The Importance Of RIM

If you have been following business news lately then you must have heard that Research In Motion (RIM), the maker of the BlackBerry smart phone, is not doing so well. Actually, to clarify, they are not doing as well as they used to or that they thought they would but they are not exactly doing badly. The price of their stock is of course down by about half and their recent smart phone releases haven’t exactly set the world on fire but they are not dead in the water and there is hope that they can make a comeback.

There is some criticism about RIM launching new BlackBerry devices that are not a huge leap forward in light of their recent lackluster performance. You have to keep in mind that any product that is ready for launch has most certainly been in development since before their recent troubles started and to cancel a ready-for-market product at this stage would result in the loss of millions of dollars in revenue and the millions of dollars that they put in to development would simply be wasted. They might not be doing that great right now but I don’t think anybody wants to see them do any worse.

Some people I know have made comments to me that RIM’s time is up and that Canadians and consumers should just let them die. One particular individual told me that he doesn’t think that Canadians should buy BlackBerry phones out of patriotic loyalty to RIM since RIM has done this to themselves. He throws his support behind the Android smart phones. I would say that he is in fact a little malicious in his desire to see RIM fail.

This is actually a sentiment that I encounter frequently. I don’t hear it from everybody but I hear it often enough. I don’t think these people realize how important RIM is to Canada.

Since the fall of Nortel, RIM is the largest player in Canada’s telecommunications industry. Considering that that in 2009 the information and communications technology sector was 5% of Canadian GDP this makes RIM quite important. Also, don’t forget that RIM contracts a lot of its software and hardware needs to other companies. If RIM were to fold many of these other businesses would fold as well. RIM alone employs about 17500 people. If RIM were to fold it wouldn’t be a devastating blow to the Canadian economy but it would be significant.

The opinions of the above mentioned individual are ill-informed and short sighted. Based on a current downturn in performance he is advocating the abandonment of RIM. What he fails to realize is that companies face hardships all the time and recover just fine. In the 90s Apple was near bankruptcy. They found it difficult to compete with Microsoft and they were not profitable. They also took hits to their reputation due to a series of major products that were complete failures. It was until the late 90s and early 2000s that they returned to profitability with the launch of the iMac and later on, the iPod. Also, the Nexus One had its sales drop and it was discontinued despite initial success at launch.

RIM has still has life and with a few strategic changes can come back and be an industry leader again. I have faith in RIM and will be a BlackBerry user until either the company folds or I die; whichever happens first. I plan to be an early adopter of the new line of phones coming next year that will be using the QNX platform next year.

The criticism of RIM is warranted but the death sentence that a lot of consumers feel it deserves is not. Now and forever I throw my unwavering support behind RIM and the BlackBerry product line.

The Horrors of Working For Lawyers

Every single joke ever told about lawyers is completely justified. This is something I learned while I was working for a few of them.

A few months after I graduated with my bachelor of commerce, I was hired by a small criminal defense firm as their bookkeeper. For the first while I was working there it was great. I was getting along with my coworkers and I was enjoying my work. I was so happy to have a real job that earned me a real salary in a real office. It was pretty much exactly what I was hoping I would get. It seemed perfect.

The day before I started I got a call from an insurance company I had applied at asking me for an interview. I politely declined the interview as I had already accepted the position at the law firm. The salary range was the same and it was a larger more established company which meant it probably had more rigid and defined policies and procedures. Something that I have discovered the hard way is what I need to be successful in a job. I was aware of all of this at the time but the real reason I turned down the interview was that the law firm has an annual office trip every fall and I was told that I would be included in that year’s trip. In hindsight I hate myself for being bought with a trip to Las Vegas.

Things were mostly fine from when I started in the middle of September until the beginning of November. Right around the first of November I got called into my boss’ office and was subjected to something that I still consider to be one of the worst atrocities an employee can be put through. I was told that I was subject to a different dress code than the rest of the support staff. When I started working at the firm I was told by more than one person that the office is pretty laid back and casual dress is acceptable. Obviously I used sound judgment and didn’t wear my Megadeth t-shirts to work. But, jeans were acceptable as well as tops that did not have graphics or logos on them. I would say that three or four days a week I would wear business casual but one or two days a week I would dress down and wear jeans and an appropriate top. I certainly never wore anything with holes or that would be otherwise inappropriate.

When I had this rather unpleasant office meeting I was told that my attire was inappropriate and that they like to see a more formal dress around the office. I was told to not wear jeans anymore. This in and of itself is not really all that much to be concerned about. But, it was in stark contrast to what I was told when I started. I had no idea that I was doing anything I shouldn’t. Also, I need to stress that all of the other support staff wore jeans on a daily basis. In fact, the legal assistant to the lawyer that was my boss never wore anything but jeans. On this particular day I was wearing a pair of clean and hole-free jeans and a black lulu lemon hoody. This happened to be the exact same thing that my boss’ assistant was wearing that day except her hoody was purple.

