The exchange rate is actually not favorable right now with China--your dollars are worth less, and Yuans are worth more than they were a year or two ago. The dollar's not tanked as much as it has vs. the euro, but still, in general, a weak dollar means its more costly for Americans to buy goods abroad ***than it would be if the dollar were strong*** On a finance blog, you'd better get your financial facts straight.
So while tailored suits may be cheaper in Shanghai, it has nothing to do with the exchange rate and everything to do with low costs of labor, overhead, regulatory mechanisms, and everything else.
When you think about how cheap goods are in certain foreign countries, I think it's good to have a mature understanding of what produces that effect. Abysmally low wages, for starters-if you were a resident of China performing your same duties for a Chinese company, how much would you be making, and would that $40 shirt seem like an impossible splurge?
As to your closing point about choosing to spend money on travel and experiences over "stuff"--there, my man, you are right on the money. Especially when you're young.
I didn't mean to single you out, Funny. That guy sounds like a real first class sleazeball. I have heard the "gullible old lady" theory in multiple places and no doubt it's a common scam, but I wanted to highlight how you can make money renting, honestly, in today's dollars with today's property values and mortgage rates.
There are certainly different investment options out there. The stock market, even mutual funds, can be risky. A lot of people find real estate investment more suitable, and remember I used as a case study an example of a house that rents for less than its monthly costs, and appreciates only modestly. We personally did much better on our rental.
I have to admit, when I read this post and saw the red 'sale' signs in the photo, I started getting the shopping itch. I actually considered going to Target's website to see if there were any good deals left. . . .
There's something about those red clearance tags that just get my heart beating a little quicker. It's almost like excitement or a rush. Even if I don't need anything, the idea of saving 90% on something (anything!) is almost too much to pass up.
I love Alyson's comment, that spending $0 is cheaper than spending $2 (even at 90% savings) on something I don't need. I'm going to try to remember this the next time those red tags call my name from the aisles of Target . . . . .
I live on $325 / week after taxes (on a single income). Yeah, makes life boring because I cannot afford to do anything but rent a couple dvd's every month. Sure, if I lived in my car, it would save some green, but living in Michigan makes that next to impossible. Also, makes for a crowded space when the kids come to visit.
I'm glad you can afford to travel abroad by cutting down on buying $500 shirts. Maybe if I stopped eating altogether, I could too.
I have a degree in English and tried to sign up with Tutor.com last year. I easily passed their tests, was accepted, and was allowed to download their propriety software and tutoring manuals. My last step was to provide my education info, tax ID, and other personal data for a background check and for direct deposit setup. Now, I have lived a virtually blameless, and it must said, boring life, so the background check was nothing more than a formality. I expected to have my sign-up process finalized quickly, or to at least receive confirmation that they had received the (highly sensitve) information I had sent. Silence. I never heard from Tutor.com again, despite repeated faxes and emails requesting nothing more than confirmation that my personal information had been received and was being processed.
After a while, I decided if I couldn't trust these people to deal with me professionally during the sign-up process, I might not be able to depend on them after I was an active tutor either, so I withdrew my application. Needless to say, I sent them more than one communication to this effect, along with a request that they DESTROY the documents I had faxed and emailed that contained my social security number, past addresses, etc. Of course, they STILL did not respond, so for all I know all this sensitive information is floating around out there somewhere, waiting to be taken advantage of by an identity thief. Tutor.com is supposed to have one of the best reputations in the online tutoring business, but I can't say they impressed me. Approach with caution, and keep a close watch on your paperwork!
During the Christmas season, my mom found a $100 bill on the ground at a liquor store. She picked it up quickly, and looked around the busy store to see if anyone looked like they were missing it.
Just a few days before, she heard that it was lucky to give found money away, so she was tempted to just donate the bill to the Sally Anne kettle at the storefront. Instead, she decided to give the money to me so I could afford presents for my sisters.
She made me promise not to tell them she did that, so I hope they aren't reading this blog!
My wife declines to keep any bills that are found. She feels it wasn't hers, so she will leave and let the owner come back or someone else can have taking the money on there conscious.
I a more lenient, but as I get older I want to do more and more to help find the owner. I am more willing now to leave money at a desk with a clerk with my name and phone number. Most stores will offer to call you after a week or two.
This is a great idea. Then downside is people that don't have the ability to travel due to work, kids etc.
I do wish there were more direct route ways to take advantage of the exchange rate. I did find some really good deals on things like Sari fabric via the India version of Ebay. But It wouldn't let me join Ebay India to actually purchase things.
There also used to be a few expats that sold things they bought in Hong Kong, they were closer to US prices but still a pretty good deal.
