Author Archives: Money Reasons

About Money Reasons

A offbeat personal finance blogger that comes from the tech world.

Possible Effects of AI, Automation and Robotics on Society

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Silicon and other non-biological systems and devices are getting smarter and more powerful every year!

With the exception of high level government officials and possibly some artists with distinct forms of artistic talent, I can see practically every job eventually being performed by some sort of smart machine or system.  And to add insult to injury, the real kicker is that the tasks they perform could be done better in all ways, meaning they could be done more quickly, accurately and much cheaper than a human resource could do the job.

So if what I stated above is true (and it is…), what are we supposed to do?  Are we doomed for extinction like what was presented in the “Terminator” movies?  I don’t think so, but let me whip out my pretend crystal ball and see some potential futures that are all within the realm of being possible.

Possibilities

  1. A.I (Artificial Intelligence) combined with sophisticated Robotics could become the dominate, intelligent form in the world.  I believe robotics are just really just sophisticated machinery (AI and smart computing are the real meat of this form of intelligence).  Don’t think of just traditional forms of robots (like Robby the Robot, or B9 in Lost in Space).  A robotic system could be bigger than a house, smaller than a fruit fly, and even in various states (solid, liquid and who know, maybe even gaseous in the future).  What really scares me is that the very rich won’t need us non-rich people in the futures since they’ll be able to buy or build thousands of smart robots, or robots that share a common centralized AI Core (like the IBM product called WatsonRobbyandB9Robots), except these systems will be only for that particular person (think Jarvis in the Ironman movies).  So the future could be even worse than the ancient Feudalistic class model of the past.  I’ll present an example…  What happens if Bill Gates gets tired of the rest of us continually “rich bashing” him and goes out and builds 500,000 death robots?  Let’s say that each death robot on average can take out 10,000 people.  Well, pretty much we could have a society where it’s just him and this killer robots.  Obviously, this will never happen because Bill Gates is one of the biggest philanthropist in the world, but it is possible.  After conquering the world, pretty much Bill would just live out this existence while the robots now run the world.  Crazy though and extremely doubtful, but still possible…
  2. Robotic systems run everything, and money has no meaning anymore, but we are all the equivalent of being rich.  Technocrats and other smart folks start running the government and proactively put in place monitoring and controls that limit robotics to peaceful practices in the public (anything goes with the military usage though).  They let robotics do all of the heavy lifting mentally and physically, and we all live in a limited version of paradise where money is no longer relevant.  for some reason Robots don’t complain about the work that they do, nor do they expect any type of reward… they are strange alien creatures to our current financial system.  But think about it… the entire system could be complete with no monetary exchange even necessary.  AI Robotic systems would mine their own materials, create replacement robots as old ones break and pretty much control anything and everything for free.  It would be an amazing world for us biological lifeforms!  Oh sure, there would be huge delays in gratification with certain luxury items (like flying to Paris), but with virtual reality making a dent lately, perhaps that would be a non-issue too.  This is the world I would hope for, but it’s unlikely too, but very possible and should be tried as a test scenario somewhere, sometime… I hope!
  3. The very rich would have all of the toys, and a Plutocracy would exist, but with a pleasant twist where everybody would get a minimum level of income and wealth for survivability and possible have a good middle class lifestyle.  Who knows, this might even be a phase before we would get to option 2 above.  Hard to say…  There would definitely have to be some human controls in place to contain human population growth, and a big reliance on clean, renewable fuels sources (especially wind and solar).

So in my last article about Automation, I painted a bleak picture for our human labor force in the near term.  And to be honest, I do expect that there will be an uncomfortable period until we adjust and create new ways of operating.

That said, in the long term, someday work could truly be optional and money might be worthless and valueless.

Just thinking out loud,

Don

Why the Expense of Being Healthy is Worth it

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The Expense of Being Healthy

The reason so many people are unhealthy isn’t a lack of knowledge. For many, it isn’t even a lack of motivation. For many, the reason that getting healthy feels so unattainable is just how expensive doing things the healthy way can be.

Think about it. Fresh produce costs easily three times as much per pound as the frozen or canned versions of the same fruits and vegetables. Workout gear and gym membership prices are astronomical and, even with so much effort into making healthcare more affordable, seeing a doctor can cost as much as a month’s pay (if not more) after all of the tests, office visits, and prescriptions are paid for.

It’s difficult to justify these expenses if you don’t feel like you’re sick or like you’re out of shape. According to the Huffington Post, a person can save more than $500 per year choosing the cheaper and less healthy varieties of foods. The problem is that most of the time, problems develop very slowly. Nobody has a heart attack out of nowhere. The body gets worse and worse until a heart attack (or some other huge problem) is the only thing that can happen. And trust us when we tell you, treating a major problem is going to cost far more than it would have cost you to work steadily at your health over time.  Plus, is it really worth it some day be wealthy without being healthy enough to enjoy it?

