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A Numbers Approach to Finding True Love

We’re coming up on Valentine’s Day, when the young (and old) hearts and thoughts take a romantic turn. In this spirit, my posts for this week and next will all involve love and personal finance. If any other bloggers want to join in on the fun, please send me a link to your post at [email protected] and I’d be happy to profile what you’ve written.

As I alluded to in my economics of dating post, I have an approach to dating that I’ve used and have recommended to friends which I think would be useful to many people who are unhappily single.  To be completely upfront, I’ve never been married (and have only lived with one woman for a brief period of time).  However, I’ve dated a reasonably large number of woman (enough that I’m not sure the exact count at this point) and have had a few women who would have been willing to marry me, so I stand behind this.

For anyone who questions if dating advice belongs on a personal finance blog, who we marry (and whether we stay married to them or not) MASSIVELY affects our financial situation.  Along with career choice and spending habits, our partner is probably one of the biggest determining factors in personal finance.

The first element of this is that the date-seeker needs to get rid of any idea of “soul mates” or “their type”.  I suspect that over the course of a lifetime we all meet 100-200 people we could probably have a reasonably happy life with.  It’s ok to find some characteristics attractive (personally I really like redheads – yum!), but if you become fixated on something as an absolute requirement, and there aren’t many people who fulfill your requirement, you’re setting yourself up to be alone.

As an example, many woman want a guy who is taller than them, earns more money than them and has nice hair).  That’s great unless you’re a tall, successful woman and you’re competing with similar women for the same small pool of guys.  If a guy’s only demand is that the women he dates be swimsuit models, he’s got some long, lonely nights ahead of him.

Some people say “be picky, you’re worth it!”  If someone wants to be dating and they aren’t, then they’re being too picky.  Of course, if someone would rather be alone than compromise, that’s totally cool but they need to own that decision (they’ve chosen to be alone:  no complaining 🙂 ).

The second element that needs to be jettisoned is the idea that singles can sit back and wait to run into Mr. or Mrs. Right.  They can’t.  All sorts of people never get married and they cop out later in life with the lame excuse “I just never met the right person”.  Bullshit.  They needed to go out and find the right person (and instead, unwisely, chose not to).

Once these two ideas have been abandoned, the date seeker just needs to find enough prospects to ask out in order to find enough people to date seriously in order to find someone to propose to who’ll say yes and get married to them (it’s as easy as that!).  Think of it as a pyramid or a weeding out process where the most important part is the number of prospects (there needs to be enough of them to find that special someone).

I once read about a psychologist who got tired of his clients saying “no one will date me” and he ran an “experiment” where he would walk up to women and ask them if they’d go out on a date with him (no cheesy lines or anything, just walk up and ask).  It took him 50 tries, but eventually someone said yes.  I don’t know how good (or bad) looking he was, but I think this would probably be true for anyone (eventually someone will say yes).

Fortunately, technology makes things even easier.  Sign up for Match.com, eHarmony, OkCupid and Plenty Of Fish and send messages to 3 people a day.  That’s 21 people a week or about 90 a month.  Push through the pain of rejection or fear and eventually there will be dating.  Say 1 in 10 people messaged on OkCupid will respond and meet for coffee, 1 in 10 people met for coffee will go on a second date, and 1 in 5 of these people dated a second time becomes a serious relationship leading to marriage.  This implies 500 people need to be messaged to find true love.

I’m somewhat (not completely) sympathetic to women who aren’t willing to ask men out or initiate contact on dating sites (so women can lead G8 countries, but can’t ask a man out on a coffee date?  RIIIGGGHHHTTT).  If someone decides they aren’t going to do the asking out, they have an obligation to make it very clear that they’re available, single, and likely to say yes.  I’m not sure the exact mechanics of this (I’d appreciate any women who can make suggestions in the comments), but the nearest I’ve figured it out is that it involves smiling a lot and working into the conversation that she’s single (“well, as a single woman who isn’t seeing anyone right now, I have a particular interest in whether or not Greece is on the verge of bankruptcy…”).

