Unshackling the Chains That Make You a Slave to Fashion

I've been away from the work world for about nine months now, and during summer in Toronto, the weather is warm on most days, and some days, downright hot and muggy. So, I've been living quite comfortably in my current wardrobe of choice - a pair of shorts and a loose T-shirt. On cooler days, I may wear the occasional pair of jeans and a sweater.

This is a very different wardrobe from my work attire which normally consists of a suit and tie, or at minimum, a long-sleeved dress shirt and pair of slacks. On very important meetings and events, shirts with double cuffs and cuff links were necessities. Since being off work, I noticed that my expenses related to dressing for work have almost disappeared. My dry cleaning bills are few and far between, I don't need to do as many loads of laundry, and my shopping for work clothes has, understandably, stopped. This got me to thinking that how costly it can be to dress for success, but how it can be minimized. Admittedly, women have it harder than men - their fashions change far more frequently, they are under greater scrutiny from their colleagues (and mostly, other women), they are exposed to more advertising on TV, magazines and billboards. Add to that, shopping - for many women - serves as a leisurely past time, if not a sport. Men, on the other hand, can get away with having a few suits, a few crisp dress shirts, a selection of ties and a nice looking pair of shoes.

Nevertheless, women tend to also make their own situation worse by following fashion a bit too much. Being a slave to fashion is both costly, impractical and ultimately futile. Firstly, many of the hip and trendy fashions (especially women's) may only last a season, therefore the items they purchase has a very limited shelf life, and becomes destined to the Goodwill bag relatively quickly. Secondly, many people purchase clothes but never wear them (hands up to any woman who has never bought an item that wound up unused in her closet with the tag still on it?). Thirdly, very few people are trendsetters, and by the time the fashion trend hits the streets and is marketed to the masses, it has already started to lose its cachet, soon to be replaced by a new style.

So, you might ask, what's the solution? If you want to maximize your fashion dollars, start listening to fashion experts who will tell you that the best way to assemble a wardrobe is to start with the classic pieces that will never go out of fashion. For both sexes, it may be a plain dark blazer or suit (you can never go wrong with black or navy blue), a classic white shirt or blouse (forget the frills, pleats or puffs), pair of black pants or slacks, plain coat, dark pair of jeans, and a nice pair of leather shoes. For women, add a classic cocktail dress (the little black dress never goes out of fashion) and a plain skirt.

I have a weakness for nice suits, but instead of buying 20 suits in a variety of different colours and patterns, I own 5 great quality, all wool suits in navy, black, grey, charcoal and light beige (mainly for summer) that will hold me in good stead at any occasion. I buy only single breasted suits, as it makes my appearance slimmer and is not as formal or as old-fashioned as the double-breasted variety. If you're tight for cash, my advice is to buy one or two more expensive suits rather than three or four cheaper suits. Why? Because they are more likely to be better constructed, provide a better fit and last longer than a cheap suit. So, if you buy a classic, single breasted, three-button navy blue or black suit, it will never go out of fashion, and becomes the foundation of your wardrobe. Want to be a bit more casual? Pair the jacket with a casual shirt and pants. Want to remain fashionable - buy a skinny tie that is currently in vogue. The key is to invest in a few good pieces, and supplementing them where necessary rather than wasting money by slavishly trying to follow trends.

For women, it may be a bit more difficult, and my advice is to invest in the staple items mentioned above, and complement it with fashionable scarves and other accessories. If you were really feeling the peer pressure, buy a cheaper brand of that fashion style, so that you don't throw money away on something that you'll have to wait 20 years for it to come back into fashion. Example, there are hundreds of thousands of women that spent hundreds of dollars buying 'Uggs' branded boots, that are now gathering dust in a closet somewhere in their homes. Every year, men and women have a ritual of cleaning out their closets, looking embarrassingly at clothes that are no longer in style, and placing them in a garbage bag that will be dropped off at their local Goodwill or Salvation Army thrift store.

So, save money by unshackling the chains that make you a slave to fashion. And by the way, I do clean up nicely when I go out.

This Month's Quote

"Lives based on having are less free than lives based on doing or being" - William James

Some People Still Don't Get It - It's the Economy, Stupid

I have just finished reading the latest editions of Men's Health and Esquire (borrowed from my city's excellent library system), and am flabbergasted that in these harsh economic times, that they are suggesting its readers buy wristwatches costing $6,000 to $10,000. I like watches (I own 6 of them), and while I would not buy a cheap $10 model that you can feel right away is made from cheap and inferior materials, I certainly would not even fork out $1,000 for a wristwatch.

When you read the excellent book, the Millionaire Mind, you'll find that the millionaires profiled would also not spend much money on a watch (but rather invest the money). So, while these magazines write articles on keeping its readers heads above water among the rough economic waters, on the other hand, its pushing $10,000 watches. In my humble opinion, anyone shallow enough to judge you by your wristwatch, is not someone I would want to keep as a friend. No wonder that both the economy is in the amount of trouble, and the population as self-absorbed and materialistic, that it is.

This Month's Quote

"If you are not working on your ideal day, you are working on someone else's" - Marjorie Blanchard

The Great AIG Bonus Fiasco

Having worked in the financial services industry, I understand the rationale behind giving employees retention bonuses, as an incentive for knowledgeable staff to stay with the firm. When my then employer, CIBC World Markets, purchased Merrill Lynch Canada, they paid the top brokers a retention bonus to prevent the Merill brokers from leaving for other competitors, taking their valuable client books with them. Many were paid six-figure (and a few seven-figure) bonuses.

