Latest Reading: Happy Money

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The book “Happy Money: The Science of Smarter Spending” was a quick read that confirmed much of my intuition and opened my eyes to a few new ideas. Two professors (U of British Columbia / Harvard) wrote this book based on their research and others looking at how people spend their money equates to happiness. It is a great way to look at wealth, and the old saying, money can’t buy happiness, is in someways proven correct and other ways found false. The Founding Fathers of the USA put “In the pursuit of happiness” in the Declaration of Independence and before reading this book, I never really formerly thought that it was a guiding principle in my life, but in many ways it is. To be happy should be the utmost goal of a person. Fortunately for society, what is good for the individual is usually good for the society and doing good and not harming others, leads to happiness.

The authors give five rules to maximize one’s enjoyment of spending money that goes against common sense a bit.

1) Buy Experiences

  • The biggest investment for most people is there home. The big house in the suburbs doesn’t bring big happiness. There is no evidence that these large homes one sees, actually makes your life better. I certainly found this out when we bought a large house. I found us cleaning and taking care of it instead of devoting more time to my children and each other. The author’s argue that instead of investing in things like expensive cars, boats, and homes, more pleasure is gained through buying experiences that make us feel more connected to others. The research shows that satisfaction with experiential purchases tends to increase with passage of time (stories) while satisfaction with things tends to decrease over time.
  • One of the largest material purchases perople ever make is their home, yet home purchases usually fail to make people any happier.
  • It is easier for people to seek out experiences, from picnics in the park to nights on the town, when the local environment provides appropriate settings. Governments usually provide support for museums, national parks, and culutural institutions.

2) Make it A Treat

  • You enjoy things more in small doses, and overabundance undermines our enjoyment of things. The two salient examples are if you drive an expensive car daily, the thrill wears off, so it is better to treat yourself to a luxury rental and really enjoy and look forward to the experience, and save money on an average car for daily use. The other example is not to “binge watch” television series on line and instead, watch with a gap in between each episode. Thinking about the next episode, discussing with friends, etc. heightens your enjoyment.
  • Banning carbonated soda drinks for a large part of the day will restore children’s enjoyment of the drinks, best regarded as treats.

3) Buy Time 

  • We too often sacrifice free time just to save a little money. Time is valuable and for example, you can spend an extra $100 for the direct flight from LAX to JFK instead of spending four hours in the airport in Dallas. Is 4 hours worth $100 to you?
  • People are in a good mood when exercising, reading, or having sex, but are not in a good mood when commuting, shopping, or doing housework.
  • Research shows 30% of work emails are useless. The average Intel knowledge worker receives 50-100 emails per day (I get this many) and they have instituted an email free Tuesday. This is a sizable workload on a daily basis that takes away from our primary work.
  • As time becomes worth more money (this is true now as compared to 20-30 years ago and as one moves up the corporate ladder) people report feeling more pressed for time, even though they have the same amount of time as before.
  • Taking the time to help others makes people feel more effective and these feelings of competence lead volunteers to feel less overburdened by the multitude of tasks in their everyday lives.
  • Go outside and exercise – there is added value in exercising outside!
  • Premium cable and flat-screen TVs eat up your time! When you buy a really nice TV, you are committing on average 1/6 of the next year watching it.
  • Take less money on a job if it means more time for family.
  • When faced with a decision between multiple products while shopping, ask yourself whether the differences in features will alter how you spend your time. If the answer is no, go cheap.
  • We bought time by moving closer to the school. In the US, 89% of trips are by car compared to 52% in Netherlands. Riding a bike and walking make people feel good!

4. Pay Now, Consume Later

  • Consuming later provides time for positive expectations to develop, delaying consumption also increases our ability to smooth over the cracks, so you won’t remember how much an experience cost, if you do it much later from when you paid for it.
  • What we owe is a bigger predictor of our happiness than what we make. The relationship between income and happiness is weak with Americans, and the key is debt.

