These are things that I don’t spend money on. Cigarettes I understand why people like cigarettes. The little nicotine buzz can be delicious. Unfortunately, the delicious buzz needs to be repeated again and again and again. Cigarettes are full of an addicting combination of ingredients all vying for your undying loyalty while slowly destroying your… Read More »
The most valuable thing money can buy is freedom from having to worry about money. Unless you live with one of those tribes in the Amazon that have had no contact with the vast majority of human-beings, you will cross paths with money (“Cash”) constantly. It’s up to you to decide if Cash will be your… Read More »
I’m updating my visual aid each month and here is where I stood at the end of September 2013 for my goal of financial independence. My passive income reflects growth in my net worth. Read my assumptions to get this figure here. My expenses have been higher than normal the last few months. This was my… Read More »
Step 1) Make two lists. On the first list, write down everything you need. On the second list, write down everything you want. Differentiating between a need and a want is a crucial step in bulking up your financial avatar. Hint: Almost everything is a want. Here’s an example. Needs Toilet Paper Dog food Bread Wants The… Read More »
Compound interest is a marvelous mathematical tool that’s either working for you or against you. Rich people stay rich and get richer by understanding the power of Compound Interest. Poor people stay poor and get poorer by an inability to use the power of compound interest. It all starts with your income and expenses. Rich Keep your expenses line… Read More »
I like simple. I have about three months of living expenses in a checking account and every bill is paid out of that account. My paychecks deposit a little more than half my average monthly expenses into that checking account twice a month. The rest is spent buying a Vanguard Index Fund, specifically VTSAX. Simple.… Read More »
No substantive post, but here is a picture of my foster cat plotting to kill me.
It is in Leif’s fortune (literally) that he makes a good income. If he takes a deep breath and dives in completely with my suggestions, he can free up his cash flow and knock out the debt in an astonishingly fast time frame. My job is to show him what’s possible. Here is a presentation I… Read More »
I have not invented or discovered any of the ideas behind basic personal finance. Everything I say will have been said by many different people at many different times, and probably – likely even – in a more eloquent way. The basic gems of money management are obvious common sense. And while I do think… Read More »
I went through six months of Leif’s finances (January 2013 – June 2013) and made some pretty charts in an attempt to diagnose the sickness in Leif’s financial avatar. I’ll start with the good news. Income. Leif makes a healthy income in a profession that is more recession-proof than most and as an independent contractor,… Read More »