Tuesday, February 26, 2019

How To TRAVEL LIGHT: This Is What Professionals Do, Light Traveler

 

How To TRAVEL LIGHT: This Is What Professionals Do, Light Traveler 

Why would you want to travel light?  Freedom. After having all of my and my friend's belongings robbed three times in South Africa, we had the opportunity to have to travel light and experience the sensation of being unattached to material items.  Aside from wearing the same clothes in all our pictures (First World problem anyway), it felt exhilarating to walk around and not have to be anywhere to move my stuff, look over anything, or think about where you left things.  Everything is with you! And aside from my wallet and iPhone, nothing else was of any real value. The clothes I do bring with me on trips are from thrift stores. The money you spend in thrift stores goes to helping and rehabilitating disabled people.  It seems shopping in thrift stores would be good karma. Additionally, the clothes I do have with me, become gifts for homeless people or for those whom I see committing random acts of kindness. Traveling light allows you to focus your mind on your spiritual development and thinking about what's important in your life.

Traveling Light: The Abyss of Lost Luggage

Luggage is baggage; it can weigh you down and cause you to stress as you try to move around and figure out what to do with your belongings.  At the airports, you see people checking in multiple suitcases as if they were moving out of the country forever. Traveling with large quantities of items has its drawbacks such as additional cost incurred by renting carts, paying bellmen, paying airline baggage fees, dealing with weight and item limits, and paying hotels to store luggage for you.  There is also an element of mental stress created by having to worry about whether your stuff is safe, did you leave anything behind, did you pack everything you need, are people looking through your things at hotels, airports, transport, or anyone else who has to help you manage your cargo? Hauling around "stuff" takes away from the purpose of your going on a vacation in the first place: to relax and forget about all the responsibilities at home.

Once after vacationing in Central America, Copa Airlines lost my luggage!  The first thing that came to mind was “big deal,” my bag is somewhere pushed into a corner.  After all, how could someone "lose" my bag? Where exactly could it be lost, right? The staff at the airport directed me to the lost luggage office of the airline.  In my mind, I immediately thought, “No problem. Even if my bag was lost, these guys will just buy me a new bag and pay for all my stuff.” Did I forget to mention the 100-ounce gold bars I was bringing home?  Well, the office had several passengers standing outside, and no staff was present during the posted operating hours. Who could blame them? Who wants a job being a human punching bag for angry passengers who yell at you for other people's mistakes?

As I asked around, the other baggage losers told me they had been waiting there for hours, and if I wanted to, I could fill out a form and add it to a pile of other inquiries that were sitting in a basket on the desk.  This was not looking very rosy. I started realizing that nobody cared about my luggage except me. I thought there was going to be someone here to pat me on the back telling me, "You poor thing. Don't worry, we'll take care of this for you," and I would have the opportunity to sit there as if I were at a psychologist’s session and blah blah blah myself into feeling better as I discussed all the hidden gems I had in my bag that I had brought back while on my month-long excursion, but instead, nothing -- no sympathy, no help, no recourse.  I filled out the paper and added it to the pile. No one ever called me. Basically, the document I filled out said they would call me if they found something, otherwise, get lost! The paper did post an 800 number to call. It played a recording, repeating what was on the document I had filled out and turned in.

I never saw my bags, never received any compensation, and never even received an acknowledgment from anyone that the incident had ever happened.  Lost luggage is one of the topics the airlines want to keep under wraps as it is very unsettling to people to think they might lose their items. Everyone wants to feel safe about packing away their valuables and loading them into a plane, but the reality is that human error exists, and inevitably your bags can get lost. The experience can really ruin a pre or post trip experience.How To TRAVEL LIGHT: This Is What Professionals Do, Light Traveler 

I have experienced several types of luggage issues. I have left the luggage behind. I have been charged by everybody who believed they were entitled to do so because I was making them haul around my stuff.  I have had airline staff open up and take items out of my bags. I have had my luggage held for ransom by taxis and hotels. I have had other passengers take my luggage. I have had bed bugs and other parasites use my luggage to shuttle to different parts of the world and had them destroyed by weather.  In most cases, you have almost no recourse. I tried buying travel insurance at an additional expense, but they often cover very little, around $100 unless you pay big bucks for a policy which defeats the purpose. Even then, I was asked to fill out lots of paperwork and provide itemized receipts of the items in my bags. Like most people, I did not have the original store receipts for the items I purchased, so I received no reimbursement.

