Category Archives: Lifestyle

What Workforce Skills will the Next Generation Require?

credit: Pan Xiaozhen on Unsplash

credit: Pan Xiaozhen on Unsplash


My son attending kindergarten received a note stating that he was receiving an award and that the award ceremony would be held in the school auditorium in the evening. It’s always great to hear that your child is receiving an award and for whatever reason, my mind automatically assumed that he would be receiving the math award. (I swear it’s not because we’re Chinese! =) He had received perfect scores on his previous two math assessments so it seemed likely he would get that award. At the ceremony, they called out the winners of the math award and my son was not called. And once again, for whatever reason, my mind jumped to thinking that perhaps he would be receiving the “Student of the Month” award for his overall academic excellence. They called the winners of that award last so we’d have to wait. Instead, they called the winners of the “Best Citizen” award and my son’s name was called. He was so excited to hear his name and go up on stage to receive his award, and I was a proud papa too.

Having observed him in class a week prior to the awards ceremony, it was clear why his teacher chose him for that award. As the kindergarteners arrived in the classroom, their teacher set a timer for four minutes to put their jackets and schoolbags in the closet, their lunch box on the counter, place their homework folder and workbook in a pouch behind their chairs. Once done, they are to sit at their desk and read quietly. My son was neither the fastest or the slowest in getting ready. Actually, he was probably in the slower group if I had to be honest as I saw many students already sitting in their chairs and reading. When my son was finally done with everything, he saw a student at a different table struggling to get things ready. I saw my son go over to the student to help him unpack his school work and placing it in the pouch, before going back to his own seat to start reading. I was happy to see him help someone else out as oftentimes children are self-focused and think mostly about themselves. That was just one example I saw of him being a “good citizen.”

I’m not going to lie though, a previous me may have been a little disappointed that he didn’t receive an award for his academic prowess. In the past, I remember thinking that I would push my kids towards the STEM fields (Science, Technology, Engineering, Mathematics). If they want to be economically successful, the STEM fields are where you find the high paying jobs and jobs in these fields would likely remain in demand. With automation and artificial intelligence on the horizon, jobs in these fields are much safer than in other fields. I remember judging people for their choice in majoring in something in the humanities. How do they expect to find a job? How will they pay their student loans with a low paying job? Surprisingly, growing up, I was naturally more interested in the humanities and struggled with the sciences and advanced mathematics. I majored in Business in college, but added another major in Political Science which was a subject I found more interesting. I eventually went on to get a law degree.

In a recent Afford Anything podcast where Paula interviewed Suze Orman, Orman said that the U.S. would probably experience 25 percent unemployment in the future as AI taking over many jobs. In a related podcast episode, Paula spoke to Darrell West, author of The Future of Work, about artificial intelligence, robots, and the future of jobs. It is no surprise that robots and AI will take over many low-skilled jobs, but West said that it may not just be entry level jobs. There are higher level jobs that may be at risk as well. For example, West explained that radiologists currently read CAT scans, but AI systems can learn to read scans with a pretty high degree of accuracy. And as for me working as an attorney which many would consider a higher level job, AI systems have their tentacles in that industry as well. So I won’t be safe either.

Paula suggested that one way to prepare for this future is by strengthening soft skills (empathy and social skills) which were once lower valued in the marketplace. She suggested that these skills may be increasingly more important because AI might be able to read a CAT scan, but they won’t have good bedside manner. In a World Economic Forum article, it said that according to PwC’s workforce report, 39% of CEOs considered the impact of AI on skills their businesses will need in the future and included: problem-solving, adaptability, collaboration, leadership, creativity and innovation. It mentioned the importance of emotional and social intelligence of future workers which would differentiate the human workforce from an automated one. One member said, “Though we can teach human emotions, there are no standards for emotions and the machines will not or may not be able to mimic the natural ability of basic instincts of human beings.” Another member of the forum advocated for bringing the human and robot workforces together, connecting “engineering thinking (fixing broken things and inventing new ones) to human sensitivity (following your heart).”

