Month: August 2006

Confessions…

I have been playing hooky from the internet for the past week or so because I have immersed myself in learning how to teach something new to my kids this year. Homeschooling is so great, because I’m not confined to what the “state” wants me to teach – in Texas, there are no laws governing homeschooling as of yet, so I am free to teach the material I want the way I want to. I do check the State of Texas requirements by grade, but I have found that my daughter is actually way above many of the required elements, so I don’t sweat it too much.

I have made it a priority this year that we are going to ENJOY the learning process. Instead of looking at it as something I “have to do”…I’m trying each day to look at it as something I “get to do”. It’s a privilege that I am able to stay home and teach my kids from a Biblical standpoint – I get to read Scripture to them every morning, I get to take them to the park in the middle of the day, I get to take them shopping when no one is in the stores, I get to decide the things that I want them to learn and when I want them to learn them, I get to teach World History and Science from a Christian’s point of view!!! Do you know what that means, people? It means I don’t have to have a teacher (whether they believe it or not) telling my child that we “evolved” from some “primordial soup”. Thank. You. God.

I also have a confession. I’ve always wanted to learn how to read, write and speak a foreign language. So…this year, I’ve taken on the joyous task of “teaching” my daughter a course called “English From the Roots Up”. It was designed by a schoolteacher who wanted her kids to know the etymology (that’s history) of words in our English language. She thought it would be cool to introduce it when they were in early elementary school, since then the children would then be able to to get used to the Latin and Greek root words and their English derivatives over the course of many years — playing with them, trying them out in hundreds of situations, becoming comfortable with them, making them their own – and all before they even get to high school, let alone college. It’s supposed to give kids an incredible advantage over other kids who take crash courses in vocabulary just before sitting for the SAT’s.

Our word for today was “photos”, which in Greek means “light”. For instance, “photograph” is a combination of “photos” (light) and “graph” (write, draw) – so when you combine the two, you get “a picture drawn by light”. (Thought you would appreciate that one, Katie – since you are such an incredible photographer – I love your site!)

Anway…can you tell I’m diggin’ (that’s Texas slang for “I really, really, really like it”) school this year?

What They Don’t Teach You In College

As promised (or threatened, whichever way you want to take it) I will be devoting a couple of blogs a week to financial “stuff”. My hope is to show you a few simple concepts that you can take and apply in your life (if you so choose) to make a difference for you.

First of all, lets say I gave you $10,000 to do with whatever you wished. What are most people going to do with it? (besides spend it) If you said stick it in a bank (cd’s, money market acounts, etc), you’d be right on track with 95% of America. Problem is that historically, banks give a very low rate of return on your money…usually somewhere between 3%-5%. And what do you think that bank is doing with your money? Are they going to just say “thank you, Mr. Brown” and band your money together and stick it in the vault for safekeeping until you decide to withdraw it? Of course not…they are going to invest it in the global economy and get a MUCH higher rate of return on it (usually 12-20%). One thing that my husband and I teach people is that you have to bypass the middle man (the banks) and go straight to the global economy to invest. Your money is working 24-7 for SOMEONE…why not make it work for you? Invest with a good mutual fund company…make it automatic so you don’t have to think about it. In other words, have the payments set up to come out of your checking or savigns accounts on automatic withdrawal…you don’t miss what you don’t see.

Do you know about the rule of 72?

A simple concept that banks don’t share with you that shows the dramatic effect of time and compounding. The Rule of 72 says that your money will approximately DOUBLE at a point in time determined by dividing 72 by the interest rate you earn.

The Rule of 72 illustrates the amazing way money can compound if you just give it enough time.

For Instance:
Your money will double in… 72 divided by 2% interest – your money will double in approximately 36 years. 72 div by 4% interest – 18 years 72 div by 6% interest – 12 years 72 div by 8% interest – 9 years 72 div by 12% interest – your money will double in approximately 6 years!!!

