If you spent cost of original ipod ($499) on AAPL stock (~53 shares), you'd have about $13,000 today. If instead of buying a '09 Ford Taurus (YESSS) you bought F stock, you'd have about $200K today.

Obviously these are very selective cases, but it leads me to wonder, what would happen if I forced myself, upon any large purchases, to also buy the stock of these companies in an equal (or exceeding) amount?

It would be interesting because it'd force me to budget a LOT more (thus cutting spending). Also, your implicit purchase of an item indicates quality in the company - and you wouldn't feel so bad if that company ended up doing well.

Even looking at the things I've been excited about - if I had bought Amazon's stock when I crowed about the awesomeness of Amazon S3 - I'd have nearly quadruple my money!

What's great about Mint.com is I can go back and look at how much I spent on different companies, and from the spending patterns, it's clear where I need to buy some stocks.

So this year, I'm going to try this out. Any time I spend more than $250 with a publicly traded company for a year, I must buy their stock. (I will tweak the exact amounts soon, as different industries have different rules).

In order to play catch-up, I did a little digging into my Mint and discovered I've spent a disproportionate amount of money on these companies:

  • Amazon
  • Shell
  • Banana Republic
  • Treasure Island (UGH)
  • Southwest
  • Macy's (bought a single piece of furniture, doesn't count)

Time to add these into my watchlists and get in when the price is right!

(And seriously, a big plug to Mint.com. This app has really changed my life. If you're not using it, you don't know what you're missing out on).

Posted by roy on May 21, 2010 at 01:00 AM in Ramblings, Finances | 1 Comments

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