What I've learned since moving to D.C. (some of which should be obvious): 0162

8051.  If it’s really an emergency, you can dip into other envelopes like you’re “eating out” envelope, but you’ll have to cut back until you replenish that envelope

8052.  (According to Jason Hartman,) when you’re looking for a rental property, look for a “rent to (current) value ratio” of ideally 1% of the purchase price;

8053.  Cash flow changes based on how you finance the property;

8054.  Your right eye is listed first on your (contact lens/eyeglasses) prescription;

8055.  K(entucky )F(ried )C(hicken)’s “Crispy Colonel Sandwich” is pretty good.  It tastes similarly to Chick-fil-A’s chicken sandwich;

8056.  I’ve gone on a trip/vacation (to the beach) with a woman (and her son);

8057.  Handjob in a hotel hot tub . . . check . . . fingering in a hotel hot tub . . . (double) check . . . sex in a hotel hot tub . . . (triple) check;

8058.  Sex on a hotel balcony . . . check . . . reverse cowgirl (on a chair) . . . (double) check . . . sex during (a) fireworks (display) . . . (triple) check;

8059.  All labor is honorable when done to create value for others.  Your rewards, financial and otherwise, are a reflection of the value you create;

8060.  I’ve introduced a girlfriend to my parents;

8061.  Take your glasses off before going into the ocean;

8062.  Oral sex in a hotel bathroom/shower . . . check . . . sex in a hotel bathroom/shower . . . (double) check . . . sex on a (hotel) bathroom floor . . . (triple) check;

8063.  Oral sex in a hotel room . . . check . . . dining table in a hotel room . . . (double) check;

8064.  Against a (hotel) window . . . check;

8065.  Sometimes money falls into your lap like a birthday gift, a tax return or an unexpected freelance contract.  Whenever you receive money you didn’t expect, use 50% of it for fun (usually buying something you’ve been eyeing for a long time) and the other half goes to your investing account;

8066.  When you get a raise, it’s okay to increase your standard of living a little, but bank the rest.  For example, if you get a $4,000.00 raise, take $1,000.00 and spend it, but save or invest the remaining $3,000.00;

8067.  It’s too easy to think a single raise lets you move up to a totally different financial level in a single step.  If you get a raise be realistic.  Treat yourself to something nice that you’ve been wanting for a long time and make it something you’ll remember.  After, save and invest as much of it as possible;

8068.  Once you start getting accustomed to a certain lifestyle you can never go back;

8069.  Categories of spending: 1.  Fixed costs (i.e., rent, utilities, debt, etc.) – 50-60% of take-home pay; 2.  Investments (i.e., 401(k), Roth IRA, etc.) – 10%; 3.  Savings goals (i.e., vacation, gifts, house down payment, cash for unexpected expenses, etc.) – 5-10%; and 4.  Guilt-free spending money (i.e., dining out, drinking, movies, clothes, shoes, etc.) – 20-35%;

8070.  The customer isn’t always right, but the customer does always have the money.  And with money comes power.  Don’t be afraid to use it;

8071.  Everything has a price and that price is not always measured in money;

8072.  A study by The California Institute of Technology and Stanford University found that people rate the same wine more highly when they’re told it is more expensive.  Moreover, functional MRI scans taken of their brains while they were drinking the wine suggest participants enjoyed the experience of drinking it more;

8073.  In a study, participants who took a placebo painkiller were told the fake drug cost $2.50 per pill.  They experienced more pain relief than those who were told the pill cost only $.10;

8074.  Count syllables in price tags: Consumer behavior research finds that when you remove commas from large price tags consumers perceive the price as being less expensive.  For example, a TV priced at “$2999” is perceived as less expensive than a TV priced at “$2,999.”  The only difference is “$2,999” sounds longer: Two-thou-sand-nine-hun-dred-and-nine-ty-nine (i.e., 10 syllables) v. Twen-ty-nine-nine-ty-nine (i.e., 6 syllables);

8075.  To override this natural impulse to misperceive the actual cost, make it a habit of calculating the final price (with commas) after tax.  Pull out your phone and add the tax.  Look at that number, commas included, and you’ll see the real cost/damage;
8076.  Stay ahead in conversations if you’re talking to a sales staff: On-floor sales staff are trained to pace and lead you.  They want you to admit to them what you want and then control your responses thereafter.  How this plays out: You go into a store intending to buy speakers.  You decide you’re not going to spend more than $300.00.  After some smooth talking, the sales person has you nodding your head, agreeing that $500.00 is better value for the speakers originally marked for $1,100.00 – at this point s/he has you beat.  Most people can’t recover and end up paying the sales upgrade;

