NOT spending all your money is hard, especially when it seems to have a mind of its own and just goes...places.  Let's talk about some ways to set you up for financial success with your spending and investing.  

There are spenders and there are savers...is one better or worse than the other?  I think it depends on how extreme it is.  

Do you want to know what the most important factor is that will determine whether you become wealthy or poor?  I sure do!  

Remember the net worth equation from Episode 014?  It makes a reappearance here as we dive deeper into personal finances and what makes a healthy financial household.  

In this episode we dive into the components of what makes up a household's finances: what comes in (income), what goes out (expenses), and what's left (cash flow).  

We will be digging into the world of personal finance (how to manage your own money) for the next few weeks, and in this episode we will discuss WHY! 

We discuss one very useful equation that we will use a lot going forward, both in our personal finance discussions and in our investment analysis discussions: the net worth equation (and the accounting equation...and the basic financial equation...which are all the same equation).  

Money moves in two directions: toward you or away from you.  You spend or you earn.  You buy or you sell.  You invest or you borrow.  So...spending, buying, and investing are all related.  So are earning, selling, and borrowing.  

Price can tell us a number of things IN THE CONTEXT of other information, but it doesn't tell us much by itself.  

Price and value are related, but they aren't the same thing, and they often don't match.  Let's talk about it.