Personal Finance Archives - Page 2 of 8

Mar122014

Don’t Give In To the Siren Call of Leverage

Personal FinanceBy Joshua Kennon March 12, 2014 17 Comments

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.

Feb122014

Eli Lilly and the Insanity of Foreign Taxes

Corporate Bonds, Music, TaxesBy Joshua Kennon February 12, 2014 29 Comments

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.

Jan222014

Saving and Investing Money from Lowering Power Usage Electric Utility Bill

My Objective: To Take $2.4 Million from the Stockholders of KCPL Over the Rest of My Natural Life Expectancy

Saving MoneyBy Joshua Kennon January 22, 2014 36 Comments

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.

Oct302013

I Wish Warren Buffett Would Stop (Effectively) Lying About His Tax Rate

TaxesBy Joshua Kennon October 30, 2013 40 Comments

It upsets me that one of my heroes, Warren Buffett, continues to effectively lie about his tax rate being lower than his secretary.

Sep222013

The Energy Saving Investigation Continues!

My Life, Saving MoneyBy Joshua Kennon September 22, 2013 35 Comments

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.

Sep202013

I Think Someone Is Stealing My Electricity … or the Power Company Is Making Up Numbers

My Life, Saving MoneyBy Joshua Kennon September 20, 2013 23 Comments

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…

May122013

Silent Trust Funds and FAFSA Financial Aid

Don’t Silent Trust Funds Constitute a Massive Loophole in Financial Aid Calculations?

Student Loans, Trust FundsBy Joshua Kennon May 12, 2013 10 Comments

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.

Apr262013

One of the Most Important Lessons About Life and Making Money You Can Ever Learn

Making Money, PhilosophyBy Joshua Kennon April 26, 2013 6 Comments

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…

Apr252013

Mail Bag Question for Joshua Kennon Header

Mail Bag: How To Save Money on $40,000 Per Year

Mail Bag, Saving MoneyBy Joshua Kennon April 25, 2013 56 Comments

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.

Mar292013

The Price of Milk in Our Household is Negative

The Cost of Milk for My Household Is Negative

Saving MoneyBy Joshua Kennon March 29, 2013 6 Comments

My family gets paid to drink milk because we take advantage of a dairy rebate program.