Ideology

https://en.wikipedia.org/wiki/Operation_Choke_Point

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Exciting Future Graphs

http://www.newyorker.com/business/currency/googles-relationship-with-payday-loans-its-complicated

Screen Shot 2016-05-31 at 7.33.05 AM.png

My friend says the recent stock bump is because the Fed announced rate hikes because they think the core of the economy is healthy.

http://www.reuters.com/article/us-usa-fed-bullard-idUSKCN0YL00U

I don’t really believe that, but in any case, 1 of 2 things must be true:

  1.  I’ll get to keep the money
  2. The money will go away and the market will fall

Given the market usually falls pretty fast, that’s going to make the boring steady climb of recent days a temporary thing.  Maybe the logic is like, if the Fed hikes rates, then bond prices will drop… so people decided to sell some bonds and buy some stocks?  Not sure.

Insanity:

https://www.redfin.com/CA/San-Jose/1443-Alma-Loop-95125/home/1615704

This place was $513/sq ft.  At that rate, my condo would be $401k.

Anyhoo.  $6334 in the bank account after I get paid tomorrow.  It’s good to feel a little safer.  I should look up what people think about the percentage of net worth a person should have liquid/in cash.  Is it always by monthly expenses?  What are all the different cash-like assets?

A good rule of thumb to follow, advises Cronk, is to have six to 18 months of cash to cover your living expenses and any other unexpected costs.

Choose six months if you have additional sources of stable income, such as income from your employer, a pension, Social Security, or a trust.

Stay closer to 18 months if you are relying solely on investments for your income.

Having a reserve like this prevents you from making “short-term decisions with long-term assets during inopportune times of market movements,” Cronk explains. “Selling assets simply to meet immediate needs can create inefficiencies and tax consequences within your portfolio that may be unneeded if your cash budget is managed appropriately.”

I’m not there yet, but it adds another dimension to “when you are financial independent.” — having the 18 months emergency cash outside your invested money.  And I’ll repeat this article:

Recommended Net Worth Allocation By Age And Work Experience

I should research:

https://en.wikipedia.org/wiki/Center_for_Responsible_Lending

https://en.wikipedia.org/wiki/Center_for_Community_Self-Help