Debt

Governing Downside Economic Risk

A governor, or speed limiter, is a device used to measure and regulate the speed of a machine, such as an engine. I have taken that concept and applied it to finance. You put in place a governor that limits the speed at which you could potentially lose money.

Here is how I apply it:

  • I do not buy disposable products. Why throw money in the garbage?
  • I place stop loss orders for every stock/ETF I own at 4.5% below its cost basis. My upside is not capped but my downside is.
  • I use alternative income streams rather than bet everything on a single business venture.

Pay Out Social Security Contributions Then Shut Down the Program

SsOf course you can't do that because that would save the government literally trillions of dollars!

Take me as an example. I have paid in $69,058 as of 1/1/2011. Assume I could request a check for that amount right now and not collect Social Security at retirement.

If I live to 75 (male life expectancy from wiki) and retire at 62. I would receive $828 every month for 156 months from Social Security. That is $129,168.

The government saves $60,110.

Over the next 20 years, 74 million boomers will retire. If my situation is "typical" the government could save $4.45 trillion!


Beater Bucks ~ 7 Tips To Keep Your Car Running

  1. Change the oil and air filter per manufacturer recommendations
  2. Replace your timing chain per manufacturer recommendations
  3. Flush your coolant every 2 years
  4. Check your belts and hoses every oil change
  5. Check you tire pressure every fill up
  6. Replace your spark plugs every 2 years or so
  7. Hose down the underneath of your car if you live in an area where salt is used

Pre Pay Your Mortgage

I use a FREE Excel based mortgage spreadsheet to see how the life of my mortgage would change if I paid a little more each and every month to the principal. It amazed me! By paying just an extra fifty dollars a month, I was able to shorten the length of my loan by five years and ten months and save more than $18,000 in interest!


Why The Cheapo Groovo System Works While Other Fail!

In a nutshell, STATISTICS. 60% of new businesses fail within their first five years.

My system applies the same diversification techniques used by stock investors to employment. Why specialize and bet the farm on one career? Instead you should have multiple income streams!

With my system, you are using assets, avoiding liabilities. You perform tasks that you were doing for free but now get paid for (searching, clicking links, watching videos). You are not spending tens of thousands on a college education that will be useless, obsolete, or outsourced. You combine practical entrepreneurship, with a frugal lifestyle, with a proven investment strategy!

My favorite income stream is selling covered calls. Did you know that over 75% of options expire worthless?  That means I keep my option premium and can repeat the process all over again.

Unlike network marketing systems, you will earn income even if no one joins underneath you. And unlike the touts and come-ons all over the Internet, I document all my income streams.


The Best Bailout Plan Would Have Been To Rescue Homeowners

How? By simply paying off their mortgages. Since 2/3 of GDP is consumer spending, the savings would have gone to buy products/services. That would have kept the unemployment rate from rising.

Here is what my research shows:

The quarterly survey published by the Federal Reserve, called the Flow of Funds Report, shows the total value of all home mortgages in the U.S. was $11.2 trillion through the third quarter of 2008.

According to a team at Bloomberg News, at one point last year the U.S. had lent, spent or guaranteed as much as $12.8 trillion to rescue the economy.

Here is what they did:

$9 trillion given to 8000 banks.