Comments on Financial AlgebraTypePad2010-02-17T18:26:37ZNAhttps://www.freemoneyfinance.com/tag:typepad.com,2003:https://www.freemoneyfinance.com/2010/03/financial-algebra/comments/atom.xml/Victor commented on 'Financial Algebra'tag:typepad.com,2003:6a00d83451bcbd69e20147e1482ce4970b2011-01-05T06:32:35Z2011-01-05T06:32:35ZVictor(in - out) x years = result. if out is greater than in, result is ruin. if out is less...<p>(in - out) x years = result. if out is greater than in, result is ruin. if out is less than in, result is prosperity.</p>rq commented on 'Financial Algebra'tag:typepad.com,2003:6a00d83451bcbd69e201310f6a2632970c2010-03-05T18:39:53Z2010-03-05T18:39:53ZrqOkay, your software deleted some of my comment so the above code makes no sense.<p>Okay, your software deleted some of my comment so the above code makes no sense.</p>rq commented on 'Financial Algebra'tag:typepad.com,2003:6a00d83451bcbd69e201310f6a20d4970c2010-03-05T18:37:40Z2010-03-05T18:37:40ZrqI've expanded the equation to create the term YI-YE, which means "years time income minus years times expenses. I think...<p>I've expanded the equation to create the term YI-YE, which means "years time income minus years times expenses.<br />
I think YI-YO has a better ring to it. I for in O for out.</p>
<p>This isn't simpler, but I just wrote a computer program for getting rich.</p>
<p><br />
for(int i=currentAge; i0.75*in){<br />
out--;<br />
}<br />
savings+=(in-out);<br />
}<br />
</p>Budgeting in the Fun Stuff commented on 'Financial Algebra'tag:typepad.com,2003:6a00d83451bcbd69e20120a8f2c8d2970b2010-03-03T17:22:45Z2010-03-03T17:22:45ZBudgeting in the Fun Stuffhttp://budgetinginthefunstuff.blogspot.com/Have I ever mentioned that I love FMF because of stuff like this? My vote is for (+ > -...<p>Have I ever mentioned that I love FMF because of stuff like this?</p>
<p>My vote is for (+ > - )Yrs = $$$. Simple and to the point. :-)</p>Eugene Krabs commented on 'Financial Algebra'tag:typepad.com,2003:6a00d83451bcbd69e201310f58fff6970c2010-03-03T15:38:59Z2010-03-03T15:38:59ZEugene KrabsHehe, I think you're a nerd too, but that's a compliment. How about this? Long term positive net cash flow...<p>Hehe, I think you're a nerd too, but that's a compliment. How about this?</p>
<p>Long term positive net cash flow = Wealth?</p>
<p>Or is that too wordy?</p>Brian Painter commented on 'Financial Algebra'tag:typepad.com,2003:6a00d83451bcbd69e201310f58e081970c2010-03-03T15:14:41Z2010-03-03T15:14:41ZBrian PainterI love the formulas! Two things to think about. How to show that starting early increases wealth even more? Maybe...<p>I love the formulas! Two things to think about. How to show that starting early increases wealth even more? Maybe a power or something for the many years like compounding interest. Second - If Spend is Greater than Earn then Wealth will be negative, so maybe Wealth is really future net worth or something like that. Anyways, keep it up, when you get the final version, I'm going to print it out and hang it here in my cube.</p>
<p>Bp</p>MikeS commented on 'Financial Algebra'tag:typepad.com,2003:6a00d83451bcbd69e20120a8f1efb7970b2010-03-03T14:32:10Z2010-03-03T14:32:10ZMikeSMike, I love it. Can't wait to be a rich bastard myself. :-)<p>Mike, I love it. Can't wait to be a rich bastard myself. :-)</p>Mike Hunt commented on 'Financial Algebra'tag:typepad.com,2003:6a00d83451bcbd69e201310f576673970c2010-03-03T07:37:30Z2010-03-03T07:37:30ZMike Hunthttp://www.foolhardy.net(Spend < Earn) ^ Many Years = Rich Bastard -Mike<p>(Spend < Earn) ^ Many Years = Rich Bastard</p>
