I saw this proverb a few years ago through StumbleUpon and I re-discovered it recently. As part of the PF blogosphere, a lot of our attention is focused squarely on attainment of financial independence and eventual retirement. For your reading pleasure, a different take on the rat race: (source) Author Unknown An American tourist was […]
I have a shocking confession. I don’t own an iPhone. Nor do I own an iPad. Revealing this dark truth about myself often inspires remarks of sympathy, disgust and genuine concern: “How can you live without an iPhone?” Civilizations have been around since about 12,000 BCE so I sometimes find it astounding that humans have […]
Bells are ringing! I am finally worthless! With my paycheck today my net worth has finally passed the literal and psychological $0 barrier. My financial leverage given a net worth of $1 is about 45,000-to-1. Let this be a lesson to everybody: massively over-leveraged financial positions can only end positively. Look at Long-Term Capital Management, MF Global, Bear Stearns and AIG: their executives still managed to escape with millions of dollars!
Personal finance experts frequently tout the advantages of having a six month emergency fund, if not a more conservative twelve month fund. There are many reasons that a citizen would need to dip into their emergency savings: family illness, death, severe medical expenses, unplanned pregnancy or job loss to name a few. Many reports however, indicate that many (>25% or >50% depending on your definition) Americans still are not prepared for a downturn scenario.
The multi-payer system sets up the incentive for those without their own insurance to be unhealthier. Car accident deaths increased after the seatbelt law was instituted. When I finally have to foot some of the bill, do I still want to see Americans wolfing down their Wendy’s?
Media and fellow bloggers alike enjoy bemoaning the hazardous plague of inflation. I will show that not only is this argument not grounded in reality, but that it also ignores many ancillary benefits of an inflationary rate: spending encouragement, debtor relief and avoidance of a deflationary spiral.
It has been mentioned here and elsewhere that the mortgage interest deduction in the tax code is a roundabout way of subsidizing banks. If interest rates are determined by supply and demand then the demand for interest rates is only dependent on what a taxpayer’s “effective interest expense is”. A new study suggests that most of the benefits fall into the hands of lenders.
As has been mentioned in previous articles, people from all demographics have a taste for gambling. As Personal Finance blogger, I may not seem like the type of person who is intrigued by lottery payouts, but here in the States the recent Mega Millions drawing was estimated at a lump sum payment of $462 million. If we assume a 1 in 176 million chance to win and a 50% tax rate, the expected value of a $1 lottery ticket seems to be $1.31! Additionally, losses are tax deductible against other gambling winngs (meaning that $1 may only cost you $0.75 or less) and a significant portion goes to fund state governments, very often in the form of education subsidies.
We have dealt a lot recently with historically low interest rates and their implications on not only the cost of housing and mortgages, but also implications for consumer credit and inflation. Although we have explained home price affordability in the San Francisco Bay Area before, we haven’t discussed the large variance in regional real estate prices.
Personal finance bloggers and personal finance connoisseurs (such as me) often feel that they have ultimate control over their actions. The belief is that if one is aware of their goals, the can reach them with the greatest of ease.
- Do you want to create an emergency fund? Spend four months building one.
- Do you want to retire at age forty? Control spending now and begin investing in tax-sheltered investment vehicles.
- Do you want to reduce your money spent on gas? Simply hypermile!