It was just another Sunday. It is laundry day.

As I reluctantly woke up to my mom’s voice, I rolled up my bedsheets and what dirty clothes I had into a ball and tossed it into the washer.

About 45 minutes later, I heard a whipping cry as my mom pulled my iPhone 3GS from the bundle of wet clothes. Exactly how that happened is still a mystery to me but I blamed my half-asleep state of mind.

The Proper Reaction
The typical instinct would be to poke at every button in an effort to elicit any signs of life. Instead, I hopped on my laptop and resorted to good ole’ Google. Soon, my iPhone was in a Ziploc bag filled with uncooked rice and silica gel packets.

For the next 3 days, I’d occasionally open up the phone and place it where there was a light wind current from the fan.

In the meantime, I was able to find a Motorola RAZR, which was able to work with the SIM card from the iPhone 3GS. It felt like such an ancient piece of hardware but I had not other choice.

A Tragic Loss
Unfortunately, after completely drying the iPhone 3GS, it failed to turn on. My baby did not survive a full wash cycle.

It was still under the one-year warranty from Apple but the warranty does not cover water damage. Each iPhone has moisture indicators in the headphone jack, the sync cable port, and on its internal components. Therefore, Apple will know if your non-functional phone was the result of water damage.

My Options
I went directly to the Apple Store to let them know of my situation and see what I could do from here on out. Since my phone wasn’t covered under warranty, I couldn’t get a new or refurbished 3GS squat-free. And, iPhone 4′s were sold out in stores and were estimated to ship in 3 weeks.

Only 10 months into my two-year contract, I checked my upgrade eligibility with AT&T and a 3GS (8GB) would cost me $299 while an iPhone 4 (16GB) would cost $399.

Next, I head to the world’s most popular auction site and looked around for any iPhone 3GS. The price range for a used 3GS on eBay was $300-$400. Then, in hopes that someone on eBay was willing to pay for a water-damaged 3GS, I searched the completed listings for broken, as-is, non-functional, and water iPhone 3GS and found that they sell for quite a lot!

If I was lucky, I could get over $200 for it. That settled it for me.

My plan was:

1. Order the iPhone 4.
2. Use the RAZR until the new phone arrives.
3. Sell my 3GS when the new phone gets here.

Making Me Whole Again
Logging in to the AT&T account to order the iPhone 4 took less than 5 minutes. While Apple said it ships in 3 weeks, AT&T said it would ship in 7-14 business days.

Surely enough, I had the iPhone 4 in my hands two weeks later.

After practicing some of my unremarkable product photography skills, my water-damaged iPhone 3GS eBay listing was up for a Buy-It-Now price of $230. I was overshooting it quite it bit but that’s my method of selling.

Within 30 minutes, I received a $190 offer for it. I countered for $200 and it was done. I pocketed about $180 after fees.

So, I “upgraded” my phone for about $40 more than a new customer and had to renew the two-year contract (but still kept the $30 unlimited data plan).

Living a few weeks without an iPhone felt like a handicap. I guess that’s what technology has done to us. And contrary to popular belief, I did not “wash” my 3GS as an excuse to get the iPhone 4 – I didn’t want to get it yet. But, life threw a curveball at me and I think I came out okay.

(Photo credit: kona99)

For someone who can’t go anywhere without the use of public transportation, I was left in the dark for quite a while when it came to buying MetroCards for the subway.

In high school, we were given student MetroCards. And the few times that I couldn’t use the card, I piggybacked on a unlimited MetroCard. In college, I bought a MetroCard that had many, many rides in it and used it during the few weekends that I came home. Therefore, I wasn’t accustomed to MetroCard refills.

Ever since graduation, I was traveling with a per-use MetroCard. Then, my younger cousin pointed out to me that I could refill my card and keep the few cents in bonus money that the MTA gives us when we buy multiple rides in a single purchase. Usually, I toss the cards when there a few cents left on the card since I couldn’t get a full ride on it. Refilling the card would tack on more bonus money that would some day equal to a full ride.

Now that I know, I’ve been taking advantage of it and saving a little bit every time I fill up. I still feel like a fool not knowing this early.

And now, on to some interesting money articles as of late:

• How Much Credit Card Rewards Cost the Poor at Bucks New York Times Blog. Deeper analysis of the credit cards reveals that the rewards system is transferring wealth from the poor to the rich. Retailer up their prices to cover the cost of rewards. Since the rich are likely to use their credit cards to reap these benefits and the poor are more likely to use cash, the poor pay for the rewards that they don’t get.
• Is It Better to Rent to Males or Females? at Financial Samurai. We all want the perfect tenant – pays on time, quiet, clean, and likable. Although we know there are laws to forbid landlords from discriminatory practices, gender differences play a huge role for potential tenants.
• What Will Retirement Look Like For Younger Generations at Frugal Dad. It’s true. The world is changing at such a rapid pace that the lifestyles from 5 years ago will not be the same in the next 5 years. Humans are living longer and the world is a difference environment overall. For retirement, it will be the same. As a part of the younger generation, I try to prepare but our situations would change our perspectives.

Carnivals in which Realm of Prosperity participated:

• Carnival of Personal Finance! at Ultimate Money Blog
• Festival of Frugality #241: A Midsummer’s Night Dream Edition at Yes, I Am Cheap

(Photo credit: ishane)

Two weekends ago, the retro release of the Nike Air Max 90′s Infrared colorway was the only thing on my mind on that Saturday morning.

