Claire's Random Thoughts

I have thought a little bit more about my 42 Thing Challenge and done a little spring cleaning. My conclusion? Wow, this is more difficult than I thought it would be.

Thus, I have decided that since my magic number is 42, I will allow more grouping of items than the original 100 Thing challenger, David, allowed, especially for small items. Once again, my main objective is to reduce clutter and make moving in and out of college dorms easier. The original author’s main objective was to combat American consumerism habits. Since I’m more interested in reducing clutter, I will group smaller items into a single entity. For example, my box of writing instruments counts as one item, as does my disc wallet with miscellaneous loose CD’s and DVD’s.

I am also excluding important documents (passport, license, etc). I don’t think the original author included them either. And anything else that goes in my wallet. Oh, and keys don’t count either. Storage containers are also excluded, as they actually help create less clutter and make it easier to pack and move around (but I shouldn’t need many of them once I get rid of the junk, right?).

Rather than completely excluding clothing, shoes, accessories, toiletries, makeup, etc, I decided to count each category as one conglomerate. I have enough in these categories already and still hope to downsize on them. The rule for to prevent me from splurging in these categories is follows: No increasing the size of any conglomerate. Just like my 42 item limit, when I get one new thing (i.e. a new shirt) that belongs in a conglomerate, I must get rid of another thing in that conglomerate. However, if I decide to reduce the size of a conglomerate voluntarily, I can’t “save” up the disposal of items and replenish later.

Strategies to make this work:
1. Think twice before buying. As I discussed in the previous post, this should help me save money by reducing my huge number of unnecessary purchases.

2. Digital all the way!
Hello! It’s 2010, for God’s sake! Digital downloads are the way to go now for media, not annoying books and discs. My goal is to have digital videos and music on my 640GB external hard drive exclusively (so that’s one thing, as opposed to several hundred or thousand). Keep everything digital and sell the media if it has any value. I don’t need any more paperback books either. Ebooks on my Sony Reader are the way to go. As for textbooks, I have not yet decide if I’m going to count all of my textbooks as one item or each textbook as an item.

3. ONE of each thing
Why the hell did I have two laptops, two digital cameras, three calculators, and two cell phones anyway?

4. Sell old gadgets as I upgrade
Well, I kind of do this already, but I still need to slim down on the gadgets. Yes, I’m kind of a gadgetholic. It’s better to get rid of some now that they still have value instead of waiting and rarely using them.

5. Don’t be afraid to get rid of old, large, worthless, and useless junk
Sounds pretty logical, right? I need to stop being a pack rat and be more willing to throw things away when necessary.

I have also decided on a time frame. My goal is to slim down to 42 things by the end of the semester (when I have to move out) and keep my possessions at 42 until I graduate and move into a permanent residence.

Without farther ado, here is my tentative list (please note that some things on this list include more than one item, so I’m in trouble if it gets to 42 already). Once I get the list finalize, I can get sell/store everything else!
1. Clothes
2. Shoes
3. Purses
4. Toiletries
5. Make-up
6. Vitamins/Medication
7. Kitchenware
8. Class Notes
9. Textbooks
10. Scientific and Financial Calculators
11. Writing Instruments and other desk supplies
12. Laptop
13. External DVD-RW Drive
14. Camera
15. Camcorder
16. Portable hard drive
17. Sony ebook reader
18. Cell phone (hmm…but I have two on contract right now)
19. Sony Walkman MP3 Player
20. Bose QuietComfort 15 Headphones
21. Bose Computer Speakers
22. LCD TV
23. Playstation 3 with accessories and games
24. AA and AAA batteries and charger
25. Disc wallet
26. Rubik’s Cubes

Haha, I’m a huge techie. Is everything here really necessary? No. I guess I can’t play minimalist, which was the original idea of the 100 Thing Challenge. I can, however, simplify my life by cutting down to things I most frequently use.

This is my response to David Michael Bruno’s famous 100 Thing Challenge.

My philosophy: Less clutter, less hassle moving (I live in college dorms), less waste, and more money (aren’t college students supposed to be poor?). Simple, right?

Quality over quantity. I can no longer even keep track of how much money I’ve wasted on things that I buy and never use or only use for a short period of time. If I have quality stuff, it should last me for longer, and I can waste less.

I have been known to have multiples of things that most people only have one of (laptops, cameras, cell phones, etc), and I’m trying to change this.

