If you're new here, this blog will give you the tools to become financially independent in 5 years on a median salary. The wiki page gives a good summary of the principles of the strategy. The key to success is to run your personal finances much like a business, thinking about assets and inventory and focusing on efficiency and value for money. Not just any business but a business that's flexible, agile, and adaptable. Conversely most consumers run their personal finances like an inflexible money-losing anti-business always in danger of losing their jobs.
Here's almost a thousand online journals from people, who are following the ERE strategy tailored to their particular situation (age, children, location, education, goals, ...). Increasing their savings from the usual 5-15% of their income to tens of thousands of dollars each year or typically 40-80% of their income, many accumulate six-figure net-worths within a few years.
Since everybody's situation is different (age, education, location, children, goals, ...) I suggest only spending a brief moment on this blog, which can be thought of as my personal journal, before looking for the crowd's wisdom for your particular situation in the forum journals.
In reality, what happens happens. However, once an observer or an agent is introduced, the agent will try to model, mold, or change reality. Any modeling or molding of reality has known-knowns, known-unknows, unknown-knowns, and unknown-unknowns (Read more here). Known-knowns follow from certitude. Unknown-knowns follow from incompetence. Risk deals with uncertainty in the form of known-unknowns, which are usually handled statistically, and unknown-unknowns or so-called black swans. With that in mind, I proudly present The Cavalcade of Risk #49.
GENERAL
- Rich Maltzman, PMP presents A verse on risk posted at Scope crêpe.
INVESTING
- Dorian Wales presents Long Term Investments Are Not Risk Free: The Fallacy of Large Numbers and the Past Decade in Us Stock Markets posted at Personal Financier
- Charles H. Green presents Great Moments in Self-Regulation: Financial Planners and CFP Board posted at Trust Matters.
FINANCE (BEAR STEARNS)
- Leon Gettler presents The Bear Stearns fallout and a solution posted at Sox First.
- Jeffrey Miller presents The Fed and Bear Stearns Collateral: Back Door Buying of Mortgage Securities posted at A Dash of Insight.
INSURANCE
- Debbie presents Take the Necessary Steps to Save on Auto Insurance posted at American Consumer News.
- Ernesto TIG presents Health Insurance for Adult Children | InsuranceYak.com posted at InsuranceYak.com.
- Bob Vineyard, CLU presents Right and Wrong posted at InsureBlog.
- Jason Shafrin presents Medicare Advantage funding to be cut posted at Healthcare Economist.
- FIRE Finance presents Wild Fire Disaster – Insurance and Preparation! posted at FIRE Finance.
- Mortgage Helper presents Private Mortgage Insurance vs. Combo Loans posted at Mortgage Tips and Credit Help.
STARTUPS
- Adfecto presents Overcoming the Fear of Failure posted at Adfecto Abundantia – Aspire 2 Wealth.
- Debbie presents Stay Away From Get Rich Quick Schemes posted at American Entrepreneurship.
- Debbie presents Open Communication in the Business Environment posted at American Small Business News.