Nadia Lee :: Paranormal Romance Writer

Hero Material and I are going on our eight day-long honeymoon at the end of the month to Thailand. He’s been there once or twice, but this is my first time in South Asia, so I’m very excited.

We booked our trip for less than $1,000 (USD), including all our flights (business class), shinkansen, resorts / hotels and taxi fare. The key here isn’t just looking for the best deal, but having credit cards and so on that earned us miles and points on Star Alliance Airlines and Starwood Hotels. If you put everything on your credit card, you’ll eventually have enough to book a nice getaway after about two years or so, although it really depends on how much you spend each year. (I do not recommend putting all your points and miles in domestic low-cost airlines because you can’t use them for international trips. Of course, if you have zero desire to travel outside the U.S. feel free to disregard my advice. )

Also we almost always fly on Star Alliance Airlines — thankfully it’s very easy to do — and we usually stay at Starwood Hotels. This gives us even more points / miles. Basically it’s an exploitation of airline and hotel loyalty programs. I know that it can be a bit unnerving at times because so many airlines cry “Woe is us!” and talk about their impending financial doom, blah blah blah. What if you have all your miles with an airline and the airline goes under?

In my experience and observations, it’s highly unlikely that your miles will disappear. Big international airlines, such as United, Continental, ANA, BA, etc., have millions of customers on their mileage programs, and many of those customers are very loyal to the brand. When I was a management consultant, United was the most convenient airline for me, and I always flew on United or other airlines that had code-sharing and/or alliance partnerships with United so I could pool all the miles in one place (United Mileage Plus). It was the same for my colleagues even though their airline of choice was often something other than United.

All big airlines know that a mileage reward program is a valuable loyalty- and consequently revenue-generating asset, so long as its rules and so on remain intact. If your airline becomes liquidated (god forbid), others will buy up the reward program and give you incentives to maintain your brand loyalty.

Anyway, that’s it for my tips on how to book a nice honeymoon for very little money. Feel free to share your own experiences / tips and ask questions if you’d like.

P.S. I’ll be posting some pictures from our trip in April.

I’m sure many of you have heard that RWA has decided that Harlequin Enterprises, as a whole, is no longer a non-vanity / subsidy publishing house.

So many people seemed confused about why many writers are unhappy about the Harlequin Horizons situation. I do not believe that Harlequin Horizons is a true self-publishing house. It’s really a vanity press, no matter what Harlequin calls it.

Let’s look how Harlequin Horizons works — I’m going to use an example to illustrate the situation. (Judging from what’s going on in the Blogsphere, using a poor new unpublished writer seems to muddy the water…)

Harlequin Horizons Scenario Explained — in layman’s terms:

Let’s say you’re a salsa maker. Your dream is to distribute your salsa so everyone in the world can buy it from supermarkets, etc.

So you go to…Pace. Pace says, “Your salsa recipe isn’t good enough to add to our Pace lineup, but you should consider taking your salsa recipe to Pace Self-Salsa. If you sell a lot under that brand, we may considering adding your salsa to our main lineup.”

So you contact Pace Self-Salsa (PSS). PSS says you have to pay them money to make and bottle and label your salsa. For every bottle of your salsa that sells, PSS gets to keep half of the profit and you get the other half. So — after paying Pace a bunch of money up front — you have to split the profits with PSS 50-50.

You decide to pay PSS because you figure you can use the Pace brand and its distribution and marketing power to sell your salsa. But later you learn that PSS has no intention of associating its Pace brand with your salsa. Pace tells you that the brand “Pace” is the “gold standard” in salsa and that it will not be “compromised” to help you sell your PSS salsa. Nor does Pace plan to allow you to use their distribution network to sell your salsa. (But you can, for an additional $12K or so, get access to the Pace mailing list. This will allow you to spam 10 million Pace customers with entreaties to try your judged-to-be-not-up-to-snuff salsa all you like. And for extra $20K, you can make a commercial video that you can upload to YouTube and other social networking sites to promote your salsa (but nothing on TV channels).) And your PSS salsa will not appear next to Pace salsa on grocery store shelves. You have to do all the legwork, etc. and you have to split any profits 50-50, even though — remember — you paid a lot of money at the start for the bottling and labeling service.

That’s vanity. And, frankly, it’s exploitation. There’s virtually NO CHANCE that you will recoup the cost of investment (the bottling & labeling fees and so on). But PSS makes lots of money because it charges you and other salsa makers a premium for its bottling & labeling services, and it gets to keep 50% of profit made on each bottle of salsa sold. Just in case you missed it: Pace will make money up front, even if you never sell a single bottle of salsa. You, on the other hand, will need to sell a hell of a lot of salsa just to break even.