No more impulsive buying. If I have to get rid of something in order to get something new, this should greatly reduce if not eliminate impulsive buying urges.

I also agree with his Reduce (existing stuff), Refuse (new stuff), and Rejigger (prioritize) concept. He said he was trying this challenge to fight bad American consumerism habits, not to reduce clutter, which I disagree with. It is, however, in my best interest to reduce clutter. I’m tired of moving excess junk multiple times per year (again, I live in college dorms) and figuring out where to store everything (currently grandparents’ basement).

My rules:
1. The magical number of 42 items instead of his 100.

2. I, however, will have more exclusions.

David excludes shared and household things, books, and household tools.

I will exclude things that come with my dorm (which makes sense because I don’t actually own them), food/drink related items, apparel/accessories, and grooming items.

Quite simply, food and things related to food (pots and pans, silverware, etc) are too hard to devise a system to keep a count of. David probably counts items related to food as household items, which would also be excluded under his system anyway.

If you look at David’s list, approximately half of his items consist of clothing. He also doesn’t need as many grooming items and accessories as a female would. Since I am only allowing myself 42 items instead of 100, excluding apparel and accessories does not seem unreasonable. I am a single and job-seeking female, so I don’t wish for this challenge to compromise the way I look, dress, and smell, which is why I’m excluding apparel/accessories and grooming.

Does this mean I can just splurge in these categories? No, I am planning to pack and store things I don’t wear and avoid buying multiples of the same color/style. The idea here is to minimize but look the same way I do currently (I.e. I don’t need any more suit jackets. I have one of every color, one short-sleeved, etc. already. I only need one pair of shoes for each type of occasion/weather, so I won’t buy any more. No new make-up until it gets gross or I run out).

3. If something is only sold in a cluster, then I’m counting it as one item. Some other similar and complementary groups may also count as one (similar to David’s rule about grouping)

4. When I get new things to replace old things, I have 7 days to get rid of the old thing I’m replacing. I’m allowing this extra 7 days, because it takes time to sell stuff on eBay. Also, since I order most things from the internet, I can’t accurately anticipate exactly which day I will receive the new thing, so this prevents me from being without.

5. Gifts: I haven’t quite figured out what to do with gifts yet. I feel bad getting rid of gifts, but it wouldn’t be right if I didn’t count them either.

6. If something is in storage (currently at my grandparents’ basement) and I don’t plan to use it, then it doesn’t count. If I pack something in a paper box I am planning to store or ship out (if I sold it on eBay), then it doesn’t count either. It would be ridiculous if I had to put something in storage every time I exchange one of my 42 things.

My time frame for this? Not sure yet, but I’m going to start making a list of essentials and gauge how long it will take to get rid of everything else.

I’ve really only been a finance major for just over a semester, yet I feel like I feel like I have been for much longer. At the very least, I now understand what recruiters are talking about at networking events, and I can usually figure out what most of the common acronyms stand for. Before I enrolled at NYU Stern last semester, I was able to say that everything I know about finance I learned from Prosper. Now, I may have to amend that statement and say that everything I knew about finance, prior to coming to NYU Stern as a finance major, I learned from Prosper. I came to Stern to learn finance, but in reality, I learned that I really should be here to learn (and still have a lot to learn about) how to fit into the financial world.

Prosper is an online peer to peer based lending/borrowing service. That is, some users lend to other users who borrow. Borrowers sign promissory notes upon receiving money which lenders can then hold onto and collect month to month or trade in the Prosper market. This sounds like trading any kind of financial security, doesn’t it?

Rules of finance I’ve learned from Prosper:
Prices of securities and interest rates are determined by the market to satisfy the laws of supply and demand
When borrowers on Prosper apply for a loan, they often start with an interest rate higher than they are expected to pay. In practice, it actually does not matter what rate they start at, as the market will adjust to a rate that seems fair considering risk and return. In this example, this borrower has a AA rating, the highest possible in Prosper. The initial offered rate was 12.50%, but at this rate, more lenders would be willing to supply money than the $15,000 demanded. Thus, during the bidding process before the loan is written, lenders compete by gradually bidding lower rates that they are willing to accept to loan to this borrower. My prediction is that within the time remaining, the loan will probably be bid down to about 7%, typical of low risk AA.

