8201. Signs of
a collectible bubble: 1. Prices rise too
fast – As a general rule, if an overall asset class is jumping by over 20-50%
for an extended time, you’re probably looking at a bubble, but there are
exceptions; 2. New, oddly matched buyers
are entering the market – When you’re looking at baseball cards, baseball fans
are the natural audience. For art, you
expect art lovers. Wine should attract
oenophiles and so on. If a market is
suddenly attracting buyers that don’t logically fit, odds are good you’re
seeing speculators pouring into a bubble; and 3. Collectors are more interested in returns
than collections – We love rare, tangible assets because they have built-in
value escalators, an inherent advantage you just don’t see in other
sectors. Nearly all collectibles have
dwindling supplies. As long as demand
remains stable or, even better, increases, prices will go up. Most value is driven by collectors interested
in the underlying asset, the happy byproduct of mass appeal and obsession. If, suddenly, all anyone is talking about is
the financial aspect of a collectibles market, watch out. This is the equivalent of your taxi driver
recommending stocks, a sure sign that we’re entering the manic part of a
bubble. One that will likely burst
soon. Baseball cards have been
collectible for decades. The market has
been ignored for years after the bubble burst.
The crazy valuations have all worked their way through the system. You won’t see prices double overnight, but
you will see a slow, steady appreciation of value;
8202. Know that
progress is progress no matter how small;
8203. If you
have to doubt something doubt your limits;
8204. If you
want to get an idea of the cost of living in another country before you travel
(there), try/use Numbeo (Numbeo.com);
8205. Basics of
negotiating: 1. Remember that nobody
cares about you. – When it comes to you, your manager cares about 2 things: A)
how you’re going to make her/him look better; and B) how you’re going to help
the company do well; 2. Have another job
offer and use it. – When you have another job offer, your potential employers
will have a newfound respect for your skills.
People like others who are in demand; 3.
Come prepared (99% of people don’t). – Don’t pick a salary out of thin
air. Visit Salary.com and PayScale.com
to get a median amount for the position.
If you can, talk to people currently at the company (and if you know
someone who has recently left, even better, they’ll be more willing to give you
the real information) and ask what the salary range really is for the job. And, this is important, bring a plan of how
you’ll hit your goals to the negotiating session; 4. Have a toolbox of negotiating tricks up your
sleeve. – Just as in a job interview, you’ll want to have a list of things in
your head that you can use to strengthen your negotiation. Think about your strong points and figure out
ways you might be able to bring them to the hiring manager’s attention. For example, ask, “What qualities make
someone do an extraordinary job?” If
they say, “The person should be very focused on metrics,” say, “That’s great
that you said that we’re really on the same page. In fact, when I was at my last company, I
launched a product that used an analytical package to . . . .”; 5. Negotiate for more than money. – Don’t forget
to discuss whether or not the company offers a bonus, stock options, flexible
commuting or further education. You can
also negotiate vacation and even job title.
Note: Startups don’t look very fondly on people negotiating vacations
because it sets a bad tone. But they
love negotiating stock options because top performers always want more as it
aligns them with company’s goals; 6. Be
cooperative not adversarial. – If you’ve gotten to the point of negotiating
salary the company wants you and you want them.
Now you just need to figure out how to make it work. Negotiation is about find a cooperative
solution to creating a fair package that will work for both of you. You should be confident not cocky and eager
to find a deal that benefits you both; 7.
Smile – It’s a disarming technique to break up the tension and
demonstrates that you’re a real person; 8.
Practice negotiating with multiple friends. – If you practice out loud,
you’ll be amazed at how fast you improve.
Yet nobody ever does it because it feels “weird;” and 9. If it doesn’t work, save face. – Sometimes
the hiring manager won’t budge. In that
case, you need to be prepared to either walk away or take the job with a lower
salary than you wanted. If you do take
the job, always give yourself an option to renegotiate down the line and get it
in writing;
8206. Always
frame your negotiation requests in a way that shows how the company will
benefit. Don’t focus on the amount
you’ll cost the company. Instead,
illustrate how much value you can provide the company. If your work will help them drive an
initiative that will make $1,000,000.00 for the company, point that out. Tie your work to the company’s strategic
goals and show the boss how you’ll make her/him look good. Highlight the ways you’ll make your boss’s
life easier by being the go-to person s/he can hand anything to. And remember that your company will make much
more off your work than they pay you so highlight the ways you’ll help your
company hit its goals. Your key phrase
here is: “Let’s find a way to arrive at a fair number that works for both of
us;”
8207. Interview
with multiple companies at once. Be sure
to let each company know when you get another job offer, but don’t reveal the
exact amount of the offer. You’re under
no obligation to. In the best case, the
companies will get into a bidding war over you;
8208. Most of
the negotiation happens outside the room.
