Page 28 - 57802 Summer 2020
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Fire up Your Finances:


                                                                    Economic Heat


                                                                   by Dr Joseph Blake Jr













        How  would  you  describe  the  Hyperbolic  discounti ng centers  form  what  is  referred  to  as  the
        transformation  from  being  a  on  the  ti me  value  of  money,  “Fire Triangle”.




        military  firefighter  to  a  financial  where  money  received  today


        firefighter?    The    parallel   and  had  more  value  than  money  There are three stages of a fi re as

        similarities  of  saving  lives  and  received  tomorrow.  (Blake,  2019,  well:  incipient,  free  burning,  and

        protecting  property  form  the      pg. 36) Let’s say you rolled-over a  smoldering  stage,  followed  by  a

        foundations  of  an  economic        retirement fund with $30,000 into  possible back draft  conditi on.

        rescue  mission.  In  my  13-year    a  typical  mutual  fund.  (See  chart
        career  as  a  US  Air  Force  Fire   on  page  29).  Then,  in  addition,  I  translated  Fire  Science  into

        Fighter  versus  26-years  as  an    added  $200  monthly  during  the  Financial  Fire  Science.  So,  what
        investment  advisor,  I  noticed     period  from  June  2009  through  are  the  elements  or  stages  of

        few  surprisingly  complimentary     June 2020. The results in 11-years  your fi nancial science formula that
        elements. Just as having the proper   would  be  $125,611  with  an  you use to light up your fi nances?
        tools and equipment to perform a     average 9% rate of return during  Think  of  the  knowledge,  acti ons,




        firefighting operation is paramount    this time frame.                     and  behaviors  you  need  to

        to save lives and protect property.

        Knowing a few monetary concepts                                           exhibit toward achieving financial

        like mental accounting, hyperbolic   The  Dow  Jones  volume  declined  independence.

        discounting,  and  Financial  Fire   to  8,447  point  in  Jun  2009

        Science can make a difference.        rebounding  to  26,559  in  2020.  Here is another weird one, the fi re
                                             This means the results in your  concept  of  vapor  density.    This

        Mental     accounting    illustrates  financial   portfolio   will   have  precept measures whether a gas or


        how  we  spend  money  in  ‘bucks’  seen  exponenti al  growth.  Note,  vapor is heavier or lighter than air.

        as a traditional means of keeping  immediately  aft er  the  downturn  Using 1.0 as the measure, Helium
        track  of  the  cash  a  consumer  in the economic markets, it  (balloon)  gas  measures.  00018
        spends  (Blake,  2019,  pg.  36).  recovered at an astounding pace.  lighter  than  air, whereas natural
        The  purpose  of  this  process  is  This  process  has  been  repeated  gas equals. 7 nearly as heavy as air.
        to maintain spending, yet some  itself for nearly 100 or so years.
        families use it as an overall family                                      Balloons  tend  to  float  away  into



        financial practice. This method has  Financial Fire Science: Fuel, heat,  the  wild  blue  yonder  and  natural

        no  bearing  on  positioning  your  and oxygen, along with a chemical  gas seeks low lying areas.
        money to grow and could limit  chain reacti on, are the components
        future growth.                       to a fire. The first three elements


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