The true self-publishing model can be explained using a similar example:

Again let’s say you’re a salsa maker. Your dream is to distribute your salsa so everyone in the world can buy it from supermarkets, etc.

So you go to…Pace. Pace says, “Your salsa recipe isn’t good enough to add to our Pace lineup.” So you decide you’re going to make your own salsa company, just like Pace.

So you put in your money to bottle and label your own salsa by either contracting it out to an independent bottler or learning how to do it yourself. You study how to distribute your salsa, and you get some of your local supermarkets, etc. to carry your salsa.

People try out your salsa and buy some.

You may lose money because you can’t sell enough salsa. But if you do make profit, you keep 100% of the profit.

(If you’re very very successful, your salsa may become a worldwide bestseller. And who knows? Some big company (like Pace) might buy you out. Again, you assume the financial risk and you keep all the losses / profits.)

So that’s the difference, ladies and gentlemen. That’s why I do not consider Harlequin Horizons to be a viable option for anyone who’s serious about being a career-minded writer.

Disclaimer: I like Pace salsa a lot. Pace did not pay me to use its name or to say that I like their salsa. The above are just hypothetical examples I made up.

Any questions or comments?

Recently I read a front-page article on the Washington Post that had the following gems:

• She [Aba Kwawu] unearthed clothes in her own closet that she had never worn, some with the tags still on. … “I had not shopped in so long I was going through withdrawal,” said Kwawu, 34. “I thought, ‘I have to get something now. I’ve been good long enough.’ “
• She [Gillian Joseph, 42, of McLean] finally broke her fast, walking into Nordstrom after a long absence and buying a pair of 4 1/2 -inch heels in bright floral colors. The experience was cathartic, she said…. “It was like spring — rebirth, reawakening.”
• “However, I work all the time….And if you work hard, you like to reward yourself in some capacity.”
• “It’s almost like I’ve come out of the recession before the market,” he [Paul Wharton] said proudly. “I made a choice! I just refused to be in the recession any longer!”

I don’t get it. Spending even a penny in a store makes my stomach hurt. It takes me months of budgeting and cashflow analysis before I decide to buy laptops, etc. This summer while in the States I spent thousands of dollars on shoes, clothes and a netbook after not having shopped for clothes or shoes for two and a half years, and even then I felt sick to my stomach. I think I returned about half the stuff before leaving the States because I just couldn’t tolerate the idea of spending that much money. (The only thing I don’t mind buying is books – paperbacks, mind you – because they’re like decadent indulgences to me.)

So…how does shopping make someone feel better? What value do people get out of spending thousands of dollars regularly on items they don’t even need or use? Am I missing something?

Before I begin: This post is not about politics. I’m talking about this from a purely financial point of view. Numbers. If anyone leaves comments with political hate-talk, they will be deleted with extreme prejudice.

As we all know, Americans don’t save much. That’s one reason why we have to borrow so much from China, Japan, etc., and it’s obviously a bad thing. In addition, many people are unable to retire due to a lack of sufficient money to fund their golden years. So in order to make it easier for you to save, Obama is proposing several measures. One of them is this:

In a second move, Mr. Obama said the Internal Revenue Service will allow people to check a box on their tax returns and receive their tax refunds in the form of United States savings bonds. White House officials said about 100 million families get tax refunds each year, and the average refund is about $2,000.

This wouldn’t be a bad idea…if U.S. savings bonds actually offered a decent rate of return. According to the US savings bonds website, the interest rates as of September 2009 range from -5.56% (this is not a typo — the website really says that the rate is negative) to 1.5%. So the government gets to keep your federal tax refunds for years and pay you almost nothing. (You know the Chinese demand more than 1.5% on their money.)

If that’s not bad enough, with the current rate of inflation, the value of your money will decrease. If you’re making 1.5% on a bond and the inflation rate is 4% (let’s just say), then your money is worth 2.5% less every year you leave it in the bond. So by saving, you actually lose ground.

The best way to encourage saving is not “allowing” people to put their tax refunds into some savings bonds that pay a nominal and virtually worthless rate of return. It is by raising interest rates and making saving (i.e., delayed gratification) worthwhile.

But I doubt that’s really going to happen. If everyone saves, who’s going to increase consumer spending, the all-important gauge of economic activity in America?

I know it seems incredible that the market can still go lower, but I’m afraid it will.

It does not inspire confidence when the U. S. administration believes that the economic plans are showing results. I suppose it is true if the aim of their plans was to deepen the recession. But I thought they were trying to stimulate the economy.

Furthermore, Obama’s statement made me go “huh?” It really showed how clueless everyone in Washington D.C. is about the market and how unqualified they are in giving investment advice to people:

What you’re now seeing is profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long-term perspective on it.

I hate to ask, but what are “profit and earning ratios”?