In fact, once on my way back from Peru, I was told I had too many carry-on items, so I started stuffing my check-in luggage with carry-on items to save on fees, and the airline staff commented on how beautiful my souvenirs were. Well, guess what? When I arrived to my hometown of Los Angeles, all of my souvenirs had been plucked from my bags despite my having TSA approved locks on them!  Yes, the locks were opened and after my souvenirs were stolen, someone was thoughtful enough to close the locks. Thank you!

Over the years, I learned that this is not a battle I’m going to win unless I wanted to stay home, which, for me, would defeat the whole purpose of living, so I adapted a saying I learned from Buddhism: “Water does not flow through rocks; it flows around them.” I needed to adapt and go with the flow.

It’s not the strongest, most attractive, or even the smartest that survive, it's the most flexible.  After all, vacations are supposed to be for you to relax and set your mind free. I started by gathering intelligence while staying at guest houses, hotels, hostels, motels, and people's homes.  I met thousands of fellow travelers, some of whom were on vacation for years at a time.

In Scottsboro, Alabama, there is an “Unclaimed Baggage Center” (http://www.unclaimedbaggage.com/) that sells millions of unclaimed items of luggage and their contents.

Check out Doug Dyment’s website OneBag.com on suggestions and tutorials on how to pack light.

Clothes

How To TRAVEL LIGHT: This Is What Professionals Do, Light Traveler 

Need I say more?

This is where you will have to decide what you are comfortable doing without. This is where we all struggle.  Pack natural, low-maintenance materials such as cotton. Bring neutral colors so you can blend in, and so you can mix and match clothes easily to make multiple outfits out of a few articles of clothing.  Being a minimalist has its strengths.

That being said, when I pack, I pack no underwear, no socks, one hat, one pair of glasses, one t-shirt, one windbreaker that’s waterproof and can be used with layers of clothes to keep me warm or dry from the rain, one tank top, one long-sleeve dress shirt for going out or to use during the day to protect myself from sunburn or mosquitoes. I also pack one pair of cargo pants with removable legs that convert to shorts. This can be used for hiking or going out dancing. I also pack jeans, one pair of good quality black sandals with arch support (I use these for public showers to avoid fungal infections, going out, hiking, everything). Include one pair of walking shoes, in case you prefer using shoes when you walk through the brush.  Bring a small bag of laundry detergent or a bar of soap so you can soak and wash your clothes in the shower when needed and leave them out to dry after your shower, or you can wear them wet for a cooling effect in hot places like the Middle East.

Wear the heaviest of your clothing during transit if you’re going to be charged baggage fees.  If you are traveling somewhere where the weather is cold, then you will need to bring a good quality jacket.  Feather down or jackets made of high-quality materials are lightweight and offer superior protection in cold weather. If this is the case, you can leave the windbreaker at home. Instead, bring two pairs of socks and underwear and a pair of lightweight walking boots.

I once traveled to the Bolivian Andes during the winter in shorts and sandals, the weather was below zero, and no matter how much money I spent, I could not get good quality clothes to keep me warm. All that I could find were wool socks and sweaters.  These are porous, allow all the cold air in, and lose heat. Well, I looked like the Michelin man with five sweaters and all of my clothing on, yet I was still freezing.

Cold weather is the toughest to pack for.  If you fail to pack right, you’re going to be miserable. I suggest investing in one outfit made of high-quality fibers to be used in extremely cold temperatures. These types of articles last forever, and they are extremely lightweight.   

