July 2009 Archives

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At no point in one's life do humans bare so little responsibility for their own survival as they do when they are swimming around in their mother's amniotic fluid (Ron Currie Jr.).  Think about it: newborns need to learn how to digest liquid, take in oxygen and pump out carbon dioxide, dispose of their waste, learn how to sleep, and draw a distinction between night and day.  

I recently witnessed, single handedly, the marvel that is human adaptation when our son Tommaso entered the world on July 19th.  Thankfully, Tommaso took his first gulp of oxygen and liked it (he did it again and then let out a gentile scream - the kind that gets attention but is considerate of others).  Thereafter, Tommaso took survival into his own hands and begin to move to stay warm, tensed his muscles to support his body, and, generally, reacted positively to things he liked (e.g., his mom's breast) and negatively to items he found offensive (e.g., a nurse's cold hands) - his way of communicating via behavior (sorry Noam).   

Little Tommaso's survival skills got me thinking about how many adults do not take their own survival (read happiness/career/love life/financial matters/etc.) into their own hands.  Survival has a slightly different definition for most adults, however it seems, for example, that most adults do not decide what career they end up in, or how much money they'd like to earn, or how fulfilled they'd like to feel.  

Learning how to survive or controlling one's destiny (literally speaking) may be the number one practical skill set of all time (followed closely by "thinking on your feet" and "social skills"), yet there doesn't seem to be any available advice on how to, overtly, optimize one's life or survive with great efficiency.  In turn, here are a few tips to help the non-infant live a highly optimized life (who says you can't be re-born!):

1. Listen with one part of your brain and forget with the other.  Listening to other people and receiving a top notch education is critical, but the key is to interpret what people are telling you via your own filter.  Lazy people take advice and run with it, smart people process out the crappy part of any piece of advice and keep the gold nuggets.  

2. Risk and failure are not bad things.  You can't survive optimally without getting lots of things wrong or risking a comfortable situation for a more lucrative end game.

3. Don't be normal.  This means trying your hardest, for as long as possible, to avoid lusting after "stuff" (car, house, electronics, etc.), getting married, reproducing, and the mass media.

4. Aspire to be stubborn.  Persistence, otherwise known as stubbornness, will keep you going when your competitor quits and when all your friends are telling you to abandon a business idea / innate passion / etc.

5. Listen to your body.  First reactions to an idea or person are often correct (the whole "gut reaction" thing, well, it's pretty much correct).  Sweaty hands and a quickening of your heart rate may mean you've thought of an excellent idea or just made a huge mistake becoming partners with Joe Smith.  

6. Stay scared.  Fear rules in the wild and calm and peaceful animals get eaten first.  Now, you probably don't have to worry about getting eaten by your neighbor if you fall asleep watching a re-run of Curb Your Enthusiasm, but being highly aware of your career goals, happiness level, competition, etc. can all contribute to controlling your own destiny.  

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For most sane men, seeing their significant other give birth is a mind blowing experience.  My brain, for example, is already beginning to elicit nausea every time I think about my wife's upcoming labor and delivery.  Don't get me wrong, I'm terribly excited about the arrival of our first baby, but the birthing process isn't like renovating a kitchen or bath.  Delivering a baby, at least from all the unsolicited second hand accounts I've heard, seems more akin to an art form than a structured process.  

With the above said, I recently came across a "Husband Remind Sheet" from 1973 (thanks to a fabulous mother of six!).  The printed document was part of a packet given to new parents at a local hospital and given that I'm a sucker for practical tips I've re-produced some highlights:

1. Your main function aside from physical comfort measures is to supply encouragement, emotional support, praise and to remind your wife of training tools as she may have difficulty remembering these during active labor contractions.

2. Understand that this is an extremely demanding physical experience and frequently tell her that you are proud of her efforts and grateful to be able to share it with her.

3. Ice ships, if hospital allows this, are given between contractions.  Use alternatively with lollipops.

4. Talcum powder on your hands will add to the comfort of a back rub.

5. Be alert for signs of muscle tension and give the appropriate command to relax.

6. Be prepared to leave the room when asked and to retire to the fathers room or similarly designated waiting room until recalled back into the labor room.  You are not to wander into the halls for any purpose other then extreme emergency!  A nurse can be summoned with the call bell on the labor room wall.

7. Transitions signs - Irritability, restlessness, sensation or extreme physical and emotional fatigue, low back pressure increasing to an urge to "push", nausea (vomiting), tremors or shaking of the extremities, chills or heat flashes, a vocal expression of wanting to "give up" and finally and involuntary rectal push that signifies full dilatation.

8. Commands given in a loud demanding tone or voice will be "tuned out" so instead issue all directions in a low calm voice directly into her ear. 

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Daniel Gross, a columnist at Newsweek and Slate, published a recent article in the NY Times Book Review that argued that today's über rich are essentially leisure-less tycoons who need to work around the clock.  Gross goes on to argue that, "among Type-A, self-made members of the leisure class (read ultra wealthy), there's a sort of reverse prestige associated with leisure."

