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Peter Koehler

How to Calculate the True Cost of Home Ownership

(downloadable financial model included)

[Note: Scroll to the bottom of the post at anytime to download the calculator]

A house is the biggest purchase that many of us will ever make. 

Yet far too many people spend disturbingly little time running the numbers on what they can afford.

People will literally spend more time agonizing over whether to spend an extra . . .

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November 28, 2016

Why You Should Dump Out Your Hot Coffee

A quick example of sunk costs:

Keeley and I just stopped at coffee shop, and she bought a coffee to go. Three minutes after we left, she had taken just two sips, and dumped it out.

"I realize I don't want this anymore."

She recognized that the $2.50 she paid for the coffee was a sunk cost. 

She paid for it in the past, . . .

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November 19, 2016

Your Political Donation is Zero Sum

How to think about maximizing impact when donating politically

It's election season, which means there's a good chance you've been asked for money. Or maybe you've been invited to a fundraiser or a phone bank.

Perhaps you've even given money to a candidate or a cause while attending a fundraiser, or after receiving an email with an irresistible pitch.

During this season, I think it's important . . .

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September 22, 2016

Compound Yourself

 

When it comes to investing your money, one of the first principles to understand is compound growth. 

We often hear things like:

"The biggest money mistake I ever made was not starting to invest earlier."

"Start investing even a tiny amount early, and you can be a millionaire by the time you retire."

and

"If you save just . . .

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June 25, 2016

Free is Cheap

and nobody wants cheap

The other day I was at the Home Orchard Society.
 
I was talking with the manager, and I noticed an apple press against the shed. I asked her if they made a lot of cider.
 
Then she said something fascinating. 
 
"Oh yeah - we invite the public to show up with jugs and help press apples and take home cider. . . .

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April 23, 2016

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