Posts Tagged ‘finances’

“The cashless society is the IRS’ dream: total knowledge of, and control over, the finances of every single American.” -Ron Paul

The problem of human nature shows no mercy for any aspect of life.  Be it losing weight, starting a hobby, exercising, cleaning out the garage, or attempting to eat right; few have overcome its grip on their life.  When it comes to utilizing a private reserve of finances, it is no different.  It is easier to simply borrow the money for large purchases rather than using, or developing, a reserve of monies.  The result of succumbing to human nature, financially, is exchanging future wealth for today’s interest payments.

Fastest Debt Payoff

Posted: May 25, 2012 in Money Matters
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Factorial math tells us that with six debts, there are seven hundred twenty possible avenues of payment.  With all of these possibilities, which option should be paid first in order for one’s money to be used most effectively?  And, how much money should be sent?  How can this possibly be determined?  What is needed is a GPS for our finances, or financial intelligence, that determines the quickest route for us; something that eliminates the guesswork and provides immediate feedback to daily financial decisions.

Financial Wisdom

Posted: March 16, 2012 in Money Matters
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There are countless words of advice when it comes to finances.  But, there is perhaps none more crucial than what Thomas Stanley reveals in his book, Stop Acting Rich:  “Whatever your income is, live below your means.”

Consistent Averages

Posted: February 3, 2012 in Money Matters
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Most people are highly concerned with averages when it comes to their finances.  However, most of them do not realize that equal numeric averages are not equal in actual results.   A person who makes an 8% return for three years and 2% over the next three years, averages a 5% return over the six years.  Another person makes a 5% return each of the six years.  Assuming both people have $100,000 in an account at the beginning of this six year period; the first will have an account value of $133,682 at the end of the six years and the latter will have a value of $134,010.  This difference is volatility and shows that money with consistent returns win.

Any purchase consideration should not focus on what is paid for, but on how one pays for it.  This simple adjustment in capital outlay will result in huge changes to a person’s financial well being.  Developing a private reserve from which to make purchases will grow finances rather than shrink them.