THE DIFFERENCE BETWEEN WEALTH AND POVERTY IS TWO CENTS.

What?!!

That’s right. It’s a euphemism for financial health. What it summarizes is this.

Every person who earns one dollar and spends 99 cents of that dollar are building savings and, over time, financial wealth. By contrast, every person who earns one dollar and spends $1.01 can only do so by taking on debt, which if not managed well over time, can lead to self-inflicted financial oppression.

The difference between spending $1.01 and $0.99 is two cents!

Of course, taking on debt can be necessary and practical.

Taking on debt to buy a car is necessary even though it is an asset that depreciates over time because it is essential for your ability to earn money.

Taking on debt to buy a home is practical by putting your resources to work for you rather than paying someone else rent. After all, you must live somewhere. Over time it can build wealth while providing a roof over your head.

But not all debt is good debt.

This Board Brief series takes a sober look at what financial professionals consider poor practices that can trap people in avoidable financial poverty.

We hope it is useful to you and your family; helping you raise such an important topic if that is warranted.

What To Do?
Look for our upcoming Board Briefs where we talk about the sensitive, sometimes difficult, subject of spending and its impact on living well financially.

Our Advice
Personal finances are an integral part of everyone’s quality of life. Whatever your financial need, we’re here to help.