For guys who think they’ll be destroyed (DESTROYED!) by a woman saying no to them:  you won’t be.  Man up!

If you’re married or in a relationship, what’s your favourite piece of dating advice?  If you’re (unhappily) single what’s been preventing you from finding someone?

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Two Views on the Economics of Dating

Two of my friends have radically different views on dating, both of which amuse me to no end.  I’d like to make clear that I don’t condone their behaviours (although I find it very entertaining).   As Miss Manners has said:  “Shunning scoundrels is one of society’s dues, sadly neglected by those who refuse to pass judgement, and may also have discovered that scoundrels sometimes make lively companions”.  To “set the stage”, each of my friends was unhappily single when I started my PhD, and thanks, in part, to some of my advice (which will form a post next week), both are now REASONABLY happy in relationships.  Neither was raised in Canada (and neither spoke English as their first language) and both are in doctoral programs (they aren’t dummies).

XY

XY took to dating like a kid in a candy store.  I was happy for him when he was seeing a number of women and finally seemed to settle on one he liked.  I was taken aback one day when he told me he had been keeping a spreadsheet of everything he spent on them.  The breakdown was interesting (he only counted half the meals, because he “had to eat too and enjoyed them”, but would count gas driving to meet them – I asked if he factored in maintenance or wear-and-tear on the car, and he did not).  What became VERY interesting is he’d calculate the ratio of money spent to sexual encounters obtained (in my first draft I called this “kisses” euphemistically and counted on  “men of the world” to be able to read between the lines:  there are at least two grandmothers who read the blog somewhat regularly and I was worried the post was getting crass – Mike encouraged me to tell it like it is, so there you go).

Beyond reducing the ratio as low as possible, he had wild dreams of getting his number to $0, or possibly into the negatives (where the woman would have spent more money on him than he had on her).  We’re both pretty frugal, so he’d sometimes accuse me of approaching dating in a similar manner, which I always denied.  I repeatedly told him that my view of dating is quality over quantity.  Spend time with someone you really care about and forget about the expense, instead of going after a number of people you don’t like very much and keeping costs low.

Clearly Nemesis had her way as XY is now dating (and planning to move in with) a woman he’s head-over-heels about.  She has confided in me that he treats her better than any guy she’s ever dated and he almost always insists on paying.

XX

Once XX cranked up her dating it seemed like she actually tore through most of the men who fit what she was looking for in the Waterloo area (she’s since expanded her hunting grounds to Toronto).  She has always been a bit of a mooch (trying to get friends to buy her drinks or food – she’ll go as far as order nothing but water in a restaurant if no one will buy anything for her), but she expanded this to an art form when dating.  After each date, she’d brag to us how much she’d managed to get the guy to spend and how little physical affection she had to provide.  I think her high point was $120 and she gave him a hug at the end of the night.

Her grandest adventure, which XY and I are still in awe of, is that when the relationship ended, the first guy she ever had sex with gave her $10K “for her virginity”.  $10,000!!!  I had trouble GIVING away my virginity…  Just to clarify, it wasn’t like she sold it on E*Bay or a street corner, this was a long term boyfriend who felt the need to “cash out” for past sins as they were breaking up.

After her recent birthday, she went out the next day to try to return each of the gifts she’d received (which filled me with glee as I’d written an inscription in the book I’d given her for her birthday years ago, thus preventing its return – Mwa ha ha ha).

Again, Nemesis has struck and she’s now dating a fellow poor grad student (and gripes regularly about how much it kills her to pay for her own food when they go out).

In Conclusion

XY and XX are two real people (who hopefully never discover this blog).  It isn’t my intention to draw any parallels between their experiences and broader gender stereotypes, I just wanted to share my amusement at how they approach romance.  I thought at one point that they might actually start dating EACH OTHER (and worried that the world would be destroyed in a massive anti-matter explosion if that ever occurred).  They’re room-mates now (in a big house with other people) and seem to get along surprisingly well living in the same place.

