Sunday, October 25, 2015

A Tale of Two Cultures

This post was quite difficult to write...as in, tough to convey thoughts, because these complex topics are impossible to fully understand…and I still think it’s pretty unrefined so please bear with me.  I’m going to attempt to talk about how two modern countries, China and the US, have been shaped by a historical, fundamental aspect of their respective cultures.  So this post is divided into 2 parts.

There are so many aspects of Chinese culture to talk about, but I want to focus on the people’s view of the modern government.  To preface, Confucian ideals are the building blocks of Chinese culture. With regards to government, I think that two virtues especially translate: filial piety, which is respect for one’s parents/elders no matter what, and social harmony, which can be achieved if everyone just fulfills their role in society.

To understand the last century of Chinese history, you have to know what happened in the thousands of years before then.  In short, Chinese history is filled with conflict – thousands of years of internal/external wars, as well as frequent occupation by outsiders.  Mao is one of the most controversial political leaders in history due to his harsh policies…but only outside of China.  It’s easy to see why Chinese people look up to him, if you consider the situation from their perspective (which incorporates both culture and history).

One main reason Mao is revered by the people is due to Confucian virtues…to always respect your elders despite the circumstances.  The cultural revolution and great leap forward caused a lot of strife in the country…but most people were okay with it.  He is likened to the American president Andrew Jackson, because for all his questionable actions, his motivation revolved around progress for the country as a whole.  This is why even though the current president, Xi, was separated at a young age from his father, who was detained/exiled by Mao’s army, he still respects him and abides by his policies since Mao is the “father of the country,” just like children are taught to respect their parents above all else.  In addition, Mao is revered because of the nation’s before/after story – he laid the foundation for today’s China by unifying the country (especially the farmers/industrial workforce) and saved China for the “shame” of occupation of invasion that for so long had plagued the nation. What’s ironic, though, is that the selfless ideals of Confucianism have really been cast aside by the massive influx of consumerism in today’s China. But that’s a topic for another day…

Okay next topic is a bit more heavy…but I feel I understand it a lot better, being that I actually grew up in the country I’m talking about…

I don’t need to name any specific incidents, but there have been a lot of US violence-related shootings lately, especially in the last ~5 years.  After every incident, you find the same 2 topics of discussion hammered over again and again: gun policy and mental health treatment.  The question is often asked, “why do these things happen in this country more so than in others?”

My opinion is that the core reason doesn’t have to do with guns, nor mental health…but rather the inherent culture/image of the US.

It has been reported that the US has 31% of the world’s attackers, but when narrowed down to workplace or school shooters, the US has…62% of global attackers.  I don’t think that the huge jump in these two specific places, workplaces and schools, is coincidental – they definitely mean something more.

“The American Dream” is an incredibly individualistic philosophy that basically guarantees “success” in this country as long as one works hard enough in this “land of opportunity.”  But equality of opportunity is often misconstrued to imply equality of outcome as well; this concept is sometimes warped into Americans feeling entitled to success.

If you look at the motivations of perpetrators, they have a common theme revolving around how they felt life/”the system” was unfair to them; they didn’t get the attention, praise, etc. they felt they “deserved.”  They feel that society has been unfair to them, which leads to a lot of built up anger, manifesting itself in mentally unstable people (“the who”) in dangerous ways (“the how”).  But as for “the why”…fame is thought of as end unto itself; after someone struggles with high aspirations, they blame others.  Schools and the workplaces are the symbolic venues where the “American Dream” is achieved, as this is where people progress in their academic and career pursuits – thus unfortunately becoming “fitting” venues of “revenge” for these shooters.

One abetting, related factor is the explosion of mass media/technology.  People have more access to see what other people are up to, and what other people have done.  They see success stories and wonder why they aren’t the ones experiencing that.  Americans do love to compare themselves to others.  This ties to the scientific study that news outlets encourage future actions from similar-minded people (“copycat effect”) by publicizing killers’ names/backgrounds.  The story often becomes more about the perpetrators and less about the victims, and people might think that their “ticket to fame” can come from doing the act. If you took a survey of every country, asking “are you satisfied with your life?” I’m pretty sure the US would rank at the bottom.

