You are probably visiting my Web site because you are trying to make the best financial decisions for your future. Unfortunately, there is a lot of misinformation and half-truths taught to the public regarding their finances. I believe that good financial decisions should be made with information that is economically sound and not based on hype.
Introduction
-
Each individual, family, or business has a personal "economy" of its own.
-
Bottom-line performance is based on the profit and loss of all its parts.
-
Every economy faces the problem of substantial and continual wealth transfers (transfers of personal wealth to government and financial institutions caused by how we are taxed, how we save and invest, and how we pay for the things we buy).
We all face significant problems in the effort to show a true net profit in our personal economy. Regardless of income, very few do. As cash flow implies, we can look at our personal economy as a plumbing system with money flowing through various pipes into various buckets. But, our pipes have leaks and our buckets have holes, some of them hidden, causing excessive drainage that goes to government and financial institutions.
In the attempt to get ahead, we may try to pump money into the savings bucket faster, and take excessive risk. By exposing hidden drains and the magnitude of the drainage, Personal Financial Economics proves that this cannot work efficiently. Perceived gains are offset by losses in other parts of our personal economy. Economists tell us that a primary reason this happens is the general lack of education in economics.
Simple economic strategies will fix pipes, plug holes and recover much of the drainage, literally turning a negative into a positive. For many of us, investing the recoverable drainage alone would create a comfortable retirement. It is the easiest, safest, and most effective path to financial security and wealth creation. But, it is not in the best interest of financial institutions to teach us these things. So, to win, we must learn from economists.
Personal Financial Economics:
Enables individuals, families, and small businesses to keep more of their money, now and throughout their entire lifetime.
Creates an imposing moat of financial security to protect our financial castles against a broad range of negative forces and events.
Builds personal financial power and independence while reducing dependence on financial institutions, government, and current fads.
How Personal Financial Economics Works:
Financial success is achieved by becoming economically positioned to reduce or eliminate costs; including income tax, loan interest, insurance, and other costs. Saved costs can be invested for increasing personal wealth. This approach adheres to economic principles, promoting process (how money is used) over product (where money is put).
Copyright 2002 by Michael Burrill. Copying is prohibited. All rights are reserved.