Financial Planning vs. Prosperity Economics Meets needs and goals only Maximizes every dollar Retirement oriented Abundant/Freedom oriented Product oriented (only what you buy) Strategy oriented (what you do) Accumulate money Accelerate money Rate of return focuses Opportunity cost recovery focused Institutions control your money You control your money Uncoordinated Integrated Micro (vacuum) based Macro (big picture) based Net worth is measurement Cash flow is measurement Money stays still Money moves Dollars do only one job Dollars do many
Read MoreHow 0% Financing On A Car Isn’t Always 0%!
Since we are writing this in 2009, there are some true 0% car loans in the market place due to the economy in general and the condition of the automobile industry in particular. However, knowing the whole truth about your money is critical in knowing how best to finance a car and there is much misinformation around this area. Don’t be sucked into making higher payments because it’s only 0%! What happens to car buyers is they get focused on the payment. A car dealership has a different price for
Read MoreHow Can Borrowing At 4% And Investing At 5% Be A 25% Return?
Do you know the whole truth about how interest rates work? Did you know borrowing money at 4% and investing at 5% is not a 1% difference but a 25% return? It may be a 1% spread, but the reason most people cannot identify the 25% return is we don’t typically use financial calculators (like an HP-12c ). If we do use them, it is still hard to tell what is going on because we can not see all the numbers at one time since the screen only shows the
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