So what work skills can prepare my kids for the future as the future is filled with uncertainty? As hard as teaching math to a child appears, teaching emotional and social intelligence may even be harder. I want to foster a love of learning in my children as learning shouldn’t just be limited to schools. With an ever changing world, everyone needs to be a life long learner and learning should not be a chore if you love it. I want to teach them empathy and to build their self esteem and self confidence. I want to encourage them to be leaders not followers. Ultimately, I want to empower them to have the ability to choose whatever path they feel is right for them in their future.

Frugal Hacks I Avoid

Photo Credit, David Niblack, Imagebase.net

Photo Credit, David Niblack, Imagebase.net


Frugality has been ingrained in my head (immigrant parents). When I told my co-workers that I wasn’t getting an extravagant gift for my wife for Christmas, I could see the pity in their eyes for my poor wife. Of course, they don’t realize that my wife can sometimes be the more frugal one (link) in the relationship! I still hold onto my frugal card but there are some frugal hacks that others encourage which I just can’t be bothered with. Maybe it’s because I’ve grown soft now that my income has grown, but there are some things I value more than a small savings.

Costco/Wholesale Clubs

My wife and I have been members of BJ’s wholesale club because they often send free membership invitations for 60 days. Once, I was also roped into joining for a year with co-workers, sharing the membership costs. Even with the free and discounted membership, I just do not like wholesale clubs. The main reason is that I hate lines. Every time we’ve gone to BJ’s or Costco, the lines stretch beyond what my eyes can see. We went one time on a random Thursday evening and there was a lot people there! Another reason I don’t see a need to shop there is that we have a small apartment (link) and while we have a growing family, the two little ones don’t eat that much. This might change as they become teenaged boys. I don’t want to shop in bulk as there is no space to put all that stuff. Plus, we have a bad tendency to let things go bad because we don’t use it. Finally, I don’t find the prices all that compelling. Prices are okay but not worth my sanity.
***After writing this post, but before publishing, my wife had a deal through her credit card to get a free Costco membership for a year. As it was free, I relented and agreed to sign up. Last Sunday morning, we attempted to get their early in the morning when it opened at 10:00. We got there at 10:20 and it was already a madhouse. I know it’s the weekend before Thanksgiving but it was as if it was Black Friday.***

DIY

Sure, doing it yourself saves some money and there are some things I’ll try. But that are also plenty of things I’ll pass on. Yes, I know YouTube is available to explain how to do just about anything, but for me, some things are just best left up to the pros. And sometimes, I’m just too lazy. There, I said it! I will pay for the convenience of having someone else do it for me. I know some frugal people out there who cut their own hair or their spouse’s hair. Nope, not me. I don’t want to take the chance screwing up my wife’s hair cut. And I’m not sure I want to have a horrible hair cut either. I mean, it only costs about $8 to $10 plus a tip. Oil Change? Even if I had a garage, which I don’t, I’d rather not crawl under my car to change the oil when I can get it done in a half an hour for like $30. And for DIY, fixing things around the house, I’ll admit I’m not that handy.

Stocking up

See above. Sure if toilet paper is on sale and it’s a great deal, maybe I’ll buy a few packages. However, I know people who have their basements are garages stocked up with stuff. I guess they have more space so it’s worth it for them. But even then, it might be dangerous for us because like I mentioned above…we often forget what we have.

Couponing

If there is a coupon staring right in my face and it is a product I use, I will cut it out. But I’m not going to great lengths searching out coupons. (I will do a search online for a coupon whenever I buy something online though). Generally coupons for products are for name brand items and I often buy generic. Another thing is that coupons are often for products that I don’t really want or need. Having a coupon might actually encourage me to buy something that I might not have bought otherwise.

No Air Conditioning/heat

Growing up, the only air conditioner in the house was in my parent’s master bedroom. When it got really hot and humid, it would be turned on in the evenings when we went to sleep. Our family of four would be consolidated into the room, with 2 mattresses on the floor for the kids, so that we could enjoy this luxury. During the daytime, my mom suggested that I go to the library to enjoy the air conditioning free of charge. Actually, that was a pretty good idea. I got free AC and I got to read! Nowadays, I turn on the air conditioning pretty often in the summertime, although it’s usually set at 75 to 77 degrees. I hate being hot and am very unproductive in the heat. I’ll gladly pay the higher electric bill for the comfort and increased productivity.

What frugal hacks do you avoid taking part in?