Do you have any friends (or personal experiences) with weird interactions between money and dating?

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Personal Finance at Ridgemont High

As I mentioned at the beginning of my Buffy personal finance post, I really don’t like “according to” posts. Nevertheless, after a recent viewing of this film a post kept bouncing around in my head, demanding to be written…

Sorry to people (like me!) who find these aggravating.

Fast Times at Ridgemont High was based on a book written by Cameron Crowe about his experience pretending to be a student at a California high school (as a very youthful looking 22-year old Rolling Stone writer). A number of the actors went on to distinguished careers, including Sean Pean, Forest Whitaker and a briefly seen Nicolas Cage.

Without much of a plot beyond a snapshot of Californian teenage life at the time, the experiences of the main characters nevertheless highlight a number of personal finance (and life) issues.

Charles Jefferson

Presented as the aloof high school sport star, Charles presents the experience of individuals who luck into wealth.  It can be an inheritance, fortunate events, lottery winnings, or (as is the case here) happening to be good at something that society is willing to pay a high premium for (i.e. football).  Not even out of high school, an admirer has bought Charles a sports car, representing the easy-money he will make based on his athletic ability.  Also foreshadowing the life he will live, he’s very rude and aggressive to Mikey when he’s greeted socially, then later (when he needs something from Mikey) is willing to be more social.  Already his status is separating him from his community and his peers and hinting at a lonely life down the road.

After his younger brother and Spicoli steal and destroy his beloved car, they easily trick him into believing it was a school rivalry prank.  This foreshadows how he (like so many other sports stars) will be manipulated in the future and makes me wonder how long it will take before “investment councillors” bleed him dry of any money he makes.

Jeff Spicoli

Spreading his time equally between getting high and avoiding responsibility, Spicoli paints a picture of those who peak early. While having fun and being popular in high school, it’s tough imagining that he’ll amount to anything (even his fantasies of becoming famous as a surfer seem ludicrous). Unwilling to do even the barest minimum effort (like show up to class on time or not drive a sports car while drunk and stoned) Spicoli is the student destined to fail. He and a strict teacher Mr. Hand go head-to-head, with Spicoli losing at every turn and leaving the viewer to wonder why everyone hasn’t given up on the train wreck. The message is beaten home at the end of the movie where it is revealed that Spicoli was given $25K for saving a drowning Brooke Shields (and promptly spent it hiring Van Halen to play his birthday party).

Mikey Damone

Mikey is the unethical entrepreneur, enthusiastically embracing a used car dealer persona as he tries to turn a buck scalping tickets. Although he projects a confident, suave demeanour, as the film proceeds this front breaks down after he betrays his best friend and treats Stacy very shabbily (he stands her up after agreeing to contribute $75 and a ride to the clinic to abort the child he fathered). His betrayal is slightly coloured by viewers’ knowledge that he has more difficulty coming up with the money than he lets on, but regardless his behaviour is inexcusable.

Much like Mikey, many people choose to make money in shady ways (and often don’t even earn much of a premium for their ethical compromises). “Keeping up with the Jones” is alive and well, where we try to project an image that we just can’t live up to. Mikey isn’t representative of all entrepreneurs (my feeling is that as a whole, entrepreneurs are probably MORE ethical than average), but he does paint a vived portrait of some of the group’s sleazier members.

Brad Hamilton

At first Brad seems to be an example of the hard-working everyman. Devoted to the job and in a leadership position at the burger joint he works at, he’s got an attractive girlfriend, other students ask him to help them find jobs and he debates whether he should break up with his girlfriend to have more fun with other girls in his senior year. All this comes crumbling down after he gets into a dispute with an obnoxious customer, gets fired, loses his girlfriend, then repeats this pattern at another fast food restaurant (this time in a pirate costume). In the final scenes of the movie we’re told he peaks as the manager at a convenience store (after he stopped a robbery).

