Archive for July, 2009

Cash for Clunkers Facts

// July 25th, 2009 // No Comments » // Uncategorized

The vehicle to be traded in must be able to run, be no older than 25 years, and must get 18 or fewer miles per gallon. Sellers also must provide current proof of insurance and registration and a clear title, and they must have owned the vehicle for at least a year. A $3,500 rebate is available for those who trade up to a model that gets four to nine more miles per gallon than their old vehicle. The break swells to $4,500 when the difference is 10 or more miles per gallon. Dealers must register to participate in the program. They receive the rebates from the government after a transaction meets all of the necessary requirements; customers have the amount taken off the price of their new-car purchase.

Chrysler announced it would sweeten the pot further for buyers of its vehicles. The company offered to match the $4,500 government incentive, also making the discount available for those who are not trading in a vehicle eligible for cash-for-clunkers aid.

Lifestyle Design Parable

// July 21st, 2009 // 1 Comment » // Lifestyle Design

An American businessman took a vacation to a small coastal Mexican village on doctor’s orders. Unable to sleep after an urgent phone call from the office the first morning, he walked out to the pier to clear his head. A small boat with just one fisherman had docked, and inside the boat were several large yellowfin tuna. The American complimented the Mexican on the quality of the fish.

“How long did it take you to cactch them?” the American asked.

“Only a little while,” the Mexican replied in surprisingly good English.

“Why don’t you stay out longer and catch more fish?” the American then asked.

“I have enough to support my family and give a few to friends,” the Mexican said as he unloaded them into a basket.

“But… What do you do with the rest of your time?”

The Mexican looked up and smiled. “I sleep late, fish a little, play with my children, take a siesta with my wife, Julia, and stroll into the village each evening, where I sip wine and play guitar with my amigos. I have a full and busy life, señor.”

The American laughed and stood tall. “Sir, I’m a Harvard M.B.A. and can help you. You should spend more time fishing, and with the proceeds, buy a bigger boat. In no time, you could buy several boats with the increased haul. Eventually, you would have a fleet of fishing boats.”

He continued, “Instead of selling your catch to a middleman, you would sell directly to the consumers, eventually opening your own cannery. You would control the product, processing, and distribution. You would need to leave this small coastal fishing village, of course, and move to Mexico City, then to Los Angeles and eventually New York City, where you could run your expanding enterprise with proper management.”

The Mexican fisherman asked, “But, señor, how long will all this take?”

To which the American replied, “15-20 years. 25 tops.”

“But what then, señor?”

The American laughed and said, “That’s the best part. When the time is right, you would announce an IPO and sell your company stock to the public and become very rich. You would make millions.”

“Millions, señor? Then what?”

“Then you would retire and move to a small coastal fishing village, where you would sleep late, fish a little, play with your kids, take a siesta with your wife, and stroll to the village in the evenings where you could sip wine and play your guitar with your amigos…”

Excerpt from “The 4 Hour Workweek” by Tim Ferriss