Monday, December 26, 2011

Optimize for investments or salary

My time is limited and in my spare hours, I've been trying to write code to better understand the stock market. My current work involves understanding stock options, which are quite the beast. I've so far gotten as far as writing parsers to get information form the internet and have gone as far as running monte-carlo simulations based on a variety of models but the problem is that I really don't know if these these models are correct and the more I code to create models,  the more I realize the less I know about modelling the stock market.

There is just so much on my own that I will be able to figure out on my own... then I thought about buying some advanced books to read. Then it hit me, I've got a lot of learning to do and I started to wonder if my efforts in this field would be worthwhile.

It is now also the end of 2011, meaning that my expenses spreadsheet for the year is nearly complete and I have a good idea of how much I've spent and saved for the year. Since moving out of the company dorms and into my own apartment, housing costs for me have skyrocketed and the amount saved dropped by about 33% compared to last year. This is even accounting for increases in salary. But the thing is that doing more research in stock picking may increase my investment returns by a few more percentage points. This begs the question, would I be better off investing that time in developing better skills to raise my salary?

Thus, I've started doing more research into engineering salaries and pay for jobs that I could possibly do and for jobs around the world. Thanks to the exchange rate between the yen and the dollar, the numbers look pretty good, but this is after a lot of overtime pay and travel pay that I got this year. On a dollars/hour basis, I don't think that the hourly salary was all that good.

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