Posts Tagged ‘consumption’

“When you borrow money two things usually happen.  First, you’re taking capital that others saved in the past, and are probably using for consumption, not to create more wealth.  And second, you’re mortgaging your future, which makes you a serf when you have to pay it back.” -Doug Casey

Trying to look a part is perhaps the single easiest way to never become the part.  This is especially true when it comes to money.  It takes a lot of money to keep up appearances.  This money spent on consumption items will be money not used to create real wealth.  If you really want to be rich, create a private reserve first, then let the money your money makes do the purchasing.  Spending first will leave you with empty pockets.

Consuming Wealth

Posted: April 9, 2015 in Money Matters
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“Consumption does not create wealth; it consumes it.” -Bill Bonner

Consumption Life

Posted: October 28, 2014 in Money Matters
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“You cannot enjoy life if you are addicted to consumption and credit.” -Thomas J. Stanley

Consuming Debt

Posted: July 15, 2014 in Debt
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“Debt for consumption helps many people become poor – but never helps anyone get rich (except for the lenders!).” -Justin Ford

Saving… is deferred consumption.” -Gregory Bresiger

“Saving, ultimately, is consumption.  By setting aside some resources for meeting financial consumption needs, we invest them.” –Detlev S. Schlichter

The private reserve strategy initially provides a build up in savings, but it also produces a higher ability to consume.  By delaying consumption, one not only builds a base of capital for purchases, but saves interest payments to an outside source.  This savings is additional capital to use for various purposes.

“The valid concern about household debt is therefore not that it is fueling consumption, but that it might detract from future expenditure because, for prudent families, debt service gets in the way of other spending.” -The Financial Times