IPad Contest

OK, sorry again, but I haven't had time to get anything ready for today. So instead I will just send you a link for a chance to win a free iPad. I do not see myself buying one anytime soon, but I would not complain if I got one for free. So here it is: http://wheredoesallmymoneygo.com/im-giving-away-an-ipad-enter-contest-here/

My Whereabouts

On the off chance that anyone noticed I didn't post anything in awhile, I thought I should let you know what I have been up to. The Intermediate Financial Accounting course was a little rough given the introduction course was over ten years ago for me. That and this last assignment, while worth a measly 5%, was massive and in depth. I got it in only just in time and have no delusion of high marks for it. Also, because of this assignment, I fell behind on my reading and now need to catch up on that. That and prepare for my final which is in three weeks.

I am taking Monday off for the holiday and I am going to enjoy my long weekend. Having said, all that I should be back on my regular programming schedule starting next Thursday.

Spelling Assume (Ass-u-me)

On a personal note I just got my Economics grade back and thankfully I passed with 83%. One less thing to stress about!

I'm sure you've all heard the cute saying that "Assuming makes an ass out of you and me". While I think this is a great way to remember how to spell the word, it is not all that helpful in life. Sure, wrong assumptions can be embarrassing, but you couldn't get through the day without assumptions. You assume the power is still going to be on at work, that you still have a job, and so forth. Webster defines assume as "to take as granted or true".

I think speculate is another one of those words that has gotten a bad wrap. Speculating in investments is considered a no-no by many investors. In fact the latest CMHC rules were done in part to try to reduce the amount of speculating in the housing market. So what does it really mean to speculate? Webster defines this as "to assume a business risk in the hope of gain". Notice the word assume in the definition.

So just like you can't make it through the day without some assumptions, you can't invest without speculation. After all you wouldn't start a business that you speculated would fail. You wouldn't invest in a stock unless you assumed it was going to increase in value.

So why has speculation received such a bad reputation? It has to do with how it is used. Some investors invest all of their available funds on a risky speculation. Buying a condo before it is finished with funds that they can't afford to have tied up for long periods of time and can't afford to lose. This can be a profitable venture, but what happens if the market slows before the building is finished? What happens if the project is delayed? Really, it is bad assumptions and risky speculation that are the problem, but they've both been thrown around in generalities.

The reason this came up is I'm getting ready to start investing for my retirement. While I was thinking of some ideas, I began to worry that I was speculating too much. I have always been frustrated with how assume is misused, so it didn't take long for me to draw that connection. Now that I have that clear in my head, it is time for me to continue to speculate. Hopefully I'll have something to share next month.

I think it is necessary to research your investments and have at least a semi-active role. Do not be so concerned about wording, but make sure you're comfortable with the investments and are prepared if things do not go quite as planned. I would love to get into real estate, but I know I do not have the funds to make that happen right now. I will probably be looking at RRSPs or TFSA for now.

Anyone have any speculating experiences? Any investing ideas to throw to the pile? How about just an experience with people misusing the English language?

Not Always Frugal

While I was filling up at the gas station the other day I was thinking about how I'm not very frugal with certain items. How I spend my money and time is very important to me and I don't want to waste very much of it. However, there are a few things where I won't search for a bargain and will even sometime intentionally pay more.

I've heard a lot of people complain about the price of gas. Some people make the trip down south whenever they can to fill up and others drive out of their way to save a few cents a litre on gas. To me it has never made much sense. If you calculate the savings on a 2 cent difference, you end up saving 80 cents on a 40L fill up. Yes, I admit that adds up over time, but my time is also valuable to me and I don't want to spend it stressing about saving a few cents. Granted, I also have a pretty fuel efficient car, so I'm not filling up that often anyhow. When there are price wars, I typically go to the more expensive station just so I don't have to wait in line.

Don't get me wrong, I do believe in saving in the small things. In fact I think it is the small things that you have the best potential for reducing your spending. You could save more cutting out your coffee purchases at Starbucks than reducing your mortgage payments for example. However, I do have to draw the line somewhere. The cost benefit has to be there.

Also, this shouldn't be confused with quality. I believe in buying quality items, but not wasting money on things I don't need. I research my bigger purchases so that I know I'm going to be happy after I spend the money and so that I get it at the best price.

So what are the things that you don't worry about saving a little on?