Debt Snowball

First, Thank you to all of my readers for the Birthday Wishes. I will be updating the site shortly. So, I have given everyone a great chance to fill out the monthly budget, and really it has been downloaded quite a few times. The next issue is that of tackling Debt. Debt is a four letter word (I would say even a foul word). Dave Ramsey has come up with a great snowball method. This method is paying off the lowest debt first, followed be the one right above it. This is a quick and easy solution to tackle debt. There are a multitude of reasons to tackle debt, but financial freedom includes freedom from debt and the compounding interest that they steal. This Model will help you best understand and go through your new debt free life. fpu_debt_snowball_calculator_v2 During the next few months, I will be posting more regularly, with less models, these do take an extraordinalily long time, and I would rather be educating you. Sometime after Christmas I will be moving to a proper web address.


Wyoming Week

I will be out on the road this week for Wyoming Week. This is part of the Program, which I am over here as a part of. This partnership is great for both Universities and allows for a great international experience. I will take tons of pictures and notes, as we will be going around Switzerland and visiting many historical sites.

Retirement Savings

So, Retirement is not one thing that many people who read this blog are worried about. Though it should be on the forefront of all of their minds, as proper planning now, with both the budgets and getting out of debt, can make for a easy and earlier transistion into retirement. For a brief idea, use this calculator. We will be covering compound interest and the snowball effect, to get you out of debt and on your way to be able to retire early.

The retirement calculator is here.

Opinions on Securitizations

So, many people have asked about my opinions on Securitization of loans and such. I am against many of the new vehicles in the financial markets, especially with many of the Ratings agency being for profit companies. So what are they? Economic Times has provided a great definition and description which follow. Definition: Securitization is a process by which a company clubs its different financial assets/debts to form a consolidated financial instrument which is issued to investors. In return, the investors in such securities get interest.
Description: This process enhances liquidity in the market. This serves as a useful tool, especially for financial companies, as its helps them raise funds. If such a company has already issued a large number of loans to its customers and wants to further add to the number, then the practice of securitization can come to its rescue.
In such a case, the company can club its assets/debts, form financial instruments and then issue them to investors. This enables the firm to raise capital and provide more loans to its customers. On the other hand, investors are able to diversify their portfolios and earn quality returns.

Sounds like an excellent Idea right, the only issue is that when a form of securitization like mortgage back securities starts making more money, then downward pressure is applied to get more home loans. More home loans leads to a price spike as houses become more rare, feeding a vicious cycle of astounding asset prices rising. Securitizations are a good tool, but there should be a limit on what can be offered as a securitization, especially since we are looking at a large bubble with the amount of student loan debt currently in the United States. The Next post will be a bit better and more happy, but looking at the the Excel model below, especially the last page, we are seeing student loans being defaulted on due to the large amount of debt that has been pushed on society.



London was excellent, though I did come home with a cough that is killing my still sore ribs. The entire presentation was a great experience, having my ideas brought before people who could help my thought process. Many of the companies whom I hope to work for where a portion of the experts panel. London itself was like a direct shot of adrenaline into the blood stream. I am working on a few new ideas for budgeting and understanding more personal finance strategies throughout the next few months before going into retirement savings. As soon as I get my new phone, I will transfer the pictures and post on here for all to see.

Bratwurst and Car Show

Today, it was the Car Show and Sunday shop open day. As I have covered before, Sundays, shops are never open, except for one Sunday during Oktoberfest (which starts in September). Here in Pforzheim it was amazing. I went to church in the morning then headed to Zentrum to look at the cars. This was amazing, with many old time muscle cars. As I am still waiting on my US phone to get here from the states, I only have my German Phone which is harder to upload photos from. Classes have begun for the MBA and most of my classes are excellent. Though, the classes are much longer and more spread out than back in the States. Everything else is great. Finally had my first Bratwurst here, nothing short of great, I will be writing more about my trip to London and the presentation at the Securitization summit.

Unfortunate Event

So, Unfortunately I had a sad start to my time in Europe. I was mugged last weekend, after I ended up in the very wrong side of town, messing up some directions from a person living in the hostel. The hospital and police were more than helpful. I gave as good as I got, but in a situation like this it was lose – lose. A few broken ribs, lost wallet and phone, I am fine. First few days of class are going to be tough between my slipped disc and these ribs. I am linking a great blog for people looking to travel, also, make sure you understand all portions of a town and maybe some no-go areas before heading out on your own.


Check out the safety blog: Here