Obvious Wealth Advice

 I moved to this country at 28 with only 2 suitcases. After getting a Phd, I was already 34. Starting my real faculty job at 35, I now resigned from my job–the environment becomes extremely toxic and the academic working environment deteriorates so much at least in my just quitted position, no more academic freedom, but academic commands from the top administration without any supporting resource. Professors are like restaurant servers at the teaching end;  one must please academically underprepared students  at the expense of lowering academic standards. It is morally repelling position. On the research side, I must get external financial support $80K a year to support a PhD student while the department has no PhD program.   

I quitted about 10 days ago, and I finally feel I am myself.

Without aggressive savings over the years I make money, I would be pressed to rush into another employment.  Money does buy me freedom and peace of mind!

1. Grow rich slowly. Don’t try to gamble your way to wealth.

I have a cousin who works in a factory floor buys lottery tickets monthly. Lottery tickets are designed to make money. Buyers are all losers with certainty in the long run.

A more common way to gamble to invest in low-priced stocks, hoping in one day, the waning trade volume will go up along with the price.  The truth is that it is more likely the stock price will keep going down so low that you lose everything.  If you do buy one of these stocks, you know you are gambling not even speculating, get rid of them quickly while you are still in the money or slightly under water.    I paid a$120K for this lesson.   bought several hot China-Concept stocks. One by one, either the bubble bursted, or Chinese government regulation forced them to leave the NY stock exchange. 

If you know little about finance or are not willing to put time into studying individual stocks, buy index mutual funds; if you cannot withhold your gambling inborn nature, buy blue-chip stocks, not cigar butt.

2. Don’t buy stuff you don’t need.

One biggest problem with internet age is that we are controlled by computer algorithm. If we buy one item once, next time you log into your computer, web browser will keep pushing ads of the same type of stuff. If you click on it, it is more likely you will find better stuff out there. Then, if there is any residue of  joy left from last purchase, it will be gone without a trace, but replaced by a desire of getting the new and better stuff. If you fall into this prey, I bet your house will soon be  innudated with  goods and expense stuff that you do not use. 

 So if you spend tons of hours on the internet, clear the cookie regularly. Do not let computer algorithm control you!

Here you should remind yourself that everything you own also owe you, because every material object takes space to store. The mere fact you paid a good price for it makes it hard for you to part with them when you are forced to let it go, such as inter-state or inter-continental relocation. In my kitchen cabinet, I still keep that 200 dollar grass juicer purchased in 2006 that I moved with me nearly 10 times, two of which are intercontinental.  It is what Buddhist’s “greedy” that keeps us hanging to things. 

To avoid compulsive shopping, it is import to have a record of what you already own on the category you are about to add things, then make a shopping list, then stick to it.  After buying an e-bike, make sure you have a budget for all other accessories including biking clothing. Otherwise, one purchase will trigger a series of related purchase that could cost you a few times more than the cost of the item.

Things you should never buy: bottled water, soda, juice, packaged desserts and convenient foods, status stuff including name brand golden watches, jewelry, expensive collectable liquor/wine.

3. Stock up when items are  on sale

 Stock up on-sale item you do consumer regularly.  When shopping at Costco, I will pick up items on sale. Good things that Costco rotates items on special sales， so I still get to try new items that I have not bought before. 

Food perishable goods, you will need to pay attention expiration date. Otherwise, cost savings often pale compared with food waste.  Again, it is important to check your inventory before hopping on a shopping trip.

4. One in and One Out

If you are like me, the temptation of getting new item is hard to resist. Then, imposing the rule of one out, one in.   Fussy and warm bath towels are hard to resist, but you already have five towels. Why replace them if they are still working, only a bit less huggable?

If you follow above rule, your need will soon subside, and saving rate of above 50 will become easy rather than torturous.

5. East out only for social reasons

Labor is expensive in the US. The price you pay  for eating out not only includes the cost of ingredient, but also the labor of cooking, serving, cleaning, and the rent of the place.  Prepare early, and cook at home. You will have total control of what to put into your body, what not to.  However, I wouldn’t object to carefully planning eating out with friends. Then, dinner out is a way of social, not a way to fill your stomach.

6. Ditch gym membership or personal trainer

There are tons of videos on youtube teaching you all kinds of fitness exercises. You will follow them at home at your own schedule. No need driving to a gym and pay someone a heft fee to get fit. All you need to invest is a pair of good shoes and comfortable clothing. If you are bored working indoor, you can simply run, job, or walk in your neighborhood. 

7. Brush teeth twice a day and use dental floss.

Dental care is very expensive. Good habit makes a difference to your dental health, can save you several grands in dental care. If you have overbite issue, wear dental guard when go to sleep. It will reduce the trauma to your gums, and thus help heal periodental  problems.