Call your contacts. Figure out
the salary amount you’d love, what you can realistically get and what you’ll
settle for. And don’t just ask for
money. Bring a strategic plan of what
you want to do in the position and hand it to your hiring manager. This alone could win you $2,000.00 to
$5,000.00. And it allows you to
negotiate on the value you’re going to bring to the company not just the amount
they’ll pay you;
8209. (I can
say) I’ve had a beer at (a) Taco Bell (Cantina);
8210. Have a
repertoire of your accomplishments and aptitudes at your fingertips you can
include in your responses to commonly asked questions. These should include: 1. Stories about successes you’ve had at
previous jobs that illustrate your key strengths; and 2. Questions to ask the negotiator if the
conversation gets off track (i.e., “What do you like most about this job? . . .
Oh really? That’s interesting because,
when I was at my last job, I found . . . .”);
8211. “Let’s
talk about total comp” refers to your total compensation and not just
salary. Treat them each as levers: If
you pull one up, you can afford to let another fall. Use the levers strategically by conceding
something you don’t really care about so you can both come to a happy
agreement;
8212. “I
understand you can’t offer me what I’m looking for right now, but let’s assume
I do an excellent job over the next 6 months.
Assuming my performance is just extraordinary, I’d like to talk about
renegotiating then. I think that’s fair
right?” (Get the hiring manager to
agree.) “Great. Let’s put that in writing and we’ll be good
to go;”
8213. 5 things
you should never do in a negotiation: 1.
Don’t tell them your current salary. – If you’re asked, say “I’m sure we
can find a number that’s fair for both of us.”
If they press you, push back: “I’m not comfortable revealing my salary
so let’s move on. What else can I answer
for you?” Note: Typically first-line
recruiters will ask for this. If they
don’t budge, ask to speak to the hiring manager. If the gatekeeper insists on knowing, tell
them realizing you can negotiate later; 2.
Don’t make the first offer. – If they ask you to suggest a number, smile
and say, “Now come on, that’s your job.
What’s a fair number that we can both work from?” 3. If you’ve
got another offer from a company that’s generally regarded to be mediocre,
don’t reveal the company’s name. – When asked for the name, just say something
general, but true like “It’s another tech company that focuses on online
consumer applications.” If you say the
name of the company, the negotiator knows s/he’s got you. S/he’ll tear down the other company and it
will all be true. S/he won’t focus on
negotiating, s/he’ll just tell you how much better it will be at her/his
company. So withhold this information;
4. Don’t ask “yes” or “no” questions. –
Instead of “You offered me $50,000.00.
Can you do $55,000.00?” say, “$50,000.00 is a great number to work from. We’re in the same ballpark, but how can we
get to $55,000.00?” and 5. Never lie. –
Don’t say you have another offer when you don’t. Don’t inflate your current salary. Don’t promise things you can’t deliver. You should always be truthful in
negotiations;
8214. It’s
strange how many people make an effort to save on things like clothes and
eating out, but when it comes to large purchases like cars make poor decisions
and erase any savings they’ve accumulated along the way;
8215. From a
financial perspective, the most important factor when buying a car is how long
you keep the care before you sell it;
8216. You could
get the best deal in the world, but if you sell the car after 4 years, you’ve
lost money. Instead, understand how much
you can afford, pick a reliable car, maintain it well and drive it for as long
as humanly possible. That means you need
to drive it for more than 10 years because it’s only once you finish the
payments that the real savings start;
8217. Knowing
that there will be other expenses involved in the total expense of having a
car, you want to decide how much you want to spend on the car itself. For example, if you can afford a total
monthly payment of $500.00 toward your car, you can probably afford a car that
costs $200.00 to $250.00 per month (when factoring in insurance, gas,
maintenance and parking);
8218. What
makes a good car: 1. Reliability – If
it’s a high priority, be willing to pay slightly more for it; 2. A car you love – If you’ll be driving the car
for a long time, pick one that you’ll enjoy driving; 3. Resale value – To check out how your potential
cars will fare, visit Kelley Blue Book (KBB.com) and calculate resale prices in
5, 7 and 10 years; 4. Insurance – The
insurance rates for a new and used car can be pretty different; 5. Fuel efficiency – This could be an important
factor in determining the value of a car over the long term; 6. Down payment – If you don’t have much cash to
put down, a used car is more attractive because the down payment is typically
lower; 7. Interest rate – The interest
rate on your car loan will depend on your credit. If you have multiple sources of good credit,
your interest rate will be lower;
8219. Don’t be
afraid to walk out if the car dealer tries to change the finance terms on you
at the last minute. This is a common
trick;
8220. (Do)
calculate the total cost of ownership of a car including maintenance, gas,
insurance and (the) resale value;
8221. Buy a car
that will last you at least 10 years and not one that looks cool;
8222. Don’t
lease. Leasing nearly always benefits
the dealer and not you;
8223. Don’t
sell your car in less than 7 years. The
real savings come once you’ve paid off your car loan and have driven it for as
long as possible. Most people sell their
cars far too early. It’s much cheaper to
maintain your car well and drive it into the ground;
8224. Don’t
assume you have to buy a used car. Run
the numbers. Over the long term, a new
car may end up saving you money if you pick the right new car, pay the right
price and drive it for a long time;
8225. Don’t
stretch your budget for a car. Set a
realistic budget for your car and don’t go over it. Be honest with yourself. Other expenses will come up, maybe car
related and maybe not, and you don’t want to end up struggling because you
can’t afford your monthly car payment;
8226.