Toiletries

This is my Achilles heel, but the Transportation Security Administration (TSA) and the airlines have helped me on this one.  You may put any sized bottles of liquid in your checked luggage. In your carry-on luggage, you may only have one quart-sized plastic bag.  You may include as many three ounce-sized bottles as you can fit in that bag. I try to avoid checking in luggage altogether. However, if I am going to a jungle or a tropical location for an extended period of time (you usually get one free check-in for international travel), I'll pack a small bag to check in for items such as beauty creams, sunblock, insect repellent, etc. due to the fact that the quality of these products are typically questionable outside of industrialized countries, and they charge a premium for them since many of the locals don’t usually buy them.  Try to pack just enough toiletries for your trip so you don't have to haul them back or give them away as tips on your way back.

 

I talk more in-depth of travel issues in my Amazon Book. Check it out here.

Saturday, February 23, 2019

How To Become Better With TRAVEL PACKING with Travel packing Hacks

How To Become Better With TRAVEL PACKING with Travel packing Hacks 

When it comes to preparing for a trip, packing can be tedious and time-consuming.  There are many factors to consider such as what will the weather be like, what activities will I be engaging in, will I be going out dancing, will I need formal attire, what if I forget something, and what If I don’t pack something and I’m unable to find it where I’m going.  It’s difficult to anticipate what you may need if your going somewhere unfamiliar and don’t have a set itinerary and even if you do that could change as well.

In terms of the actual luggage and what to bring there are a different set of factors that must be considered: what luggage options you have, the type and length of your trip, your itinerary, the size of your luggage, and any weight limits imposed by your mode of transportation.  With this in mind, it’s easy to overpack or underpack, especially if you’ve waited until the last minute.

Sample Packing Guide

This is a slimmed down list of essential items that can fit into a carry-on bag.  I highly recommend a travel backpack due to its versatility, lightweight, collapsibility, expandability, and lots of useful pockets with side and top entry.  

Absolute Essentials

  •    Passport

  •    Driver’s license

  •    Health insurance information (important phone numbers to call).  Remember your health insurance at home rarely covers you abroad, so it is advisable to purchase travel health insurance.

  •    Plane tickets or printouts of boarding passes

  •    Bank cards (debit and credit) plus some cash in dollars or euros since they are accepted worldwide

  •    Details of accommodations, transportation, and itinerary


Clothing

  •    Hooded top – hood can be used to block out light and aid sleep

  •    Dressy jacket – normally worn on the plane

  •    2-4 t-shirts

  •    2-4 long-sleeve t-shirts

  •    1 pair of jeans

  •    1 pair lightweight pants with removable legs – double as shorts

  •    Swim shorts/swimsuit – for the beach or hot tub

  •    Lightweight rain jacket

  •    3+ pairs of socks

  •    3+ sets of underwear

  •    Sun hat – if visiting sunny climate or beany for cold climate

  •    1 pair walking shoes/boots – normally worn on the plane

  •    Flip-flops or sandals – if visiting hot climate

  •    1 pair dressy shoes – for going out to dressy events

  •    Belt – worn on the plane


Accessories

  •    reusable Water bottle

  •    A digital camera with accompanying charger

  •   Mobile phone with accompanying charger and headphones – (doubles as an alarm clock, personal MP3 player, and radio)

  •    Mini Maglite Torch

  •    Nail clippers

  •    Sunglasses and case

  •    Earplugs

  •    Small first aid kit – normally only taken on activity trips

  •    Pen and small notepad – details of flights and other vital information is recorded here

  •    Maps, guidebooks, phrase books

  •    Reading material – normally at least one small paperback book

  •    Universal travel adaptor – if traveling abroad

  •    Mailing labels save time when filling out forms


Know which items not to bring on the plane. This applies to safety, size, weight, and even food, as there are restrictions on all of these.