From that day on I wore nothing but shirts and ties and dress pants. I really classed up the place. In fact, the day after the meeting I went to the mall and spent $800 on new clothes for work. Everyone else continued to wear jeans and hoodies on a daily basis and were never told anything akin to what I was told. Even more shockingly, Ed Hardy attire and lulu lemon spandex pants made regular appearances as well.

The reason that this bothered me so much was that it was presented to me in a way that I thought was a bit too much like a personal attack. If they had presented this to me in a different way that offered a bit more of an explanation then I wouldn’t have felt quite so slighted. Also, when you subject one employee to terms and conditions that other employees are exempt from it is illegal. If the conditions are so severe that it causes that employee to quit then it becomes a case of constructive dismissal and you can sue your employer for it. In my case I was still on probation so I had to just grin and bear it. At the time I still wanted to keep my job.

The next time I saw my boss she was wearing some sort of suit that looked like it would be more appropriate for a night club than an office. It was this brown thing with a skirt that was so short it could have qualified as a belt. I’ve seen hookers dress more conservatively. Keep in mind this is a woman that is pushing forty and has had two kids.

When I was let go I was told by her husband who was the other senior partner in the firm. She didn’t even come into the office that day. It was a wise decision on her part because if it was her that terminated my employment I probably would have punched her in the face. I told the lawyer that let me go that it is wrong and illegal to subject your employees to conditions of employment that apply to only them. He said “Yeah, I never did think that was right. Sorry.”. Really!? Then why the fuck did you allow it? It’s just as much your firm as it is hers. I think we know who wears the pants in that marriage.

This is just one of the horrors I experienced while I was working at that firm. There are many more that I will write about but this is already at 1000 words so I will save them for future entries. Until then, heed my warning and don’t work for lawyers; Especially if they are criminal defense lawyers.

More of That Big Picture Thing

A lot of people don’t really think enough about what their lifestyle actually costs. They don’t realize how much money they waste in any given day on things that they really don’t need. This becomes painfully obvious once you start to track every single dollar that you spend every month. Most people don’t think that spending two dollars a day on their morning coffee is that big of a deal since it is only two dollars. But, that is sixty dollars a month. It’s even worse at one hundred and fifty dollars a month if you’re buying a five dollar latte from Starbucks. That’s $1800 a year assuming you buy one every day. I know most people don’t drink one everyday but it is still shocking when you think about it. Eighteen hundred dollars could be a vacation, part of a down payment on a new car, or anything that is better than an over-priced high-calorie beverage.

Last year I saved over one hundred dollars but putting all of my change that is smaller than a loonie in a jar. A hundred dollars from my quarters, dimes, nickels, and pennies. It makes you realize that it really is the little things that add up. I also save a considerable amount every month by drinking the free coffee at work. I know it’s not technically free but it is my employer that covers the cost for me. I only make coffee at home for myself on the weekends and I make a seven dollar can of coffee last for months. This is only a problem on days like yesterday when the coffee maker at work is broken. That was pretty rough.

This is true for a lot more things than people realize. I was talking with a friend of mine (the same one that is obsessed with credit card interest) who told me that I should get a bus pass to go to and from work. I told him that is wasn’t worth it for me to do that. Someone once told him that is was cheaper to take the bus than it is to drive and now he won’t let it go. I had to walk away from this conversation before I started yelling and throwing things. He didn’t understand the math.

I only live 3.1 km from work. So 6.2km a day for the round trip at 12 L of gas per 100km and $1.10/L works out to about $16 of gas per month to drive to and from work. If a bus pass costs $85 dollars then gas can go up to about $5.60/L before it is cheaper for me to take the bus to work. This would not be true if I had to pay for parking. I’m lucky enough to have free parking. This also doesn’t take into account what I pay for insurance and maintenance on my vehicle. But, since I have no intention of ever getting rid of my car for evening and weekend excursions, my costs for insurance would remain the same and my maintenance costs would not decrease enough to make taking the bus more cost effective.

A lot of people just have certain ideas in their head that they seem to be stuck on. They can’t see the forest for the trees. If people would just sit down and analyze their lifestyles a little more closely they would find that they could potentially save hundreds of dollars a year. Just like Scotiabank’s slogan says, you’re richer than you think.