Apparently, hounds are smelly dogs;
8227.
Apparently, there are purple bell peppers;
8228. She may
say otherwise, but a Brazilian wax is really for her;
8229. Elizabeth
likes bacon-wrapped dates . . . and (egg) custard/flan;
8230. Hiking
(the Appalachian Trail) . . . check . . . in the mountains . . . (double) check
. . . in the woods . . . (triple) check;
8231. (Putting)
apple on pizza works (specifically the “Our Famous Bratwurst” pizza with
bratwurst, grilled onions, apples, mozzarella, fresh marinara & balsamic
reduction at Blue Mountain Brewery (BlueMountainBrewery.com) in Afton,
Virginia) . . . Who knew?
8232. You must
negotiate mercilessly with car dealers.
If you’re not a hardball negotiator, take someone with you who is;
8233. If possible,
buy a car at the end of the year when dealers are salivating to beat their
quotas and are far more willing to negotiate;
8234. You can
order a customized report of the exact car you’re looking for from Fighting
Chance (FightingChance.com). It’ll tell
you exactly how much car dealers are paying for your car including details
about little-known “dealer withholdings.”
The service also provides specific tips for how to negotiate from the
comfort of your own sofa;
8235. You
should buy a house only if it makes financial sense;
8236. If you
can’t afford to put at least 20% down (for a house), set a savings goal and
don’t even think about buying until you reach it;
8237. Even if
you’ve got a down payment, you still need to be sure you make enough (money) to
cover the monthly payments;
8238. Chances
are you’ll want to buy a nicer house than you’re currently renting, which means
the monthly payment will likely be higher;
8239. When you
buy a house, you’ll owe property taxes, insurance and maintenance fees that
will add hundreds a month;
8240. Even if
your mortgage payment is the same as your monthly rental, your real cost will
be about 40-50% higher when you factor everything in;
8241. Unless
you’re already loaded, you need to readjust your expectations and begin with a
starter house. Your first house probably
won’t have as many bedrooms as you want.
It won’t be in the most amazing location, but it will let you get
started making consistent monthly payments and building equity;
8242. When you
go through a traditional real estate agent, there are large transaction fees
usually 6% of the selling price. Divide
that by just a few years and it hits you a lot harder than if you had held the
house for 10 or 20 years. There are also
the costs associated with moving. And
depending on how you structure your sale, you may pay a significant amount in
taxes;
8243. Buy only
if you’re planning to live in the same place for 10 years or more;
8244. Buying a
house is not just a natural step that everyone has to take at some point;
8245. You need
to save for a 6-month emergency plan in case you lose your job and can’t pay
your mortgage;
8246. If your
house is your biggest investment, how diversified is your portfolio?
8247. The facts
show that real estate offers a very poor return for individual investors;
8248. Yale
economist Robert Shiller found from 1915 through 2015, home prices have
increased on average only .6% per year. . . . Most people forget to factor in
important costs like property taxes, maintenance and the opportunity cost of
not having that money in the stock market;
8249. You
should think of your house as a purchase rather than as an investment. And, just as with any other purchase, you
should buy a house and keep it for as long as possible;
8250. Buy a
house only when: 1. You can put 20%
down; 2. Get a 30-year fixed-rate
mortgage; and 3. Your total monthly
payment represents no more than 30% of your gross income;