BusyOfficeMan

It’s also worth noting that the chemicals used to preserve those less healthy foods are one of the biggest exacerbators of health issues. So, in effect, you are literally making yourself sicker and costing yourself money in future medical and recovery expenses by going to “cheap” route now.  It’s a bit counter-intuitive, but very true all the same!

This doesn’t mean that we don’t feel your pain. It’s difficult to pay more than you think you can afford now in an effort to help yourself later. For example, converting your standard “chair in a cube” work environment to a standing desk is better for your overall health and Investing in standing desks is more cost efficient than paying for physical therapy to correct that permanent slouch you’ve developed from sitting all day.

Still, even though you know it isn’t a huge investment, when you’re living paycheck to paycheck, coming up with $1400 for a desk seems daunting. But $1400, when you compare it to the nearly $40,000 it costs to cover the expenses for treating a cardiac event, doesn’t feel like such a big deal does it? Especially, since you can save up over time for a proper standing desk while using crates and stands on top of your existing desk in the meantime. Or, even better, ask your employer to cover the cost for you!

It is also worth noting that the most expensive options do not always have to be the ones you choose when you decide to get healthy. It seems contradictory but, while buying the least expensive food and health options often leads to worse health overall, buying the most expensive options does not necessarily guarantee you the best health. A lot of the times, that added expense is to pay for branding, not nutrients or quality.

So how do you tell the difference? How do you get healthy without falling for branding or bankrupting yourself?

Go Slowly

This is particularly important when changing your eating habits or starting a new workout routine. There are some who believe that, in addition to expense, one reason that switching to a healthy diet is so difficult is that people are conditioned to like the cheaper stuff!  So the better for you healthy stuff tastes strange or even bad the first few times someone eats it. That said, by changing out parts of your diet for healthier ingredients slowly over time can make the transition easier and eventually your taste will switch too.

The same is true with a workout routine. You’re not going to go from arm chair quarterback to running a marathon overnight. Build up your strength and stamina over time, through programs like couch to 5k, etc.

Use What You Have

You don’t need a bunch of fancy equipment to cook healthy meals and you don’t need an expensive gym membership or the fanciest workout gear to get in shape. Use what you have on you! Use your current cookware and, as they wears out, replace them with a better (and, yes, typically more expensive) models that will last longer. For working out, you’ll need some really good shoes. Beyond that, your existing sweats or a t-shirt and shorts will do just fine for now.

Instead of trying to find a cheap gym, use one of the hundreds of workout and training apps that are available to help you get into shape in the comfort of your own home (or local park). We’ve already mentioned Couch to 5k. The Gorilla Workout is another popular option.

Remember: spending money now to literally save money and live longer later isn’t a silly thing to do. It’s a worthy expense!

Thanks,

Chase

Your Health is a Great Investment!

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All to often, I focus on financial matters and money reasons, but…

Your Health is Your Greatest Investment

In the United States, it is well known that health care is expensive. A trip to the emergency room or urgent care costs anywhere from a couple hundred dollars for a simple sprained ankle check up to thousands of dollars for an emergency procedure. One of the best ways to prevent expensive health care costs in life is by taking care of yourself now.

Putting your health first doesn’t have to be a costly endeavor either. A few simple free or inexpensive steps can dramatically increase your health and lower the likelihood that you’ll get hit with a high hospital or doctor’s office bill in the future.

LearningToSurf

Exercise Daily

Exercising regularly not only prevents obesity, but it also prevents the likelihood of osteoporosis and increases cardiovascular health. By exercising 30 minutes a day, you can increase your overall health, lower your stress levels, and keep unwanted pounds off – all of which can keep you out of the doctor’s office. Running or biking outside, working with free weights or doing an exercise video in your home are easy and effective ways to meeting your daily minimum exercise needs.

Attending a gym regularly has also become more affordable in recent years as well. For $10 a month, you can easily ensure access to the workout facilities needs to keep yourself healthy. Signing up for a gym membership will also help reduce the likelihood of excuses for skipping out on regular exercise.

Eat Well

A diet high in processed foods, simple carbohydrates, sugar, and unhealthy fats may seem more affordable than a diet rich in fresh produce, lean meats, and healthy fats, but ultimately, it may cost you more in the long run. Eating poorly has been linked to obesity, diabetes, heart disease, cancer, and a slew of other diseases and illnesses. Many of these diseases can result in expensive hospital visits, procedures, and a lifetime of medications.

