Income Statement: Gross Income - Expenes = Net Income - Taxes = Net Income after taxes
Balance Sheet: Assets - Liabilities = Equity
We talked in earlier classes about:
1) Delayed Gratification creates wealth by living below your means (income) and save money every month
2) Education: The more education, the higher your potential income (Direct Relationship)
3) Practice being frugal means having the standard-of-living you want but buying smartly and find deals
4) Have good credit means your expenses will be lower thru lower interest rates and better offers
5) Taking risks to increase your income and returns - however use calculated risks
Difference is wealth among different groups
To be economically success in this country, you must understand this and work toward wealth creation durig your life and find a mate who believes in the same. Then teach it to your children, extended family and friends.
For more information about the wealth gap among segments of society read:
There are some great numbers in the above post. Something to add to that is the recent ADP employment report published this Friday. The ADP employment report stated that the US successfully created ~114,000 (above analysts consensus) jobs in the last month. This may seem like a big number but when you consider that we need monthly job creation of ~200,000 just to keep up with population growth the 114k number is nothing to be excited about.
ReplyDeleteAs hard as it is to retain and create wealth in this country, it appears to be even harder to get a well paying job, much less a job at all.
Former CEO of General Electric, Jack Welch, believes the numbers were cooked to better the presidents chances of winning the White House for a second term.
http://www.washingtonpost.com/blogs/election-2012/wp/2012/10/05/jack-welch-accuses-obama-of-cooking-jobs-numbers/
Goldman Sachs disagrees:
http://www.businessinsider.com/goldman-drops-the-neutron-bomb-on-people-who-think-the-unemployment-rate-was-cooked-2012-10
This is true because many minorities do not invest, save, or practice frugal spending which in return sets us up for failure when a recession or depression hits the economy.
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