Helping Ordinary People Accomplish Extraordinary Things
Many families have arranged their financial affairs so that their committed expenses every month almost equal their entire income. Through the choices they have made and circumstances they have endured, they have eroded almost all the financial operating room they have. Unlike the semi which can draw upon additional power when needed, households idling red are unable to use their budget or discipline to change their financial situation.
The Financial Speedometer is a concept that I developed to help families quickly evaluate their current financial situation like they would a stop light.
Speaking plainly, you will never move forward financially until you learn to track your financials and make reasonable financial projections.
In order to explain the concept of gravity and to make the new concept more useful, Newton invented a whole new branch of mathematics called calculus.
Much like the seven deadly sins, there are seven types of financial “people” which although based on a good foundation, will cripple your child if he or she relies too much on one type of character. Like everything else, balance is the key.
Know that really, prices are generally correlated with how much money is available from buyers. When an opportunity comes your way, always evaluate the new salary relative to the median salary in that area.
My poor decisions early in life set me up for unjustified financial risk taking later in life. It took losing everything to give me a chance to start over. I will do it right this time.
The vote is one of the easiest and one of the most treasured political acts a citizen can make. It requires a small investment in your time, yet our voter turnout is shockingly dismal. It is even lower among young people. If it is difficult to mobilize citizens to go to the polls, how can we expect to take on the more difficult work of solving the nation’s long ignored and festering problems?
This book does the wonderful task of explaining such dry accounting concepts of income statements and balance sheets in a very readable and understandable format. It shows the cash flow patterns of poor people, middle class people and rich people. It also shows how from a strictly financial standpoint that it is the middle class cash flow pattern that is the absolute worst one to have.
One of the biggest secrets is that when businesses are staffed by minimum wage workers, prices are driven in large part by the minimum wage. When the minimum wage increases, prices increase in lockstep.