Chaosplay

This morning I got checks from my credit card company to use against my credit line. They were offering 0.00% APR until August 2010. Then it goes back to my normal credit card APR of 12%. My current auto loan interest is about 7%. Sounds like a deal.

But, of course, in fine print there was transaction fee of 3% of total check amount. So I did some math:

• I owe about $9000 on my car.
• 3% of 9000 = $270
• I would need to pay off this amount in 9 months to avoid much higher APR.

Now let’s look at what would happen if I pay off my current loan in 9 months at 7% APR.

1. Month 1: Balance: $9000, Payment: $1000, Interest paid: 9000 * 0.07 / 12 = $52.50
2. Month 2: Balance: 8000+52.5 = $8052.5, Payment: $1000, Interest: $47
3. Balance: 7052.5+47 ~= 7100, Interest: $41.5
4. 6100+41.5 = $6141.50, Interest: $35
5. 5141.5+35 = 5176.5, Interest: $30
6. 4176.5+30 = 4206.5, Interest: $24.5
7. 3206.5+24.5 = 3231, Interest: $19
8. 2231+19 = 2250, Interest: $13
9. 1250+13 =  1263, Interest: $7
10. 263+7 = 270, Payment: 270, Interest: $1.5
11. Total interest paid: $271

So it is just a dollar more to continue with my current loan, but this gives me piece of mind that I don’t have to make huge monthly payment to avoid much higher interest rate.

Above calculations are a little rough, you will probably want to use some online calculator to figure out more precise numbers like: this one.

Inspired by J.D.’s post, I decided to see how I spent my money last year. These are some of the interesting categories.

Bad Habits

• 2007: $2,520
• 2008: $1,630

These habits include smoking, bars, clubs, video games and other such things which I don’t really like anymore. Luckily, by summer of 2008, I was already cutting back on these habits. That’s why I almost saved $900 compared to 2007. I plan to eliminate all these bad habits this year.

Clothing

• 2007: $550
• 2008: $400

I buy clothes only when I need something. Even then I usually use my credit card points. Most of my clothes and Shoes come from Gap, Express and Target. I think $400 on clothes per year is quite reasonable.

Dining

• 2007: $1,530 – Coffee: $190, Fast Food: $670, Eating Out: $680
• 2008: $1,880 – Coffee: $370, Fast Food: $810, Eating Out: $700

It looks like I drink way too much coffee. I have actually stopped drinking coffee in Starbucks. My own coffee taste so much better. Since I don’t cook, i am not sure if I can cut back on eating out though.

Hobbies & Activities

• 2007: $960
• 2008: $2,590

Wow that’s a big jump. Stuff in this category includes, photography, music, movies, road trips, camping and more. I did buy a new $800 camera last year. Even if I exclude new camera, I still spend twice as much money on this category than 2007. However, this category includes things that I like and I am not to worried about extra money spent last year. 2008 was indeed fun year.

Groceries

• 2007: $990
• 2008: $1,900

Kinda surprising that I spent so much money on groceries. Only thing I buy is bread, cold cuts, cheese, milk, cereals and cleaning supplies.

Anyways, it was really insightful. I use only one credit card for all my transactions and I simply import that data into Quicken. I carry only a few bucks in cash for emergencies, so usually I know exactly how my money was spent.

First, I cannot believe that every year we hear but people getting trampled during Black Friday but no one do anything about it.

This year 3 people died. I think they should go back check the security videos and charge every person who stepped on these people for murder.

Anyways I was going to buy a laptop but my 5 years old laptop is still usable, so I talked myself out of it. My brother on other hand has 2 better than mine laptops but still he bought a new latop. Why do you have to buy something just for a good deal when you don’t really need.

Today in one of our meetings, senior leader said that technology should not be driving the business instead it should only come into play after business need is defined. At some level, I always knew technology is just a tool for a solution but not a solution. But I never really put that into practice. I guess thats why so many of my previous ventures failed cause every time I learn about something new, i want to go out and build a business around it. I wasn’t sure how I can build a business on Facebook but I just wanted to do it. Perhaps I just wanted to learn technology. I just bought G1, not because I wanted a new cool phone but because I wanted to write applications for it.

I guess now I need to find out what I really want to do, perhaps, it is not even related technology.

Frustrated by his demeanour, a Republican congressman, John Mica, tried humour: “If you haven’t discovered your role, you’re the villain today. You’ve got to act like a villain.”

Fuld stared back wordlessly, without a shadow of a smile.

haha, read more here