Expenses

Expenses are things that people pay for. Most of them are simple things like clothes, food, and water those kinds of things. Others can be powerful liabilities like mortgages and loans. Expenses are every day things that we com across and spend money on. Every thing that you or I or anyone will ever buy will be an expense. Most expenses today are rising in cost due to appreciation. (when money loses value.) The appreciation caused when people print out much to much money for financial needs. At any rate expenses are the things that will always take money from you pocket but that does not mean it can’t be a benefit. Expenses can be a real benefit if one uses it right. If a person buys an asset (which I talk about better in another article.) Which is any thing that puts positive cash flow into you pocket.(Which I talk about Cash flow in another article.) Some assets have expenses that go along with them but one must try to balance those expenses with the money that the asset puts into your pocket making a nice positive difference into your pocket. Some technical people like to call this positive cash flow difference between expense and money made Cap rate.

Cap rate in whole is called capitalization rate and I don’t really want to get much into that for if you don’t understand it can get pretty confusing. Matter of fact you’ll find that there is a lot of things in finance that is very confusing that is why most people hire brokers to handle their money because they don’t know how to. And half of the reason they don’t know how to handle their own money is because they don’t know many financial words like cap rate and C.C.R. or O.P.M. or cash flow or capital gains, and lastly ROI. These are all very important things that people should know if they ever want to even think about getting out of “The Endless Cycle”. (I talk more about this in it‘s own article.) But instead of using expenses to manage income or make income or invest. Most people almost 90% use money to make themselves even more broke because odds are your in that 90% of Americans that are trapping in “The Endless Cycle”. Expenses are very important because saving in the world or the 2000’s is not a valid thing anymore. Maybe saving world have gotten you rich when you were in 1940 or 60 but now things are not that simple. With appreciation the cost of living is going up and paychecks are not going up to meet them therefore people are suffering. And now more than ever we need to educate ourselves on the ways that the rich think and on ways to get out of “The Endless Cycle” that most people never get out of. I feel sorry for those that are already too deep to get out but when there is a will there is a way and now is the time to face your mistakes and STOP digging that hole and start rising yourself.