which means its demand is stable through changes in price, you can make a choice to set your cut-off point. When will you make decisions to use less gas or find alternative ways to get energy? When gas is $4.50/gal, $5, $10? There are numerous ways from simple changes to drastic measures that you can take to lessen consumption.

Another thing we can do is to be aware that we are consumers. The large and mighty corporation, with all their power, to a large degree are swayed and make decisions based on individual consumers as a whole. The price of oil will continue to rise as world demands grows. This will lead companies to finding cheaper methods of doing business. If we realize our power and support companies that comply with our beliefs, we can alter the marketplace from the bottom up. We can support companies that choose to make the hard decisions now, as opposed to later or never. This is our privilege, or some might even say our responsibility, as consumers.

Hard decisions would imply finding viable sources of energy to support their business now. It is something that I feel is inevitable anyhow, so they may as well start ASAP, and we may as well support them. In the short run, they can free themselves from the rise in oil price. In the long run, they will be the companies that win, and in turn so shall we. By supporting these companies I mean purchasing their competitive products. When there is a choice, choose their stuff, as opposed to another brand.

For example, Patagonia is an outdoor performance wear company. They are very conscious about their business practices. They try to keep their production line, as "clean" as possible. They are very concerned with supporting the environment and take many steps to be socially responsible.

To take it even further, support could mean purchasing stock or advocating for the particular company. Innovest is a firm that does market research on companies that are environmentally as well as financially sound.

Sunday Post - Want $25 Million? Save the World

Global Warming - Read this paper and see what you think. Read this before you read:

GreenHome - About a green home built in Raleigh, NC. An interesting site of a prototype green home decked out with the latest in green technology. Many need to know facts and ideas here.

Tax Season - For you United Staters, our favorite time of the year. Prepare and file online. "You need to do it too," my dad reminded me.

Iwillteach... - I got scammed by my bank (Chase) with overdraft fees, then late fees, then more late fees. And I paid it. I should have known about this site before.

Stingy Students - Looks like a nice shirt and sounds like a good deal, except the salmon color and the tie. But I'm sure you can choose other colors and pass on the ties.

New York Times - Obama Runs! I want to see him do well. Whether that means he becomes the frontrunner, gets many votes, wins or isn't shot, time will tell.

$25 Million to Save the World - Billionaire entreprenuer Sir Richard Branson and former vice-president/environmentalist Al Gore team up with offer of $25 million dollars for the The Virgin Earth Challenge. You could be rich biatch!

Free!

Dictionary.com states that, among many other things, free is something that is "provided without, or not subject to, a charge or payment."

Without a doubt, I am a fan of "free." I am a free person, "enjoying personal rights or liberty(s)," and for the most part, "not held fast" to anything or situation. Free-dom is a great thing. It allows us to go where we please, do what we feel (within or without reason), and enjoy the fruits of our autonomy. I am a very fortunate person.

However, in the material world, free is usually associated with words such as "junk," "worthless," and "not really free." All too often, free comes with strings attached, like *'s. There are hidden fees or catches that bind you into more trouble than the initial freedom is worth. So it is quite rare that things of value are offered at no price. That is why I am surprised when I see something of value offered for free.

One thing that I have found (and it is nothing new) is free phone service. Just a few years ago, we had to pay loads of money to call someone across the country. We would compare different carriers, wait for nightfall, hesitate on calling during "peak" hours, or any number of things to reduce the cost of making a long distance call. That has all changed with VOIP servers such as Skype (www.skype.com) or Vonage. You can call anywhere in the world for free. Free? Free! (I love saying that word.) However, there are a few *'s attached. First, you'll need a computer, and if you're reading this, you've already got that covered. Second, you'll need several minutes to set up an account. Third, you'll need a microphone and speakers, things your computer probably already has. After these, all you need is someone to call in Denizli, Turkey, some free time, and you're set. Calling around the world hasn't been so free since the days of phreaking!

Another nugget that I've found is in the online trading arena. With the advent of the online discount brokerages, commissions have plummeted from hundreds of dollars per trade to the cheaper rates being below US$10. I myself have been using Scottrade (www.scottrade.com) for the past several years to make the occasional hobby trade. They offer relatively low rates at US$7/trade. TradeKing (www.tradeking.com) also offers very low rates starting at US$4.95/trade. These are great rates for market trades. But one company has changed all that.
As I was surfing the land of the free (the internet), I came across an ad for free trades. Intruiged I went to their website (www.zecco.com) and found out what this nonsense of free trades was. Low and behold, they were offering free trades. Mind you that these are for your basic market orders. More advanced trades such as option and margin accounts have other fees. But before you being acting like a day trader, make sure Zecco offers what you are looking for in a (discount) broker. Because there's nothing worse than getting something for free that will end up costing you more later.

Hopefully these free things will allow me to "act without self-restraint or reserve" and "not (be)subject to rules (or) set forms" in the future. Until then, keep on the lookout for freedoms for all.

A Penny Saved

As I rethink the function of this blog, I will focus it to an audience looking for interesting tidbits to help them along. The range of ideas is broad and will not always (ok, not usually) be my original thoughts. I will borrow the ideas from other sources. I don't have all the answers and don't intend to act as if I do. Actually, I will post ideas here to help me remember as well, what I have learned through my meanderings of life and the internet.

Saving's Basics: Assuming you have a little saved money sitting around collecting dust, why don't you collect dollars? In my searches to find a decent rate of return on a savings account in these times of rate fluctuation, I have found several places that offer decent returns on a standard savings account. An online bank, Emigrant Direct (www.emigrantdirect.com) for example, offers a 5.05%APY. Now as far as I know, my the national average is much lower (somewhere below 1%, but don't quote me). There are many other banks like this and if you do a little google search, you will find them (or go to www.bankrate.com to compare banks). They are basically all the same. Depending on how much you have to save, you should go for one that has no minimums, no fees, and is insured by a reputable institution (member FDIC). These work just like savings accounts, except that there is usually no bank to go to, and you'll need to connect it to another account to fund from or withdraw to. The process is simple and in no time you'll be making a measley 5% on your savings account!

I also accept advice, so if you have anything you'd like to share, please feel free.

The 2nd First Post

Okay, I guess I'm really a newbie and unadapted to this as I thought I had already made two posts but apparently put them somewhere other than my front page. This will be my first "post." The week has come to an end and my eyes are tired.
I'm also new to the game of investing. I hold some stocks in companies, but followed the advice of market guru, chair throwing Jim Cramer. So far, his advice has been on point and I've made good returns on his recommendations. In the long run though, I know I should learn how to analyze investments on my own. I am in the process of doing this, but it is difficult. On this journey there have been some beacons of light amongst the snake oil peddlers of this industry. Part of this blog will be dedicated to finding these spouters of knowledge, as well as other random interests of mine (not to discredit my other interests). I will add links to sites that I find interesting pertaining to investing such as this http://bigpicture.typepad.com/. There is a wealth of knowledge out there for you to sift through and make the decision if it's worth anything to you.