Hey everyone, it’s Finance Fridays again… and this post is late. Apparently Spectrum is doing some work outside my house in my little community and my internet was out for the morning, delaying this post. However, it’s here now. So today I’m going to talk about the most precious commodity.

Stock Photo from: Pixabay

Well, in my last post I talked about Bitcoin and how crazy it’s been (and still is). As I write this, it’s sitting around $16000 or so. I called it overvalued at $10000 and I think we’re in the full blown mania phase (still in between enthusiasm and greed). However, like I said, it doesn’t matter what I think, all that matters is what the rest of the world values it as. I think we will be in this enthusiasm-greed section of the mania phase for the foreseeable future, and there will be still be more many, many more 20% swings in Bitcoin’s future.

[SPECULATION STARTS HERE]

Whenever you see a dip in value of Bitcoin of 10%, I think you’re going to see it drop another 10%. This is because of something called a “Trailing Stop“. I think that everyone knows that Bitcoin is ridiculously volatile, and who knows where the swings will be. I speculate that a lot of investors in Bitcoin have created a “sell” order when it drops 10%… which will in turn make it drop (in my opinion), at least another 10%.

However, there are others who may have the opposite in place, meaning they are set to “buy”, likely whenever it drops 20%. Obviously, these two positions are against each other at all times. It’s a tug-of-war until one side “wins”.

To be honest, playing with Bitcoin is probably worse than going to a casino, because many think “I can’t lose.” I guess the real question everyone needs to ask themselves is: At what point will Bitcoin reach the “New Paradigm” phase and crash… or is it not a Bubble and will it never crash? I think it’s still a bubble, but who knows?

Speculation is fun.

Anyways, in the midst of all this Bitcoin craziness I want to talk about:

The Most Precious Commodity

If you read my blog, then you know the most precious commodity is Time.

Like my dad told me, it doesn’t matter where how rich or how poor you are, 1 minute is 1 minute to both. Neither can get it back. Time is the great equalizer. 

If you read my blog you probably knew this was coming since I prioritize time with family and time off over anything materialistic. It’s also one of the major reasons my current plan is to retire in 20-25 years rather than the normal 30+.

This is also juxtaposes well against the commercialism that surrounds the holiday season. My daughter will be starting elementary school next year. My son will be moving from daycare to preschool next year… and so I ask myself…

Where did the time go?

I can still remember when my daughter was born while we were near the end of our fellowships. She was this cute little thing with a full head of hair and huge eyes, but yet was so tiny that I could hold her with one hand. Now she’s got this huge vocabulary and this cute little personality.

Same goes for my son when he was born, I could hold him with one hand and he had these big cheeks. Now he’s like Godzilla, knocking down toys and saying “Sorry” or “Ok, I WILL” or “Alright”… he also eats like a crazy.

The days are long but the years are short… right?

Why do you consider time to be a commodity?

Well, it’s because in my opinion, Time can be bought.

For example, I want to try to retire early. However, in order to do that, I’ll need to save enough money in order to stop working. In that sense, I am buying more free time in order to buy a longer (earlier) retirement.

However, this also goes back to my post about having a second job. Now, some many argue that my blog is a second job, or that my daughter’s YouTube channel (and website) is a 3rd job. I understand that may be how it seems. The difference is that while they may be “jobs” in the sense that they require work on my part, I don’t rely on them for income. I do those things because I find them to be interesting.

If either of those things makes money someday, that’s great, but like I said, it’s not something I rely on. I think that is the key point about a second job. A true second job is one in which you rely on its income for normal paying of bills and sustaining your lifestyle.

What’s another example of “buying time”?

Well, I think you can consider “buying time” in the same vein as “buying experiences”.

For example, I’ve saved money in order to take my kids to Disneyland, Legoland, and Sea World in 2018. In the previous few years we haven’t had any big vacations because we had significant other costs, like student loans, daycare, the house, a new roof, solar panels, etc.

However, now they’ve we been able to replenish our emergency fund to reasonable levels, and also save a small surplus, it was time to “buy an experience”. Like I said above, my daughter is 4 and my son is 2. This trip may be kind of early for my son, since he may not remember it. However, I wanted to be able to take my daughter on a nice trip and have an unforgettable experience before she starts elementary school. More so than that, I wanted to have a mini family reunion since our families are both in California now. I won’t get this time back.

Anything else?

Yes.

Money by itself has no real importance, it’s what you can do with it that matters. Never forget that.

TL;DR

Time is the most precious commodity.

1 minute is 1 minute, whether you’re rich or poor. Time is great equalizer.

Buying time and buying experiences are pretty similar ideas.

Money by itself has no real importance, it’s what you can do with it that matters. Never forget that.

-Sensei

Agree? Disagree? Questions, Comments and Suggestions are welcome.

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