Much like Brad, there seem to be people who do 99% of their lives right, and then just can’t seem to help themselves but tear it all down. It could be cursing out the boss at work, developing a drug, drinking or gambling problem, or even some strange criminal behaviour that only comes out on the night of a full moon. A friend’s brother recently broke up with his financé after she disappeared for a weekend and drained their joint checking account of $10,000 at the casino. In contrast to the Spicolis of the world, the Brads break your heart, as you can’t help but say “if only…”. As is made clear from the pattern he is already establishing, he’s driving himself to ruin just as inevitably as  Spicoli, he’s only taking a more scenic route.

Stacy Hamilton

Stacy, the sexually curious 15 year old, is the unlikely hero in the movie. She follows the advice of a friend who the viewers are left wondering whether or not she has had the experiences she claims to, is treated badly by all three men she connects with over the course of the movie, gets pregnant and goes through an abortion on her own. In spite of this, she stays true to what she’s after (gaining sexual knowledge and romantically connecting with someone) and it’s tough to fault her approach as she gathers information from friends and throws herself earnestly and wholeheartedly into her attempts. At the end of the movie we’re told that she’s now involved in a passionate love affair.

If someone was going to start a business, they could do a lot worse than imitate Stacy. She’s passionate, does her research, doesn’t give up or become jaded and keeps giving people a chance to be decent human beings to her. Her approach would also be effective on the path to getting the credentials of a difficult-to-achieve occupation (such as a doctor, lawyer, or clinical psychologist), launching an organization aimed at a charitable or political cause or even on some personal fulfilment path (such as being an author or artist).

In summary, Stacy, I salute you!  I’m sure the young woman your character is based on has had a wonderful life and I hope you left those goofballs surrounding you in high school and never looked back.

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$25 SmartyPig Gift Card Giveaway For Two Lucky Winners

I recently posted a comprehensive review of the online savings (piggy) bank called SmartyPig.  Please check out my SmartyPig review for more information.  The good folks at SmartyPig were kind enough to donate 2 $25 gift cards which are redeemable at SmartyPig.

Let’s have a contest!

Please note the contest is closed!

Rules for the gift card giveaway are as follows:

  1. Must be an American resident (only American residents can set up accounts at SmartyPig – sorry Canucks).
  2. You have to either already have an account at SmartyPig or be able to sign up for one if you win (sign up anyway).
  3. Leave a comment explaining how you use SmartyPig or if you aren’t a client yet then indicate how you will use it.  For example someone might use the account to save for a vacation.
  4. Contest ends Thursday, January 28 at 9 pm EST.  Winners will be contacted and will be asked for a US address as well as permission to provide that address to my SmartyPig representative so he can get the gift card to you.

Have fun!!  If you are interested in setting up an account at SmartyPig then please click on one of the links/banners in this post (so I can some cash from the deal) or click on the big pink button below!  You know you want to….

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New iPhone LinkStuff Edition

I got an iPhone this week – finally joining the mobile wireless internet crowd.  I have to say that it wasn’t as expensive as I thought it would be and the surfing is pretty good.  Full review coming up soon!

On with the links

Michael James had a great post on fine print in advertising – particularly car ads.   Some of the crap they say is so stupid it’s no wonder they all went bankrupt.
Mike Piper wrote a great piece on Insufficient Sample Size and how it could affect your investment decisions.
Book Review: Rob Carrick’s Guide to What’s Good, Bad and Downright Awful in Canadian Investments Today | Canadian Capitalist
Mega List of 2009 Tax Deductions and Credits
Review: Unconventional Success by David Swenson
What are Money Market Mutual Funds?
10 Ways to Cut Your Fitness Membership Costs | Squawkfox
Introducing Bundle – The Number One Source for How People Spend and Save Money : Generation X Finance
Lost and Found: Is the 2000’s the lost decade of investing?
How To Get Your Credit Card Interest Rate Reduced – Amateur Asset Allocator
The Financial Blogger » Blog Archive » A look into options strategies: Covered call
Tax Attorney Or CPA?
Roth IRA Contribution Limits For 2010
Real Rate Of Investment Return

Carnivals

Carnival of Personal Finance – Support Haiti Edition | Million Dollar Journey

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Mr. Cheap Wins Beer!!!