I would love to see more direct sale options come available, along with some level of assurances you will actually get your items and not get your c-card number stolen.
I liked all of your ideas except the one about ensuring your car was union-made. I'm going to assume you and your family are strong union folk so I won't try to cause an argument, but simply state that I used to work for Honda and it was a great place to work. Their cars are quality made by individuals who enjoy their jobs and work hard for a living at near Union wages and benefits.
Let's face it, when you buy more things used the original manufacturer/developer/writer/artist/builder doesn't receive money for it. That's one side of the ethical dilemma. The other side is that if we all bought everything new, what would we do with things when we no longer wanted them? Either they would be recycled (which is still a less environmentally-friendly option than reusing) or they end up in a landfill. Not to mention the fact that people who sell used goods wouldn't have a business. There are consequences regardless.
My guilty pleasure: I buy music online. I'm still supporting the artist, but albums are usually much cheaper than buying them in stores. Also better for the environment.
But then again, I feel guilty because I'm not supporting a store.
I've used my education and training to teach for several colleges online. And now I have teamed up with my brother-in-law and developed an online budget planning web site, that educates people on budgeting and personal finance.
Don't forget that services there are cheaper. You can get clothing mended for about 2-5 RMB, hair cut for 20 RMB, teeth cleaned for 50 RMB, back massaged for 60 RMB/hr, cell phone fixed, etc. If you plan it right and buy goods and services in China that you would've bought anyways and for top dollar in the US, the trip could pay itself. Of course, this will require some restraint.
I'm sure Europeans and Canadians are coming to the US with the dollar so low compared to their currencies with the same kind of reaction
I am in the same situation you are. I love games and the prices are ridiculously high for many of them. I almost never buy a game when it is first released and I buy many used. I look a it this way, that used copy I take off the shelf can't be sold again as long as I have it so if there isn't another used copy available then someone else who can better afford it may buy a new one. I also look at the price difference between new and used. When a new copy of a game is selling at the bottom of the price range $19.99 then the used copy is usually only $2 less so it is worth getting the new one to give the publisher incentive to make more games but you still have the environmental consequences to think about every time a new copy is made. Paying $55 for a used game that sells for $60 new is out of my budget even though it is still about the same difference in price percentage wise. If you worry about buying things used because they hurt manufacturers then you'll never Freecycle, shop Goodwill or go to a library. You'll always be buying everything new and overpaying while causing damage to the environment. If a game doesn't sell well it is because it wasn't good enough compared to it's competitors anyway, so if the poor sales don't put the publisher under then it forces them to make a better product next time, which is good for all of us.
Buying an American car (and paying more for it) so that an American worker can make $45/hour IS capitalism--or at least the American version of it. The idea is that if you buy that car, then that auto worker can afford to buy some other American-made whatzit, afford outrageously expensive American healthcare, afford to live in a McMansion, etc.
What I am doing--trying to live within my means, live without debt, save the environment--is actually very UN-American in economic terms. This is a country that thinks we are only "winning" if the economy is constantly growing, never stopping to realize that it can't just grow forever.
As to the original post--I just don't buy that much, on sale or otherwise. But when I do, I try to remember who made it and how they are being treated. So, yes, I *do* buy the fair-trade chocolate and the unbleached, recycled paper and the organic produce, even when it is not on sale.
As for buying at thrift shops and such, that is just another form of recycling--keeping things out of landfills is a *good* thing no matter what it does to the capitalist economy. It's *not* my job to keep the mall open.
One time I dropped $80 in a supermarket parking lot. The person who found it brought it to the counter in the store, and they saved it. When I called the supermarket, they said they had it (I could identify it was 80 bucks in four twenties). What a bunch of heroes they were!! (honest store workers, honest person who picked it up.)
A travel fund is a great idea. I do that myself. I put $50 per paycheck and 40% of any extra money (OT, tax refunds, ect) in there. Plus if I resist the siren call of pizza delivery I add in what I would have spent. They money adds up enough pretty fast.
Then I can go where I want, spend what I want, and not feel guilty.
Equity is always there but it only gets a hard value when a contract is inked. It also plays a part in whether banks extend you a line of credit, or whether they rescind it, like what has happened recently.
I don't include my home's equity in my net worth calculations, just the mortgage debt.
hannah montana should guest star on dr phil!!
dont u think that hannah montana should guest star on dr phil??
dont u think that hannah montana should guest star on dr phil??
The exchange rate is actually not favorable right now with China--your dollars are worth less, and Yuans are worth more than they were a year or two ago. The dollar's not tanked as much as it has vs. the euro, but still, in general, a weak dollar means its more costly for Americans to buy goods abroad ***than it would be if the dollar were strong*** On a finance blog, you'd better get your financial facts straight.