The Big Picture

I’m always amazed by people’s general inability to see the big picture of things. I recently had a discussion/argument with one of my friends about credit card debt. This friend of mine is in the process of applying for his first credit card and I cautioned him about how easy it is to accumulate high interest credit card debt. He informed me that it was his intention to pay off his balance in full every month to avoid having to pay any interest. Being the relativist that I am, I informed him that while that is generally a good idea, there may be an instance where paying off your balance in full is actually not the best use of your money. He didn’t understand that statement at all.

I explained to him that using all of your cash to pay off your credit card balance prevents you from being able to use your cash for something else. Something else that might earn you a return that is greater than the interest you’d have to pay by not paying off your credit card in full. To illustrate, I used the example of having a $1000 and $1000 in cash. I said that if you use all your money to pay off your balance then of course you won’t have to pay any interest which is, of course, a good thing. But, let’s say a short term investment opportunity comes along that costs $900 dollars and will have a 10% return. I told him that you would be better off buying the investment and using your leftover cash to make the minimum payment on your credit card. Yes you will have to pay about $17 in interest that month but your investment will earn you $90 putting you $73 dollars ahead. Making the full payment on your credit card will only save you from having to pay a little bit of interest and cause you to miss out on a greater opportunity.

My friend seemed to be completely incapable of understanding what I was saying. He was fixated on the credit card and kept saying that paying any interest is like giving the credit card company free money and that is the worst thing ever. He would only look at that one aspect of his finances and not consider the whole of his monthly cash flow.

I find that this mentality is prevalent in the world of personal finances. Many people think of their credit card as an opportunity to borrow in order to buy what they want when they don’t have the money. I view my credit card as way to keep my cash free for other opportunities. I of course plan very meticulously and make sure that I have the ability to pay off my debts. In the four years that I have been using a credit card I have only carried a balance twice. Every other month (46 months to be precise) I have paid off my balance in full.

In managing your personal finances it is very unwise to look at each aspect a separate entity. All of your sources of revenues and all of your expenses work together. You need to have a firm grasp of this when exploring all the other opportunities you have for investing and making the best use of your cash. The business/investment savvy you become the easier this is. Knowledge and common sense are your greatest strengths when it comes to personal finances. Keep an eye on the big picture.

This Is How It All Starts

By the time I get to be forty years old I don’t want to ever have to utter the phrase “I can’t afford that”. In fact, I would like to retire around that age. I’m not unrealistic about this however. I think that private islands, personal jets, and yachts that qualify as cruise ships will forever be out my grasp. Not that I consider that to be a bad thing. I don’t see how you can have a normal life with normal friends when you’re worth billions of dollars. I can’t help but think that that would just suck.

I don’t want to be a billionaire. I’m pretty sure that people with retarded amounts of money like that really lose their grip on reality. Warren Buffet might be an exception. But, I wouldn’t mind being a millionaire. That way you have enough money to have comfort and security and provide your family with a lifestyle that has them wanting for nothing. I want money but not “fuck you money”. I still need to keep myself grounded.

Since very few people are lucky enough to have a seven figure salary, I guess I will have to take matters into my own hands. I’m of course talking about having a strong and wise investment strategy. There is in fact nothing that I think is more important than this. To rely solely on your salary to support yourself is a short-sighted thing to do.

I’m surprised that not more people do this. A lot of people I know are afraid to take a portion of their hard earned income and place it in the markets. They cite market volatility as the biggest reason. The most common response I get is that it is just too risky. Of course it’s risky. The trick is to find an appropriate way to manage that risk. The best way to do this is to view risk as a necessary part of earning a return. No risk no reward.

Getting started is the hardest and scariest part. I myself haven’t even taken that all too crucial first step. Not because I’m sacred but because I’m starting out with nothing. I’m sure we’ve all heard the phrase “you have to spend money to make money”. The thing is, in order to spend that money to make money you have to have some in the first place. That’s what I’m working on right now. To be clear, I’m not just waiting around doing nothing while I save a little cash. I am doing research on how to invest and how to develop an investment strategy. I’ll get into that later.

My thoughts and feelings towards this are built upon a few nuggets of knowledge and wisdom that I have picked up over the years.

• You can accumulate wealth no matter your level of income. Unless you are living beyond your means you should have at least some money left over in your budget. Or, even better, you should have a line item in your budget for savings/investment. It is important to not let this surplus just sit on the sidelines. Make it work for you. This actually leads into my next point.
• Cash, just like milk, will go sour if you just leave it lying around. If you put your savings into an ordinary savings account then all you are doing is slowly rendering your money worthless. The interest you’ll earn on a savings account will not even match inflation. Year after year your money will lose its value unless you make it grow.
• If you want to make money you will. If you can make one dollar you can make a million dollars. With all of the investments you can make that are readily available to you making money is easy. You don’t even have to work all that hard. All you have to do is be willing to go out and get it. That being said, the pursuit of money can be corrupting. If you set out to make retarded amounts of money then you will. But, it will probably come at the cost of friends, family, and happiness. A 5000 square foot mansion is pretty awful if you’re the only one living in it.

