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I spent my morning taking the Moroccan empire to victory in Civilization V against the world thanks to an extensive network of highly lucrative trade routes before going to the bank with Aaron to sign the contract for a new working capital line of credit our banker recommended. The whole experience was a pleasant surprise.
So much misfortune in life can be sidestepped if you simply make it a rule to never stretch your finances, yet it’s a rule I see violated more than any other both through observation of those around me and through the messages I receive. Someone can afford a $150,000 house but they try to buy a $250,000 house. Another can realistically go to a college that will cause them to graduate with $10,000 in debt but they want to sign up for the program that will put them $40,000 in debt. Then, not only do they have to hustle to try and meet their legally promised payments, they have to pay rent (in the form of interest expense) on the savings they’ve temporarily borrowed from someone else through an intermediary such as a bank.
I’m going through the corporate bond filings of pharmaceutical giant Eli Lilly just out of curiosity. They have a huge patent cliff coming up, during which time as much as 40% of their revenue base will be exposed to generic competition. I wondered what it would do to the risk metrics on the senior bonds so I pulled the Moody’s rating and reading over the figures as I listen to an old 1970s song called Snookeroo.
Since the energy saving program 4 months ago, the real world results are exceeding projections. Thank you, again, to those of you who wrote me with suggestions! I estimated that the energy efficient light bulbs alone would save an average of 288 kWh per month, or 3,456 Kwh per year. They are actually saving 317 kWh per month, or a run rate of 3,804 kWh per year. That means my net cash savings are around $410 per annum. Over the next 25 years, if I put it to work at average rates of return, it will add an extra $40,300+ in net worth to my family’s balance sheet. By the end of my natural life expectancy, it will add $933,800+ in extra wealth to my family’s balance sheet.
It upsets me that one of my heroes, Warren Buffett, continues to effectively lie about his tax rate being lower than his secretary.
Thank you all for the amazing comments and suggestions you left on my post about my investigative project with the weird kWh figures I was getting from my utility company. I’ve been so obsessed with the project I haven’t had time to write individual responses, but I did read every one of them and, in many cases, add it to a task list to check and / or immediately go out and spend some cash on a device that could help narrow down the problem.
I Think Someone Is Stealing My Electricity … or the Power Company Is Making Up Numbers Okay, it’s not that I think someone is stealing my electricity per se, it is that I have eliminated nearly all other possibilities and have narrowed the situation down to a handful of unlikely scenarios that are the only…
My morning was spent reading the New Hampshire Bar Journal, Winter 2010 edition because I was interested in a piece by Joseph F. McDonald, III called Migrating Trusts to New Hampshire: The “Why” and the “How”. New Hampshire, along with a very few other states, allows the existence of something known as a “silent trust” or “quiet trust”. It made me realize: I think a person could use these to drive a truck through the college financial aid process.
In 1927, Hugh Roy Cullen was approached by Jim West, a wealthy lumberman who had invested in projects with Cullen in the past. On a Saturday, West called Cullen to his downtown Houston office, where he made the following offer: I’ve got $3,000,000 lying around. And I’ve got the West Production Company, which don’t amount…
I’m going to walk you through how I’d save money if I were a typical 25 year old with a spouse and one kid on a $40,000 salary.
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