Addressing Financial Illiteracy


After we earn or acquire money in some other way, three primary choices then exist regarding what can be done with it. We may… A) Spend it (debt centric, negative return), typically directing it towards: 1. Expenses (food, clothes, transportation, etc.) 2. Liabilities (credit cards, mortgage, other loans) 3. «Stuff» (typically tangible items that depreciate rapidly in value) B) Save it (asset based, low but positive return) C) Invest it (income producing assets, greatest return); real estate, stocks, bonds, etc.

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