Double Journey

I went back to Seattle this past weekend, and one of the places I stopped was good, old, cheap Sushi Land. Actually, I went twice. Considering I only had four meals there, taking half of them at Sushi Land should tell you how much I miss the place. My two meals there came to a total of about $20 each. For that price, I was able to eat until both me and my girlfriend were quite full. Since I normally focus on nigiri rather than rolls or noodles, I’m able to eat quite cheaply. Most of the nigiri is $1.50. The one general exception is pictured to the left, the sockeye salmon.

Sitting here in bright, warm, Southern California and thinking about the sushi almost makes me want to move back. OK, maybe not.

It seems like I’ve been without Internet forever, when in reality it has only been a few days.  Even when I was on the cusp of getting it, wouldn’t you know it almost didn’t happen.  I was explaining to my friend Sandy one time how nothing ever comes easy for me.  I’m not sure why that is the case, but it’s true.  So when the cable guy came to install everything, he couldn’t find the closet where he needed to make the connection.  After much searching, and finally asking a neighbor, we found it.  But wouldn’t you know it, it was locked.  As the cable guy came late (which was annoying in itself) there was nobody in the office to actually let him in to turn the cable on.  Lucky for me, there happened to be one maintenance guy still around after hours because he was putting together some new gym equipment.  He was kind enough to let us in.

So I thought we were finally close, he would find the right cable, plug it in, and we would be on our way.  Of course, like I said, nothing comes easy.  He goes back and forth trying to get a signal, but just can’t find one.  After many attempts, we discover a cable that is not plugged in on the patio.  So we go through the whole exercise again.  Still nothing.  So we take the cover off the wall, and discover a mess of other cables.  So we try a few of those.  Finally a signal!  Two hours later, and I’m back online.  Have a lot to say, but at this point I’m tired, and going to call it a night.  I’ll resume my regular posting schedule shortly.

As my last post has indicated, I have moved.  Unfortunately, I don’t have my internet access setup.  Since I don’t blog from work, this means that my posting and responses are going to be a little bit spotty over the next few days.   It’s amazing to me how disconnected I feel when I don’t have access to the internet.  I checked my e-mail and there wasn’t that much for me to really pay attention to, but I still felt very disconnected from the rest of the world until I was actually able to check it.  And there are the little things.  My AV definitions of my computer are out of date, so it keeps bugging me to update them.  My media center PC can’t update it’s guide so I can’t easily figure out what the heck I’m watching on TV.  It’s times like this that you realize how for so many of us, it is so important to be connected.  The internet is supposed to be turned on this Wednesday, so I only have to last a few days.  It’s going to feel like an eternity to me. 

So I finally found an apartment after a really long search. I didn’t hit all my criteria for finding a place, but I’m really happy with what I got. I looked at literally hundreds of listings and physically went to look at about 20 units. Reviewing my list here is what happened

1. They must take cats - They do. I have to put a deposit down, but that was to be expected.
2. Must have a dishwasher - It does. It’s even brand new and stainless steel.
3. Must have a washer/dryer IN UNIT - It does not. This was the big compromise. Just weren’t that many apartments that actually had washer and dryer in unit. Those that did, I was compromising a lot more for other things. This was more important to my girlfriend than it was me, but she saw the place and thought the laundry facilities on site were adequate.
4. I have to be able to get two parking spots - It has it, it is underground (i.e. covered) and they are side by side. Lots of places in the area have tandem parking, so this was excellent
5. Roomy - One of the bigger places I saw and I have a large amount of terrace space.
6. Clean and relatively new- Of all the places I saw, this was the nicest inside. It had granite counter tops, stainless steel appliances, and relatively clean everywhere else. I am VERY happy with this part of the criteria. The only drawback is that I will have to buy my own fridge, but that really isn’t that big of a deal.
7. Budget - Given all the above, you would think this was one of the more expensive places as I’ve only compromised on the washer/dryer. But here is the kicker. Of all the places I actually visited, this was the cheapest place. More on that in a minute.
8. In Pasadena - I’m in an excellent location, pretty close to things, and in the good part of town.

So given all the above, I have no idea how I got the place for only $1700. This is seriously below budget and much less than I would have expected to spend. I looked at a lot of places, and most of the one bedrooms were going for more than that. There were no two bedrooms going for that low of a price for sure. Add on the fact that there is a pool and a fitness center and I’m pretty happy with the place. So I keep thinking to myself, what am I missing? What detail would account for this place getting such a good deal. Is it one of those cases of it being too good to be true?