In addition to being realistic, I find those three maxims to be highly motivational. I don’t think the complexities of anything can be boiled down to such simple phrases, but once you have a broad understanding of any topic these devices can be quite effective. When I revisit these three points, and all the others I have, I feel that I can conquer the world. One step at a time, of course.

I of course know a lot more than that but I need to save a few things for future entries. Starting an investment portfolio is something that is very important to me and something I will devote a large part of my time to. I will probably write about it a lot. However, I need to make something clear. I will never discuss the specifics of my investment strategy nor will I ever give out investment advice. Your financial security is not a responsibility I want.

You Are Probably Not An Entrepreneur

As someone with an education in business I consider the word “Entrepreneur” to be sacred. It is for this reason that I get really upset when people employ a liberal use of the term. An entrepreneur is someone with a new idea that forges a new path in the world of commerce. They are also fully responsible for the product or business every step of the way. This includes the eventual outcome. They assume all of the risk and reap all of the reward. If a person does not meet every one of these criteria then they are not an entrepreneur. Also, someone who copies someone else’s business model is not an entrepreneur. For example, someone who opens a new restaurant, unless there is something radically different about it, is not an entrepreneur.

I am really suspicious whenever someone says that a celebrity is an entrepreneur. I give credit to the select few that actually are true entrepreneurs but I must lambaste those that aren’t. I’m talking to you Hilary Duff! I’m sorry but putting your name and face on a clothing line that is sold exclusively at Zellers does not make you an entrepreneur. That makes you a spokesperson. It makes you a celebrity endorser. I don’t have a problem with you doing that. Congratulations to you for making money. But, call yourself what you are. You are not an entrepreneur and calling yourself one disrespects all of the true entrepreneurs that came before you.  I think it’s time we give back the prestige and distinction that term so richly deserves.  

Stupid Useless Degree

In 2009 I graduated from university with my undergraduate degree in commerce. Maybe I’m the only one, but does anyone else think that their bachelor’s degree is completely useless?

Maybe I had unrealistic expectations about what my degree would do for me but before I graduated I really thought that my degree would be my ticket to easy street. I thought it would land me a good job right away and I could start climbing the corporate ladder all the way to CEO. Boy was I wrong.

It might have something to do with the fact that when I graduated the economy world wide was in the midst of a freefall. I am willing to entertain the possibility that it’s slightly harder to find jobs when there is a global recession going on. But, then again, maybe a bachelor’s degree just isn’t that impressive anymore.

When I started to look for work there seemed to be a plethora of jobs that I had the education for and that appeared to be well within the realm of what I was capable of. I set to work sending out hundreds of resumes and cover letters. I must have applied for about 150 jobs. I got back no response. Not one. Nobody called or e-mailed asking for an interview. I didn’t understand what I was doing wrong. I had help from seasoned business professionals in putting together my resume and cover letter. I had a university education. I had a wealth of volunteer experience. But, I couldn’t get so much as an interview.

Then I realized what was going on. All the jobs I was applying for wanted at least two years experience. I couldn’t believe it. Entry level positions were requiring two years experience. I couldn’t get a job for which you need no experience because I didn’t have experience. To this day I can’t figure out why you need a few years experience to be a data entry clerk. I would like to think that my $30 000 degree would give me all the qualifications I need to enter a company’s phone bill into quick books. Apparently not.

Eventually I got lucky and got a job as a bookkeeper at a small law firm. But, of the multitude of applications that I sent out I only got three responses. One was from a woman who owned a company who felt that I wasn’t quite qualified for the position I had applied for but that might be adding a more junior position that she would keep me in mind for if she did in fact create the position. The second was from the law firm where I was hired. And, the third was from an insurance company that wanted an interview but that I turned down because I had already received an offer from the law firm. As it turns out, turning down that inter view was a bit of a mistake but I’ll get to that later.

When I was no longer working at the law firm and trying to find a new job, I encountered the same difficulties. Eventually I got lucky again and got hired by the organization where I am currently employed.

I guess I shouldn’t be too angry about this. All things considered I haven’t had too many difficulties in finding work. It just seems that my Bachelor of Commerce is only slightly more impressive than a high school diploma. I sometimes wonder if I should have skipped university and just started to work after high school. Don’t get me wrong, I don’t regret pursuing my degree and I feel that I am better off for it. I just don’t think it does as much for me as all my teachers, parents and guidance counselors said it would.