My “Money Design” – 2012 Update

MyMoneyDesign.com, financial checkup, Money Design, financial freedom, automated income, employment income, retirement, pension, 72T, Roth IRA, 401(k), 403(b), Social Security, FICA taxes, annualized return, Passive Income, Rich Dad Poor Dad, Robert Kiyosaki, Monte Carlo analysis, Personal Savings, Annuities, Life Insurance

As part of my annual financial checkup, I have updated my “Money Design” for financial freedom. This is my plan to one day automate my income rather than rely solely on employment income. My plan can be summarized by the flow chart below: … [Read more...]

Gambling at the Casino – Still Not Really Investing

Gambling, investing, casino, slot machine

My wife and I just returned from a short vacation to a local casino. We went there to see our favorite comedian and decided to make an overnight trip out of it. This included hitting the casino floor to test our luck. We had a great time and surprisingly won back almost all the money we started with.More than once I heard skeptics compare investing to gambling. “What’s the point? I might lose all my hard-earned money!”Yes, it is true that you could put all your money on one stock and lose it all. But that would also be a ridiculous and non-advised investment strategy. Taking a more common approach and investing in an index fund would have quite different odds.You see gambling is much different than investing in many ways: … [Read more...]

Props to Chase Freedom’s Fraud Protection Service

I was almost the victim of identify theft.On the evening of Dec 23, I received a call from the Chase Freedom Visa Card Fraud Protection alerting me that someone had tried to buy almost $500 worth of goods from a Macy’s in California. Because I live in Michigan, the purchase was quickly red-flagged and denied. Fortunately, I was spared.The phone call with Chase was quick and painless. They asked me which transactions I’d like to dispute, closed my old account, and told me I’d have a new card with a new number within a matter of days. … [Read more...]

Merry Christmas!

Wreath

Merry Christmas everyone! I’d like to thank all my readers and visitors for making this a very encouraging first year of blogging. I wish everyone the best in health and happiness!  … [Read more...]

Book Review: “Rework” by Jason Fried and David Heinemeier Hansson

Rework

Rework is a collection of advice from the blog “Signal vs. Noise” by the authors’ company “37signals”. In it, the authors trash almost every common corporate practice such as meetings, business plans, projections, marketing, hiring practices, etc. to the credit of their own success. Although 37signals is a small, Internet based company, their products are widely used and the blog has thousands of readers. … [Read more...]

Year-End Financial Checklist

Daily Organizer

The end is near! The end of the year that is … And with that, December is a good time to get you finances in order and get ready to settle with the tax man. Here are some tips to get yourself ready for another year:Set Your Budget for Next Year: Remember, a budget is simple: • Money In – Money Out > 0 = Success. The best way to do this is to create a table with 12 columns; one for each month. Start by listing your income towards the top. Then list all your bills and expenses. This strategy is usually a little more effective than just doing one generic monthly budget because it captures expenses that don’t occur every month or are seasonal (like Christmas expenses). This also lets you see how you’re doing throughout the entire year … [Read more...]