<p>-Mike</p>KH commented on 'Financial Algebra'tag:typepad.com,2003:6a00d83451bcbd69e20120a8efe27e970b2010-03-03T04:53:04Z2010-03-03T04:53:04ZKHIt appears that your equation is intended to be memorable and "catchy", but not necessarily an actual mathematical representation of...<p>It appears that your equation is intended to be memorable and "catchy", but not necessarily an actual mathematical representation of financial planning. </p>
<p>So why not build your catchy around the famous E=MCsquared equation of Einstein? There's no other another equation that sounds smarter! And most people recognize this equation even if they know nothing else about physics or math. </p>
<p>What about E=MC^2: Easy retirement = More time multiplied by Cash left to (2) you after your expenses? And bonus: you don't have to be a genius to use this equation! <br />
</p>Ken Siew commented on 'Financial Algebra'tag:typepad.com,2003:6a00d83451bcbd69e201310f567e02970c2010-03-03T04:29:30Z2010-03-03T04:29:30ZKen Siewhttp://www.thinkbigthinkmoney.com/You're a nerd, but a good one =D (I - E)(Years)= Rich! That's my version.<p>You're a nerd, but a good one =D</p>
<p>(I - E)(Years)= Rich!</p>
<p>That's my version.</p>J in FL commented on 'Financial Algebra'tag:typepad.com,2003:6a00d83451bcbd69e201310f55ef95970c2010-03-03T02:29:59Z2010-03-03T02:29:59ZJ in FLIt's funny how entering in a simple mistake like (+ < -) makes such a huge difference. Gotta love math...<p>It's funny how entering in a simple mistake like (+ < -) makes such a huge difference. Gotta love math :)</p>VK commented on 'Financial Algebra'tag:typepad.com,2003:6a00d83451bcbd69e201310f55b4d2970c2010-03-03T01:52:55Z2010-03-03T01:52:55ZVKI like the simple version. Of course there are assumtions in here. You need your savings to produce more money...<p>I like the simple version. Of course there are assumtions in here. You need your savings to produce more money (rate of return) to generate wealth.</p>
<p>Just had this interesting thought, just reverse the equation inside parenthesis and you get the formula for financial ruin (+ < -) Yrs.<br />
</p>Dignan commented on 'Financial Algebra'tag:typepad.com,2003:6a00d83451bcbd69e20120a8ee6321970b2010-03-02T23:46:40Z2010-03-02T23:46:40ZDignanBased on MS Excel Future Value formulas. WAAAAY oversimplified and does not show the integration between the sets of formulas,...<p>Based on MS Excel Future Value formulas. WAAAAY oversimplified and does not show the integration between the sets of formulas, but fun to document and gets you thinking about how all the variables change over one's life and how each can be accelerated. </p>
<p>Retirement fund = (Income (Rate of income growth, career # of years, 0, starting salary,1) - Expenses (Rate of expense growth, # of years alive, 0, starting annual expenses, 1)) * Savings Growth (Rate of savings appreciation, # of years you save, annual savings amount, starting savings balance,1).</p>
<p>I'm always on the look out for a complex, unified formula of personal finance. Haven't found it, but FMF's is close for a simplified version.</p>wanzman commented on 'Financial Algebra'tag:typepad.com,2003:6a00d83451bcbd69e20120a8ee182f970b2010-03-02T22:28:06Z2010-03-02T22:28:06ZwanzmanFMF = Total Nerd<p>FMF = Total Nerd</p>MikeS commented on 'Financial Algebra'tag:typepad.com,2003:6a00d83451bcbd69e20120a8ee0ea6970b2010-03-02T22:17:53Z2010-03-02T22:17:53ZMikeS(+ > - )Yrs = $$$<p>(+ > - )Yrs = $$$ </p>