So take that $10K I gave you…would you rather put it in a bank at 4% interest and have $20, 000 in 18 years? Or would you rather invest in the global economy and have $60,000 at the end of the same 18 year period because you have three doubling periods at a higher interest rate? Make sense?

The earlier you start investing, the greater the growth on your investment. If you are 25 and you invest $200 a month for 35 years, with the rule of 72 and compound interest at work, it will grow to be about $1.3 million by the time you are 60. Could you live off of $100,000 a year in interest at that time? I think I could!

Okay…enough for today. I could go on, because I love this stuff….I wish everyone lived in the same area I do, because this can be such life changing information for folks. There is no reason why everyone in America that has a job or is working should not be millionaires when they retire! It just takes discipline…and somebody willing to show you how to do it.

Number Problem

Very tricky math!

Note: This must be done in your head only. Do NOT use paper and pencil or a calculator. Try it.

Do not peek at the bottom of the blog.

Hey! I said…DO NOT peek…why’d you look??? Oh well, try it anyway.

Take 1000 and add 40 to it.

Now add another 1000.

Now add 30.. add another 1000.

Now add 20.

Now add another 1000.

Now add 10.

What is the total?

5000?

5100?

4100?

Actually, it’s 4100.

Handy Car

Yes, folks. That’s what it’s actually called. Handy car… I don’t know how many plastic babies lost their lives in the embellishment of this vehicle and the one behind it, but I think there’s a new illustration in Webster’s Dictionary next to the word creepy. These are known as “art cars.”

Why Parents Get Grey Hair

A boss wondered why one of his most valued employees had not phoned in sick one day. Having an urgent problem with one of the main computers, he dialed the employee’s home phone number and was greeted with a child’s whisper.

“Hello.”

“Is your daddy home?” he asked.

“Yes,” whispered the small voice.

” May I talk with him?”

The child whispered, “No.”

Surprised and wanting to talk with an adult, the boss asked, “Is your Mommy there?”

“Yes.”

“May I talk with her?”

Again the small voice whispered, “No.”

Hoping there was somebody with whom he could leave a message, the boss asked, “Is anybody else there?”

“Yes,” whispered the child, “a policeman.”

Wondering what a cop would be doing at his employee’s home, the boss asked, ” May I speak with the policeman?”

“No, he’s busy”, whispered the child.

“Busy doing what?”

“Talking to Daddy and Mommy and the Fireman,” came the whispered answer.

Growing more worried as he heard what sounded like a helicopter through the earpiece on the phone, the boss asked, “What is that noise?”

“A helicopter” answered the whispering voice.

“What is going on there?” demanded the boss, now truly apprehensive.

Again , whispering, the child answered, “The search team just landed the helicopter.”

Alarmed, concerned and a little frustrated the boss asked, “What are they searching for?”

Still whispering, the young voice replied with a muffled giggle: “ME.”

There go the Dividends…

From the Washington Post:

Alaska Gov. Frank H. Murkowski yesterday ordered a state-government hiring freeze and worried over whether the state has enough heating oil or funding for social services as Alaskans braced for an economic crisis brought on by the sudden shutdown of oil production in Prudhoe Bay.

Oil company BP ceased most operations Sunday after a heavily corroded pipeline was discovered dripping oil. The closure is costing the state $6.4 million a day in tax revenues and royalties, and some officials estimate it could be six months before 16 miles of pipes are repaired and the pipeline is running at full capacity.

Nearly 90 percent of the state’s revenue comes from the oil fields, and Alaska’s revenue commissioner says the state can operate for about two months before running out of money.
90% of revenue from oil fields! There is no way that they couldn’t forsee this scenario occuring one day.

When I lived in Alaska, we got a “Permanant Fund Dividend” from the reserves that were left after all the bills had been paid. One year, I received over $1800! I guess that will go bye the bye….they might even have to start paying (GASP!) state taxes…

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