Investors demand higher expected rates of return for higher risk/volatility
So, if two investments have the same expected return but different level of risk, then it is only natural that the rate for the lower risk investment will be bid down (explained in the previous rule). Prosper offers portfolio plans, and they clearly show that more aggressive investing equates to higher expected yield.

Diversification is the way to go
Prosper’s system even suggests that you should invest with a small amount per bid and in many different loans. This is a simple concept: If you invest everything in one loan and that person defaults, then you lose significantly. However, if you invest $25 in each borrower and lend to many different borrowers, then your return will be comparable to the expected return. Some loans will default, but Prosper even calculates the expected losses based on credit rating for you.

The value of your existing security varies based on market interest rates
This is the concept of interest rate risk. Basically, the first time you decide to sell a note, you will discover that the amount you can sell it for ma not necessarily be what you paid for it with adjustments for already received payments. This is because new notes are constantly being issued, so the selling price of existing notes is adjusted for difference in yield. For example, if you bought a $25 note when the market rate was 5% but the market rate is now 7%, nobody is going to give you $25 for your note when they could buy a new one and receive 7% (provided that both notes are the same level of credit risk). Thus, your 5% note will become less valuable to compensate for the market interest rate change. Conversely, if the market rate were to go down to 3%, you would then be able to sell your existing note for a premium.

Well, there you have it. I really knew more about the fundamentals than I thought I did before I enrolled at Stern. The most important concepts in an introductory finance course I learned from real world experience from a simple peer to peer lending system! No wonder I passed the proficiency exam for the introductory finance course here

Wow, my life is so different right now compared to how it was just a year ago. If I didn’t transfer to NYU from SJU, I would probably still be on my old lifestyle.

By the way, I did go back to the Everyman Sleep Schedule. There’s just no way I can get everything done otherwise, especially with my daily commute time from Greenwich Hotel.

For starters, last year, I would probably be either watching a movie or TV or just chatting with Sarah, Athena, Clare, David, and Jeffrey. O’Connor Hall Suite 306 nightly after TV/movie gathering! Or, during the most productive days, we might have a “homework party” which was really just chatting.

Now, I’m reading ahead so I can be prepared for tomorrow’s Financial Statement Analysis lecture. That’s right, I’m reading ahead, something I would have never even considered considering just a year ago.

Just a year ago, I never opened a textbook. Now I’m electing to preview the material before class (for classes I like).
Just a year ago, I slept about 9 hours per night. Now, I’m on the Everyman sleep schedule.
Just a year ago, I thought my 9:10 am class twice per week was ridiculously early, and I often missed it when I couldn’t get up. Now I have no trouble making it to 8:00 am classes Monday through Thursday and 9:30 on Friday.
Just a year ago, virtually all time outside of class became free time. Now it’s networking, presentation, seminar, or group project time.
Just a year ago, I would hang out at Montgoris Dining Hall for hours with friends. Then, we would go back to the dorms and continue. Now, I grab something to go and eat while working on group projects.

Finally, just a year ago I had fun…now…

Well, it’s safe to say that I’m adapting to the typical life of an NYU Stern student. Sometimes I still miss my old laid back life with actuarial science major classes as the only thing requiring work. I just couldn’t keep it simple, continue with my full scholarship, and be an actuary, could I? Well, I value prestige, so I guess it’s prestige I’m getting and working for. I also have the reputation of making everything more complicated than necessary, and that’s definitely what I’m doing now.

If I can’t live the “perfect” day, I might as well at least philosophize during my sleepless night alone and dream it.

I shall refrain from describing an “ideal” day as “perfect” simply because I avoid using absolutes whenever possible. There are exceptions to virtually (notice I’m avoiding the absolute again) everything in reality, so I almost always qualify my absolutes to make them acceptable in as many situations as possible.

You wake up relatively early (preferably between 8:00 to 9:00 am) with a full night’s sleep and refreshed body ready for a full day of excitement and enrichment. Previous night insomnia was definitely not an issue.
I just dragged myself out of beds a few moments ago after hours of unsuccessful attempts to fall asleep. Hence, I’m writing this instead of sleeping.

You eat a quality and healthy but also tasteful breakfast. For example, smoked salmon and cream cheese on a bagel. Coffee is unnecessary, as you had previously gotten a great night’s sleep, but perhaps an orange juice would complement the meal.
My normal breakfast, unfortunately, typically consists of leftovers, microwavable meals, or other instant food products.