So right now, the big question mark in my life is where am I going to live. I’ve spent most of my free time the last few weeks looking at apartment listings or going to go see places. One of the things I’m struggling with is figuring out exactly what I want. For me, I have a few requirements for the place I want to live and it is making it hard for me to find a place. These are

1. They must take cats - I’ve joked with friends that I would give my cat up to find a place, but in reality there is no way I would do this. This eliminates a lot of places that just won’t take pets.
2. Must have a dishwasher - I don’t do dishes. My girlfriend doesn’t either.
3. Must have a washer/dryer IN UNIT - I won’t rent a place that I have to share a laundry facility. I’m lazy with my laundry, and don’t want to be checking on it all the time
4. I have to be able to get two parking spots - and I would rather they both be included in the price of the apartment.
5. Roomy - Got to have enough room for the TV I’m going to buy.
6. Clean and relatively new- I’m probably past the point where I can really compromise on this. When I walk into a place, I want to feel like it is bright and clean and that the appliances are in good condition.
7. Budget - This is the most flexible component for me but perhaps the hardest for me to adjust. I’m just not use to spending money on rent. I keep debating like MoneyNing did not too long ago, how much should I improve my standard of living?
8. In Pasadena - This is the closest place to my new job where I’m willing to live. I’ve lived there before

The first four are not negotiable. The fifth one is somewhat subjective as is the sixth one. My budget is pretty flexible. Before moving down, I thought I would be right in the $1800 mark but having looked at quite a few places, I think the number is closer to $2000. A question for me is if I want to go up to $2300. If I go up that high, I can probably easily get what I want. I can afford it, it is just a matter of if I want to. The last one I may adjust. I greatly prefer to live in Pasadena, but right now I’m not finding what I want in the area I want.

So what do you think I should do? Do you think I should just spend the extra money and get exactly what I want, or should I scale back my expectations a little bit and compromise somewhere else?

Slowly but surely I’m learning how taxing it is to have a really bad commute to work.  It used to be that I had a nice quick 10 minute drive to work with absolutely no traffic.  I would jump on the freeway, take it three exits, and then I was at work.

Now, that isn’t anywhere near the case.  I have at least a 1.25 hour commute.  On bad days it can be two hours. I actually tend to handle traffic better than almost everybody I know, but a 2-4 hour commute is taxing on you no matter what.

It isn’t even the drive that really bothers me.  It’s the fact that I routinely lose about 3 hours of my day, every day, to a commute.  This used to be the three hours I would devote to this blog.  Since I have a very strict no blogging from work policy, this means I have to squeeze time in in the evening to be able to blog.  I really wanted to complete my Polycom analysis but I just don’t have it in me when I get home at 11:00 and have to get to bed so I can be up by 7:00 to make the commute.  Blogging this weekend was out of the question since I spent most of it moving.  Luckily, I think I found a place much closer to work, and I hope to go and sign the papers tomorrow.

Quick thought on the market.  The whole market is down.  Like I said earlier, stay out for now.  I think if you are going to buy, buy in a few days.  Right now just does not look like a good time to go long in stocks.  Nothing is really working except for the few stocks that are coming out with good news.   I think a window might open soon, and you can get some good stocks at the bottom, but if you have to do something right now, short stocks.

I’m actually not one for New Year’s resolution. I’m much more the type to just start something whenever the mood hits me rather than wait for a specific point in the year to take on a new challenge. However, since I have this blog up, I’ve decided that it would be good to lay out some financial resolutions for myself and see how it stacks up at the end of the year. So my financial goals for 2008:

1. Double my $20,000 - Obvious but worth mentioning.
2. Develop another source of Income - Right now I have two. I have my job and I have my investments. I really would like to have at least three if not four. It would be great if I could get this blog to make money. But if not that, I really want to at least come up with an idea on how to get my income to go up. I could probably save myself to being rich, but it will be a much easier journey to get there with another income.
3. Watch my basket more carefully - Warren Buffet advises that you put your eggs in one basket and then watch the basket very carefully. That is something I got away from in my investments this year with all the other things going on in my life. I need to be more choosy in picking stocks for my long-term portfolio, and watching that basket like crazy. I made a big mistake with ETrade, and should have gotten out much earlier. I paid the price for it.
4. Spend more money - OK. I know, this is usually the exact opposite of what most people try to do. Problem is, I’m not most people. I suffer from the exact opposite problem that most people do. I save way too much. I probably save about 60% of my net take home pay in one form or another.

