This is the second installment of the series "Running Household Finance As A Business". My goal in this series is to "examine our household finance under the corporate finance microscope," which, I hope, will bring up some new perspectives in thinking about personal wealth accumulation.
In the first part of this series, I devised some fancy names for our corporate structure, including MM Household as the umbrella holding company, and Money Manager Co., Perfect Future Publishing Co., Expat Services Co. and Value Invest Co. representing our diversified income streams. While I purposefully concealed some details of each entity, it suffices to know that our financial life is really complex, or for the lack of a better term, diversified.
In this chapter, I attempt to show how all these pieces work together as a money-making machine. Let me start by showing you a chart that describes how money flows through MM Household in the first three quarters of 2007.
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