At FinCon 2016 (read my review) Jr was a shrewd negotiator in several business meetings, and an immaculate host for our guests on the houseboat. Clearly he is ready to step out of the shadow of his parents and build a place for himself in this world.
We discussed at length what opportunities would be the best fit for his skill set and experience. It has always been my goal that we coach him to be a problem solver and risk taker. Rather than asking what he wants to be when he grows up, we might ask “What improvements to the world would be most exciting for you to pursue?”
That must have been a little deep, because he just smiled and tried to look cute. And then it dawned on us…
Advertiser Disclosure: This site is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as CreditCards.com. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers.
In the last year or so we’ve opened 9 new credit card accounts, 7 in my name and 2 in Winnie’s. We have plans to add several more in short order.
Many of these cards have great benefits in their own right, but the primary appeal is the generous signup bonuses which saved us nearly $10,000 on our recent trip to Europe.
Normally the signup bonus is dependent on spending a minimum amount within a specific time period, e.g. “Spend $4,000 on the new card in 3 months.” Our 9 new accounts came with a minimum spend requirement of $23,500, no small amount.
How does one meet these minimum spending requirements without breaking the bank? Inquiring minds want to know.
I’m a big fan of financial efficiency. If it is possible to get a discount on something I’m going to buy anyway, I’m all for it.
So it isn’t a big surprise when people inquire about call me out for paying annual fees in comments and email.
“Why would you pay a credit card company just for the privilege of making them money?”
“Isn’t it a waste to pay an annual fee when there are so many free credit cards out there?”
“Why would you pay a credit card annual fee? That is just dumb.”
I can certainly relate to the sentiment behind these questions. But if we strip away the emotion and just use the cold hard reason of accounting, it all becomes clear. We pay a fee now with the expectation that we will get something of equal or greater value.
When the dessert cart rolls around after dinner, difficult decisions must be made.
“If I eat the tiramisu… then I won’t have room for gelato*… And what is this? A complementary serving of limoncello!?”
In economics parlance we might call this gastrointestinal dilemma the opportunity cost; When we choose one option, we lose any potential gain or enjoyment from alternatives.
A couple recent articles highlighted the financial opportunity cost of not working, either short term for raising children or long term for (early) retirement. These articles inspired me to recalculate the opportunity cost of our own decisions.
The Center for American Progress evaluated taking a few years off to raise children, and concluded that you should work instead, because parenting has zero financial value (and on those extra difficult days, maybe even negative value ;) ) Sounds like progress to me.
I’ve read a lot of books in my day. A large part of childhood was spent with my nose firmly between the pages of one tome or another. I loved how the Hardy Boys and Sherlock Holmes discovered the truths hidden behind deception and clever disguise, and the worlds where magic and sorcery were more powerful than science.
Whenever my mind grabbed hold of a new interest, it was the library that enabled me to share the experience and knowledge of my elders and superiors. Through books I learned about the brave adventurers who explored our planet and those nearby, the inventors who pioneered new industries and created the futuristic world of today, and how there is nothing more powerful than an idea whose time has come.
So it is no surprise that when I first started to think about investing and early retirement, I returned to the library. I’ve read hundreds of books on topics as broad as personal finances, taxes, stocks, bonds, stock options, clever real estate investing, and more.
It turns out some people actually read those posts, and the blog grew by leaps and bounds. I was even invited to speak at the 2015 Chautauqua in Ecuador, an incredible experience! As a bonus, I was able to meet several of my favorite financial bloggers.
When our little guy was ready to don his own tiny backpack, we did a trial run to Japan (Kyoto, Osaka, Nara.) It was a great success! Being outside and exploring new places made for a happier kid and happier parents.
So we hit the road again. We spent the last 2 months of the year in Chiang Mai, Thailand, where we swam, did yoga and Crossfit, and ate excessive amounts of Thai food, and reduced our average cost of living through the grace of geographic arbitrage.