  •   Safety restrictions vary in different countries but include obvious safety hazards (knives in your carry-on, flammable liquids in any of your luggage), not-so-obvious hazards (nail clippers or files in your carry-on), and a few seemingly inexplicable items such as an unopened bottle of water on US flights – unless you purchased it after going through security.

  •    Weight and size restrictions depending on the airline, so check their website ahead of time for more information. Most medium-sized duffel bags and hand luggage marketed as carry-on will be accepted into the cabin.

  •     Avoid bringing nuts on planes. These can cause allergic reactions in other passengers.

  •    Don’t bring agricultural items (fruits, vegetables, seeds), meats, or dairy products. Although you may be able to get away with it in some countries, many regulate these items to reduce the spread of non-native species and disease.


 

How To Become Better With TRAVEL PACKING with Travel packing Hacks 

Extra items

Bring one extra collapsible bag to be used as a day bag to carry food, water, or for shopping. This bag can also be used to carry souvenirs you may have bought during your trip back home.

Do you remember the movie Catch Me If You Can with Leonardo DiCaprio? In the film, Leonardo's character carries extra wallet stuff with labels from tin cans to pose as currency.  He gives the wallet to people to hold or in case he is robbed, so he can quickly leave the scene. A wallet stuffed with plastic credit card offer cards that often come in the mail, product labels, and low-value currency from other countries with maybe a few US dollars in front. I keep this wallet in my back pocket. In case I am robbed, I hand them this wallet. Meanwhile, I wear a belt with a looped money pouch I can carry under my pants.  I also leave a credit card, ID, and cash in my main bag wherever my bag is being stored in case I lose everything on my person.

If you are traveling with a partner, you can also give them access to all of your information. Store some cash and credit cards with them, and vice versa.  

Two of our most significant inventions of modern times: Ziploc bags and zip ties. Use these to water/sweat proof essential papers, your camera, food, dirty clothes, etc.  I used to think this was crazy until I had a strap break on my backpack. I used a zip tie to hold my bag together. Another time I was driving a rental car in South Africa and the bumper fell off.  I needed to finish my trip and return the car with the bumper, or the rental car company would have charged a lot of money to replace it. Instead, I picked up some zip ties to hold the bumper to the frame until I was ready to return the car a few weeks later.

Backpack locks and/or a wire mesh to put over your backpack to prevent people from getting into your bag if you are traveling through an area with pickpockets or high crime rates.

For female travelers, if you use tampons, pack some in a Ziploc as some countries do not carry them.

Mailing labels and a pen

Due to the frequency of having to fill out forms, it's a good idea to bring mailing labels that you can stick onto forms and a pen that can be used to fill out forms while waiting in lines at customs, border crossings, bus stations, or airports.  

Car and wall charger

There are different plug and outlet types throughout the world, so bring a universal adapter for your electronic devices.  I also recommend bringing a car charger and backup chargers in case one gets lost or broken. It can be difficult to find electronic accessories, especially when you are traveling in developing countries.  Not having an adapter to charge your electric shaver, laptop, or other cell phones can cause unnecessary problems.

I talk more in-depth of travel issues in my Amazon Book. Check it out here.

Friday, February 22, 2019

Compound Interest-How to make 1 penny into $5.3 million in 30 days



Compound Interest-How to make 1 penny into $5.3 million in 30 days

The miracle of compound interest is what makes ordinary investments into extraordinary riches.  Understanding how compound interest works will give you the same opportunities to grow your investments as Warren Buffet or any other investment guru does.  The article will help you understand the importance of investing early and the impact that compound interest can have over time on your investments.

Remember building wealth is not based on a decision; it is an accumulation of multiple choices over an extended period.  By planning your investments, so they have time to compound, you are better able to put money to work for you, and build your wealth.  If you leave your money invested long term in savings or investments, it will grow. The returns from those investments will have the chance to compound, generate growth over as long as it's invested, and help you meet your long term goals.

