Wealth Building Wednesdays: Expsenses versus Investments
One of the most important skills that someone who desires to build wealth must learn is how to distinguish between an expense and investment. The super-wealthy don’t spend money on expenses. Even when it looks like they are spending frivolously, they are investing in making themselves more money. An Expense An expense is something you spend money on that will not grow your bank account. It is a purchase that may be a necessity or it feels good in the moment but ultimately is not going to profit you. If you spend $600 on a purse, and you are spending it because you want to impress people, that’s an expense. It’s not going to make you money. It’s not going to help you get closer to your goals. It’s not even going to impress the people you want to impress. Buying a t-shirt or a purse or a pair of shoes that promotes someone else’s brand or carries their logo is an expense. The only thing it’s going to do is add dollars to their wallet, not yours. Truly wealthy people do not buy things to ...