Exploring money: making and growing it, working, money philosophy, and money itself.

Money is the root of all evil ...not!

The biblical phrase "The love of money is the root of all evil." (1 Timothy 6:10) is so often abused that I want to handle that issue right now.

Financial Health

Financial health is so fundamental, that it is nearly criminal that all children are not taught it in school.

There are two factors that affect your financial health: your income level and your financial performance.

Your income level level defines whether you are lower, middle, or upper class. This is initially a matter of birth. You had no control over your point of origin.

Much more important than income level is your financial performance: 

Your performance is independent of your income level. EG: You could win the lottery or inherit lots of money but still have lousy performance. However if your performance is good, then your income level will automatically increase. If you want to get rich you must first increase your performance, then move up in income level.

There are all sorts of ideas on increasing financial performance. They all increase income and decrease expenses.

One idea is to pay for appreciation, but let others pay for depreciation. That is you should buy things that increase in value over time, like say a collectible item. On the other hand you should let others buy things that depreciate, then after it has depreciated to some degree, you buy it from them; EG: Someone else buys a new car, the care depreciates in value, then sometime later you buy that car.


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