FI Can’t Wait

First Day of School

First Day of School

About seven years ago, I found the blog Early Retirement Extreme and I was intrigued. Jacob, the writer behind the blog, is a bit extreme in his approach so I didn’t see myself following in his footsteps. Soon after that, I discovered Mr. Money Mustache, and his lifestyle and approach made it more palatable. Many other FIRE blogs followed and it seemed that they had attained this lofty goal. I was hooked and started to question: why not us?

The “WHY”

When I first learned about FIRE, I didn’t have any strong motivation to reach financial independence. Sure, I had a long commute and I didn’t really want to be stuck at the 9-5 job forever, but I didn’t hate my job. After my first son was born, life became much more hectic. With dropping him off and picking him up for child care purposes, I was away from home about 12 hours a day. I didn’t feel like I had much quality time with my family. Things got more hectic when we had our second child.

There are plenty of parents who have even busier and more inflexible schedules than me, so I sometimes feel guilty for complaining. However, seeing those who have attained FIRE has inspired me to want more out of life. Back in June, my first born graduated from preschool. He started kindergarten yesterday. After committing almost seven years to this FIRE journey, I still don’t see the goal on the horizon. There are still too many variables involved. How much will our expenses be with growing children? What will we do for health insurance/dental insurance? Also, we live in an high cost of living area making it extra difficult. Yes, that is by choice, but it would be also difficult leaving all our family and friends.

The Slap in the Face

As I mentioned above, I don’t hate my job. But would I be here if I didn’t need the money: absolutely not. While I can’t quit my job now, I’d be happy if I could have a more flexible schedule, and my position is an excellent fit for a flexible schedule as I mainly sit at my desk researching and writing. I don’t deal with the public and rarely have to meet or speak with colleagues. There is no reason not to allow telecommuting or flexible schedules. Also, while I may be biased, I do believe I have been a highly productive employee over the decade that I have been here. Many employers are shifting towards allowing flexible schedules as well as a work from home option. The governmental organization I work for has been pretty flexible with alternate work schedule in the past. Unfortunately, this governmental organization has decided to go against the grain and disallow most requests for flexible work schedules.

A month ago, I submitted a request for an alternate work schedule. Since my older son was starting kindergarten and my younger son was starting daycare, pick up and drop off was going to be a little challenging. I asked to work from 8:30 until 4:30, instead of the usual 9:00 until 5:00. With my long commute, leaving early would allow me to beat some of the traffic and get back in time to pick up my kids. Honestly, even if I wasn’t trying to get home earlier to pick up my kids, this schedule would save me a lot of unnecessary time wasted in traffic. I would be working the same amount of hours so no big deal right? My request was DENIED. And to pour salt on the wound, they couldn’t even spell my name correctly on the denial letter.

Sure, this really isn’t that big of a slap in the face. Plenty of others deal with a lot more B.S with their employer. I think having some F-You money stored away and having read others who have attained FIRE makes it even more difficult to deal with work stupidity. Sure, I would have loved to have said, “so you’re denying my request…I’m out!” However, I’m not ready to take that leap. Plus, I have a pension and it is a pretty strong pair of golden handcuffs which makes it even harder to leave. So I’m not planning on leaving, but I am focused on getting to FIRE quicker.

The “HOW”

For the first leg of my FIRE journey, I was focused on maxing out my deferred compensation plan and Roth IRA, entrusting the index funds I had to do the heavy lifting. I remain a big proponent of this strategy, but feel that it will take a lot longer to attain FIRE going this route being that I choose to remain in a high cost of living area. Maybe I’ve been bitten by the real estate bug, but I believe that using leverage will help me arrive at my goal quicker. It may be a little risker, but I’m willing to take on that added risk.

Sure, things didn’t go as planned with my latest real estate venture, but I remain undeterred. I don’t look at it as a failure, but as a learning experience. Also, while things didn’t go as planned, it wasn’t a disaster financially and things have stabilized. I plan on pushing forward investing in real estate and hope to share those plans in future blog posts.