You get dressed in athletic attire, stretch, and leave for the gym. On the way to the gym, it is neither too hot nor too cold. The temperature is perfect, around 70 degrees fahrenheit and sunny but not so intense that you have to squint without sunglasses. When you arrive at the gym, you are fully pumped and ready to maximize your time there. You push yourself to run for about half an hour but do not get tired with a heart rate beyond 180 beats per minute. You also lift weights exercising each muscle group with a little extra emphasis on the abs. In addition to all this, your mp3 player never failed to accurately anticipate the song you were thinking of while in shuffle mode.
It’s freeeeezing when I go to the gym here. The weather deters me from going, and I wish it didn’t. I also tend to pick the worst times to go and fail to do everything I planned to most of the time.

You take a leisurely walk back to your room in the ravishing weather previously described above with the mp3 player that never fails to accurately play the song you want. You may see a few friends and acquaintances to whom you wave, smile, and have delightful short conversations.
If only I weather were always so nice and I were always in such a good mood.

You remind yourself that although this day is ideal, you still sweat at the gym and need a regular shower. So, you get in the shower for a reasonable period of time, use your cucumber melon shower gel, and use your cucumber melon lotion after you get out and dry yourself. Hair drying and styling today comes naturally. You also have a surprisingly steady hand in doing makeup. Hair and makeup are done flawlessly and look alluring for the remainder of the day.
Those of you who know me should know how much time I waste in the bathroom with little progress.

It’s time for a brief glimpse of the news, either the NY Times or some news on TV. A day does not feel complete to me without the acquisition of new knowledge. You head off to lunch, but it is definitely not Montgoris (dining hall) food. Something from the chicken and rice food stand should be nice, because you’re still a poor college student and can’t afford fine cuisine on a regular basis. Or, maybe you had the privilege of hanging out and cooking a nice meal with friends (like on Sarah’s birthday).
A day feels more completely when I know what is going on in the outside world. Food is important too, but lunch is meant to be quicker and not fancy. That will come when I get to dinner.

After lunch and some news, you take the afternoon to complete miscellaneous tasks. I hesitated in including this in an ideal day, but some degree of productivity tends to enhance my day. You watch the stock market close. If the market was bearish, the good news is you were short anyway, so you still benefit personally. Or better yet, you were long and the market was bullish with great forecast for future potential economic growth. After the market closes, you head off to an enjoyable class (again, the for knowledge acquisition purposes). You sit in a new spot for spontaneity and meet a few new great people in this class. The material today is especially interesting and practical for future use.
I sound like a nerd, don’t I? Well, I was productive, I learned material I was truly interested in, and I made a profit. Not bad for a day’s work, right? I was debating between going to class or a job, but I don’t have a job at the moment, so I stuck a class in this spot.

After feeling a sense of accomplishment for this day’s tasks, you go back to your room and start getting ready for your date with the ideal man tonight. Because you decided to sit in a new seat in class today, you met the most amazing guy who you never even knew existed before this day and with whom there was mutual attraction at first sight. The climax of the day was him suggesting taking you out tonight. You already look great today, but you apply some slightly more makeup for the night, find a suitable outfit effortlessly, and look even more stunning. This guy has a car too, so he picks you up allowing you to avoid public transportation. Your dinner together consists of fine cuisine, deep conversation, and you are both left wanting more at the end of the night. His kisses are indefectible, and the feeling you get when he touches you is almost too good to be true. You wonder whether you are dreaming, but he playfully pinches you, and you realize you are still living in the real world.
Ok, I’m getting a little dreamy here, but this is my ideal day, so I can do whatever I want with it.

It is not too late at night when you leave the restaurant, so you decide to bring your date with you to meet up with some friends for yet another activity, only this one consists of a larger group of close friends. To me, what matters is not what you do, but with whom your time is spent with. Maybe a little bit of alcohol will help lighten the mood and intensify the enjoyment, but it shouldn’t be an absolute necessity if I can already have as much fun as envisioned.Since you scored big in the stock market today, you decide to treat your friends to the cover charge. The happiness the next several hours add to your day really put it over the top. On the way home, you and your group of friends engage in profound but delightful conversations, but unfortunately, humans need to sleep, so the fun ends when you return home.
I deserve to go out once in a while, right?

You go to bed, get a great night’s sleep, and repeat the cycle the next day.