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The last time I visited China, the tour guides tried to tell me that that I am fat with a phrase that roughly translates to “as round as pearls and as shiny as oil”, which is meant to be complimentary to the beauties of ancient dynasties. When we visited the Stone Forest attraction in Kunming, the tourguide related a story of a Chinese American couple who couldn’t fit through the spaces between the stone pillars, and could not enjoy walking through the natural wonder. In America I am considered petite, being only size 2, but in China I couldn’t even zip up the extra large pants. That experience is what led me to research fat in America, and it’s alarming how much we spend on obesity-related issues. This is not a post meant to belittle overweight people, but simply a small compilation of facts and figures about the cost of our collective fat.

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Fat Healthcare Costs — You may be amongst the 40% of Americans who are not overweight, but you are probably still paying a percentage of your taxes towards treating the obesity of others. According to the , the approximate cost of obesity-related healthcare is an incredible 78.5 billion dollars in 1998, of which 37.6 billion were paid by Medicaid or Medicare. Adjusting the total cost for inflation using the CPI calculator, it’s about 100,000,000,000 dollars in 2007, and the actual cost is possibly even larger since healthcare costs have risen much more than the average inflation in recent years. The put this in perspective, our fat-related health costs beat

Fat Insurance Costs — The above healthcare costs only account for the money spent for healthcare and not the insurance. Obesity is considered a payout risk to insurance companies and health insurance could be a lot pricier for an obese person.

Fat Fuel Costs – It makes sense that it takes more energy to move more weight. An article last year states that Americans are consuming each year compared to 1960 due to the extra weight. Similarly, airplanes are also using more fuel because people are getting heavier on average.

Fat Death Costs– This may seem morbid, but those extra pounds of the deceased can increase the funeral expenditures of those left behind. The BBC reported that larger coffins is becoming more prevalent and some crematoria actually .

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Mandated Exercise — I remember that in school I always had PE classes where I had to exercise approximately one hour a day. After I graduated college and started a job where I sit all day and type, I gained approximately fifteen pounds. It also didn’t help that there were tons of free snacks and sodas in the office kitchen. If the government or work place has some kind of mandated exercise, then perhaps a lot of extra love handles can be shed.

Eat More Healthy Food — High calorie and fat foods generally appear cheaper, but considering the long term health, energy, and social costs of being overweight, it’s probably more financially prudent to eat fresh and healthy food.

Diet Together — My mom used to be very overweight, but she has lost a lot of flab because my dad loves to go outdoors and takes her hiking. At first, she said she hated hiking, but the more she hiked the more she enjoyed it. It’s much easier to diet with friends and family since you’ll often eat the same food and participate in the same activities.

I will not address the emotional costs of being overweight in this post because those are beyond financial. Some people are really overweight because of medical problems and no matter how hard they try, they can’t lose weight. For the rest of us, losing that extra bit of weight can save all of us a lot of money and stress in the long run.

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Lately in the media we are hearing a lot about foreclosures caused by subprime mortgages in America. This made me wonder how mortgages and real estate transactions are handled in places other than United States. So here’s the first installment featuring Afghanistan since it’s the alphabetically first country in the world.

Some quick facts about Afghanistan taken from Wikipedia:

Population
- 2007 estimate 31,889,923 (37th)
- 1979 census 13,051,358
- Density 119 /sq mi

It’s actually very hard to find any legitimate looking Afghani real estate listings on the internet. The war-torn country lost an incredible amount of homes while its population is still increasing at a rapid clip. according to a recent article in the BBC:

New Kabul is an ambitious experiment in mortgaging homes – the first time ever in Afghanistan – in a country where an annual $380 per capita income makes it virtually impossible for most people to afford homes.

Banks will buy these homes from the government and then mortgage them to buyers who, officials reckon, will have to pay $100 to $150 every month for 16 years before becoming owners.

