Shoebox Investor

What is a shoebox investor? An investor who generally pays himself first. The idea is that any money you can store in a shoebox or piggy bank, should be invested in the market. It is not how much you invest, it is the time value of money you should focus on. The earlier you put the money in the market, the longer you keep it in, the higher the chances of reaping the benefits of accumulating dividends. The reinvested dividends will buy you more shares.

Pay yourself first

Sunday, March 2, 2008

Waste of time or waste of money?


Several times I have blogged about placing your money into assets and let your assets pay for your luxuries (or toys). I accumulated enough points on my AMEX card that I decided to get the iPod video to use during my travels on flights. I wouldn't really spend money on these gadgets? Right? Well, I did spend a lot of time after receiving it in the mail. I have been using the Philips Portable DVD DCP750 (with iPod docking station) for over a year now to watch DVD on during flights. Recently I decided to complement this with an iPod video. I have lots of download TED videos over the years which are nice to view as a refresher. These videos can be downloaded from TED.com.

The iPod classic is a cool gadget. However, after hours of searching online (I am new to gadgets) I find out that the 6th generation iPods don't work with the Panasonic due to a locked key and new firmware. This this whole thing ticked me off. I was hoping to watch my videos on a larger screen on Panasonic. Upon searching and purchasing several different Apple AV cables, there is only one cable that costs $49 that works to unlock the iPod to be used on the Panasonic DVD with the iPod docking station. This is the only cable that will work with the TV out option of this iPod. After several hours of syncing and downloading iTunes with this iPod and visiting several local Fry's and Best Buy to find the proper cables, it dawned on me why I was wasting so much of my time on this? I am not a fan of iTunes, so the use of this software was new to me. By the way, if you upgrade the iPod firmware from 1.0.2 to 1.1.1, the TV output will not work on these nice Portable DVD docking stations. I am not a techie, so you can imagine how much time I spent on this entire process. I couldn't give up. I was determined to get this thing to work and to have all my videos converted from MPEG to MP4 to upload on this iPod. For the past several days, I have been so involved in this, that now I want to get the iPod Touch with the wii-Fi capabilities. Although, the measly 8 or 16 gig is a small hard drive, and I wouldn't spend the money for the 32GIG hard drive.

This journey began to make me think, that my entire psychology has been to invest your money into assets (regardless of how small) into buying stock, etc and allow dividends to pay for the toys. This was the time that I stepped away from the store when I was about to purchase the iTouch. I thought to myself that this goes against my psychology and mindset. I would be much more content to put this money (and the wasted time) into the market. I guess the money is not the big issue, it is the time required to get the gadgets to work. And each new "toy" requires lots of accessories that require more money. This time could be better spent reading the several financial books I have sitting in my bookshelf ready to be read.
The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Book Big Profits)
Invest wisely in your time and money..

No comments: