Fibonacci Financial

Posts Tagged ‘Financial Planning’

But I Thought Housing ALWAYS went UP ;-(

Read All About It

At the Incredible Mises.org

Also just hot off the press – The Commercial Real Estate market crash IS JUST BEGINNING !

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!

Fire Sale Soon

There is a Gold(xau) and Silver(xag) fire sale coming soon!

This will be the best time to accumulate gold and silver for several years to come.

Will you be ready? Preparation and Planning will significantly add to your net worth.

Take Action Now

Questions ? email me at: michael@fibonaccifinancial.com

The Privacy of Your Financial Information and Questions is Important to Me.

Protect yourself from financial predators on the web. Encrypt your communications!

If you want to maintain the financial privacy of the information you share with me, please email me requesting my public key to encrypt your communications with PGP. Then, ONLY I will be able to view your information.

Stay Safe !

Take Action Now!

To insure the privacy of your financial info Request my PGP public key at: michael@fibonaccifinancial.com

PS: Don’t know what PGP is or how to use it? Educate yourself in Financial Aikido Email me at: michael@fibonaccifinancial.com

Ayn Rand’s Atlas Shrugged

Is Possibly The Best Antidote

to The Rampant Socialism

that is Currently Sweeping the Planet!

Read the following excerpt on money, then buy a copy and give it to a friend and save the planet

MONEY THE ROOT OF ALL EVIL

“Rearden heard Bertram Scudder, outside the group, say to a girl who made some sound of indignation, “Don’t let him disturb you. You know, money is the root of all evil – and he’s the typical product of money.”

Rearden did not think that Francisco could have heard it, but he saw Francisco turning to them with a gravely courteous smile.

“So you think that money is the root of all evil?”

“So you think that money is the root of all evil?” said Francisco d’Aconia. “Have you ever asked what is the root of money? Money is a tool of exchange, which can’t exist unless there are goods produced and men able to produce them. Money is the material shape of the principle that men who wish to deal with one another must deal by trade and give value for value. Money is not the tool of the moochers, who claim your product by tears, or of the looters, who take it from you by force. Money is made possible only by the men who produce. Is this what you consider evil?

“When you accept money in payment for your effort, you do so only on the conviction that you will exchange it for the product of the effort of others. It is not the moochers or the looters who give value to money. Not an ocean of tears nor all the guns in the world can transform those pieces of paper in your wallet into the bread you will need to survive tomorrow. Those pieces of paper, which should have been gold, are a token of honor – your claim upon the energy of the men who produce. Your wallet is your statement of hope that somewhere in the world around you there are men who will not default on that moral principle which is the root of money. Is this what you consider evil?

“Have you ever looked for the root of production? Take a look at an electric generator and dare tell yourself that it was created by the muscular effort of unthinking brutes. Try to grow a seed of wheat without the knowledge left to you by men who had to discover it for the first time. Try to obtain your food by means of nothing but physical motions – and you’ll learn that man’s mind is the root of all the goods produced and of all the wealth that has ever existed on earth.

“But you say that money is made by the strong at the expense of the weak? What strength do you mean? It is not the strength of guns or muscles. Wealth is the product of man’s capacity to think. Then is money made by the man who invents a motor at the expense of those who did not invent it? Is money made by the intelligent at the expense of the fools? By the able at the expense of the incompetent? By the ambitious at the expense of the lazy? Money is made – before it can be looted or mooched – made by the effort of every honest man, each to the extent of his ability. An honest man is one who knows that he can’t consume more than he has produced.

“To trade by means of money is the code of the men of good will. Money rests on the axiom that every man is the owner of his mind and his effort. Money allows no power to prescribe the value of your effort except by the voluntary choice of the man who is willing to trade you his effort in return. Money permits you to obtain for your goods and your labor that which they are worth to the men who buy them, but no more. Money permits no deals except those to mutual benefit by the unforced judgment of the traders. Money demands of you the recognition that men must work for their own benefit, not for their own injury, for their gain, not their loss – the recognition that they are not beasts of burden, born to carry the weight of your misery – that you must offer them values, not wounds – that the common bond among men is not the exchange of suffering, but the exchange of goods. Money demands that you sell, not your weakness to men’s stupidity, but your talent to their reason; it demands that you buy, not the shoddiest they offer, but the best your money can find. And when men live by trade – with reason, not force, as their final arbiter – it is the best product that wins, the best performance, then man of best judgment and highest ability – and the degree of a man’s productiveness is the degree of his reward. This is the code of existence whose tool and symbol is money. Is this what you consider evil?

“But money is only a tool. It will take you wherever you wish, but it will not replace you as the driver. It will give you the means for the satisfaction of your desires, but it will not provide you with desires. Money is the scourge of the men who attempt to reverse the law of causality – the men who seek to replace the mind by seizing the products of the mind.

