NevBlog

Neville's Digital Surrogate Brain

Spring….Break?

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As I’ve mentioned before, I hate being idle. I am in Houston for Spring “Break” and like I planned it has been a great mixture of business and fun.

The business side is in the form of helping to market condos and several web designing projects on the side. I am also doing some accounting for my online business in the meantime.

I also finally got a chance to see the Lamborghini Gallardo of a family friend today.

I look a bit goofy in this picture, but I am revving up a brand new Lamborghini and I could care less!

I also took a visit to our local Honda dealship one beautiful day to check out the motorcycles:

Marketing Tactics

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As the school semester begins to wind down, student apartment complex’s have kicked their marketing efforts into high gear.

I personally live in a student apartment, and it is nice to have only students living around me. The competition for tenents is fierce, so these complex’s come up with all sorts of ways to market.

They give out all sorts of t-shirts, keychains, mugs, frisbee’s etc on campus, but the most unique thing I saw was on Friday.

The UT Shuttle System has over 20,000 student riders per day. An SUV plastered with signs from a local apartment complex came to the bus stop with about 15 people waiting and handed out brown bag lunches which had a BBQ sandwich and soft drink inside each. They then gave T-shirt’s to everyone, and said if they spot you wearing the shirt on Tuesday’s they will give you $50 cash!

This random act of kindness very much impressed everyone, creating a good vibe for that certain apartment complex. As I attempt to market condos this weekend, I need to come up with a direct marketing method that’s creative and cost efficient.

Un-Fair Competition

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The Houston Rodeo is the largest rodeo anywhere in the world. It draws huge crowds who stick around for a livestock show, shopping, concerts, a carnival and lots of greasy foods.

One thing I noticed when I went today was the long lines at EVERY food concession stand, despite the prices:

  • Pickle – $2.75
  • Soft Drink – $3.00
  • Funnel Cake – $5.00
  • Chicken Leg – $7.00
  • Regular Beer – $6.00

These prices may look familiar if you ever go to football games or amusement parks. The rodeo regulates the prices for these items, not allowing them to be sold for under a certain price. This price cooperation between vendors forces patrons to pay preposterous prices.

Thankfully free competition in the real world prevents prices from getting out of control! From the Rodeo’s standpoint they had a good deal going. They had a complete monopoly on the food market, huge crowds, lots of hungry kids and parents with money to spend.

Lesson for Business Minded People: Fixed competition can be used to your advantage.

For What It’s Worth

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Res tantum valet quantum vendi potest

This is a Latin quotation which translates to: “A thing is worth only what someone else will pay for it”

I have this quote posted on my wall upon the advice of Burton Malkiel in A Random Walk Down Wall Street. I am attemting to sell condos this weekend, so I must keep this in mind.

Savings

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I am in an Asian Studies class, and we have recently been discussing savings habits in Asia. I’m not sure about the recent facts, but many Chinese families save anywhere from 30% to 50% of their income!

This article shows that most Japanese households save roughly 29% of all disposable income.

Could you for one second imagine if EVERYONE in America saved 30% of disposable income? After the economic bubble burst a few years ago, layoffs would not have hurt as much. Most people would be able to stop working for several months while they find new income streams. Many people would be able to live 6-12 months soley off of “rainy day” accounts without having to touch their longterm savings or children’s college funds.

Savings allows your money to pile up, and if you do not properly manage the urge to splurge, you will end up blowing it in all the wrong places.

I will only spend money on something if I can truly afford it. If something costs $1,000 I can obviously afford it (look to your right). BUT…Notice I do not have $1,000 in my designated spending account. Therefore, I will not buy the product even though I am capable of it.

Too many people THINK they can afford something just because they currently have the money to buy it. Wrong!

Does Adsense Make Sense?

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Well, judging from the comments, it seems people like Google Adsense slightly more than I do. Apparently I could make around $50 to $70 a month based on my site traffic (some sources I got elsewhere seemed conflicting), but I still will not partake in the program.

This blog was made in order for me to track my financial goals and track my progress, making money off the site would taint that. I know I would constantly check how much money I’ve made, and start making more posts that appeal to a broader audience if site traffic dictated how much money I make.

I generally wouldn’t pass up an opportunity to make an easy $50 per month, but this time I’ll let it slide! For all you bloggers who do use Adsense, I’ll continue to give you a click on each visit :-)
Might as well help spread the wealth!

On another note, I go back to Houston on Friday where I will be selling some condos over Spring Break!

Google Adwords

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I’m a big fan of blogs which I can take some information away from, but one thing I’ve noticed is the very annoying presence of Google Adwords. They look disgusting, clutter the page and make it known the author wants some money for their blog.

That may be a harsh review, but I’d like to ask anyone who uses Adwords: How much money do you make off them per month? Also, how many clicks equate to what amount of money? Leave comments please, I am very curious.

Unless they generate hundreds of dollars per month, I refuse to put them on my site. I did a bit of research, and could find no reports of personal finance bloggers reporting their profits from Adwords.

I have a friend who runs a popular skiing website which makes a pretty comfortable living off Adwords, but his site gets a massive amount of traffic and draws people actively looking to make reservations, find new ski lodges etc.

Help me solve this question! Anyone with Adwords on their blog, let me know what you net!

Financial Update

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Since January 1st, 2005 I have made $2,213 out of my $11,000 goal for April 31st, 2005. Need to step this up! I’ve got less than 2 months and the goal is only 20% complete so far.

My investment account topped $1,000 after I distributed my work paycheck into different accounts. When it does this I usually put $500 into my stock portfolio, but I am holding off right now as other projects are in the works and may need some captial. The permanent savings account has reached the $6,000 mark and looks like it may need a new home. It is sitting there gaining some paultry interest rate.

I got my paycheck from work today, and I immediately stashed it away with the following percentages:

Investment Account – 35%
Permanent Savings – 35%
Spending Account – 20%
Bill Account – 10%
So out of a $271 paycheck I get to spend only 54 bucks on entertainment etc.

Current Financials:
General Account – $ 1,654
Spending Account – $ 85
Investment Account – $ 1,085
Bill Account – $ 327
Permanent Savings – $ 6,052
Stock Portfolio Value – $ 9,278
Total Liquid Assets – $ 18,481 (+240)

Bright and Sunny Monday

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Syntel (SYNT), a stock of which I own 180 shares is giving out a $1.50 per share dividend at the end of March. This equates to a nice $270 “gift” for me :-)
The dividend announcement and declaration of a strong financial future has sent the Syntel stock upwards the last few days, putting me back in the black on this holding.

I’ve been focusing lately on stashing away some stocks for the long long long term, 30 or 40+ years. I have a few stocks in mind, but one area I want to further explore is batteries. Regardless of its function, pretty much every mobile device is getting more advanced, and using more energy.

I would like to invest in several firms or a fund specializing in long-lasting energy supplies for mobile devices. Battery technology has perpetually lagged behind the devices that they supply, and within my lifetime I expect that to change. I love my tablet PC and the portability it offers, but I hate having to plug in every 4 and a half hours. The convenience of a device which does not have to be charged every day would be worth paying for.

A company with a patented battery that could power different devices (phones, laptops, radios, golf carts etc.) for long periods would be a sure money maker, and a great stock to own!