5. Invest in Others

  • The effect of a single spending category (prosocial spending) was as large as the effect of total income in predicting happiness.
  • “I feel that my work makes a positive difference in other people’s lives.”
  • Investing in others brings a host of benefits to the giver, affecting not only happiness, but also health and wealth. Giving away money makes us feel like we have more to spare, just like giving up your time to volunteer.
  • When asking for donations, be specific on how their donation will help.

Another predictor of happiness in a country is the income gap between high and low income earners. In the US, the richest 20% of Americans own 85% of all wealth while the poorest 40% earn approximately 0% of the wealth.

I highly recommend reading this entire book.

The Metropolitan Museum of Art – New York City

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The Boxer, originally uploaded by bill kralovec.

What an amazing place! I visited the Metropolitan Museum of Art, located next to Central Park in Manhattan. It is the third largest art museum in the world and one could spend literally months there, studying and appreciating all styles of art from around the world. It is an impressive collection of statues, paintings, rugs, weapons, etc. from ancient history to the modern era. I could have spent a lot longer there. I would like to go back.

Above is one of the featured temporary exhibition called “The Boxer“. It is a statue from ancient Rome and is over 2000 years old. The realistic quality of the bronze statue is breathtaking and awesome to realize that it is that old. In a world before photos or videos, this may be as close as one gets to seeing how it was back then. The life size statue even has inlaid copper to represent blood. It is also interesting to think about how long boxing has been around and the scars and equipment on the statue, show how brutal the sport was, and to some extent, still is. The statue was found in the late 1800’s in Rome, and the experts suspect it was buried to hide it from the barbarian hordes that we overrunning the city. I wonder how many other works are buried?

Claude Monet’s The Manneporte (1883)

Above is a Monet painting that caught my attention. Monet led the Impressionist movement in art which featured thin brush strokes, emphasis on the changing light, ordinary landscapes, and a sense of movement. The painting above is of a rock formation on the Normandy coast. It is amazing to be that close to a world masterpiece.

Finally for my Serbian readers, I was really fascinated with the Ottoman gallery. Below is a helmet from the 16th century workshop of Sultan Suleiman The Magnificent, who personally led the Ottoman Empires to conquer Belgrade in August of 1521. The inscription on the helmut reads “Help From Allah, and a Speedy Victory”. That style of helmet probably inspired fear and loathing for generations of Serbs.

I also wondered how many times nations have asked for these historical pieces to be returned to the home country. I guess this would be often. Judging on the amount and variety of people at the museum, they probably get more exposure here than anywhere else. What a magnificent collection of history!

 

 

 

Summer at Lehigh University

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For my blog readers, I just want to announce that I will be in Bethlehem, Pennsylvania starting work on my Doctorate in Educational Leadership. It is a program geared towards international school leaders and it allows me to continue working full time while studying in the summer and on line during the school year.

I am really enjoying the program so far and feel I made the right decision to start further study. As you can see in the picture above, the campus is really beautiful and inspiring, not only the buildings, but also the setting. The university is set on a hillside overlooking the city of Bethlehem. There are approximately 75,000 people in the city and it is your typical quaint, Mid-Atlantic region small town. The two universities gives it a cultural boost. What sets the city apart from others is the huge complex of steel stacks in the middle of the town, a memory of the once powerful, Bethlehem Steel Company. It used to be the second largest steel company in the world after US Steel, but it folded in the 1990’s. The city has redeveloped the former factory grounds and turned it into a very cool community center.

I will be blogging about my experiences in the area (including New York City) which is a 1-hour drive away. I snapped the photo above last week of the Office of Admissions.

Lehigh Valley Iron Pigs Baseball

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I am spending the summer at Lehigh University in Bethlehem, Pennsylvania. I am working on my EdD. in Educational Leadership. Last night I had a lot of reading to do so I went to the baseball game to get it done. Baseball (and cricket) are the perfect sports for reading while at the park.

