I've heard of a number of laws like the Pareto Principle, Peter Principle and I may have even heard of this one, but for some reason it didn't sink in until now.
Have you ever been surprised by how much you got done in such a short amount of time? Have you ever wondered why it took you so damn long finish something so simple? Well it's all explained in the Parkinson's Law.
The basic premise is that you will essentially make up work to do in order to fill time in order to finish the project on time. Ever pulled an all nighter finishing a paper in college? Got an A! Ever took 3 months to write a paper that you knew about for the first day of class and ended up getting a B? Been there, done that!
I'm never bored on my day off. I always have tons to do and the day goes by fast! How much I actually get done? Well that's a different story.
Have you ever woken up late, brushed your teeth, taken a shower, shaved, and gotten dressed in 15 mins? Has it also ever taken you an hour to do the same thing? See what I'm getting at?
What does this have to do with personal finance? Urgency! If you're like most Americans you're severely fucked when it comes to being ready for retirement. You're so far behind the 8ball all you see is black! It's time to get your ass in gear and embrace the early retirement extremes. Quit dicking around and start saving a boat load of money today! I hear stories all the time about people who pay off massive amounts of debt ($100,000) in just a few years on teacher salaries. And yet people don't think you can save a million dollars in 15 years.
Another way this applies is what we call "life style inflation" which is when the amount of money you make expands with your income. You make twice as much as 10 years ago and yet you aren't saving anymore.
Fight Parkinson's Law!
Editor: Crass Cash
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Assets: $1,169,982
Real Estate - $853,000 Retirement accounts - $208,418 Brokerage - $78,208 Cash equivalence - $26,635 Other - $3,720 Liabilities: $410,848 Real Estate Mortgages - $410,848 Net Worth: $759,133 Net worth increased by 2.4% which is huge for one month! A few things contributed to this. I finally got a renter in one of my rentals and I also got my yearly bonus. Now let's hope this can continue for another 12 months. Net worth increased by 10.4% from the previous year. If I can keep that up I'll be in good shape. December was a pretty good month even though I didn't meet my BHAG of 70% of after tax income it was pretty good with saving 68% of after tax income. This just isn't going to go away until the invsalign payments stop. The expenses were fairly normal.
Expenses Utilities: 3.94% Transportation: 1.95% Charity: 3.42% Insurance: 4.51% Home: 5.79% Mortgage: 29.77% Personal: 2.19% Gas: 3.72% Eating out: 12.42% Medical: 19.74% TV/Internet: 2.98% Food: 6.17% Phone: 2.55% Entertainment: 0.85% (Sweet!) Income Real Estate: 24.28% Salary: 64.24% Investments: 11.48% The medical expenses are abnormally high because of the above mentioned reason. Income was also abnormally high because it was a 5 pay day month. I also now have a renter in my most expensive rental which should help a lot in the income category. We'll see how the rest of the year goes now. |
AuthorThis website was created due to the atrociously misguided financial advice that I've heard over the decades. Financial freedom is not intellectually strenuous, but it takes discipline. Categories
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