I am the champion – my friends
<cue power cords>
And I kept on fighting – till the end –
<cue power cords>
I am the champion –
I am the champion
No time for losers
‘Cause Mr. Cheap is the champion – of the blogosphere –

After my post on Tuesday, Mike promptly left a couple of comments to the effect that he “didn’t buy it”.  Never one to agree-to-disagree, I proposed a wager, and after we hammered out the details I set about winning it.  It’s been said that academic politics are particularly vicious because the stakes are so small.  With the the stakes being a beer in this case, I set out to be as vicious as possible. 🙂

While I was confident truth, justice and the Canadian way were on my side, I did realize that I needed to reach a critical mass of readers to allow the necessary comment to be made (and truth emerge).  Much like Commissioner Gordon flashing the bat signal into the sky, I raised the alarm, e-mailing numerous PF bloggers from Canada and abroad that they were needed!  Telling them:

“If you have done something like this, please comment!  If you know someone who has done something like this, please forward this to them!  If you can publicize this in any way (tweet, blog post, forum post, whatever), please do!”

Sensing the desperation of a situation where Mr. Cheap may have to buy a beer for Mike, our community sprang into action!  (it brings a tear to my eye just thinking of it).  Reactions ranged from polite neutrality to questioning whether arguing about this was really the best use of our limited time on this planet (for the record, yes it is).  Unbelievably, one particularly blogger had the GALL (note correct spelling 😉 ) to throw his support behind Mike.  MIKE!!!  I shake my fist in the general direction of Ottawa.  I even sent a message off to Mrs. Pillars, trying to convince her to turn on her husband (wisely, she ignored me).

By 5:49 pm a calm settled onto the electronic battlefield.  I now know what veterans describe where, in the chaos of combat a hush falls.  I had at no point doubted myself (NEVER!) but the thought had crossed my mind that the needed comment might not arrive in time.  If it arrived at 10:01 am, all would be lost and I’d be out a beer.  I refused to lose faith in our community, which clearly needed to make the right choice and agree with me.  All that was needed was for one person to arrive and say “yes, ye gods, Mr. Cheap is right!”  And cutting through the electrons of our virtual community such a person arrived.

I’m not saying she came on a winged horse or carried a spear.  It’s certainly not my assertion that the shimmering haze rescinded a little as she appeared into the chaos, bringing a shining light of truth.  Maybe she wasn’t there to decide which warrior was to die, or to carry anyone off to their eternal reward in the afterlife.  There certainly was the aura of an epic hero about Melanie however.  With her title,the reformed spender, she is upfront that in her past hasn’t always been as noble as she is today.  Maybe, like Yin and Yang she needs her past failings to be the unwavering beacon of good she is today.  Regardless of where she came from, or where she was going, she surveyed the carnage and pronounced:

In the area where I currently live, this is fairly common, though the goal is not usually to make money and the process is anything but fast.

Most people in my area work in another province for part of the year and live here (in NL) the rest of the time. When they are “home” for the season, they work on the house (if it’s their first house, they typically stay with their parents until it is completed, which can take years.) Then they move in and eventually see how they could have done things differently, or run out of space, or for whatever reason decide they want to build another one. Since they have no mortgage (and never did, since it’s built using income from working away), they just start over again and sell the “old” house.

What is throwing a wrench in this strategy is the fact that building materials are becoming more and more expensive and professional installation is becoming mandatory for many things (septic and foundation work, for example.)