Sports, Booze, and Guns

There are some things in American Culture that we are unwilling to give up no matter the costs. Even the frugal crowd amongst us seem to have a difficult giving up certain expenses. The big three I’ve noticed are sports, alcohol and guns.

credit: freedigitalphotos.net by arkorn

credit: freedigitalphotos.net by arkorn

Sports

When it comes cutting expenses, many people start with cutting the cord because of the high cost of cable. However, many refuse to cut the cord because they can’t give up sports. Awhile back, I read about a caller to the Dave Ramsey show who had no emergency fund yet wanted “permission” to spend $1500 on football tickets. Dave said, “it’s a game; you don’t put that ahead of your family’s financial foundation!” I have a co-worker whose beloved baseball team made it to the playoffs and he shelled out a few hundred dollars for tickets as well as team paraphernalia. He often complained about money being tight but magically came up with money for these expenses.

I’m in a Facebook group with members pursuing FIRE, who often post about frugal hacks, yet when a member posted about attending a playoff game out-of-state to support his team, many agreed that experiences are worth the costs. Obviously, we each individually have different value system and I’m not saying that this expense is ridiculous, but it does go to show how much we LOVE our sports.

I used to be a sports fanatic so I can understand the love that fans have for their teams. When I was a kid, I would listen to the Knicks basketball game on the radio because I didn’t have cable. I would read the box scores or my favorite sports teams. No, actually I read all the box scores and could probably recite every player from every team. I didn’t have any money to spend on sports at the time, and now that I do, the costs of watching and attending games is just not worth it to me. Also, with age, I’ve found other things that are higher on my priority list.

Check out this blog post on Freedom is Groovy: 10 Reasons Not to Invest Time and Money into Professional Sports. (While Mr. Groovy says professional sports, I would include collegiate sports in there as well. The NCAA in my opinion is a corrupt organization and I just can’t support them. Plus, my alma mater isn’t all that great anyway so it makes not following college sports easy!)

Dutch_beers

Booze

Ah yes, booze…our culture seems to revolve around alcohol. I’m sure you’re saying that you don’t really drink all that much. You’re only a social drinker right? What do you do after a long stressful day…relax with a glass of wine. After work…let’s go to happy hour. Go to a sporting event…tailgate and drink hours before the game and then continue drinking during the game, and probably afterwards as well. Wedding…it better be open bar right? Watching a game at home…grab a cold beer from the fridge. Going to a kid’s birthday party…there better be alcohol because how else can I deal with screaming kids for 2 hours?! Watching the political debate on T.V…let’s drink every time a candidate says “fake news!” Going to a barbecue…let’s play ping pong, no I mean beer pong! Talking about personal finance on a podcast…”what are you drinking?” It’s January! Let’s do a Dry January Challenge since apparently we drink too much and it’s difficult to go without drinking, even for one month!

In a recent Twitter thread, I read how one person was faced with an hour wait at a liquor store prior to the holidays, but said that it was well worth the wait because how can you possibly survive dealing with family without alcohol! Wow, if you despise certain family members so much, I’m not sure getting drunk at a holiday get together will help. It’s also odd when I read some personal finance bloggers chastise others for spending on frivolous or materialistic items but will give a pass to alcohol, as if it were a necessity. Others will acknowledge that it’s a luxury item, but one that brings them joy so they will not and cannot give it up. Once again, nothing wrong with spending on an item that brings you joy. Just showing the powerful grasp that alcohol has on some of us.

No, I’m not a teetotaling Puritan who never drinks and is against others drinking. Sure, I’ll have a drink when I’m hanging out with a bunch of friends. It loosens you up, you laugh more and feel like you’re having more fun. Just as with sports, I indulged in alcohol much more in my younger days. My priorities have changed. Honestly, I never really liked the taste of alcohol. I liked it more so for how it made me feel and act. I generally drank when I went out to a bar or club. No, I don’t want a drink at a kids birthday party. I’m not sure how much alcohol one needs to dull the noise of screaming kids running around, but I’d prefer to be sober at that event. Also, call me crazy, but I actually get some enjoyment seeing my kid have a blast even though I might prefer some other form of entertainment.

David Cain who blogs at Raptitude had two great post relating to alcohol and him quitting it for a few months. He wrote a post, Goodbye Booze, For Now and what he learned from not drinking for four months. Raptitude is a great blog and David is an excellent writer, so he probably expresses thoughts about this topic clearer than me.