Paying a few extra dollars to eat quality food can save you thousands on hospital bills in the future. Buy fresh vegetables and fruits, lean meats, whole grains, and foods rich in quality fats such as avocados and almonds. Local grocery stores may have high prices for fresh produce, however, many cities have farmer markets or co-ops which may offer higher quality food at a lower price.

Get Up!

Unfortunately, most of our lives are centered around sitting. We sit at desks for 8 hours a day for our jobs, we sit when we eat our meals, and we sit around the TV or computer to relax at night. Sitting for hours on end has been linked to cardiovascular disease, kidney disease, and several other diseases that can lead to costly procedures and lifelong prescriptions.

To combat the effects of sitting for long periods of time, try to move throughout the day. Walk around the office for 10 minutes every hour. Go for a walk during your lunch break. Height adjustable standing desks are also gaining popularity in the workplace, and can help alleviate the stress of sitting for 10 hours a day while also providing an effective workspace. If your office doesn’t already have initiatives for active lifestyles, ask your employer if additions and benefits like standing desks or reduced gym membership fees, could be established.  My employer provides such benefits and we take full advantage of them… along with 15 minutes walks around the facility.

Reconsider Your Habits

If you are a smoker or routinely drink alcohol, there is a strong likelihood that these habits are affecting your health. Smoking is strongly linked to cardiovascular disease and several types of cancer, and heavy drinking is linked to cirrhosis, cardiovascular disease, and dementia. All of these conditions are expensive to treat, and many require lifelong health care expenses.

Reducing your alcohol intake and quitting smoking now will not only improve your overall health, doing so will also keep money in your pocket immediately. If you are struggling with quitting smoking or drinking, consider finding online support or a local organization to help. A quick internet search will let you know what resources are available in your area.

Taking care of yourself now is one of the best investments you can make. Illness and disease doesn’t stay within the confines of socioeconomic status. Choosing to live an unhealthy lifestyle can easily clean out that savings account or the retirement funds you’re working so hard to create now, and leave you penniless or struggling during retirement. Be active. Stay fit. Eat right. Doing so will help you keep your money safe so that you can enjoy the life you work hard for.

Maintaining your health also keeps you mind keen (or at least I hope so!).

Chase

 

My Personal Route to Financial Independence – Wealth Swimming to Shore Analogy

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I’ve been swimming to shore financially for the past 2 and a half years since my last update!  The shore is the closest it’s ever been!

In fact, if I let my body submerge under the water straight down like a pencil, my feet touch bottom and the water line is only about a foot or so above my head.  I consider this great progress for me, especially after the last gut-tearing years!

Gulf of Mexico Sunset

Captiva Sunset

I’ve stuck to my simple, financial philosophy by being a big saver and practicing frugality all along my swim.  My trusty spreadsheet being my only real tool in addition to my continual struggle and determination.

So as I shorten the distance to the shore, I realize that I’m exhausted from a financially focus perspective.  I find myself continually played around with the idea of taking an overseas or Hawaiian vacation.  We can do it, but it would be a major slip towards my process financially. but it is always nagging the back of my brain…

Financial Independence is still my primary goal, but now I’m also focused on increasing my household net worth percentile.  this make the wealth accumulation process more measurable for me and enable me to track milestones.  That said, it also make each progressive milestone that much more difficult to obtain.

If I had used a mountain climb financial analogy, instead of my current swimming analogy, I would say “The air is getting thinner and it’s getting hard to breath!  Progress is now more of a slow crawling kind of process.  This makes sense because although my net worth is increasing at a decent clip amount-wise, It is much harder to move up to the next percentile level because of the huge steps to get to the next percentage point!  For example. to move one’s net worth percentile position from the 70% level to the 80% level, it takes about 200k for the 10% increase.  But from 80% to 90% it’s 400k for that 10% increase!  and if you go from 90% to 95%, it’s over 800k (more like 900k actually) for just a 5% increase…(depending on which survey of wealth percentile stats. that you use from the government).  Those upper percentile are starting to look intimidating!

Still, I swim on… The stock market has really helped me by coming back quickly as it has rebounded from the dip from the Great Recession.

With my financial pyramid, I’m still at the doorway of the upper middle class though, maybe I moved a few inches inwards, but not much overall.  So I still consider myself a kind of “lower upper middle class” guy.

To read my previous update on my progress, you’ll have to read my article back in 2012 called “Progress on Financial Independence – Still Swimming to Shore“.

Thanks for reading my financial progress article, I hope I have more good news with the next article!

Thanks,

Don