It is a timeless style that any sneakerhead could not afford to miss – that’s right, I still consider myself somewhat of a “sneakerhead” even though I’m not that punk in high school anymore.

Luckily, the local Footaction and Modell’s still had my size in stock and I picked up a few pairs.

This may seem like the obsessive jibberjabber of a compulsive spender deeply immersed in a subculture suffering from a sneaker fetish. But, there is nothing weird about it when it presents a business/investment opportunity.

Economics of “The Shoe Game”
The top echelon of the this subculture includes classic Air Jordans and limited edition Nike sneakers. Like all commodities in the world, they’re part of an economy that is governed by the laws of supply and demand. More and more young kids are being introduced to “the shoe game” and I see everyone trying to be part of the cliques rocking $300 pairs of sneakers. Demand continues to grow and I don’t see any resistance.

Supply decreases as everyone starts to wear their new sneakers. Demand increases as more people adopt this fashionable subculture – and from my personal experience, it becomes an obsession and addiction. The natural effect is a price increase as quantities of the limited sneakers begin to dwindle while the amount of buyers continue to grow.

Any pair of unworn Air Jordan sneakers from the 1990s can easily be worth thousands of dollars (since there aren’t many of them lying around).

Any investor can identify this recipe for a profitable market.

Why Kicks Are More Profitable Than Stocks
My favorite unique property of a popular sneakers is that they have the ability to retain or increase in value despite having been worn and used. Most people feel that it is disgusting to wear shoes already worn by someone else. To the sneakerheads, worn shoes is not a significant issue. On the other hand, condition and appearance is most important. After all, these sneakers are worn to make fashion statements.

If the sneakers are worn but kept in good condition, it is possible to still make a profit after a year or two.

The main reason popular Nike sneakers remain popular is because there is an ever-growing consumer base. If you have the right sneakers, there will always be buyers. The subculture has a loyal following that is passed on to future generations and spreads like wildfire. It is contagious among family members and friends. Soon, everyone is competing with each other to see who has the rarest pair of sneakers among the group.

Although I’m an advocate of frugality, I can’t help but admit that I’m glad that the subculture breeds an addiction that keeps people spending even though they’ll probably never wear the 50 pairs of sneakers in each of their closets. It’s a trait supporting my confidence in sneakers as a great investment opportunity.

Each pair of Air Max 90′s that I bought two weeks ago cost me $94.99. Assuming Nike doesn’t release this classic colorway again in the next two years (and history has told us that it most likely won’t), I can guarantee each pair will sell for at least $130. That is equivalent of a 16.98% annualized return – topping the S&P 500 average return of roughly 9 to 10 percent. But, I wouldn’t be surprised to find myself getting $150 for each (25.66% annualized return).

Disclosure: I do not own any shares of Nike (NKE).

(Photo credit: AchimH)

Mark Fisher is a self-made millionaire who shares a timeless story in his book The Instant Millionaire. This is not your typical book filled with tips on budgeting, saving hacks, and investing principles.

The tale covers a brief period of a young man’s life when he’s had enough of his dead-end job and decides to pay a visit to an old man known as the Instant Millionaire. The millionaire has an agenda from the start and uses a combination of ploys and conversations to teach his visitor the lessons he learned that made him a millionaire.

The lessons that I liked in The Instant Millionaire were:

• Goals are self-fulfilling prophecies, not objectives. Setting concrete goals to reach a seven figure net worth is the first key step to becoming a millionaire. Without a destination, we don’t know what path we should take and eventually end up going nowhere. Repetitive acknowledgement of the future has the magic of making it a reality.
• Words can be powerful. Not only do we have to set goals, we must write them down and say to ourselves that we achieve what we set out to accomplish. How much we believe in those words is crucial in how likely those words are to come true. So, the people who talk themselves in the mirror may not be crazy – but utilizing the power of words.
• Love thy work. The old millionaire in the story tells the young man that many millionaires continue working despite having amassed enough wealth to live for a long time. This is because they genuinely enjoy what they do and want to continue doing it regardless of how much money they have.

Great Start, Slow Ending
Throughout the first half of the book, the story progresses quite intriguingly with a slight vibe of mystery. At first, the encounter between the millionaire and the young man are thought-provoking and challenges our logical reasoning. By the latter half of the book, the teachings of the millionaire become spiritual in nature and they confer in elements of deeper meaning.

The transition from deliberate mind tricks to prolonged blabber disappointed me as I was hoping for more of the deceptive lessons to becoming a millionaire. But, Fisher finishes the story with a very surreal ending that left me spellbound.

Nevertheless, I loved how Fisher used a narrative story to his points across, which was a refreshing approach compared to the other books out there that are basically guides in personal finance. He probably had to do so since a motivational how-to guide to wealth would be quite dull and boring otherwise.

Overview
The Instant Millionaire is a quick two-hour read that motivates readers to chase what they want while enjoying the whole process. The title of the book may be deceiving since we’d expect the same old content voiced in all the other book titles with “millionaire” in it. Instead, it belongs in the self-development and motivational category with a tale that propels us into a mindset of a millionaire.

The book isn’t literally saying that one can become a millionaire with the blink of an eye but we can become a millionaire mentally. The Instant Millionaire delivers a philosophical approach that makes it a book that can be reread to stay focused on the goal of becoming a millionaire – which is probably a goal for most people.