With that she departed and Mike yielded.  Perhaps she went back to Newfoundland, perhaps back to the halls of the Valkyrie, perhaps we’ll never know.  Wherever you are Melanie, know that I’ll be thinking of you as I sip every extra-sweet sip of my beer of victory…

For those who read through this post and are thinking “geez, Mr. Cheap is an unpleasant winner”, it should be noted that I’m a pretty sore loser too.

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Please Donate To Haiti Earthquake Victims

A Haitian man carries his dead daughter.

I’m sure by now everyone has heard of the huge earthquake in Haiti which has devastated the country and killed many thousands of people.  I wanted to write a post to try to urge people reading this to consider donating to help the people of Haiti.  We have donated $250 to the Canadian Red Cross and $250 to Doctors Without Borders which I think are worthwhile charities for this situation.  Money is the best donation – items like food, clothing etc are too difficult and slow  to process and transport.

If you want to donate then check out the Canadian Red Cross site.  If you are American then I suggest you check out an American donation information page.  For more info on Canadian charities then check out Canadian Capitalist who has assembled a list of Canadian charities.

I’m not much of a giver when it comes to charities.  I usually give a bit of money each year – mainly to people I know who participate in fund raising activities such as a run/walk.  I like to see some effort behind the fund raising.

Warning – I’ve heard of scams where people will phone pretending to represent a charity raising money for Haiti. Apparently the real charities are not doing phone canvassing so I would suggest not donating over the phone. Do in person or online. For this reason I’ve disabled contextual ads on this post since I know they will contain scam links

In 2008, for some reason I didn’t donate a single dollar.  I was somewhat embarrassed about this since I know I am a lot better off than most people who will benefit from any donations.  In 2009 we decided to pick a donation amount for the year ($400) and split it up among different charities.  I pretty much had to force myself to make the donations and I still didn’t quite reach the $400 mark.

I have no difficulties donating money for tragedies like the Haiti earthquake. There is no doubt in my mind that the victims are real and very much in need.  Any donation WILL make a big difference which isn’t always so obvious with most charities.

One of my concerns with charities is of course – how much of the money is actually being used to help vs pay for salaries/more fundraising?  This concern is still valid for the Haiti relief effort and I’m sure there will be mistakes made given the lack of preparation.  There isn’t much I can do about this concern other than hope for the best and donate to a charity that I’m familiar with.

One of the things about this sort of scenario is that the victims are easy to help.  Their short term needs are fairly basic:  clean water, food, shelter, medical care.  I’m not saying those things are easy to provide but at least if you can provide any or all of those basics then you will be making a big difference.

This isn’t always so obvious with most charities.  If you provide free food long term to people are you helping them or in fact hurting them?  Things like cancer research are worthwhile endeavors in my mind but who does it help?  Donating money for medical research should indirectly help someone (perhaps even yourself) in the future but it likely won’t help anyone who is suffering from an illness or injury right now.

You can’t make all your donating decisions (or any other kind of decision) based on short term results but it does make it easier to pull the trigger on a contribution.  Seeing a picture like the one at the top of this post is heartbreaking.  That dead little girl is probably only a few months younger than my own daughter and unfortunately she didn’t make it.  By donating, I’m hoping to prevent more deaths like hers.

More posts on this topic

For those interested, Million dollar Journey is offering to match donations to Doctors Without Borders.
How To Donate To The Haiti Earthquake Relief Effort – Amateur Asset Allocator
Cash Money Life — Money Management, Small Business, Career
Safe Ways to Help Haiti
Canadian Financial DIY: Haiti Earthquake Relief Charities
How to Help Haiti
Help Haiti Through The Red Cross
» How to Support Haitian Relief Efforts @ fivecentnickel.com
Help for Haiti: Here Comes the Blogosphere | MapleMoney
Donate To Doctors Without Borders to Help Aid Haiti

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Linkstuff For January 14

Time for another roundup of posts – lots and lots this week.

Carnivals

Festival of Frugality