Categories
Economics & Business

Washington Post Columnist Response About Money


FINANCIAL INDEPENDENCE

I asked this question a few weeks ago on this live Q&A show for the Washington Post columnist, Michelle Singletary.

Q.

Hi Michelle, I’m a 19 year old sophomore in college studying psychology and business. My question is: What measures can I take to ensure that I will be financially independent by age 45 with an annual passive income of $60,000? Is the only way to reach this goal to own a business/real estate and other assets?

September 30, 2010 12:19 PM Permalink

A.

WILLIE JOLLEY WRITES:

I would recommend you always develop multiple streams of income, investing, owning a small business, or using your intellectual capital to make additional money (whatever you know is of value and you can share it with others for a fee).  Whatever you do I recommend you always think of creative ways to create income streams. My mom was a school teacher, but always had a roomer in the basement, and also sold world book encylopedia as an additional income, which helped to pay the bills and also helped put my brother and I through college after my dad passed.

The Q&A: http://live.washingtonpost.com/singletary-093010.html

 

Categories
Book Reviews

Review of The Post-American World by Fareed Zakaria


When I was 14, I decided to join Model UN club because it sounded like it would be something good to put on the college resume. I also thought it might help develop my public speaking skills, or at least I could lie and say it did to prospective employers. Well….to be frank, it was a bore. The same process happened with Model Congress club. I came to the quick realization that I did not want to spend my life locked in a room talking about issues in a very circular way, and taking forever to reach a conclusion.

Recently, I’ve become extremely interested in foreign affairs, history, and business, and more importantly, how they all intersect. I think business is the core of my interest though, because I like learning about trends and how I can make money off of them. No, I am not slowly turning into a capitalist pig. I don’t care about money at all, but I’ve noticed that the majority of people get this burning, hungry look when you talk about it. They want it! They long for it! Which gives it value. Kind of like when you have an Oreo cookie at lunch and everyone wants to trade with you even though you don’t really care because at the end of the day you won’t even remember how good it tasted or how it filled you up.

And so, all of this is just a really long way of saying…I didn’t think I would like this book, but it was fucking awesome.

If you have read Thomas Friedman’s Hot, Flat, and Crowded, and liked it, this book is kind of an extension of that with less emphasis on the environment and more on the effects of globalization on America. Essentially, the heart of this book is arguing the following: As more nations become economically and politically developed (especially China and India), the United States will no longer be the dominant super-power and will have to take on a role similar to that of a chairman on the board of directors. We will still be the most powerful in terms of our military and economic strength, but we will not be able to ignore other countries when making decisions. Zakaria argues in the end that we should act as a mediator or leader and should set the international standards. I think the messages in this book have HUGE implications for people who want to go into business, the government, or simply want to understand the world we live in.

I find the concept of globalization particularly interesting for my generation. I feel like I was born a little bit in front of this gigantic wave that is going to swoop over the globe and change things forever. The reason I say a little bit in front is because although I will experience a lot of these changes, it’s really going to be my children’s generation and their children’s generation that is going to feel the effects of globalization.

From a business stand point, I feel like investing in foreign countries is an amazing opportunity. China and India are both growing at staggering rates. Granted, there is still a lot of poverty, but the industrialization that is happening right now in China is mind-blowing. I feel like it’s impossible NOT to make money (in the long run, of course).

Zararia makes the observations that in the past, it is the countries that had military, economic, political, and technological dominance that have moved forward, but that more importantly, it is countries that have brought innovation that have been thrust to the center stage. Think…agricultural revolution…the renaissance… industrial revolution…more recently, the information revolution (and soon, the energy revolution). It doesn’t even have to be a revolution of technology, but simply a revolutionary way of thinking and seeing the world.

One thing that I never realized (probably because I’ve lived in the suburbs all my life) is the extent to which the United States has dominated the process of turning innovation into business. The largest and most powerful companies in the world are housed here. Now that China is growing, it makes me wonder if we will begin to see commercial innovations on the level of Google and Microsoft happening in China. It kind of scares me. Right now, we basically use China for our manufacturing. We take the ideas and turn them into products and use China to make them and then give them back to us so we can sell them. Yea, we are losing jobs overseas, but a large portions are technical jobs (computer programming is now becoming a commodity). We are increasingly becoming a service and intellectually oriented country, where our value comes from our innovation and ability to understand the consumer. I don’t even want to think of what would happen if China started to do this. I want everyone to have a high standard of living, but if everyone lives like Americans, the world would become fiercely competitive and although competition breeds innovation, it seems like it would be fucking stressful.

I guess what I’m saying here is… I find the idea of globalization exciting because it opens up HUGE markets in foreign countries and if we can convince those people that they need American products… just think of 1.3 billion people in china “needing” a new fashion product and having the money to buy it…On the other hand, it’s extremely scary because it means we aren’t going to be the only big man on campus. Kinda reminds me of what happens when you cram a lot of people into one room for an extended period of time. God, I hope we don’t all get cabin fever, because if we do… there isn’t anywhere else to go. Only one earth. Rut roh.

As Mr. Zakaria says, the tectonic plates are shifting again. I think that anyone who wants a better understanding of the way that power has shifted throughout history and where it is going should read this book. This is the kind of book that I’m going to read again in a few months. Granted, this book was published in 2008, and a shitload happened in two years, but I think it’s trend analysis and predictions are still credible.

This is the kind of book I really wish I could discuss with someone, but I’m lame and have no friends, so I decided to write an antisocial post on my blog.

P.S. I was going to link a book review from other wordpress people, but they all suck.  Pretty much everyone just quotes the book to explain. Piff!!!! Just go read it!!! :-D

If you don’t consider reading it, I will be very sad…..

Hugs and much love,

TK