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What’s Mine Is Yours


wealthymatters

What’s Mine Is Yours: The Rise of Collaborative Consumption by Rachel Botsman and Roo Rogers is a book well worth reading.

In the 20th century humanity consumed products faster than ever, but as we now realize this way of living is no longer sustainable. This book shows how technological advances are driving forms of ‘collaborative consumption’ which will change forever the ways in which we interact both with businesses and with each other.

The average lawn mower is used for four hours a year. The average power drill is used for only twenty minutes in its entire lifespan. The average car is unused for 22 hours a day, and even when it is being used, there are normally three empty seats. Surely there must be a way to get the benefit out of things like mowers, drills and even cars, without having to carry the huge up-front costs of ownership? There is indeed. Collaborative consumption is not just a buzzword, it is a new win-win way of life.

This insightful and thought-provoking  book by Rachel Botsman and Roo Rogers is an important and fast-moving survey of the dramatic changes we are seeing in the way we consume products. Many of us are familiar with freecycle, eBay, couchsurfing and Zipcar. But these are just the beginning of a new phenomenon. Rachel Botsman and Roo Rogers have interviewed business leaders and opinion makers around the world to draw together the many strands of Collaborative Consumption into a coherent and challenging argument to show that the way we did business and consumerism in the 20th century is not the way we will do it in the 21st century. Read more of this post

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Coffee and Retirement


wealthymatters

I found this yesterday in my mail.The content is created by Bajaj-Allianz Life Insurance.I don’t know about the scientific vigour behind this but my coffee preference does agree with my retirement style.Could we test this model?Please tell me if your favourite coffee correlates with your retirement style.If it works,this model should help us think about retirement when it seems far away and unimaginable.

5 Financial Homilies To Reconsider


wealthymatters.comFinancial advice always needs to be nuanced.What is good for one person in a certain situation many not be so good for another in a different situation. Unfortunately people are always looking for simple advice and rules of thumb.If we over-generalize on generally sane financial advice we can come to a sorry pass.

Here are some common homilies that need some reconsideration:

1. A house is always a good investment:A house is a tangible investment that you could potentially live in.You could rent it out and make some money.Maybe it will help you save tax.Maybe you could invest in one to save for retirement.Generally saving for a house to live in is good in that it gets a family to start saving.But at the time of buying a house it’s important to remember that you are buying a house and not a home.So do not go sentimental and over pay.Buying a house requires a deal of legwork and hard-headed thinking.Overpay and you will have to worry about the fluctuation in market prices.Try to buy an encumbrance-free house at a discount.It adds a greater measure of safety to your investment.Buy when the markets are down to safeguard yourself.Next how you pay for the house makes a big difference.Try to put down a large payment to save on the total interest you will pay.Shop around for a good loan if you need one.Read the fine print.Check if there is a penalty on prepayment.Lower rates matter.Also check if the interest is calculated on a declining balance.Check for hidden costs starting from the processing fee,the lawyer’s fee and structural engineer’s fee and insurance.When you consider the EMI you want to pay, don’t be too optimistic.Pay increments and bonuses might not come on time.Remember that over longer periods something is bound to go wrong.It’s the way of life.Also if you pay too much of your income into house payments you will not have any money left over to diversify into other assets and derisk your investments. Read more of this post

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