It is time to ante-up the momentum in the Game of Life with the Fifty-Fifty Money Play.
Before we are diving into the detail of the play, let’s explore the underlying dilemma with saving – why the majority of people anywhere around the world cannot save money?
Why you cannot quit drinking?
Why you cannot quit smoking?
Why you cannot quit gambles?
Why you cannot quit prostitution or porn?
Why you cannot quit eating bad foods and lose weight?
All above challenges can be generalized as follow – why you cannot quit something that you are fully understood – it is bad for you?
Unless you are a member of one of the Amazon tribes in Brazil, most of us are fully apprehended that drinking, smoking, gambling, prostitution, porn and obesity are not good of us – yet slowly and incrementally, we takes small step onto these life paths that unquestionably will take us closer to the sure dead end.
There are three underlying fundamentals that regulate our behaviors –
- Competition
- Biological variations
- Financial constraint
In this article, The Engineer will cover the topic of competition – the rest will be presented in the Forty-Sixty Money Play.
In 1859, Charles Darwin published “On the Natural Origin of Species by Means of Natural Selection”. In it, he provided scientific evidences to support the idea of survival of the fittest.
All life forms are in the competition for the limited resources for the purpose of duplicating their copies in the successive generations.
As of the first quarter of the 21st century, the world population as stands is 7.7 billion. Globally, each of the 195 countries are positioned themselves in the most favorable trading relationship with others.
In turn, the citizens of the countries are getting up every day to compete for the piece of the pie the business leaders and states officials have successfully brought home from the world market.
Competition of the local resources for survival is the rudimentary behavior for all life forms including our species – the Homo sapiens.
In the dawn of civilization, rules of engagement has been developing and evolving around the competition. Just as rules that governs any sports.
Hence, the Game of Life is governed by the very complex rules of engagement composed of cultures and politics of all the specific localities. The most successful participant of the game has vast knowledge and the execution of strategy in variety of engagements.
Each and every one of us is built slightly different that one another. Yet the rule of engagement for competition of any resource is fixed. As the result, most of people will be stressed in competition as time goes on. Worst of all, it is the chronic stress that spans 20 to 30 years – keeping up with the 30 years mortgage is an example.
Hence, it is strategically important to find “something” that you have a strong interest and compete in that arena with passion.
It is natural for all life forms to get away from an unpleasant situation and chronic stress is an undesired circumstance.
Unfortunately due to the financial obligations, most people will have to bear the stress for the duration of their working career.
Since getting away from the unpleasant plight is not an option on the table – drugs, alcohol, gambling, prostitution, food, shopping become the alternatives.
Initially, participating in these activities are means to de-stress for coping with the unpleasantries. Overtime, they become the vices that hurt more and kill the players in the game faster than the original causal stress.
There are many scientific studies that give number of days a behavior will become a habitual addiction. Taking into the account the genetic uniqueness across the population, in general, it will take one month to one year for the vice or addition to control the player in the Game of Life.
According to Newton’s Third Law – “For every action, there is an equal and opposite reaction” – depending on the amount of time on the addiction, it will take the same span of time to get off the train of enslavement.
It is not in an absolute term, but in a broad sense, most people are stuck in the undesired circumstance due to the financial constraint.
The Fifty-Fifty Money Play gives the player the option of moving away from most stressful situations in 15 years time frame – tuck away 50 cents for every dollar earned.
The design of the Fifty-Fifty Money Play is based on the following components –
- The scientific research of the 4% Safe Withdrawal Rate (SWR) – readers are encouraged to investigate the SWR topic for additional comfort and understanding.
- The long term average return of investment in ten years is between 6 to 7 percents.
- The inflation and tax on long term capital gain and dividends is between 2 to 3 percents.
- The participant is in good health and is highly competitive in comparison to the average population.
Figure 3 and figure 4 below illustrated a 15 years financial simulation for the 25 years old who executed the Fifty-Fifty Money Play with an income of $44980 per year – $39144 after 2018 tax rate.
After 15 years of execution of the Fifty-Fifty Money Play by any 25 years old anywhere in the world, the following financial stats are the results from the simulation –
- At the 40 years of age, the 25 years old will have accumulated $497,096. The Financial Independent number.
- The 4% withdrawal rate from the accumulated saving/investment of $497,096 will generate the income of $19,683.84 for 30 years (Trinity Study).
- At the 47 years of age, the 25 years old will have his/her first million.
Most of you will balk at the idea of living a life style in the range of less than $20,000 per year. This is the average hourly rate for a typical Walmart worker in 2018.
The Engineer is not here to convince everyone to commit the life style of less than $20K annually.
The 1DesignerLife frame work is designed for everyone, regardless of the financial circumstances, to find fulfillment in the journey toward their specific endeavor – listen to the inner voice and ignoring the external noises.
If you would like to achieve financial independent in 15 years by executing the Fifty-Fifty Money Play, and you are spending more than $20,000 per year on an income of $44980 or less – you will fail due to the many temptations and external noises that have been conditioned into your day to day life.
The challenge is no different than an overweight person who has been conditioned to the addiction of sugar and carbohydrates over the years and tries to lose 20 to 30 pounds of weight in one year time frame.
The high saving rate money play, Sixty-Forty, Fifty-Fifty and to be presented Forty-Fifty are designed for the following participants in the Game of Life –
- Highly motivated participants with entrepreneur mindset who is longing for an opportunity to take charge of their own financial future.
- Highly motivated participants who have the established mindset that their existence is more than keeping up or chasing after the number game.
The degree of success in any of these money plays is vitally determined by which type of participants in the Game of Life you are aspired to become – the Game Changer, the A-Player, the Player or the Spectator.
Once, we were kindergarteners and full of excitement when the teachers asked “what do you want to be when you grow up?”
Now as an adult, The Engineer is giving you the same opportunity that many of you have long forgotten!
Which type of player do you want to be for the rest of your life?
Let’s play the Game of Life!
