Spotlight
Basic Math: The Median
The median is the middle number in a sorted list of numbers. In other words, it is the value that separates the higher half from the lower half in a data sample, population or probability distribution.
The benefit of median, particularly versus another type of average such as a mean, is that the median is not skewed by a small number of extremely large or small values. In this way, it can sometimes be more illustrative of the data set than a simple average. To say it another way, the median may sometimes be a better way to say what a “typical” value is.
My Personal Finance Habits and Process
I believe that systems beat goals and habits beat checklists. In order to incorporate personal finance consistently into my process, I’ve used a few techniques. One of those is to turn the activities into habits. The other is to tack those onto already existing habits I already perform regularly.
Eight Income Streams of Wealth Generation
The IRS breaks income into three types – earned, portfolio and passive. However, that is too simplistic for our purposes. If broken down not based on IRS qualifications,…
Basic Math: Trim Mean Average
A trimmed mean is a system of averaging numbers where a certain percentage of the smallest and largest values are excluded prior to calculating the average. In other…
Financial Planning Continuous Improvement
In my opinion, personal finance isn’t something that you do for a few weeks, months or years until you’re financially well off – and then stop. To be truly successful at building wealth, it needs to become a lifestyle. Something you just do. Like breathing.
Yes, for most, there will be a paradigm shift as they first begin to learn the core principles of finance. However, at a certain point, you will achieve an equilibrium or plateau. Following the blueprint means you should be striving to constantly improve. Small changes. Continuously and consistently. This is what that process looks like.
Books
There is an amazing amount of knowledge available through the man personal finance books out there. In my humble opinion, these are the most important.
Eleven Elementary Rules of Personal Finance
I like principles. I like rules. I don’t always follow them, mind you! And I certainly know when to purposely break them, in order to get where I need to be, or do what I need to do. However, I like getting knowledge that has been ‘tested’ out by people who came before me. Knowledge transferred saves me having to learn lessons the hard way. As far as I can tell, these are some pretty solid lessons learned over Human history that can pretty much, be universally applied to wealth building. In other words…The more you follow these “rules,” the better your financial situation will become.
Continue Reading Eleven Elementary Rules of Personal Finance
Basic Math: Geometric Mean Average
The geometric mean is the average of a set of numbers by using the product of their values, as opposed to using the sum, as in the arithmetic mean. The value of this method of calculating average can be seen commonly when calculating the performance of an investment or portfolio.
Explore
Eight Income Streams of Wealth Generation
The IRS breaks income into three types – earned, portfolio and passive. However, that is too simplistic for our purposes. If broken…
Basic Math: Trim Mean Average
A trimmed mean is a system of averaging numbers where a certain percentage of the smallest and largest values are excluded prior…
Financial Planning Continuous Improvement
In my opinion, personal finance isn’t something that you do for a few weeks, months or years until you’re financially well off – and then stop. To be truly successful at building wealth, it needs to become a lifestyle. Something you just do. Like breathing.
Yes, for most, there will be a paradigm shift as they first begin to learn the core principles of finance. However, at a certain point, you will achieve an equilibrium or plateau. Following the blueprint means you should be striving to constantly improve. Small changes. Continuously and consistently. This is what that process looks like.
Recent Comments