January 2011

Earlier this week I attended the first of seven classes of Kustom Design's Level 1 financial boot camp.

paraphrased: "Accumulate assets that are valuable whether or not the financial system crashes." - Mike

The class is taught by Michael E. Lepitre. Mike is super passionate about money, and it shows when he's teaching.

Financial freedom: Where you do not have to work for money. Instead money works for you providing plenty to fulfill your purpose, enjoy life and allow your wealth to grow for future generations and charity.

The 5 Steps

  1. Develop a closed circle budget.
  2. Eliminate bad debt (consumer & mortgage).
  3. Legally Minimize Taxes.
  4. Wealth accumulation & increase passive cash flow.
  5. Wealth preservation.

Today's educational system focuses on:

  • academic education: ability to read, write and compute.
  • Professional education: learning a trade to earn money, to get a job.
  • NOT financial education: learning how to make money work for you.

Classes of Investors

  • Non-investor (the poor)
    • consume everything they earn.
  • Active Investors
    • these people are entrepreneurs.
    • They invest first in becoming financial experts.
  • Passive Investors (the middle class)
    • believes in good education, a high paying job, home ownership and saving for retirement through a pension.
    • Turns their money over to financial experts to invest.

Key Differences

Passive Investors

  • no control
  • higher risks
  • banks will not lend money to them
  • higher taxes
  • worries about market crash
  • low returns
  • plan can run out of money
  • may never retire

Active Investors

  • has control
  • lower risks
  • use bank's money (OPM)
  • uses insurance
  • may pay zero taxes
  • welcomes market crash
  • high returns
  • plan provides for generations
  • may retire early (choice)

Cash Flow Quadrants

  • E Employee - You have a job
  • S Self Employed - You own a job
  • B Business Owner - You own a system & people work for you
  • I Investor - Money works for you.


  • earns income, works for money, has a job.
  • Believes the harder you work, the more money you make.
  • Believes more money will solve their financial problems.
  • Searches for a safe secure job with good pay and excellent benefits.
  • Believes the level of formal education relates directly to receiving a higher income.
  • Taxes are their number one expense.
  • Invests in RRSPs and mutual funds.

Self Employed

  • hardest working people on the planet.
  • Usually wear all the hats.
  • 90% fail after 5 years.
  • Work harder and longer than most employees and bring their work home with them.
  • Like to "be their own boss" and do it themselves.
  • Seek to be in control and resist delegating.

Business Owner

  • surround themselves with smart people from all four quadrants
  • learn technical skills:
    • reading financial statements
    • marketing
    • sales
    • accounting
    • management
    • how to lead people
  • pay very little in taxes
  • protected by using corporations and trusts.


  • knows that you must invest to be wealthy
  • have money working for them
  • do not invest in RRSPs
  • main focus on ROI (return on investment) and cash flow
  • pay the least amount of taxes
  • invest utilizing corporations and trusts

investment income

  • interest income: taxed very high
  • capital gains income: taxed at 50%
    • if you buy one share at $10. Then watch it go up to $20, and sell it you will be taxed on the $10 increase at 50%.
  • dividend income: most tax advantageous

There are people who become wealthy in each quadrant and sometimes derive income from different sources.

History of Money

  • Before money, the barter system was used.
  • Silver, gold and other metals were the first forms of the monetary system.
  • Gold became the standard of currency banking.
  • The fiat money system has been tested for 2000 years (never with any long term success due to debt.)
  • The separation process of gold from paper money began in 1933.
  • In 1971, Richard Nixon took the US off of the quasi-gold standard.
  • Savers become losers because they were now saving a currency instead of saving money.
  • The problem with saving a currency is that a currency is designed to go down in value.

Wake Up Call

Banks make a tonne of money off of our money. E.G. If I deposit $100,000.00 in to the bank and I receive an interest rate of 3%. I can expect to make about $3000.00 in a year.

The bank could then lend out $100,000.00 at a rate of 6% and make $6000.00.

So far the bank has lost $3000.00 but gained $6000.00, so that would be about a 100% return for them.

Apparently, banks can actually lend out 20 times that original $100,000.00 I put in. Which means that bank can lend out $2,000,000.00 at 6% and get a return of $120,000.00 in a year. It costs the bank $3000.00 and earns them $120,000.00. This sounds crazy!

It's called fractional reserve banking

Next, up it's time to visit the Finance section of the Khan Academy.

2-3 rounds:

  • Pushup Hold
  • Extended Arm Hang
  • Dip Hold
  • Flexed Arm Hang

2-3 rounds:

  • Pushups
  • Body Rows
  • Dips
  • Chinups

Progress slowly with this as it's VERY intense!

How do you replace a deprecated application that was built on top of Microsoft Content Management System (MCMS) 2002?

You could recursively download the entire website and serve it up as static html pages. This is where you use a tool like wget.

  $ sudo apt-get install wget

or download the wget package via cygwin.

  $ wget -r -p http://mokhan.ca/

And there you have it. You now have a local copy of the target website.

If you notice that some content wasn't pulled down, that should have been, it's likely because the site has a robots.txt file at root that disallows certain urls.


To install ssh in ubuntu

$ sudo apt-get install openssh-client openssh-server

To install in cygwin install the openssh package under "net". You will also need to run "ssh-host-config" after install to run the server.

Then to ssh into your machine use the below command. The standard port is 22, but you should change this. You can either update the config file located at "/etc/ssh/sshd_config" or you can do a port forward on your public facing firewall.

  $ ssh mo@<server> -p <port>

To copy files from a remote machine down to your local machine you can use the scp command.

# copy from a remote machine to my machine:
  $ scp user@ /home/me/Desktop/file.txt

# copy from my machine to a remote machine:
  $ scp /home/me/Desktop/file.txt user@

# copy all file*.txt from a remote machine to my machine (file01.txt, file02.txt, etc.; note the quotation marks:
  $ scp "user@*.txt" /home/me/Desktop/file.txt

# copy a directory from a remote machien to my machine:
  $ scp -r user@ /home/me/Desktop/.


When you need to manage public/private keys for different git repositories on one machine you can use a config file in your ~/.ssh/ directory. Using the config file you can specify which keys to use for specify urls.

For example the following is a sample ssh config file.

Host github.com
  User git
  Hostname github.com
  PreferredAuthentications publickey
  IdentityFile ~/.ssh/github/id_rsa

Host unfuddle.com
  User git
  Hostname unfuddle.com
  PreferredAuthentications publickey
  IdentityFile ~/.ssh/unfuddle/id_rsa

In some cases you may need to "ssh-add ~./ssh/github/id_rsa" each public key/pair. You may also have to "chmod 600 ~/.ssh/github/*"

To figure out what key is being supplied when cloning a git repo you can ssh to the destination server using the git user. The following command should give you enough information to figure out what's going on.

  $ ssh -v git@github.com


To mount a remote filesystem.

  $ mkdir ~/godaddy
  $ sshfs -C user@user.com: ~/godaddy
  $ ls ~/godaddy

To unmount

  $ fusermount -u ~/godaddy

mount a remote file system