So while tailored suits may be cheaper in Shanghai, it has nothing to do with the exchange rate and everything to do with low costs of labor, overhead, regulatory mechanisms, and everything else.
When you think about how cheap goods are in certain foreign countries, I think it's good to have a mature understanding of what produces that effect. Abysmally low wages, for starters-if you were a resident of China performing your same duties for a Chinese company, how much would you be making, and would that $40 shirt seem like an impossible splurge?
As to your closing point about choosing to spend money on travel and experiences over "stuff"--there, my man, you are right on the money. Especially when you're young.
I didn't mean to single you out, Funny. That guy sounds like a real first class sleazeball. I have heard the "gullible old lady" theory in multiple places and no doubt it's a common scam, but I wanted to highlight how you can make money renting, honestly, in today's dollars with today's property values and mortgage rates.
There are certainly different investment options out there. The stock market, even mutual funds, can be risky. A lot of people find real estate investment more suitable, and remember I used as a case study an example of a house that rents for less than its monthly costs, and appreciates only modestly. We personally did much better on our rental.
Catherine Shaffer
Wise Bread Contributor
I have to admit, when I read this post and saw the red 'sale' signs in the photo, I started getting the shopping itch. I actually considered going to Target's website to see if there were any good deals left. . . .
There's something about those red clearance tags that just get my heart beating a little quicker. It's almost like excitement or a rush. Even if I don't need anything, the idea of saving 90% on something (anything!) is almost too much to pass up.
I love Alyson's comment, that spending $0 is cheaper than spending $2 (even at 90% savings) on something I don't need. I'm going to try to remember this the next time those red tags call my name from the aisles of Target . . . . .
I live on $325 / week after taxes (on a single income). Yeah, makes life boring because I cannot afford to do anything but rent a couple dvd's every month. Sure, if I lived in my car, it would save some green, but living in Michigan makes that next to impossible. Also, makes for a crowded space when the kids come to visit.
I'm glad you can afford to travel abroad by cutting down on buying $500 shirts. Maybe if I stopped eating altogether, I could too.
I have a degree in English and tried to sign up with Tutor.com last year. I easily passed their tests, was accepted, and was allowed to download their propriety software and tutoring manuals. My last step was to provide my education info, tax ID, and other personal data for a background check and for direct deposit setup. Now, I have lived a virtually blameless, and it must said, boring life, so the background check was nothing more than a formality. I expected to have my sign-up process finalized quickly, or to at least receive confirmation that they had received the (highly sensitve) information I had sent. Silence. I never heard from Tutor.com again, despite repeated faxes and emails requesting nothing more than confirmation that my personal information had been received and was being processed.
After a while, I decided if I couldn't trust these people to deal with me professionally during the sign-up process, I might not be able to depend on them after I was an active tutor either, so I withdrew my application. Needless to say, I sent them more than one communication to this effect, along with a request that they DESTROY the documents I had faxed and emailed that contained my social security number, past addresses, etc. Of course, they STILL did not respond, so for all I know all this sensitive information is floating around out there somewhere, waiting to be taken advantage of by an identity thief. Tutor.com is supposed to have one of the best reputations in the online tutoring business, but I can't say they impressed me. Approach with caution, and keep a close watch on your paperwork!
During the Christmas season, my mom found a $100 bill on the ground at a liquor store. She picked it up quickly, and looked around the busy store to see if anyone looked like they were missing it.
Just a few days before, she heard that it was lucky to give found money away, so she was tempted to just donate the bill to the Sally Anne kettle at the storefront. Instead, she decided to give the money to me so I could afford presents for my sisters.
She made me promise not to tell them she did that, so I hope they aren't reading this blog!
or you hve to play totto, but you must have luck :-D
My wife declines to keep any bills that are found. She feels it wasn't hers, so she will leave and let the owner come back or someone else can have taking the money on there conscious.
I a more lenient, but as I get older I want to do more and more to help find the owner. I am more willing now to leave money at a desk with a clerk with my name and phone number. Most stores will offer to call you after a week or two.
This is a great idea. Then downside is people that don't have the ability to travel due to work, kids etc.
I do wish there were more direct route ways to take advantage of the exchange rate. I did find some really good deals on things like Sari fabric via the India version of Ebay. But It wouldn't let me join Ebay India to actually purchase things.
There also used to be a few expats that sold things they bought in Hong Kong, they were closer to US prices but still a pretty good deal.
I would love to see more direct sale options come available, along with some level of assurances you will actually get your items and not get your c-card number stolen.