As a college professor, I use to teach my students about the importance of investing as soon as they could.  As an example, I would ask if any of them would help me paint my house for one penny if I doubled the amount every day for 30 days?  Most would say "No". Then I would pull out a calculator and on the projector and demonstrate precisely how it works. One penny would become two pennies on the second day, four pennies on the third day, and at the end of one week, it would become sixty-four cents.  Some of the students would be feeling pretty confident that they chose not to take the job starting at one penny. However, by the thirtieth day, they would have gotten $5,368,709.12 with only three weeks more.

The idea is that time is finite, and we all have a limited amount of time in the world.  Someday all of us are going to die, so we need to use our time wisely, especially when it comes to investing.  The longer your money is allowed to remain invested, the more time it is going to have to grow over an over again on not just the principle but the additional interest earned as well.  That's why it's called compound interest its like a snowball turning into an avalanche.

Compound Interest-How to make 1 penny into $5.3 million in 30 days

If you consider the Standard Poors index or S & P index, it has averaged around 10% gains per year since it started about 90 years ago.  Although the stock market has up and down years its the result that matters. With this in mind if an 18-year-old invests $10,000 in an S & P index fund when he graduates from high school instead of buying his first car.  He or she will have around $1,000,000.00 by the time he or she retires a few months after their sixty-sixth birthday.

Warren Buffet has some of the best examples of compound interest.  The first story is the story of the Mona Lisa. If instead of painting the Mona Lisa in 1516, King Francis’ had invested his initial $20,000 investment at a 6% interest rate, his investment would be worth over $1 quadrillion.

Another example was Christopher Columbus's journey to the new world.  If Queen Isabella had invested her $30,000 at 4% interest instead of in Columbus's voyage, then her investment would be worth $7. Trillion.

Albert Einstein called compound interest the eighth wonder of the world, and added, “He who understands it, earns it. He who doesn’t pays it.”  Because even at low interest rates, a small amount of money can grow into vast amounts of money. If the smartest man ever and the greatest investor ever think this compound interest is important then its something that every investor should become familiar with to build up their your wealth.

Compound interest is what Warren Buffett calls his greatest financial secret and his single most powerful factor behind his investing success.   The indispensable component about compound interest is that once you invest some money, it allows you to earn interest on your interest. So, while you hustle to make money to invest, from then on your cash works on your behalf on autopilot.  For compound interest to be even more effective, keep adding cash as you can, reinvest dividends (also helps you incur more taxes), and invest over the long term.

If you don't’ capitalize on compound interest, then you are most likely capitalizing on inflation and inflation is not your friend.  Inflation is a general increase in prices over time, and as this happens, it erodes the purchasing power of your money. The USA averages around 3% inflation in a year which basically means, if you have one dollar saved at the end of the year, that dollar is worth 0.97 cents, because you lost 3% of its ability to buy things.  

The famous American baseball player, Babe Ruth of the New York Yankees, was paid $35,000 for the 1943 season. Recently Mike Trout, the Los Angeles Angels baseball star, signed a $430,000,000 contract in 2019. This comes out to just over $35,000,000 a year When Babe Ruth signed his contract, the average price of a house in Los Angeles was just over $6,000 dollars.  In 2019, when Mike Trout signed his contract, the average price of a house in Los Angeles was just under $600,000. This means that the price of a house has increased about a hundredfold, while the salaries of baseball players have gone up over thousandfold. As inflation has eroded the value of money over time, prices have to go up to be able to make up for the lost purchasing power.

 If Babe Ruth had tried to get into the Southern California real estate market, he would have been able to buy about 6 houses the year he signed his contract. Had he decided to save his money in the bank instead, the Babe wouldn’t even have had enough for a downpayment on a house in Los Angeles, which would come out to around $120,000. If Mike Trout doesn’t invest his money, we’ll be having the same conversation about him in 76 years.