The “Iron Pigs” are a minor league baseball team. The minor leagues are the developmental teams for Major League Baseball (MLB). Every MLB team has several levels, leading up to their big league team. The Iron Pigs are the top level (AAA) affiliate for the Philadelphia Phillies. They were playing last night against the Tampa Rays top affiliate in the “International” League. I don’t know why they call it the international league because all of the teams are located in the eastern and central part of the US. All of the players are just one step from MLB and so the level is quite high, but most of them will not make it to the top team. There are about 800-1000 players in the MLB and about 5,000 minor league players. I would estimate about a third of the players at AAA get at least a game or two with the MLB club.

I was very impressed with the stadium and the large crowd (approx 10,000) people on a beautiful summer evening at the ball park. Americans do know how to make money from professional sports and I wish Red Star and Partizan could come and see what a stadium experience should be like. They were super organized with parking attendants, ushers, and security guards who were friendly and efficient. The experience is designed for families and for extracting money from the patrons. There are restaurants, fast food, really nice beer gardens, BBQ areas, and even a bouncy castle park for kids. In the outfield they have a grassy hill for picnicking. The souvenir shop was also first class and making a brisk business. In between innings they kept the fans entertained by giving away free t-shirts, a bunch of audience participation games, even a mascot running race.

Unfortunately, the home team lost 3-1, but more importantly for me, I got three chapters read of my homework and I enjoyed working in the relaxing environment of the baseball park. I am interested in the finances of the team. I wonder if it is a profitable business?

Kralovecs Perform

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Yesterday was a big day for performances. Nadia (above) made her debut in the International Belgrade Singers concert. The choir is made of expats and is organized by the Canadian Embassy. The theme last night was “Music of the Immigrant” and took place at the Children’s Cultural Center in downtown Belgrade. All proceeds went to Materinski Dom, a charity that helps children.

It was a thrill to see Nadia perform and I thought she was the best singer, although I may be biased.

Oliver also made his public debut as the drummer for “The Shooting Stars” a group of his friends. Ollie played the drums and had a magnificent performance. I would like to thank Adam for coaching the band. I would like to keep Oliver going with the drums. The video is below.

 

Visit to the Central Trades School in Rakovica

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It was an uplifting experience yesterday to visit the Central Trades School (Srednja Zanatska Škola) in the Belgrade suburb of Rakovica. The school is a government initiative that focuses on social rehabilitation and job training for vulnerable students in the Belgrade metropolitan area. Single mothers, refugees, victims of domestic violence, people with disabilities, Roma children, etc. are the target population. Most of the students are from ages 17-20 and include about 30% Roma.

The school was hosting a school year culminating fair, called, “We Can Overcome the Boundaries Together.”  There were food stands, music and dance performances, judo exhibitions, craft bazaar, etc. I toured the school and met with the teachers and students. I was invited as the representative of the International School of Belgrade. This year our students through the Community Action and Service Program at our school have been regularly working with the severe special needs students in the garden and green house program of the school. The idea stemmed from one of our students, whose parents through their work in the diplomatic community, became aware of the school.

My daughter Ocean poses in the school’s greenhouse

The school’s goal is to train and find job for their students. To that end, they have working auto mechanic garages, welding workshops, beauty salons, and even a small restaurant. Students also do internships with local businesses to help them make the transition into employment. An article in the Studio B web site stated that 40% of their students find jobs.

It is nice that the Serbian government supports these kinds of schools. A society can be judged on how it treats its most vulnerable members. I was also impressed with the positive spirit of the students and teachers and especially, the dedication of the faculty. Everyone I met was very dedicated to students and felt good about making a difference

ISB Students At the Bazaar of the Central Trades School

Bill and Nadia’s Diet

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In April Nadia and I visited Dr. Ana Gifing’s “Anti-Aging” Diagnostic Center here in downtown Belgrade. We both were carrying some extra weight from a long winter and based on a recommendation from a friend, we decided to try Dr. Gifing’s program.

