Sunday, January 11, 2009

On Finance

6.2% of my salary goes to Social Security taxes and 1.45% to Medicare taxes. My former employer also paid the same amount for me. By 2017, the government will be paying more benefits than it collects in taxes and in 2041 the SS Trust Fund will be delinquent.

So what does that mean? 

I must invest and save my money properly. Most importantly, I must differentiate between what is an asset and a liability. In simple terms, an asset is anything that puts money in your pocket (stocks, bonds, real estate, intellectual property) and a liability is anything that does not. 

By continuously investing in more assets than liabilities, I will begin laying the foundation of a secure financial future. 

Saturday, January 10, 2009

you and me