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.

I like most people want to take control of my finances and my expenses so that they wont eat me away through all the liabilities that may or may not have. The liabilities that take money from your pocket and dig you deep into debt. (liabilities are covered in there own article though.) I hope that through reading some of the articles I wrote you will gain some type of perspective and will try to take your first steps in order to get out of that cycle and to be in that 10%. But you must realize that expenses can be used to help or to harm you. That what you buy everyday could actually be things that will help you out in the long run. When your financial situation in proves and everything falls into place and you have that strong will to succeed then nothing will stop you from doing so. Please take the time to invest into your financial education some more so that when you get to that pot at the end of the rainbow it wont be empty but it will be full. So then the only question I leave you with is in 20 years from now will your pot be full or empty. If you don’t know then that could be just as bad as a no.