The worst part is, I don’t even know what could be done about this fundamental issue, because it’s an ugly by-product tied to our core identities as Americans. On top of all this, there isn’t really a strong sense of unity among countrymen like there is in other countries (Europe especially)…this is due to the unique composition of the nation, racially and ethnically.  The individualistic culture in America has created a steep social and economic pyramid with a superficial layer of “perfection” coated over a latent, deep unrest.  It’s a double-edged sword to believe and act as if we are the “best country.”

Well…so….yeah…a country’s culture determines so much – it can often easily explain why things are the way they are.  Just some thoughts I wanted to put down...well...most of my other posts are more lighthearted, as you can see haha.

Sunday, October 4, 2015

Some Thoughts on Personal Finance

Personal finance is a skill for which everyone is at a different stage. This post is geared towards the 21/22 year old who just graduated from college/is just starting a new job.

Personal finance is as much of a personal, emotional issue as much as a logical, rule-based one. In the end, it’s about taking actions to reduce stress and sleep better at night.

Budgeting

Here’s the template I use, it’s basically a 12-month forecast in which I start off with my paycheck $$ at the top and expenses below.

Take Home Pay
XXXXX
Rent
XXXXX
Food + Drink
XXXX
Transportation
XXXX
Gym + Laundry + Haircut + Exam + Phone
XXXX
Travel
XXXX
Donation
XXXX
Roth IRA Contribution
XXXX
Total Expenses
XXXXX
Remaining $
X

This is just a forecast/goal that I try to maintain.  I’m fortunate enough to be in a position where I don’t have to worry about student loans, but that should take priority if you do.

Emergency Savings - 3-6 months. Your expenses for however long you think it takes you to find another job in case a catastrophe happens.

There are actually checking accounts out there that yield 1-2% interest (Emigrant, ING, AllyBank, GE).

The amount of taxes withheld compared to your actual taxes owed is calculated during mid-Jan to 4/15, and you’ll receive your refund a few weeks after submitting your taxes (or send additional money to the government).

Credit cards

Three types: cash back, travel, low interest
AMEX/Chase have the best IMO.
Try to hit point bonus offerings that CCs have. To hit these bonuses (ex. spend $4k in 3 months to get 40k points), you can...offer to pay for big purchases your parents/friends make, use your CC to pay taxes, buy a huge Amazon gift card, etc.
In my opinion, even though I really don’t like to tell people how to live their lives...there’s no reason to carry a balance (not pay off all of your bill) every month.

Investing

The biggest investment pool in the United States is for retirement.  Pension plans aren’t so popular anymore because they bankrupt companies, but your firm may offer a 401(k) plan, where you contribute X% of your salary.

401(k) are company-sponsored retirement plans. You should at least contribute up to the company match because it’s free money. Limit a year is $18,000 atm.

IRAs are individual retirement accounts set up by yourself. Limit a year is $5,500.  

Each of the above have two types: traditional and Roth. Traditional means it’s deducted from your base salary (before tax), like your social security taxes for example. However, when you withdraw the money at age 60, you will have to pay taxes.  Roth means it’s deducted from your after-tax amount, so you’ve already technically paid taxes on it already, but when you withdraw it, you won’t have to pay taxes.  There is a penalty for withdrawing the money before you turn 60 years old.  For young folks, it’s been suggested that the Roth type is the way to go because assumingly, you’re in the lowest tax bracket right now, so you should pay the tax now rather than later when you will be in a higher tax bracket in the future. You can open an IRA account with Vanguard, Fidelity, etc.

For younger people, you may want to set up both a Roth 401(k) and Roth IRA. Unless contributing to a traditional 401(k) can bump you down to the next lowest tax bracket. Also, you are currently not allowed to contributed to a Roth IRA if you make over a certain amount (6 digits). However, there is currently a loophole where you can contribute to a traditional IRA, and then immediately convert it to a Roth IRA - don’t ask me why that’s still okay...

Only invest in stocks if you are willing to spend significant time researching the companies and industries. Otherwise, you’re pretty much just gambling.

After you’ve set up an emergency fund, you can take the remaining savings and invest it in index funds. Mutual funds are funds that are professionally managed that buy many securities such as stocks and money markets that are funded by people like you. I think the most important factor for people starting out is to look at expense ratios. For example, a mutual fund with a 1% expense ratio means that every year 1% of the fund will be used to cover expenses, which means less money to you.

This post was a pretty general overview, and I realize I'm probably just regurgitating stuff that you can find through a Google search of "basic personal finance" - but if you want to talk in detail about something mentioned above feel free to shoot me a message.