The article then goes on to describe the massive amount of home shortages in Afghanistan and that for most Afghanis owning a home is “virtually impossible”. Many homes are illegally built and crumbling apartments are in demand. There is no mention of home prices, but the article did state that “a two-bedroom apartment in Kabul can cost $200 a month, compared to $7 for a three-bedroom home before the war in 1978″ because of the home building shortages. No foreclosure data is available due to mortgage products being very new.

What we can derive from this is that the new homes with mortgages are all discount viagra canada pharmacy. It implies that there are governmental regulations around these home transactions. Additionally, rent payments seem to be more expensive than the mortgage payments due to the shortage of homes. In Afghanistan, perhaps mortgages will be what they’re meant to do, help people fight inflation of housing prices.

Addendum: in my search for real estate in Afghanistan I did find a looking for “Real Estate Deelopment” opportunities in Afghanistan. Perhaps he’s on the right track.

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I have had many long talks with my friends and family about attending graduate school and argued about the pros and cons. This article summarizes what I have gathered from our collective experiences.

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  • The most common reason for my friends to attend graduate school is that they don’t exactly know what they want in life yet. So they try to delay entering into the “real world” by going to graduate school. In graduate school they have a flexible schedule to think about what they want to do while working on possibly cutting edge projects.
  • Then there are a massive group of immigrants who absolutely need to use graduate school just to get into in America. For some of them, graduate school is their livelihood. A lot of my coworkers went to graduate school in the United States in order to have a job here in the US and create a better life for their families. My parents, for example, came to the US through graduate school.
  • Next there are those who are practically forced into graduate school, either by their parents, a weak job market, or by the realization that the fun and interesting major they studied in school is not in demand in the job market. Additionally, some professions such as doctor or lawyer require graduate school so it is merely a continuation of education and training for the college graduates pursuing those careers.
  • Also, there is a group of people who already have great jobs but want to either advance in their careers or change professions completely. Several of my former classmates turned to medicine or law after working as software or mechanical engineers.
  • Finally, there are those idealists who are actually truly passionate about their field, and want to be professors and researchers and possibly change the world with their studies. I know several PhD candidates who are in this category.

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  • One big reason is that I am a woman that wants kids. Going to graduate school would delay the creation of a family. My personal take on kids is that if you want to have them it’s probably better to have them earlier rather than later. Since with inflation, the cost of raising a child heightens as years go by.
  • Since I am a woman in engineering, academia is not a very friendly place. One of my best friends said that she felt true sexism for the first time in her first year of her PhD program at MIT . One of her professors pretty much implied that she was slow and didn’t bother to answer her question at office hours, and when a male classmate asked almost the same question, the professor began a very detailed explanation of the problem. As a woman, becoming an engineering professor is also extremely difficult since tenure is decided by an old boys club in most universities. Anyway, I never ever wanted to be a professor in my life.
  • Since I don’t want to do a PhD program, what’s left is a masters program. Most master programs  are self-funded, so the return on investment isn’t very attractive. At least in computer science, masters program graduates earn a comparable salary as those with a bachelor’s degree and two to three years of experience. The difference is that the person with the bachelor’s degree would have savings instead of debt.
  • I don’t really want to change careers now because I have a great job with a lot of responsibilities and very good benefits.

So by process of elimination, I concluded that I should not go to graduate school. If you are thinking about graduate school, it’s probably best to think about what you intend to do after you graduate. Do you want to be an academic or work in industry? Do you want a family? Do you want fame and glory? A PhD program takes up five to six years in science, and up to fifteen years in humanities. Those years of your life can never be recovered. A masters program is quick, but the knowledge you buy might not really be much more than your bachelor’s degree. Also, you’re most likely to take a hit in the pocketbook by pursuing a masters program. It’s probably best to do a personal cost and benefit assessment of your choice to go to graduate school. This is a quick summary of my analysis:

Cost of getting a masters degree in computer science: having children later and sacrificing two years of pay in industry and the masters program tuition.