However, that was normal business practise in normal economic times. The current AIG (and allegedly applicable to Fannie Mae and Merrill Lynch) bonus payouts are reprehensible, because of a number of reasons. The obvious and number one reason, is that it is an inappropriate use of taxpayer money to pay obsence amounts when millions of hard-working Americans are losing their job. Secondly, if these people are responsible for the near collapse of AIG, then to reward them for putting the company and their fellow 100,000 AIG colleagues in peril, is beyond comprehension. This amounts to the epitome of rewarding failure.

For the recipients of these bonuses to not feel shame in accepting the payouts underscores the greed and me-first attitude of Wall Street. Any ethical and moral person would have rejected the bonuses in the first place, or at the very least, donated the proceeds to a charity. The swift passage of a bill in Congress to massively tax these bonuses is merely a visceral reaction to the issue.

Let's hope that it will deter future obsence payouts (until the economic situation has dramatically approved) and shame those financial wizards to put the nation's interest ahead of their own. And while the US remains the land of opprtunity, hopefully, there will be a greater sense of country first, individual pursuits second.

Looking Beyond Loose Change Under Your Sofa Cushions

Over the weekend, I steam cleaned my sofa - a long overdue chore that I kept putting off. Upon removing the cushions, I discovered about $6 in loose change which was a pleasant surprise. That made me think of how much money we may have, but may not know or remember where we put it. I had a girlfriend who used to leave money all over the place and then forgot where she put it, only to find it months or even years later. She would find it in books, drawers, pockets, cupboards, boxes and files. To her, it was 'found' money, so she was a happy camper when she made the discovery. I, on the other hand, thought it to be poor money management on her part. But who was I to be so judgmental?
It made me think of the numerous bank accounts I had opened (and closed) in the past 30 years and whether I had left any money behind in forgotten, dormant accounts. I do recall one account that had a few dollars and I could not muster enough energy or enthusiasm to close the account and retrieve my hard-earned cash - I'm certain that there was less than ten bucks in it.

Lo and behold, I am not alone. Apparently, the Bank of Canada has almost $300 million in forgotten cash in dormant accounts - the largest amount is over $400,000. So, how does one forget almost a half million dollars, or fails to take the initiative to claim their money? If typical ratios hold true, then in the US, it must be over a few billion dollars in unclaimed money. In my brief time working in the investment industry, I've seen more than a few dormant mutual fund accounts with over $50,000 in them, so I know that these are not isolated instances. I, like most average Joes, would certainly know if my portfolio were missing fifty grand.

I now endeavour to check my pockets, drawers and files for missplaced cash, or I'll try these websites below:

Canada

www.bank-banque-canada.ca

United States

www.missingmoney.com

Either that, or steam clean my sofas more often.

Pondering a Life on the Water

Lately, I have been thinking about something that has long been on my list of things to do - live on a boat. This past winter in Toronto has not been particularly pleasant, and like millions of my fellow Canadians, can;t wait for it to end. However, the annual ritual of having to endure through a winter does not appeal to my sensibilities. Why do something that you don't like? Sure, there are 'snowbirds' - those retirees that live in Canada for 6-9 months of the year, and as the name suggests, fly south to warmer climates when the first blast of arctic air arrive. Compared to most people in this category, I am, at 45 years old, about 10-20 years too young.

What has been exciting is my search for a boat large enough for me to live comfortably without getting claustrophobic, yet small enough that marina fees and other associated costs do not make this experiment prohibitively expensive. This is an extremely good time to look for a used boat, with many owners being unable to afford their 'toys' and liquidating at below normal market value prices.

I am hoping that it is also an opportune time to rent out a condo, as more people either cannot afford to buy a home or decide to delay a potential purchase with expectations that the prices will continue to fall for another 6 to 12 months. With many workers fearful of losing their jobs, they are renting rather than committing themselves to the largest purchase of their lives at a particularly volatile economic environment.

Also, the prospect of me renting out my condo, either for the full year or half a year, has me already evaluating everything that I own. To that end, I have already started purging my things, and it is very interesting how I have started to look at all my possessions with a critical eye, and begun to sell them. Many things that I have carted with me for close to twenty years, now do not look as valuable to me anymore.

I have been very successful in getting rid of things on free classifieds on the internet such as Craigslist and Kijiji. Having been a successful eBay seller, I have a fairly good knowledge of how to ascertain fair pricing, and my sales to date have proven that the public find my items to be attractively priced. Through eBay, the auction waiting times, commissions saved and hassles of shipping have now been eliminated. As a fair number of things that I have been selling has been large and heavy, it would've been impractical to list it on eBay anyway. The prices that I am getting are better than I would be able to get selling them at a yard sale, where many things are sold for only a few dollars. In this economic environment, I'm finding more and more people buying used items on Craigslist and Kijiji. I am quite amazed at what people are willing to buy and the distances they will travel to get a good deal.

The one thing that I am really looking forward to, is simplifying my possessions, as well as the excitement of planning my first long-term winter getaway. I foresee that, in a few years, I will be able to live 6 months in Canada, and the other 6 months in a tropical country with a low cost of living such as Mexico, Belize, Costa Rica, India, Thailand or Indonesia. Right now, I know that I will miss my family and friends, as well as I would like to continue to do some work while I am still young. Hopefully, this weaning process will not take too long.

Should I find the tropical paradise that I seek, I can consider a purchase of a property when real estate markets are hurting, and when the US dollar is quite high against most currencies.

The way I look at it, I am still invested in the real state market, and will earn a positive (and maximize) net return on my investment, I will minimize my expenses and get the chance to travel in search of my winter home. Will keep you posted.