The only ratio with P & E that I know of is the P/E ratio, a.k.a. P(rice) / E(earnings) ratio. In business lingo profit and earning are more or less the same thing, so it’s a bit odd to create a ratio out of those two because the result will always be “1″. Also looking purely at the P/E ratio to evaluate any particular company stock’s potential is utterly ridiculous. There are so many variables to consider, and historical performance is not indicative of future performance.

Furthermore, earnings (a.k.a. profit a.k.a. income) should be regarded with skepticism. There are many ways to fudge the data and adopt different types of amortization schedules and so on to either inflate or deflate income. This means you must read the notes and do some heavy-duty calculation (meaning accounting) yourself to ensure that the earnings data you’re using for Company A is truly comparable to other companies within the same industry and so on.

This is why IMHO the most important financial statement is not the balance sheet or income statement, but the cash flow statement. If you don’t have enough cash to operate your business you will go bankrupt (unless you’re “too big to fail”). You’d be amazed at the kind of insight you can gain by looking at a company’s cash flow statement.

Anyway, I’ll be holding onto my cash until the market has truly hit the bottom.

mood: upbeat
current workshop: Margie Lawson’s Defeating Self-Defeating Behaviors
bought yesterday: Philips Sonicare R732 HealthyWhite Power Toothbrush

Went to McD for a Big Mac. It was that or cooking. For whatever reason, McD in Japan tastes better than McD in America. I think it’s due to the fact that Japanese franchisees use fresher veggies, etc.

Yesterday, I bought Sonicare. I’ve been thinking about buying it for a long long time. It’s less than $150 in the States. In Japan, it’s $200. (For those of you who think protective tariffs are great, this is the result — paying 25-50% more for the same stuff, just because it’s made by a non-domestic firm.) Hero Material and I used it last night, and we decided that it is indeed excellent. My teeth feel extra clean.

This Christmas / New Years, I’ve mostly bought books, some stuff from VS and so on. For whatever reason, I’m not really interested in shopping. This month I’m also going to close my HELOC account the second I pay off the balance. I don’t see any point in keeping it since the bank won’t let me withdraw any money out of it. So yes, my bank did lose a customer, but I don’t think it cares. Oh the joy of modern banking.

Hero Material and I’ve been watching The Closer recently, and who would’ve thought it would manifest in my subconscious?

A couple of nights ago, I had this weird dream that Kuro committed some kind of crime. I don’t even know what he did, but that’s not the point of my dream. The poor hamster was arrested, complete with teeny handcuffs. Shiro, with her litter, came to the police station to defend him. I was playing the Brenda Leigh Johnson character (the investigator, if you’re not familiar with the series), so of course I asked her lots of difficult questions. The poor hamster squeaked in distress, hopping around on the table, but I didn’t believe that she was telling me the truth. Meanwhile the infant hamsters were writhing on the table, blind, deaf and hairless. It was just really surreal. Kuro told Shiro he loved her, and the dream more or less ended.

On the non-weird-dream / hamster front, the weather’s been odd. The temperature plunged suddenly, and it’s freezing here. The big news here is the “massive” layoffs of maybe 2,000 workers or so by several local corporations. In Japan, there are two tiers of employment: seishain (full-time regular company workers) and contract / temporary workers. The latter category is broken down into two categories: shokutaku shain and hakken shain. Shokutaku shain is someone employed directly by the company on a short-term contractual basis, usually for a year. Hakken shain is what most Americans consider temp workers, meaning the company got them through temp agencies. When companies decide to cut costs, they usually let go of their contract / temp workers first. Currently Japan still clings to lifetime employment, and companies have certain obligations to their seishain. That includes not firing them first, paying for their health and pension insurance premiums, giving perks, bonuses, etc. (Contract / temp workers do not receive any bonuses or pay raises, etc.) Due to all this inequity in employment, a lot of non-seishain have been protesting the recent layoffs, etc. Furthermore, IBM Japan laid off its seishain (gasp!), which created even more drama. Oi.

BTW — The Big Three bailout is a huge conversation topic in Japan. After all, it does affect Japanese firms. Auto suppliers hope for the bailout since many of them have contracts with the Big Three. I enjoy reading financial analyses, etc. but if I read another person write that Japanese firms have a huge cost advantage because they get free health insurance and pension, I’m going to scream. I’ve been in two countries with nationalized health care. It is not free. Everyone must pay. People pay about $400 or so per month, and if they’re seishain, companies pay a big chunk of it. Companies also pay for their pensions. If that’s not bad enough, Japanese companies must ensure that their workers aren’t overweight or overly rotund around the middle or pay an enormous fine to the Health Ministry for overburdening the national health insurance system. Furthermore, the government had a huge screwup with its pension funds, and since Japan has too many retirees and not enough young workers, it’s planning to double the sales tax. So please, stop with all this “free” stuff.