Capital Restructuring

Arguably, we are in the worst recession since WWII; at least it’s the worst of our generation. The S&P 500 was recently down over 50% from its peak in 2007 only to recover a bit in the last few weeks. My 401K is literally, a 201K now. Unemployment in the US is creeping to 10% and Cisco is not stocking free sodas nor bottled water in the break room anymore; and I can no longer expense my DSL line or my ATT cell phone service.

If every company is “downsizing” or “realigning resources”, I think it’s time for my very own capital restructuring!

Here’s an attempt at breaking down my daily spending with an objective to cut down costs and minimize an effective budget.This is my personal budget and does not include my wife’s. Tao and I have daily philosophical debates on whether searching for alternative transportation in lieu of settling on taxi service is maximizing value. Often we end up agreeing to disagree but truthfully, these conversations leave me in a state of confusion, especially when she throws out MBA jargon like “You have to evaluate the Cost Benefit.” And what usually shuts me down is her favorite rebuttal “You have to figure out how to make more money instead of spending time figuring out how to save money.”

Here goes…Let me know what you recommend. I am taking a poll!

Getting to work at 4:30 AM

Options:

1. Walk to work ($0). Disadvantage – 15/20 minutes less sleep
2. Walk down hill behind the apt building and take taxi ($18HKD). Disadvantage – 3 minutes to walk down 10 flights of stairs and to the street where I could find more taxi cabs
   
3. Take taxi right outside the building ($26HKD). Disadvantage – High cost and not many taxi cabs pass by the front door of the building
   

Breakfast at 7 AM

1. Eat at Cisco HK ($0). Apparently, there’s no cost cutting in the HK office. Disadvantage – Only cookies, fruit and coffee/sodas are available
2. Eat at nearby HK cafes ($10-20). Disadvantage – High cost
3. Not eat ($0)
   

Getting off work at 11 AM

1. Walk home ($0). Disadvantage – Breathe in toxic smog, deal with the humidity, and the risk of getting trampled by the crowds.
2. Take taxi ($26HKD). Disadvantage - High cost
3. Buy a car ($1000000HKD). Disadvantage – Highest cost. People who can afford a car AND a parking space in HK usually buy at least a Maserati

Getting to the gym at 11:30 AM

1. Walk to the gym ($0). Disadvantage – Takes 15 minutes but I have to breathe in toxic smog, deal with the humidity, and the risk of getting trampled by the crowds.
2. Take taxi ($20HKD). Disadvantage - High cost
3. Walk down 10 flights of stairs and take HK Bus and walk to gym ($3.40HKD). Disadvantage – Bus arrival time is variable
4. Walk down 10 flights of stairs and take Tram and walk to to gym ($2HKD). Disadvantage – Tram is very slow, stops often and is open air which means toxic smog
5. Stay home and nap ($0)
   

Lunch at 1 PM

1. Eat on my own ($20-$30). Disadvantage – Usually not a balanced diet
2. Eat with friends/wife ($50-$100). Disadvantage – High cost
3. Walk to Cisco and eat more snacks/fruit/top ramen ($0, arguably this is a positive expense). Disadvantage – Have to figure out how to get back home.

Work again around 4 PM

1. Work at home ($0). Disadvantage – Not very exciting
2. Work at Starbucks or Pacific Coast Coffee ($18-22HKD). Disadvantage – A regular cup of joe costs $3 USD here!
3. Not work

Note: The remainder of the day is spent w/ my wife or friends so that budget is not as easy to control.

My choices are highlighted in blue. What do you think?