An i-bankers survival guide part 3
I thought this would be getting tedious by now for our delightful readers (see prior post “An i-bankers survival guide part 2“), but in my possession are some legitimate AAA ideas from two of the best savers I know in the world. The third comes from a real, living i-banker.
This offering from “Howard” of Delta, British Columbia:
“1. Cut out all newspapers/mags. except The Globe & Mail – the rest can be had on the internet for free.
2. Always buy a a demonstrator auto; diesel-powered preferably. No SUV-like Hummers or UPSCALE sports-jobs.
3. Wash your own car.
4. Own just one or two better suits and jackets, BUT always good shirts and ties. Plus two pairs of better shoes – well polished to appear new.
6. I know about expensive watches but a Swiss Army watch will do just fine.
7. Shut off all air conditioning and heat as appropriate from April 15th to Nov 15th; this advice applies to ALL parts of Canada.
8. No need to go to expensive sport or social events unless a tax receipt is in the offing.
9. Belong but to one “club” of any sort.
10. Cut back on Starbuck-type coffee and high end meals! (Except on [wife’s] Birthday and work promotions).
11. Cut back big time on BOOZE of all sorts.
12. Read a good library (free) book rather than going to a movie; pop your own popcorn at home.
13. Review ALL donations -perhaps just one or 2 than are of a personal nature.
14. Do your own gardening.
15. Have your hair cut at Joe ‘s by the Summerhill overpass on Yonge Street where Old Howard did, and they’ll give you a “field office” once you’ve been going there for 20 years or so.
16. On the investment side, buy cottage or island property some place so as you can get out of town. Not in the West Indies nor Florida unless offered for FREE, then consider selling and investing the capital in an income property.”
And this from “Paul”, who lives in the Bloor West Village and may or may not work on Bay Street himself:
“1. Neighbourhood walks – or “How to turn family time into savings time?”
If you live in a decent neighbourhood, here is an idea on how to save some money on toys for the kids. Initiate a nightly walk ritual with your significant other and child. On this walk you’ll not only enjoy the beauty of your neighbourhood but get the opportunity to spy a number of disgarded treasures that your neighbours have placed at the curb for disposal. This is a great way to put those 8th grade shop skills to work fixing broken wagons and other assorted toys.
This gets triple points: 1) time with spouse & children 2) savings on new purchases and 3) ditch that gym since you’re now getting a cardio workout chasing your 2 year old all over the neighbours’ lawns.2. Support the environment take part in the original recycling program – garage sales.
On your early morning Saturday walk take the time to check-out the fine goods on offer by some of your neighbours. Not only might you find some nice toys for your little ones that you can recycle the next year once they’ve grown tired of them you can claim to the neighbours that you’re very committed to reducing your carbon footprint buy reusing existing goods. Who knows they might actually believe you.
3. Learn to iron in one easy step.
Ok, for those of us tight on dough ditch the dry cleaner all together. A good iron can be had at those garage sales for $10 these days maybe less if you’re open to haggling. Now its time to plug your new found treasure in and start ironing. Let’s face it you’ve got the time on your hands and if you feel time strapped you can rationalize that you’re multi-tasking by taking time out to do some big picture thinking – remember ironing can be very therapeutic.
4. Ditch those pesky service people and get out there and do it yourself.
This one comes fresh from the source having just completed roofing two garages in the past two weekends (I suppose I should be writing a macro report). Time to become acquainted with all those tools you purchased at Home Depot and get to work on some home renovation products. Not only are you maintaining your property but you can claim to your spouse that this is your new hobby. Hey worst case you’ve got a fall-back career that you’re gaining a hands-on experience with.”
These from an actual i-banker whose name shall be protected so that his colleagues won’t know he’s breaking ranks and admitting that times are tough in the biz:
“1. Remove land line to house. Everybody has a cellphone.
2. Get a Highlander hybrid instead of a Porsche Cayenne, claim you’re being “environmentally sensitive” and it’s not about the $50k spread.
3. “Staycation”: good; Turks and Caicos all inclusive: bad!
Not me personally, of course, just things I heard around office….”
MRM
I don’t think the first two people have meet too many investment bankers – I couldn’t imagine ever seeing a garage sale in Rosedale or someone actually washing their car in Forest Hill. And cutting out booze – that is the stuff that is going to fuel these guys (and girls) through the downturn.
My suggestions:
1) Time to start taking more inventory from the wine cellar instead of filling it. You have $50,000 to $100,000 in idle wine inventory, no better time to start drawing from it.
2) Actually cash in those Airmile points (as stated in the first post). I know i-bankers who put everything on their CIBC Aeroplan credit card, but have never used a single point. They have trillions of points, but treat them more as an accumulation of pseudo-wealth (and a bragging point).
3) Shine your own shoes. When I was in the industry, every week the shoe shine guys would come into the office and guys would spend $6-7 dollar on a professional spit and polish. I can understand for the one guy wearing the Gucci loafers, but most guys where reasonably priced that can easily be buffed with one of those sponges.
4) Stay away from the trading desk. Traders are notorious gamblers and they’re always looking for someone to either bet against or unload some (i.e. partially hedge) one the larger bets they’ve entered into. And there’s no better person to go against but a i-banker wondering through the trading floor. No i-banker will ever be as informed on sports, current events or other general useless information as a good trader (they have more time on their hands and a Bloomberg terminal always at their disposal). Put your vanity away and don’t enter into a bet you’re surely going to lose.
5) Remember that quality foods doesn’t only come from Pusateri’s or Whole Foods. Only go to the upscale supermarket for the hard-to-find stuff, leave the other stuff for Loblaws or Sobeys.
Alpha
You are right about Howard. He is very thrifty by nature and his ideas aren’t very relevant to i-bankers per se. Still good advice for their groundskeepers, though.
But the 2nd fellow actually works at an investment bank – as an equity research analyst that is. With the compliance walls that exist at his place, he’s probably not allowed to meet any i-bankers anymore, either.
MRM