That’s it for now. They are actually pretty big goals. #4 may seem easy to some, but it has proven very difficult for me in the past. I even started a “spending” plan about two years ago, and it didn’t work. I couldn’t make it stick. Odd huh?

What are you New years resolutions?

Lucky for me, I also get Monday off, so I will have a four day weekend coming up. So what am I going to do?

I’m basically alone this weekend as I have left my girlfriend up in Seattle for now, and won’t be seeing her until the next weekend. Despite the fact that I could use a nice respite from a rather hectic work week (and nightmarish commute) I will be quite busy. On my to do list

• Catch up on this blog. I really want to pick at least two or three stocks this weekend and at least set up my portfolio
• Attend a Heroes marathon at my friend’s place
• Find an apartment. I’m pretty tired of the commute, and need to get a permanent place closer to work
• Catch up with some California friends. Actually haven’t seen anyone since I got here a week ago.
• Balance out my regular portfolio. Probably need to make some sales of stocks for tax reasons.
• Sleep. I’ve been working 11 hour days this week on top of a 4 hour commute.

What are your plans for the weekend?

So yesterday was my first day on the job.  It was a long day.  I got up 2 hours before I started because my commute was 1.5 hours.  Got to love L.A.    Despite the fact I can live rent free with my Mom for the time being, I think it will be worth it to just go find a place.  Will probably go look this weekend since next weekend I’m back to Seattle to go finish my move.

Not a lot out of the ordinary for the first day of work.  Just your usual orientation stuff and introductions.  Went to lots of meetings where I didn’t know what anyone was talking about.  Some people feel very uncomfortable in these types of situations.  I don’t.  I find you can learn much faster if you just get in the middle of it and figure out how the team operates.  I have been told I actually have to make some key decisions this week.  It’s a little early even for someone who can learn quickly like me, but hey, I’m up to the challenge.

Sorry this is not more of a substantive blog post.  It’s going to be a little light this week as I get my feet wet.  I will still have a blog post every day and actually have some pretty good stuff planned going forward.  I’m working some long hours this week, which goes against some of the things I believe in when it comes to work.  More on that later.

Every once in a while, I’ll talk about something I learned along the way that has helped me build a pretty sizable nest egg at a relatively young age. So to start things off, I will give you my best tip. The secret to building wealth is to start building wealth.

I know what you are saying. What? Well the secret to building wealth is recursive. For all you non computer geeks, this basically means that the definition of something is contained within its own definition. As soon as your head stops spinning let me explain through my own personal story.

I wasn’t always on the path I am today. I started out of college with a good job that paid well. However, living in New York City, I had a lot of expenses. The two bedroom apartment I was renting was $3400 a month. My share of it was basically eating up half my paycheck. Somehow though, I managed to save some money and even put a little away in my 401K, almost $5000. After a year, I left my job and had to pay for my own move back to California, and that ate a big chunk of my savings. However, I still managed to keep enough for an emergency fund.

Over the course of the next few years, I was careful with my money, always remembering that sometimes, unexpected things like leaving your job and moving across the country can pop up and you need to be prepared. I still managed to max out my 401K every year and slowly but surely it was growing to quite a bit of money. As I became more successful in my career, I continued to see promotions and pay raises, but each time I kept my lifestyle pretty much the same. In fact, I began living more frugally. I’ll explain why.

The effect of getting more income and spending less money was VERY POSITIVE on my bank account. The higher I saw it go up, the more I wanted to see it go higher. The more money I got, the more interest I could earn from my savings account. As I started investing my money, I realized that the more money I had, the faster the whole pile would grow. This became almost addictive. I would find ways to save more and more money so I could funnel it toward these accounts. The power of compound interest is really displayed when you have a big bank account, and it just starts to snowball on itself. It almost becomes a game as you try to find more ways to save money or earn income to see the wealth grow.

So this is the best tip I can give. Just start trying to build wealth by any means you can. As you do it, you will find you really like it, and you will find other ways to increase your wealth. You will start getting into a feedback loop and you will soon realize that building wealth just becomes a habit. I now earn well over 2.5 times what I used to when I lived in NYC but I probably spend less money. All because I have become addicted to building wealth.