Sunday, October 30, 2005

Here are some recent comments I've left on Lifehacker:

- Dollars and sense: "A part of what you earn is yours to keep." It sounds so simple that it approaches being silly, but it's more difficult than most people are willing to admit. Can you save one penny for every ten pennies you earn? It's been said another way: "Pay yourself first." ... Read "The Richest Man in Babylon" by George Clason and "The Millionaire Next Door" by Thomas Stanley & William Danko. These are very basic, very illuminating books that will hopefully leave a lasting impression on you regarding the essence of managing your financial life and maybe, just maybe, *creating wealth*. ... There's no magic: 1) Save money--make this your first financial priority. What follows next is simple: 2) Spend less than you earn! Live below your means (according to the Motley Fool)! Budget! 3) Avoid the types of debt that work against you (i.e., home mortgage OK, mortgage on investment property OK, student loans bad but still OK because they can increase earning power and typically have very low interest rates, BUT, credit cards that carry a balance BAD, BAD, BAD!). 4) Invest your money. There are too many investment vehicles to name. Find one that suits your personality. This will take significant time and effort, but you must do it. Remember, earning less on your money than the rate of inflation means you're losing money.

- Starter homes: Buying a home you can actually afford is one of those bits of common sense that people seem to have forgotten, for the moment at least. Here's an interesting rule of thumb that I pass on to people: ... Assuming you are not burdened by a large amount of consumer debt, the upper limits of what could be considered 'an affordable home purchase price' are around 3x your gross annual income. If you want to build wealth, limit your home purchase price to 2x (or less) your gross annual income. ... These are extraordinarily simplified notions, and while helpful, should be used with caution. You must look at your total financial picture (especially all other debt obligations) before making any purchase decisions. And of course interest rates affect these multiples. As rates go up, the multiples will go down. ... One final note: I'm a firm believer that home ownership *should not* be the primary means by which one builds wealth. While coastal (and selected other) cities have seen tremendous appreciation, much of the country cannot consistently depend on this type of value growth. ... View owning a home as a tax-advantaged alternative to renting. Then carefully and aggressively invest your money elsewhere.

- How do you use your Palmtop Computer?

- Manage your distractions

[09:39 | Link]

Tuesday, October 04, 2005

Over the years, I’ve heard many parents say how much it hurts to punish their children. What I do not hear discussed as often is *why* it hurts. I suspect the reasons change as your children grow.

Max is two years old. When we punish him it usually involves the infamous “time-out”, or sometimes we put him to bed early without reading any books (he really hates this). For me, at his age, what makes giving punishment hurt is the lost time. I already spend about ten hours per day away from home throughout the workweek. I cherish (as does every parent) every good moment I’m able to spend with Max. Anything that happens to erode or taint this time hurts me.

The old cliché about parents punishing their children: “This is going to hurt me as much as it hurts you...” It really does.

[09:35 | Link]

Monday, October 03, 2005

Yesterday Max said, as we traversed some railroad tracks in the car, "Gate ... goes ... down ... train ... come."