Posts Tagged ‘purchasing’

“Why do we use money?…  the social function of money is to facilitate economic calculation.

Money cannot do this if its future purchasing power is subject to violent swings because of political intervention….  sound money has desirable properties such as a predictable purchasing power.” -Robert Murphy

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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.

Consumer Debt

Posted: September 16, 2011 in Money Matters
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There are four major issues with consumer debt; 1) it obligates future earnings, 2) a person loses capital to purchases and financing costs forever, 3) in debt to a creditor, and 4) lose control over money to the creditor.  In essence, it is an inefficient purchasing strategy.