If you are looking for motivational personal finances, Jean Chatzky’s recent book, The Difference provides just that. Chatzky is a well-known financial journalist who offers helpful insights into what you need to do in order to change your financial situation. Her book previous to The Difference was Make Money, Not Excuses — and a bestseller. In Chatzky’s latest offering, she looks at what makes the financially comfortable and the wealthy tick, and describes what you can do to benefit from what she refers to as The Difference. Even during times of economic uncertainty.
The Difference focuses on the finding from the …read more

The best case is a person who has wealth (assets) and income (cash inflows) and uses his income to generate assets that earn income which generates more assets which earn more income which generates more assets which generate more income . . .
A truly rich person is one who does not have to earn income, but has assets which earn income for him.
Behind all the jargon, what accounting really does is track the process or cycle of assets generating income which generates assets which generate income which generates assets . . .
This post is part of the b5media Business Channel …read more

Consider a person who owns a huge mansion, an expensive car and designer clothes, but has no job.
He has wealth, but no income. He has assets which do not earn and are expensive to maintain. (The case with many an actor past his heyday). Of course, these assets can always be sold and generate temporary cash inflows. However, when they have all been sold and there is still no job . . .
Consider a person who earns an annual salary in 5 or 6 figures, but who spends all of it in consumables. He will …read more

One day, the father of a very wealthy family took his son on a trip to the country with the express purpose of showing him how poor people live.
They spent a couple of days and nights on the farm of what would be considered a very poor family. On their return from their trip, the father asked his son, “How was the trip?”
“It was great, Dad.”
“Did you see how poor people live?” the father asked.
“Oh yeah,” said the son.
“So, tell me, what did you learn from the trip?” asked the father.
The son answered: “I saw that we have …read more