Category: Off-topic

Your Cash Flow Statement and Time Flow Statement

Cash Flow Statement
One of the first items I look at when reviewing a company is the cash flow statement. It is very difficult to ‘manipulate’ a cash flow statement without a savvy investor spotting it.
Every individual should make their own cash flow statement. It answers the following questions:
How much money is coming in?
How much money is going out?
Here is a hypothetical cash flow statement for a single male making about 70K per year:

Monthly Yearly Comment
Total net income From Job $4,500 $54,000 Always Use your Net Pay. (After Taxes)
Total Rental Income $500 $6,000 Rental properties you may own
Car insurance -$252 -$3,021
Hair Cut -$30 -$360
Gas Work -$100 -$1,200
Food -$400 -$4,800
Cell Phone -$135 -$1,620
Rent -$1,100 -$13,200
Electric Bill -$85 -$1,020
Water Bill -$60 -$720
Internet Bill -$82 -$981
Health Insurance -$80 -$960  Include if you do not get insurance via company
Play money -$1,000 -$12,000 Include a buffer. Vacations, movies, etc.
Total Saved $1,677 $20,119
Total Spent -$3,323 -$39,881

Include everything you spend money on. Your biggest expense will be taxes. Always use your net pay, which is your payment after taxes. For most, the biggest net income will come from your employer. Include an item for “play” money. We all want to enjoy life. This can be broken down further into vacations, shows, nightclubs, etc.
Now you can see where you are wasting money. You can also see how to improve your cash flow statement. Hopefully, you are saving the amount your cash flow statement says each year. If not, than your cash flow statement is wrong and it must be fixed.
Next step is to have a goal. What will you do with your saved money? Invest it? Buy a house? For those who save, very few know what they are saving for. Most want to buy a house. This is typical of most middle and lower class people. After they buy a house they don’t know what to do. They wind up squandering their money on expensive items, such as cars, fancy TV’s and surround sound stereo systems. No one can tell you what your goals are. You must figure that out for yourself.

Time Flow Statement
Far more important than your cash flow statement is your time flow statement. Time is more valuable than money. If you don’t believe me ask yourself this question:
Would I rather be 18 and broke or 80 and a billionaire?
The answer to this question will put how you spend your time into perspective. Most people squander their time. Interestingly, most people do not want to be like most people. They want to be in the 1%. They want fame and/or fortune. When you act like most people you will wind up just like them. Why would you expect a different outcome?
What are you spending your free time doing? Has it yielded any monetary income? Is it giving you a good reputation? If not, why? Possible answers to these questions are the following:
1-You are not good enough. There is a point were you are just wasting your time. You must face a realization that you are not that good. This is very difficult for most.
2-What you are driving too is a dead end. Think if Beethoven was alive today. Would he be laughed at or held up as a genius? If Beethoven wrote the fifth symphony today, in the year 2018, would you ever hear it? Would you know the name Beethoven?
3-You are terrible at marketing. I don’t care how much of a genius you are in a particular field. If you do not understand marketing you will be in the dark corner of the room.
4- You are not dedicated. How many times do you start something and not finish? How often do you not follow through?
Make a time flow statement. How much time per day will you dedicate to a task outside of your job? Have the dedication to stick to it. Your time flow statement will be ever changing. Hopefully, you realize very quickly what is a waste and what is fruitful.

Most people do not think about these things. They watch reruns of Seinfeld in their spare time. They play candy crush. They browse Facebook for hours and hours. There is nothing wrong with these people. They are just different from me. Hopefully, if you want to be in the top 20% in your field, you are different from them.

Breakdown of US Voters


The largest voting blocks are older people in retirement (65+) or just about to retire (45-64). This is why no one dares mention the funding crisis with entitlements. When western world governments run into a financial wall, the last item they will default on will be medicare, social security, etc.

Rationalization of Mass Murder

The book, “Ordinary Men”, is a story about the Reserve Police Battalion 101 and the final solution in Poland. Thousands of Jewish men, women, children and infants were murdered. The book is dark and depressing.
At Józefów, Major Trapp made an offer for men to step forward who wanted to excuse themselves from the atrocities they were about to commit. Out of five hundred men only twelve stepped forward. Why only twelve? Later reflections indicate there was no time to think. It was all too sudden. Additionally, no one wanted to abandon their comrades.
The rationalization given by a thirty-five-year old metal worker is astonishing:

“I made the effort, and it was possible for me, to shoot only children. It so happened that the mothers led the children by the hand. My neighbor then shot the mother and I shot the child that belonged to her, because I reasoned with myself that after all without its mother the child could not live any longer. It was supposed to be, so to speak, soothing to my conscience to release children unable to live without their mothers.”

The author points out that the German word for “release” also means to “redeem” or “save” when used in a religious sense.
The people who committed the mass murder at Józefów were not sadist. The men of Reserve Police Battalion 101 were metalworkers, barbers, salesmen, etc. The book details the physical and mental anguish these men suffered for the rest of their lives. It also gives insight into the psychology of man.
It is wrong to say every citizen in Nazi Germany was pure evil. We all like to think we would have been Oskar Schindler. We would have hid Anne Frank and put our entire family at risk. Statistically, you would have not been those people.

School Shootings- A Trip Through Time

Below are the number of deaths due to school shootings since the 1800’s.

Number of school shooting incidents in the USA:

We see the amount of elementary and secondary school enrollment is about the same.

In other words, the added number of school shootings and deaths is not due to the increase in the amount of children.
It is interesting to see the jump in the 1990’s.
We live in a complex world. Trying to explain the increase is not going to be a simple answer. Culture definitely plays an important part in explaining it.
What I do know is this: A bunch of people in D.C. writing words on a piece of paper is not going to solve this issue or any other issue.
The public’s faith and belief in government legitimacy is astounding. If words on a piece of paper could make the world a better place we would all be living in a utopia right now.
Government’s are not going to protect your children. The public school system will not protect your children from school shootings to bullying. Parents still have full faith in the school system though. They send their children to the intellectual meat grinder to get an inferior education.