8077.  To avoid this, you need to take the lead and keep it throughout the entire interaction.  When you start leading by asking questions the sales person is now on her/his heels constantly trying to regain position;

8078.  Don’t mind snobby staff: A study out of Canada revealed that shoppers looking at high-end items might actually be more likely to buy when staff play hard to get.  Marketing Professor Darren Dahl found that rude or “snobby” salespeople made people want to share in their exclusivity by purchasing luxury goods;

8079.  The flip side of this coin is befriending sales staff.  “Clienteling” is industry speak for getting the VIP treatment.  If you become friends with sales staff at high-end stores, often you’ll be invited to come to presales up to 30-40% off the week before the actual sale starts.  Most sales staff work on commission in higher-end shops so it’s a win-win for everyone if you shop more regularly;

8080.  Pay attention to colors: Good in-store marketing engages all five senses.  Your sight is probably the easiest to hijack;

8081.  When you see a sales sign that’s red it wasn’t by accident.  The color red is typically associated with a sense of urgency – buy now!

8082.  The color blue is associated with more reasonable prices.  Where you typically find blue signs are beside “New Arrivals.”  This lulls you into thinking you can afford what’s new, when really if you just waited a few weeks, the new arrivals would be marked down;

8083.  Black signs make you think of luxury.  You won’t make quick decisions choosing items with black signs, but the perception that the product is more luxurious will build in your mind and help you justify paying the expensive price tag;

8084.  Don’t feel bad about touching clothes: Stores need you to make a mess.  Touching items is a key component of making the move from contemplation to purchase;

8085.  Research out of Colorado finds that consumers need to touch items to connect with a brand.  This is why so many clothing stores display shirts and sweaters on flat tables:  It makes it easier for you to set stuff down so you have two hands to touch the clothes;

8086.  Watch out for carnival mirrors: Some retailers use mirrors that distort your appearance making you look longer and thinner.  If this sounds farfetched, think about fitting room lighting.  Most fitting rooms have dim lighting to make you look tanner and, thus, more defined.  It’s the same reason why dim lighting in the bedroom makes your partner look sexier;

8087.  To avoid these tricks, shop with a friend or step outside the fitting room into brighter light;

8088.  Always assume the store can price match: Price matching used to be a unique selling proposition for only a few select retailers.  Today, price matching is more common than not.  When in doubt, Google whether a store has price matching, but it’s fair to assume they do;

8089.  There are websites that offer updated lists of stores with price-match guarantees or you can use Amazon to find the lowest price.  Amazon automatically price matches all other .com retailers selling the same item.  So the price you see on Amazon is typically the lowest price for that item;

8090.  Use this “magic” question to secure a better price: “Under what circumstances could I secure a discount for this item?”  Why it works: It’s open-ended and can’t be dismissed with a “yes” or “no” answer and it’s a hypothetical which comes off less assuming;

8091.  Focus on working on your insides instead of focusing on your image;

8092.  Don’t be tempted to deplete your 401(k), IRA or other savings accounts to cover startup costs;

8093.  According to the Small Business Association, 30% of new businesses fail during the first two years of being open, 50% during the first five years and 66% during the first 10.  The SBA says that only 25% make it to 15 years or more;

8094.  Limit how much you pull from your savings to avoid losing your nest egg if your business folds.  It will depend on your circumstances, but a good rule of thumb is pull no more than 5% of your retirement assets.  Anything above 5% that you think you need should come from a business loan or line of credit;

8095.  What does success look like? . . . Surprisingly, a lot of people go into business ownership without any clearly defined goals.  Are you in it to make money?  Give back to your community?  Or some combination of other factors?

8096.  Decide your big picture goals.  Then break these goals down into benchmarks so you know what good and poor business performance looks like.  Having a clear picture of what success looks like will help you avoid keeping a dead business alive;

8096.  Write down your exit strategy.  Do this as early as you can.  The longer you wait, the harder it will be to come back to later on.  When you start your business, you should already know how it’s going to end.  Will you sell it?  Gift it to your kids or grandkids?

8097.  You need to have a defined exit strategy.  This can be part of your (total) business plan that you write before you invest any money.  The plan could mean selling once you hit a certain level of revenue or it could be closing down shop if you have a number of consecutive unprofitable months;

8098.  Flights between 21 and 121 days before departure seems to be the sweet spot.  If you book between 169-319 days ahead, you pay roughly $50.00 more and waiting until the last minute can sometimes cost you closer to $200.00 more than the lowest fare;

8099.  Plans are only good intentions unless they immediately degenerate into hard work;

8100.  Mutual fund managers fail to beat the stock market 75% of the time;