The BBQ Saga

If there is one universal love in Canada it's barbecuing. We've been caught up in the frenzy after some really tasty fare at a friend's place. So caught up that we bought a barbecue. The gorgeous assortment of meats Todd bought sat in the fridge two days as the BBQ mocked us from the box.

The thing in my relationship is I'm the one that's good at putting stuff together, filling out forms and setting up anything that comes with a instruction manual. Todd shines in other areas. Anyway even I procrastinated over this BBQ. I mean it's dangerous if I do it wrong I could blow up my house!

As with anything hard once I started it and got into the flow of the gazillion small pieces that came with it I really got into it. It was a challenge and every small accomplishment was accompanied by a new sense of, "Look at me putting together a BBQ!"

Now it's done and we're grilling fruits and meats with gleeful anticipation. I think of all the other BBQs I can now put together.

And here I bring it to investing when we started we didn't know anything we had to learn slowly sometimes painfully. Sure it's risky you could lose money but we knew that taking control of our financial future was a better move than the risky "wait and pray attitude". Nine years later we're moving into big multiplexes, a first for us. To be honest I feel that same fear filled with excitement and know this is going to be a great ride!

Kids hate vegetables.

I met a little American boy the other day who told me how much he hated vegetables. I actually hear this a lot from western kids and I wonder why. Whereas in Japan kids will tell you how delicious vegetables are some even going so far as to give recipes for best results.

Where do they get these ideas? Are they from parents who think kids who hate spinach are cute? Or TV where kids are feisty and well aware of parents attempts to sneak extra nutrition into food.

It brings me to memes and specifically those related to money. Investing is risky. Real estate gets you up at 4 am. Tenants are a headache that eventually reduce your R.O.I in terms of time management. The safest thing is to invest in mutual funds and keep my head down working. I can retire in 35 years.

The problem with my generation is we've got the memes of our parents (university,job security, pension) and also the memes of the information age- where fortunes can be made online. The paradox of risk and security can leave you in inaction.

At any rate we DO have the power to select the memes we live by. Though many will tell you you're crazy to take the road less traveled by... it makes all the difference.

So eat your vegetables and take control of your financial future.

Don't Be In The 80%

I used to love listening to CBC Radio but after Morningside's Peter Gzowski, Vicki Gabereau and of course Finkleman's 45's left, my heart did too.

Instead I've tuned into BBC Radio. Recently heard on BBC Radio 5 live 'Phone In Programme' discussing the world economic recession:

Caller: 'Thanks to my financial adviser I now have a small fortune.'

Presenter: That's very interesting, tell me more.

Caller: Pause……………..

Caller: 'Mind you, I started off with a large fortune.'

Just a little joke to put a smile on your face.

Remember Pareto's law? 80% of people are frozen (in this case) fear, while 20% are out there investing (in action).

The Pareto principle states that, for many events, roughly 80% of the effects come from 20% of the causes. It was named after Italian economist Vilfredo Pareto, who observed that 80% of the land in Italy was owned by 20% of the population.

The original observation was in connection with income and wealth. Pareto carried out surveys on a variety of other countries and found to his surprise that a similar distribution applied. Because of the scale-invariant nature of the power law relationship, the relationship applies also to subsets of the income range.

Even if we take the ten wealthiest individuals in the world, we see that the top three (Warren Buffett, Carlos Slim Helu, and Bill Gates) own as much as the next seven put together.

The Pareto Principle also applies to a variety of more mundane matters: one might guess approximately that we wear our 20% most favoured clothes about 80% of the time, perhaps we spend 80% of the time with 20% of our acquaintances, etc.

As you follow the news, remember to step back and see how the 80/20 rule plays out. There are plenty of good deals out there that 80% of the people are missing.

This And That

Stelmach unveils green plan - Stelmach announced that if re-elected March 3, the provincial Tories will spend $50 million turning the river valley into the world's largest continuous park, running from Devon to Fort Saskatchewan.

Beneath university's land there lies a mystery - and possible oil riches - Nobody knows quite how it happened, but the University of Calgary and its students are about to get some first-hand experience in the energy business.

By chance, a staff member uncovered information last summer that showed the school owned the mineral rights to two sections of land south of Lethbridge near the U.S. border - an area rich with both oil and gas reserves.

Tight market fuels winter retreat boom - "Supply in most regions of the country is expected to balance demand in regular housing, but in the recreational property markets, demand should still be quite a bit greater than what is available," Phil Soper, chief executive officer of Royal LePage Real Estate Services.

Real estate affordability to improve, experts say -Housing affordability is likely to improve this year as house-price growth eases and falling interest rates make mortgages cheaper, economists say.

Real estate values returning to normal - After two years of sky-rocketing prices, numbers in the residential real estate market are beginning to return to normal, according to real estate agent Mike Gouchie.

"I think we're going to see a stable, healthy market in Central Alberta, heading into 2008," said Gouchie. "There will still be increases to the value of homes, but in the seven to eight per cent range, which is closer to normal than increases have been."