1280px-Houston_Gun_Show_at_the_George_R__Brown_Convention_Center

Guns

The personal finance reader demographic might not include a lot of gun owners. Well honestly, I don’t really know so I’m just assuming. However, it’s undeniable that guns are an item which many in this country LOVE and cannot live without. They will argue that they need guns for protection or for hunting. I’m not talking about the person with a hunting rifle or the person with a handgun at home for protection. I’m mainly talking about those who like to play G.I Joe, wearing military fatigues and buy assault rifles. I don’t want to get into a political debate so I’m not going to go much further. However, I can’t help but point out that many who point to the second amendment seem to think it’s a Biblical commandment instead. Also, it’s an amendment which means it can be changed and is not set it stone. There was an amendment prohibiting alcohol at one point…we got rid of that one. No surprise! One final point, the first part of the second amendment actually says “A well regulated Militia, being necessary to the security of a free State,” but many people don’t recite that part when they assert that the U.S Constitution prohibits any limitation on their gun ownership. Also, there are limitations on other rights which are included in the Bill of Rights. Oh, sorry, that was two final points!

Jeff Jeffries, an Australian comedian has a hilarious comedy routine which tears into the gun culture in the United States and is both funny and makes great points. Check it out. (Note: Jeffries uses explicit language).

As many of us who have gotten out of the consumption hamster wheel, we feel freed from spending mindlessly while others who continue on that hamster wheel wonder why we live such a life of deprivation. We should always be questioning whether a product or service is truly something you value rather than accepting that that’s what everybody does or that you’ve always done it.

What things could you never give up?

My Christmas Present

damage
Christmas day is always pretty special. Other than the religious reasons, it’s special because you get to see what gifts you received. It’s extra special when you have kids and see the excitement in their faces when they unwrap their gifts. I think this year was the first year that my four year old truly understood and was excited about the holiday season. He would countdown every time we turned on the Christmas tree lights. He was excited to see the lights and decorations as we drove or walked past other houses. He was waiting in anticipation for Santa to arrive and asked that we give him a key to our apartment as we didn’t have a chimney. However, he had second thoughts about having a stranger in the house and asked if I could leave a note for Santa to leave the presents outside the door instead!

Christmas morning started off wonderfully. My four year old was ecstatic with his gifts. My 17 month old was actually able to tear into the wrapping paper this year. We were having family over for dinner and I had some last minute errands to run. When I went out to my car, which was parked on the street, I see that somebody had slammed into the bumper. I’m assuming they were parking their car when they slammed into it, but I’m still perplexed as to how you back in at that angle and at that speed to cause that damage. Probably someone who was drunk after partying on Christmas Eve since the car was fine when I left it there around midnight.

I was very upset and annoyed that I had to deal with this on Christmas day. Fortunately, the claims process with Geico was pretty quick and painless. The police also came pretty quickly for a non-emergency to complete a police report. Although, I think the police officer probably looked at me like I was crazy when I asked if there were cameras around which might have caught the culprit (the car was parked on a big thoroughfare in a street filled with commercial stores). Obviously I’ve watched too many episodes of CSI. I’m sure no one is reviewing cameras for a hit-and-run of a parked vehicle.

When I returned home, I was telling my wife about the damage and the $500 deductible that we’d have to pay. My four year old overhead and must have been able to tell that I was upset. He said, “don’t worry papa, they can fix it.” Sometimes my four year old is smarter than me. Yea, I’d have to pay the $500 deductible and it is large sum of money, but something that we can afford. It would be much tougher if we were part of the “shocking number” of Americans who couldn’t afford a $400 expense. We were also fortunate that the accident occurred to our parked vehicle and no one was in it and injured. I did also take two days off from work while the car was being repaired since I didn’t want to deal with the hassle and expense of getting a rental car and installing car seats. I’m also lucky that my employer allowed me to take time off and I have paid annual leave to do so. Luckily, it was a quiet week at work, with most people taking time off anyway. Ultimately, taking two days off was a blessing in disguise as it was frigid those two days and I was able to stay home with the little ones, not having to schlep them off to and from grandma’s while I go to work.

So all in all, it was a mere inconvenience. I should be grateful for the financial position I’m in, the job that I have, and that it wasn’t all that bad. Nothing to get all bent out of shape about. It’s often much better to look at the cup as half full rather than half empty.