I liked all of your ideas except the one about ensuring your car was union-made. I'm going to assume you and your family are strong union folk so I won't try to cause an argument, but simply state that I used to work for Honda and it was a great place to work. Their cars are quality made by individuals who enjoy their jobs and work hard for a living at near Union wages and benefits.
Let's face it, when you buy more things used the original manufacturer/developer/writer/artist/builder doesn't receive money for it. That's one side of the ethical dilemma. The other side is that if we all bought everything new, what would we do with things when we no longer wanted them? Either they would be recycled (which is still a less environmentally-friendly option than reusing) or they end up in a landfill. Not to mention the fact that people who sell used goods wouldn't have a business. There are consequences regardless.
My guilty pleasure: I buy music online. I'm still supporting the artist, but albums are usually much cheaper than buying them in stores. Also better for the environment.
But then again, I feel guilty because I'm not supporting a store.
You see the problem?
Excellent posting Nora!
I've used my education and training to teach for several colleges online. And now I have teamed up with my brother-in-law and developed an online budget planning web site, that educates people on budgeting and personal finance.
Joe
Don't forget that services there are cheaper. You can get clothing mended for about 2-5 RMB, hair cut for 20 RMB, teeth cleaned for 50 RMB, back massaged for 60 RMB/hr, cell phone fixed, etc. If you plan it right and buy goods and services in China that you would've bought anyways and for top dollar in the US, the trip could pay itself. Of course, this will require some restraint.
I'm sure Europeans and Canadians are coming to the US with the dollar so low compared to their currencies with the same kind of reaction
I'm so glad you're not hurt! A warning about the pepper spray: a friend of mine used it once and some of it sprayed back into her eyes. Awful.
Bean,
I am in the same situation you are. I love games and the prices are ridiculously high for many of them. I almost never buy a game when it is first released and I buy many used. I look a it this way, that used copy I take off the shelf can't be sold again as long as I have it so if there isn't another used copy available then someone else who can better afford it may buy a new one. I also look at the price difference between new and used. When a new copy of a game is selling at the bottom of the price range $19.99 then the used copy is usually only $2 less so it is worth getting the new one to give the publisher incentive to make more games but you still have the environmental consequences to think about every time a new copy is made. Paying $55 for a used game that sells for $60 new is out of my budget even though it is still about the same difference in price percentage wise. If you worry about buying things used because they hurt manufacturers then you'll never Freecycle, shop Goodwill or go to a library. You'll always be buying everything new and overpaying while causing damage to the environment. If a game doesn't sell well it is because it wasn't good enough compared to it's competitors anyway, so if the poor sales don't put the publisher under then it forces them to make a better product next time, which is good for all of us.
Ryan:
Buying an American car (and paying more for it) so that an American worker can make $45/hour IS capitalism--or at least the American version of it. The idea is that if you buy that car, then that auto worker can afford to buy some other American-made whatzit, afford outrageously expensive American healthcare, afford to live in a McMansion, etc.
What I am doing--trying to live within my means, live without debt, save the environment--is actually very UN-American in economic terms. This is a country that thinks we are only "winning" if the economy is constantly growing, never stopping to realize that it can't just grow forever.
As to the original post--I just don't buy that much, on sale or otherwise. But when I do, I try to remember who made it and how they are being treated. So, yes, I *do* buy the fair-trade chocolate and the unbleached, recycled paper and the organic produce, even when it is not on sale.
As for buying at thrift shops and such, that is just another form of recycling--keeping things out of landfills is a *good* thing no matter what it does to the capitalist economy. It's *not* my job to keep the mall open.
One time I dropped $80 in a supermarket parking lot. The person who found it brought it to the counter in the store, and they saved it. When I called the supermarket, they said they had it (I could identify it was 80 bucks in four twenties). What a bunch of heroes they were!! (honest store workers, honest person who picked it up.)
A travel fund is a great idea. I do that myself. I put $50 per paycheck and 40% of any extra money (OT, tax refunds, ect) in there. Plus if I resist the siren call of pizza delivery I add in what I would have spent. They money adds up enough pretty fast.
Then I can go where I want, spend what I want, and not feel guilty.
I would love to visit shanghai and it seems like you are getting some bargain deals, lucky guy.
How much money per hour should I expect to do with such a job? approximately of course..
There is a flickr group called Denim Surgery...Reuse, Recycle etc. that has some nice things made from Denim.
Equity is always there but it only gets a hard value when a contract is inked. It also plays a part in whether banks extend you a line of credit, or whether they rescind it, like what has happened recently.
I don't include my home's equity in my net worth calculations, just the mortgage debt.