“Money will not purchase happiness for the man who has no concept of what he wants; money will not give him a code of values, if he’s evaded the knowledge of what to value, and it will not provide him with a purpose, if he’s evaded the choice of what to seek. Money will not buy intelligence for the fool, or admiration for the coward, or respect for the incompetent. The man who attempts to purchase the brains of his superiors to serve him, with his money replacing his judgment, ends up by becoming the victim of his inferiors. The men of intelligence desert him, but the cheats and the frauds come flocking to him, drawn by a law which he has not discovered: that no man may be smaller than his money. Is this the reason why you call it evil?

“Only the man who does not need it, is fit to inherit wealth – the man who would make his own fortune no matter where he started. If an heir is equal to his money, it serves him; if not, it destroys him. But you look on and you cry that money corrupted him. Did it? Or did he corrupt his money? Do not envy a worthless heir; his wealth is not yours and you would have done no better with it. Do not think that it should have been distributed among you; loading the world with fifty parasites instead of one would not bring back the dead virtue which was the fortune. Money is a living power that dies without its root. Money will not serve that mind that cannot match it. Is this the reason why you call it evil?

“Money is your means of survival. The verdict which you pronounce upon the source of your livelihood is the verdict you pronounce upon your life. If the source is corrupt, you have damned your own existence. Did you get your money by fraud? By pandering to men’s vices or men’s stupidity? By catering to fools, in the hope of getting more than your ability deserves? By lowering your standards? By doing work you despise for purchasers you scorn? If so, then your money will not give you a moment’s or a penny’s worth of joy. Then all the things you buy will become, not a tribute to you, but a reproach; not an achievement, but a reminder of shame. Then you’ll scream that money is evil. Evil, because it would not pinch-hit for your self-respect? Evil, because it would not let you enjoy your depravity? Is this the root of your hatred of money?

“Money will always remain an effect and refuse to replace you as the cause. Money is the product of virtue, but it will not give you virtue and it will not redeem your vices. Money will not give you the unearned, neither in matter nor in spirit. Is this the root of your hatred of money?

“Or did you say it’s the love of money that’s the root of all evil? To love a thing is to know and love its nature. To love money is to know and love the fact that money is the creation of the best power within you, and your passkey to trade your effort for the effort of the best among men. It’s the person who would sell his soul for a nickel, who is the loudest in proclaiming his hatred of money – and he has good reason to hate it. The lovers of money are willing to work for it. They know they are able to deserve it.

“Let me give you a tip on a clue to men’s characters: the man who damns money has obtained it dishonorably; the man who respects it has earned it.

“Run for your life from any man who tells you that money is evil. That sentence is the leper’s bell of an approaching looter. So long as men live together on earth and need means to deal with one another – their only substitute, if they abandon money, is the muzzle of a gun.

“But money demands of you the highest virtues, if you wish to make it or to keep it. Men who have no courage, pride, or self-esteem, men who have no moral sense of their right to their money and are not willing to defend it as they defend their life, men who apologize for being rich – will not remain rich for long. They are the natural bait for the swarms of looters that stay under rocks for centuries, but come crawling out at the first smell of a man who begs to be forgiven for the guilt of owning wealth. They will hasten to relieve him of the guilt – and of his life, as he deserves.

“Then you will see the rise of the double standard – the men who live by force, yet count on those who live by trade to create the value of their looted money – the men who are the hitchhikers of virtue. In a moral society, these are the criminals, and the statutes are written to protect you against them. But when a society establishes criminals-by-right and looters-by-law – men who use force to seize the wealth of disarmed victims – then money becomes its creators’ avenger. Such looters believe it safe to rob defenseless men, once they’ve passed a law to disarm them. But their loot becomes the magnet for other looters, who get it from them as they got it. Then the race goes, not to the ablest at production, but to those most ruthless at brutality. When force is the standard, the murderer wins over the pickpocket. And then that society vanishes, in a spread of ruins and slaughter.

“Do you wish to know whether that day is coming? Watch money. Money is the barometer of a society’s virtue. When you see that trading is done, not by consent, but by compulsion – when you see that in order to produce, you need to obtain permission from men who produce nothing – when you see that money is flowing to those who deal, not in goods, but in favors – when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you – when you see corruption being rewarded and honesty becoming a self-sacrifice – you may know that your society is doomed. Money is so noble a medium that it does not compete with guns and it does not make terms with brutality. It will not permit a country to survive as half-property, half-loot.

“Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it becomes, marked: ‘Account overdrawn.’

“When you have made evil the means of survival, do not expect men to remain good. Do not expect them to stay moral and lose their lives for the purpose of becoming the fodder of the immoral. Do not expect them to produce, when production is punished and looting rewarded. Do not ask, ‘Who is destroying the world?’ You are.