We brought in blood test results, underwent a “Body Composition Analysis” which is basically a device that measures muscle and fat content, and a food allergen test. The staff then put us on a 28-day “chrono-nutrition” diet plan. This was the first time I ever went on a diet and I must say, it really worked for both of us.

The diet consists of eating vegetables and meat, avoiding sweets and carbohydrates. It also gave me some good habits of always eating breakfast and eliminating snacking between meals, especially the late night binges I used to do. My friends compared the diet to the Atkins or South Beach, or Paleo Diets in the US. High protein and low carbs to burn off fat. My results speak for themselves.

April 17, 2013

  • Weight – 76.9 kilograms (169.5 lbs.)
  • Body Fat Mass 18.0 (normal range 8 – 16)
  • Body Mass Index BMI – 25.5 (normal range 18.5 – 25.0)
  • Percent Body Fat – 23.4% (normal 10 – 20)
  • Lean Balance – Over in arms, trunk, and legs)

May 17, 2013

  • Weight 73.9 kilograms (162.9 lbs)
  • Body Fat Mass 14.7
  • Body Mass Index 24.5
  • Percent Body Fat – 20 %
  • Lean Balance – all normal except slightly over in trunk

My 32 waist pants now fit me! Over the Christmas holidays I had to buy 34 inch waist pants. I feel so much better with the fat taken off me. I highly recommend the clinic. It really made me think about what I eat and when I eat it. I will follow the concepts given in the diet. After the first 28 days, the diet is much more relaxed. The chrono nutrition is concerned a lot of certain combinations of foods, when high sugar foods are consumed, and continuing with eating of breakfast, a decent lunch, and small dinner. These are good habits to maintain a healthy weight.

Srećan Rođendan!

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Ocean, Ollie, and Dad, originally uploaded by bill kralovec.

I had a wonderful birthday weekend. I share the same birthday as former Yugoslav leader, Josip Broz Tito so we usually do something in honor of that connection. Yesterday we stopped at the 25 of May Museum and took some photos of Ollie and Ocean in the Yugoslav Pioneer outfits. They even said the pledge to be “loyal and faithful friends.”

I spent my day exactly how I wanted to! The kids and I rode down to Ada and Owen and Ollie played in a baseball tournament. We then watched a bit of the Vukovi football game, and I finished off the day with Nadia cooking my favorite meal, pizza rolls.

Bike Riding To School

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One of my greatest pleasures is riding with my sons to school every morning. I love to watch the excitement of freedom bikes bring to Owen and Oliver as they glide through the “leafy suburbs” of Dedinje and Senjak on the way to school. I can’t wait until Ocean is confident enough to ride her bike to school. The route is exactly 1 mile long and is mostly on traffic-free streets, although there are two crossings of more busy streets.

Not only is it a great way to exercise and spend time with my children, it is also teaching them to appreciate the joys of “silent sports.” I have a passion for biking, running, and cross-country skiing through nature, or for on the way to school, through the city. I hope to instill a love of bicycling to my children.

Above is a video showing our route to school. We plan on moving apartments next month, so these are the last of the rides. We will be even closer to the school so will most likely be walking to school in the mornings.

 

Tašmajdan Park

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Azerbijan President Statue, originally uploaded by bill kralovec.

Last Saturday morning we enjoyed a picture perfect spring day at Tašmajdan Park. The park is located in the center of Belgrade. The city has loads of parks and Tašmajdan is one of the largest and most popular. I saw this statue above and wondered why there was an Azerbijan flag, flying next to the Serbian flag. It turned out that the Ayerbijan government donated funds to improve the grounds of the park. In appreciation, Belgrade put up a statue of the former president of Azerbijan, Heydar Aliyev. The park also honors Serbian poet and author, Milorad Pavić. His most famous work is “Dictionary of the Khazars” that I want to read.

The park is full of trees, playgrounds, and a public swimming pool. It is near the Metropol Hotel, Madera Restaurant, and St. Mark’s Cathedral. I recommend an evening or daytime stroll. There are always friendly Belgraders to meet.