Philosophy

Fixing The Economy IS Easy

Social Security
Means test benefits. If you made twice the median salary in your last 5 years of employment, you  get reduced benefits.
Eliminate the income limits. Why should you stop paying in just because you made more than $106,800? There are no income limits on medicare.

Revenues
Legalize and tax marijuana. That may be $40 billion to $100 billion in new revenue!
Legalize and tax sports betting. Although only 35 states currently allow "gaming", that number is sure to grow. Adding $50 million to a state budget will help to eliminate the need for federal dollars.

Economic Growth
A natural gas based economy. Get fleet vehicles and 18 wheelers running CNG. Get Detroit making those vehicles. And export LNG to other countries (USA natural gas is $2.76 but it can be liquified and sold much higher.

Homeless
Make shuttered schools into shelters. They have showers, gyms, bathrooms, cafeterias, computers, and plenty of room for beds. Laid off teachers can re-train these folks in the Cheapo Groovo system, which has no layoffs or outsourcing.


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.

Automatic Investment Management – AIM

AIM is an investment method devised by the late Robert Lichello. This method is a proven way to take advantage of the inevitable market swings to enable us to ‘Buy Low / Sell High’.

Groundrules of how the AIM Strategy works:

  1. When starting with a lump sum, only invest 50% from the start.  If establishing a monthly investment plan, also split this allocation to 50% invested (after all, there’s a 50/50 chance the market will go up OR down tomorrow!)
  2. Utilize a cash account to maintain your investment reserves / gains, awaiting further investment (starting with the second 50% of your lump sum, and then including the proceeds from sales as well as 50% of any subsequent monthly investment.)
  3. Be prepared to sell a portion of the gains you have realized and deposit them into your cash account, per the AIM algorithm.
  4. Be prepared to buy some back with your reserved cash account when the stock declines.
  5. Set a routine period of time in which to analyze the markets direction, and take action.
  6. The algorithm is relatively simple.  It involves several key points:
    1. Portfolio Control:  Running total of your stock purchases (total initial purchase plus 1/2 of follow on purchases; however it is never deducted from in a sale) in order to keep a basis of where the portfolio should ‘aim’ to be.  This is the ‘governor’ of the system – it drives the initial assessments about buy and sell decisions. 
    2. Buy/Sell Advice:  Based upon the current Stock Amount (currently owned shares times current price) compared to the Portfolio Control figure.  When the Portfolio Control amount is larger than your current Stock Value, you will look to buying (the Market is down.)  When your current Stock Value is higher than your Portfolio Control, you will look to selling (the Market is up.)
    3. SAFE (Stock Adjustment Factor Equalizer):  10% of the Stock Amount – After you do the analysis in [b] above, you compare the results to your SAFE amount – you only pull the trigger on a sale or purchase for the amount of Buy/Sell Advice less SAFE; this controls you from selling or buying too prematurely.

TIP ME and I will email you the spreadsheet and a help file!


Tiny Home Living

We purchased our park model trailer for cash. We could only guesstimate our expenses. Now I can see how much they are. My goal of $860 a month (which I determined back in 2006) was pretty good!

All numbers are per month.

HOA dues = $58.33. This covers sewer, water, use of the lodge, road maintenance, etc.

Electricity = $110 in the winter, $20 in the summer. We use two electric space heaters during the cold months. Looking into a wood burning stove.

Propane = $37.50 for heat and cooking

Gasoline = $30 thanks to driving a Prius

Food = $400 since we dine out a lot and buy from the health food store. Can't grow anything w/o a hoop house.

Insurance (home, auto, health) = $308.33


Extreme Couponing Exposed

What money you might be saving, you are wasting two-fold in the amount of time it takes you to properly shop with coupons. It's downright complicated. You have to subscribe to the newspapers, clip, sort, and store the coupons, find the store's deals that week, figure out what coupons can work with the deals, go shopping (often times having to visit multiple stores), and then, additionally, plan out and shop for the things your coupons don't work for (but you still need).

Coupons are meant to bring down the price of name-brand items. But, have you noticed that name-brand items are typically more expensive to begin with? One of my favorite frugal living secrets is that store-brand items are usually made by the name-brand factories.

Most coupons are for pantry items. It's next to never that you'll find a coupon for fresh produce, dairy, or meat ... which is typically the stuff that we go through the fastest, and costs us the most.

Just because something is a good deal -- whether you use it regularly or not -- doesn't mean you have to buy a three-year supply of it.

Stores across the nation have tightened up on their coupon policies.

And most couponers realize their addiction and stop!

20121030_tmm_03

 


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 Less is More Lifestyle

Ditching the car

  •  Census data shows that the share of 16 to 24 year-olds traveling to work by car declined by 1.5 percentage points between 2006 and 2013, while the share of young people getting to work by public transportation, on foot or by bicycle, or else working from home, had increased.
  • Young people aged 20 to 30 are less likely to move from central cities to suburbs than at any time since at least the late 1990s.
  • Millennials consistently report greater attraction to less driving-intensive lifestyles — urban living, residence in “walkable” communities, and openness to the use of non-driving modes of transport — than older generations.
  • Fewer young people are getting their driver’s licenses than even a few years ago. The percentage of high school seniors with driver’s licenses declined from 85 percent to 73 percent between 1996 and 2010, according to the AAA Foundation for Highway Safety, with federal data suggesting that the decline has continued since then.

Living in shipping containers

Source: Travis Price Architects DC shipping container apartments