Fibonacci Financial

Archive for the ‘Exploding Neurons’ Category

Along With Maintaining Our Money, 401Ks, Homes & Jobs

We Need To Maitain Our Sense Of Humor 

AND Thank Your Lucky Stars

That You Weren’t a Hedge Fund Manager Last Year !

Help – I need to know where to focus my upcoming blogs

Which topics would you be most interested in?

1. Gold & Silver – How, when and why to invest?

2. Why the Stock Market is the best area to be invested in most of the time BUT why it must be avoided like the proverbial plague during certain times?

3.  Why Asset Allocation is the most important part of investing.

4.  Money management “Key to Uber Wealth Creation”.

5.  How to eliminate personal financial stress from your life.

6. How I maintain my Asset Allocation Model.

7. Why bonds may become a toxic asset for 20 – 30 years.

8. Why owning silver is an act that will promote freedom.  (Clue I am not talking about financial gain)

9. What financial topic is burning a hole in your mind ? Go ahead – test me

Drop me a comment !

One of the Real “Secrets” to

Rapid Wealth Creation

Is Leveraging Your Resources

One of the pervasive facts of life is that RESOURCES ARE SCARCE (contrary to what is being peddled by those who exploit the arrested adolescents among us who desire to hang on to a magical world view). One of the scarcest resources we encounter is the incredibly short life span we each have. But, dear readers, there are power tools to help us gain massive amounts of leverage over our time and money.

Are these tools in your “Living Optimally Tool Box”?

La Vida LOCA – Yes, if you are not living La Vida LOCA, you are definitely squandering a lot of time and money (and missing out on a lot of fun).

The 80/20 rule is an incredible tool for getting much more out of life.

Optimal F (a money management tool) will move you towards your wealth accumulation goals faster than a shot of NOS. This is the ultimate wealth turbocharger.

La Vida LOCA – IS The Ultimate Win-Win Strategy

If you want those little fibonacci bunnies working overtime for you, learn to live La Vida LOCA.

One of the most powerful and little understood laws of economics is the Law of Comparative Advantage (LOCA).

Nobel Laureate (1969) Paul Samuelson was once challenged by the mathematician Stanislaw Ulam to “name me one proposition in all of the social sciences which is both true and non-trivial”

It was several years later that he thought of the correct response: comparative advantage. “That it is logically true need not be argued before a mathematician: that it is not trivial is attested by the thousands of important and intelligent men who have never been able to grasp the doctrine for themselves or to believe it after it was explained to them”

You’ll notice that Noble Laureate Paul Samuelson indicated that its power was not grasped or believed by many important and intelligent men (I am sure all the intelligent women got it the first time). It is imperative for my readers to learn and understand the LOCA. Fortunately Jeff Tucker at Mises.org wrote a brilliant short essay exlaining the LOCA. Take five and let Jeff explain the LOCA to you.

The short explanation of the LOCA goes like this:

There are two primates Super Sapien and little Bongo. They both know how to make stone tools and grow bananas. Super Sapien is better than little Bongo at both tasks. BUT Super Sapien is far better than little Bongo at making tools. That is Super Sapien has a comparative advantage in tool making and little Bongo has a comparative advantage in growing bananas. The counter-intuitive fact is that if Super Sapien concentrates on making tools and if little Bongo concentrates on growing bananas and they trade tools for bananas – THEY BOTH WILL END UP WITH MORE TOOLS AND BANANAS !!!. I know Super Sapien will be sorely tempted to do both because he is more efficient at both tasks (It can be very counter intuitive to pass off a task to someone who just can’t do it as well as we can) If he does, he will end up with fewer tools and bananas. I know little Bongo will want to do his own thing to avoid exploitation by that big monkey. If he does he will end up with fewer tools and bananas. Follow common sense and ignore the power of the LOCA and it will impoverish you. If you skipped reading Jeff’s article, you won’t really Grok the LOCA enough to unleash its power in your life. So, go read Jeff’s article

Of all professionals, dentists seem to really get the LOCA idea. Every dentist can perform the job of a dental hygienist and clean/polish their patients teeth. But instead the dentist hires a dental hygienist and makes $150 an hour drilling teeth instead of $35 an hour polishing them. I still smile as I watch highly paid professionals with very little spare time doing their own personal accounting. Most of them bring in a lot of revenue but never seem to have a handle on their finances. The simple solution once they Groked the LOCA would be to hire a personal finance bookkeeper and they would both be far better off. Besides both being better off financially, the piece of mind the professional would have would add many years to their life.

Now go LEVERAGE YOURSELF and Live La Vida LOCA and Rica

Want to live La Vida LOCA, focus on whatever you are really good at (your comparative advantage) and outsource the other stuff !!! – You will have more time and money if you do! DO THE MATH.

Ok, time for Brain Share – please give the LOCA some serious thought and share your ideas with the other readers on how to exploit the power of the LOCA in both our personal and professional lives.

PS: If you found this valuable or interesting PLEASE let me know  by dropping me a comment!

Fibonacci & The Birth of Modern Finance in 1202 A.D.!

The Most Powerful Financial Tools to Hit Europe in Over a Thousand Years

It ALL started when an Italian monk named Leonardo de Fibonacci published “Liber Abaci” in the year 1202 A.D. This book introduced Hindu-Arabic numerals to the Italian businessmen and launched a new era for financial information. Those enterprising Italian merchants then invented Double Entry Accounting! Is it any wonder why modern finance started in Italy? Before the introduction of the Hindu-Arabic Numeral system to Europe, merchants could only add and subtract those unmanageable roman numerals two numbers at a time with an abacus. This was a very awkward and time consuming process. The invention of double entry accounting was formally introduced to the world by another Italian monk by the name of Fra Luca Paccioli in 1494. Goethe,the great German poet described double entry accounting as “one of the finest discoveries of the human intellect.”

And Now the Fibonacci Numbers

In Fibonacci’s book “Liber Abaci” there is a paragraph discussing the logarithmic growth of bunnies. This sequence of numbers 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89…….. became known as the Fibonacci Sequence (you probably remember it from Dan Brown’s bestselling book “The DaVinci Code” ). This sequence of numbers can be found through out the natural world and the universe. Just exploring their almost infinite applicability is an adventure in itself.

There you have it, the name Fibonacci is associated with the birth of modern finance and rapid growth.

This site’s goal is to help you harness the tools of modern finance to grow your networth rapidly (just like those fibonacci bunnies).

Homework Assignment

Go google Fibonacci.

Go to Amazon.com book section and enter Fibonacci.

DaVinci and Fra Pacioli

FYI: Leonardo DaVinci and Fra Luca Pacioli were close friends. DaVinci even illustrated Pacioli’s second most important manuscript De Divina Proportione (”Of Divine Proportions”). Pacioli taught DaVinci about perspective,proportionality and the Golden Ratio. These tools aided DaVinci greatly in painting “The Last Supper” and many of his great works of art.

The central purpose of this site is to not only promote financial liberation but also mental/philosophical/spiritual liberation (tis an ill wind that blows no minds). This will be attempted by providing you with various tools that exploit the neuroplasticity of your brain. Thus, promoting explosive neuronal growth. The mental equivalent of pumping iron.

Here is a mini Koan (one kind of mental brainbuilder) to limber you up.

“Truth is a Lie – there are only better maps”

Quoting myself      Michael R Stoddard, GO

Can you Grok It ???

Think about it for a few days then share your thoughts with us

Show us what ya got!      Drop a Mind Blowing Comment!