The real meaning of wealth has to do with goals
What do you think about when you hear the word wealth? Really, think about it for a moment and write down a couple things that come to mind. Ok, so I bet most of you conjured up images like Donald Trump, a mansion from MTV Cribs, or Scrooge McDuck swimming in ...

Truels, or how game theory may explain survival of the weakest
In my recent game theory post, I wrote about how seemingly worse employees can get on better projects--if you didn't read it, please do as the answer may surprise you. This strategy really works, and as Joon and Rohomech pointed out in the comments, they implemented the strategy by incorporating ...

Where did you get your financial education?
The answer to that question may soon be school. I was thrilled to read that more schools are starting to offer personal finance classes. Recently John Hopkins decided to include an introductory class for the following reason: [Graduates] were handling the job fine but they weren't prepared to make decisions about ...

Is there a right way to track expenses?
I introduced a free spreadsheet to track your expenses (for the file, see the financial tools page) about a week ago, and I'm thrilled that people are finding it easy to use and helpful to their finances. Thank you for the support, and please feel free to contact me with ...

The strategy of limiting options: why less can be more
source: antanask via flickr Consider the following situation: John and Tim are both finishing projects at a consulting company and they are ready to be staffed on new projects. Their skill-sets and work ethics are similar, and both are considered team-players. Though they are comparable employees, their projects have been very ...

APR and APY converter
I've made spreadsheet that converts an APR to an equivalent APY (and vice versa) to complement my article about the difference between APR and APY. You have to enter a frequency of compounding. Many savings accounts like ING's Orange Savings compound interest monthly. This means you enter 12 for the compounding ...

A job you hate can be a paid learning opportunity in disguise
This article is cross-posted at Employee Evolution I used to fear calling random people on the phone. It was so bad that I didn't like calling for delivery pizza. It did not affect too much of my daily life until my first summer job where I had to call vendors about ...

Game theory on eating at a party with an Indian host
***Small note: India has diverse geographic regions that differ greatly in customs and culture. I use the word "Indian" as a convenience. I am more accurately describing my experience with Americans of Indian heritage and my understanding of the regional culture in Mumbai (the state of Maharashtra).*** I enjoy going to ...

Free spreadsheet to track your expenses
The File: See Financial Tools In last Fridays' article, I discussed some of the various ways you can track your expenses. I've tried to keep things simple so you can get started. Here are a few notes about the file: The spreadsheet is designed for one full year of data. The spreadsheet calculates ...

Why you should track your spending, and 3 slick ways to do it
A fool and his money are soon parted. When people ask me how they can improve their spending habits, I start by asking them some questions. How much did you spend on gifts last year? What percentage of your income do you spend on gas? Most people give some answers, but ...

5 ways your library could help you spend less
People tell me they don't like the library because it doesn't have the latest books. And I completely agree. If you strongly prefer new books, then buying them is the only solution. Plus, you get to read the book when it's in the news and people are talking about it. ...

Strangest nutrition facts I’ve seen
Nutrition facts from coconut powder: The saturated fat content is ridiculously high (a mere 25g of this stuff has about as much artery-clogging fat as a Chipotle Burrito Bowl). And to top it off, the total fat is somehow listed as 8 grams lower than the saturated fat. The % Daily values ...

The rule of 25% for calculating restaurant tips
I'm often asked to figure out the tip at restaurants because I have a degree in math. I used to explain that a math degree does not mean I'm a human calculator, but I decided it would be easier to have a rule of thumb on hand so I can ...

Understanding strictly dominated strategies, and 3 ways this can save you money
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt--Bertrand Russell A few months ago I was trying to catch a cab in San Francisco on a busy Saturday night. It is quite a game to pick the right spot. The ...