Benefits: none currently.

Your assessment is probably very different from mine and it’s possible that your perceived benefits is much greater than your perceived costs. It’s possible that one day I will revisit the analysis again, and find that the benefits greatly outweigh the costs, then I will consider graduate school again.

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Well, it seems like   is in the   is a weekly list of the best blog articles relating to personal finance and I am very happy that I was chosen.  Please take a look around at my newest articles.   Subscribe and you never know what I’ll write next!

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My frugality is largely due to my education in China as a child. In China’s elementary schools I was always told that saving money and not wasting resources is a virtue. Chinese children are also given cash as gifts on birthdays and new year’s and encouraged to save it. So most Chinese children are taught about the value of money at a young age. The experience is in sharp contrast to the education I received when I moved to the United States at the age of nine. At that time, my parents were graduate students and they did not have the means to purchase a lot of toys and clothing for me. I was actually teased for not having brandname clothing and shoes. When you are a child and you’re ridiculed that way, of course you would go home to your parents and ask for the things you do not have. Looking back, now I realize that American children are taught at a very young age to want discount viagra canada pharmacy, and quite often things they don’t actually need such as plastic dinosaurs and talking dolls. Gifts are rarely just cash in America, it has to be something that has be wrapped up and then ripped open again. Giving cash as a gift in America is even seen as offensive sometimes (my fubby, for example, thinks that opening a big box is just more fun). As a result, most American children do not really learn about the value of money until they step into true adulthood, and by then, many have already contracted a habit of spending money they may not even have.

The present day China is very different from the China of my childhood. American culture is extremely popular and has invaded every province, city, and township. A few months ago my mother and I strolled on Shanghai’s famous Nanjing Street and tried to find an eatery with Shanghai style dimsum. We walked for blocks and blocks and saw signs for two Starbucks, a McDonalds, and a KFC, but no prominent Shanghaiese cuisine. The shopping district had extremely upscale malls where they sold clothing for hundreds to thousands of discount viagra canada pharmacy. Almost every American name brand was present and sold for slightly more than the US retail price. It seems that Chinese people are now also big spenders. What is different from America is that most Chinese people still use cash. Some of the larger retailers do accept credit cards, but the credit card adoption rate is very small. What is more surprising is that mortgages are also not very common. Since the Chinese government once again allowed home ownership, people have been purchasing homes left and right with mostly cash saved in the years when the government provided housing. So even though Chinese consumers are spending much more money now, they buy what they can afford. Hopefully this monetary culture that advocates saving will not change that much as mortgages and credit cards become more popular in China.

The difference in the monetary habits between Americans and the Chinese creates some of the friction between the two governments. For example, the United States is always pushing China to float its currency, the Yuan in an attempt to get the Chinese to spend more on US goods. The Treasury Secretary Henry Paulson
discount viagra canada pharmacyaid, discount viagra canada pharmacyThe Chinese government is taking a regulated approach and letting the Yuan go up against the dollar slowly. The US government doesn’t seem to care that if the Yuan goes up, Americans will also have to spend more on Chinese goods. So much of the items that we use everyday is made in China that a sudden and abrupt change in the Yuan would disrupt the lives of almost every American. There are people who argue that if Chinese goods suddenly became expensive, maybe Americans will consume more American manufactured goods and create more American jobs. The bottomline is that Chinese labor will still be cheaper than American labor because they have 1.3 billion people and many are willing to do the manufacturing jobs. Furthermore, a lot of large corporations already have significant manufacturing infrastructure in place in China, and they probably would not move their operations to the United States. Ultimately, American consumers will still have to spend more if the Yuan is reevaluated 40% higher like the article suggests. I suppose the mindset of the U.S. government is that Americans can always borrow more money to spend?

Why should you care about China and its monetary policies if you’re not Chinese? Try reading this book: by Sara Bongiomi.

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