The idea that leisure is bad and that "conspicuous consumption", or spending only to build prestige, should be avoided comes out of Thorstein Veblen's 1899 classic, "Theory of the Leisure Class".  For Veblen, writing during the peak years for Standard Oil and U.S Steel (the first billion dollar corporation), the rise of a social class concerned only with consumption wasn't a sign of progress it was, as Gross states, "a relic of barbarism, and evolutionary step from feudalism, and hence, un-American."  

Veblen saw the equivalent of today's Bill Gates and Warren Buffet as individuals who contributed very little to society and who were focused more on acquiring wealth and leading a lavish lifestyle than giving money back to society, for example (of course both Gates and Buffet give away much of the their wealth).  

The Theory of the Leisure Class also raises many interesting questions in relation to personal finance such as:

1. How much money is enough to lead a good life?  And if we all achieve personal finance freedom (i.e., no debt, adequate cash savings, a comfortable home, steady income streams, etc.), then what truly comes next (golf and a martini every day or running your own charity)?

2. Is it bad to chase money, acquire material things (things that truly have no utility, such as luxury vehicles, multiple homes, etc.), and not truly contribute to the community, and society, at large?

3. If your personal financial situation is negative what got you into that position in the first place?  Did you think that consumption would make you happy and did you have a warped sense of what capitalism can truly offer, you, the individual?

Personal finance, at the end of the day, is as much about personal lifestyle (and views about consumption) as it is about saving money and leading a frugal life.  In many parts of the world, a large home with all of the material side dishes isn't a goal (including advanced countries with well off citizens like Sweden and Norway), rather happiness and quality of life seem to supersede materialism and consumption.     

How do you view consumption, working hard, and personal finance?  Do you work to save in order to gain independence or do you aspire to, privately or publicly, to live like the good old American tycoons of the past?
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For much of Sunday's epic Wimbledon Final Andy Roddick outplayed Roger Federer.  Roddick out served Federer, played with more intensity, and had a number of incredible winners (including many backhand winners to Federer's forehand side).  So, how did Federer manage to beat an opponent who played exceptionally well and, in some way, wanted the Wimbledon Championship more than Roger himself?  Federer simply outlasted Roddick.  

Let's face it, as the London Time's Simon Barnes suggested, Roddick was hurling thunderbolts in the manner of Zeus well into the early evening, yet Federer was able to capitalize on a few missed shots in the 15-14 game to quickly win the match and his 15th Grand Slam championship.  In the end, Federer was just better at accomplishing the specific goal at hand: winning the tennis match.

Federer's mesmerizing style and talent reminded me of how important it is in life to stay on track and focus on particular goals.  More specifically, Roger is a great example of the type of good short sightedness needed to achieve any practical life goal whether it be winning a tennis match, saving for a home, raising a child, or excelling at your job.  Tuning out big picture goals for the sake of a MICRO-GOAL, such as winning a tennis match, however, is much harder than it appears.  For example, think of all the random thoughts Federer may have had twirling in his brain at the time of the match:

"Man, Nadal isn't in this tournament, I really need to win now"

"I beat Roddick in two Wimbledon finals, why is he playing so well today"

"I just can't get a rid on his serve and he's hitting cleaner shots than I am today, it's not going to be a good day because I usually hit cleaner and can break serve"

"All these tennis legends and the media expect me to win and get number 16, what will the world think if I don't win"

"The wind is starting to pick up and the light is fading, can I outlast this guy?  Maybe I should slow down the pace or pick up my energy level and try to go for outright winners"

Now, I don't have a window into Federer's brain (only he knew what he was thinking on Sunday) but his keen ability to simply win the tennis match; namely, keep the ball between the lines until your opponent makes an error or misses a shot is a superb practical life skill.  Here are a few others that may help you achieve a few goals of your own (albeit maybe less impressive than 16 Grand Slam tennis championships):

1. Tune out unimportant variables.  When you want to achieve something specific it's not good to act or think philosophically.  The big picture is actually your enemy.

2. Don't change your style or approach if it works most of the time.  For example, if you're a good saver and have had success with investing in low risk vehicles (like a traditional savings account, CD, bond, etc.) don't begin buying large quantities of securities because the current trend is big returns on your money.  In the long run, you've probably picked an approach that has worked and switching tactics will not get you closer to a particular goal.

3. Surround yourself with people who think like you.  

4. Avoid panic until the last possible moment.  Staying calm is a great life skill; in addition to preserving your blood pressure and heart the ability to maintain a calm mind helps you stay relaxed and avoid pressure and a muddled perspective (remember you want laser like clarity on your end goal).  Having said the above, I do advocate letting the steam escape at some point.

5. Prepare.  If you know how to do it and have proved to yourself that you can achieve a goal then doing it again is a matter of being well prepared.
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