“You stand in the midst of the greatest achievements of the greatest productive civilization and you wonder why it’s crumbling around you, while you’re damning its life-blood – money. You look upon money as the savages did before you, and you wonder why the jungle is creeping back to the edge of your cities. Throughout men’s history, money was always seized by looters of one brand or another, but whose method remained the same: to seize wealth by force and to keep the producers bound, demeaned, defamed, deprived of honor. That phrase about the evil of money, which you mouth with such righteous recklessness, comes from a time when wealth was produced by the labor of slaves – slaves who repeated the motions once discovered by somebody’s mind and left unimproved for centuries. So long as production was ruled by force, and wealth was obtained by conquest, there was little to conquer. Yet through all the centuries of stagnation and starvation, men exalted the looters, as aristocrats of the sword, as aristocrats of birth, as aristocrats of the bureau, and despised the producers, as slaves, as traders, as shopkeepers – as industrialists.

“To the glory of mankind, there was, for the first and only time in history, a country of money – and I have no higher, more reverent tribute to pay to America, for this means: a country of reason, justice, freedom, production, achievement. For the first time, man’s mind and money were set free, and there were no fortunes-by-conquest, but only fortunes-by-work, and instead of swordsmen and slaves, there appeared the real maker of wealth, the greatest worker, the highest type of human being – the self-made man – the American industrialist.

“If you ask me to name the proudest distinction of Americans, I would choose – because it contains all the others – the fact that they were the people who created the phrase ‘to make money’. No other language or nation had ever used these words before; men had always thought of wealth as a static quantity – to be seized, begged, inherited, shared, looted, or obtained as a favor. Americans were the first to understand that wealth has to be created. The words ‘to make money’ hold the essence of human morality.

“Yet these were the words for which Americans were denounced by the rotted cultures of the looters’ continents. Now the looters’ credo has brought you to regard your proudest achievements as a hallmark of shame, your prosperity as guilt, your greatest men, the industrialists, as blackguards, and your magnificent factories as the product and property of muscular labor, the labor of whip-driven slaves, like the pyramids of Egypt. The rotter who simpers that he sees no difference between the power of the dollar and the power of the whip, ought to learn the difference on his own hide – as, I think, he will.

“Until and unless you discover that money is the root of all good, you ask for your own destruction. When money ceases to be the tool by which men deal with one another, then men become the tools of men. Blood, whips and guns – or dollars. Take your choice – there is no other – and your time is running out.”

Atlas Shrugged by Saunt Ayn Rand Part II, Section 2, pages 387-391 of the paperback

Atlas Shrugged is America’s Second Declaration of Independence – Check this video out

GOT GOLD ?

If you want to help restore the gold standard and improve your personal networth but need some guidance,

email me at: michael@fibonaccifinancial.com.

Issue 5 – Published in Gaia the Fifth Month in the Y.O.O.S. 195.009

(see calendar explanation below)

Financial Peace of Mind is not a matter of how much or how little money you make. Financial peace of mind comes from having your financial house in order. Putting your financial house in order starts with creating and implementing a Financial Plan.

WINNING AT THE GAME OF FINANCIAL INDEPENDENCE

Creating a winning financial game plan that propels you toward achieving your financial goals is a 5 step process.

Step 1 Identify where you currently are by creating a Statement of Personal Net Worth. This is GO on the Monopoly Board of your financial planning game.

Step 2 Envision where you want to go. Create a clear vision of your desired financial future. It is the constant creative tension between having a clear idea of where you are and where you want to go that propels you to achieve outstanding financial goals.

Step3 Work out measurable strategies. One key to structuring your strategies is leveraging your resources.

Step 4 Keeping Score is the magic ingredient. You must carefully structure an easily maintained feedback mechanism that provides your daily, weekly, monthly and annual Financial Score. This Financial Score Board has to be constructed to have the same immediacy of a golf score card or a Baseball/Basketball scoreboard. This is the key to turning the achievement of your financial goals from a chore or work into a GAME! The problem with most financial plans is that they lead to a “TGIF” attitude instead of a “let’s get out there and rumble” type of excitement and motivation. My prorietary system is Know and PEARD.

Step 5 Enjoy your financial independence.

OK, Now – Get In The Game – Financial Independence can be yours faster than you can imagine if you learn the rules of the game and keep score.

NEED HELP – Email me your questions: michael@fibonaccifinancial.com

Brief calendar explanation:

The Solstice Calendar is a scientific, rational 13 month 28 day system anchored on the Winter Solstice with the last day of the year being the Winter Solstice and New Years Day being the day after Solstice . The Year is anchored on the first known appearance of Homo Sapiens Sapiens on Terra about 195,000 years ago ergo Y.O.O.S. Year Of Our Species. (aka the Thursday April 2, 2009 on the catholic calendar).