A long time ago I listened to a lecture from a guy that was some sort of Financial Wizard. He said that we spend our money on Two Things… Guns and Butter. The terms are figurative… Allow me to explain.
Guns are Assets. Guns are things that either Hold Value or Gain Value over time. A Gun, if you buy it right, will be worth what you paid for it, and can even go up in value if you buy them right. That’s another subject all together, investing in guns… But I digress. A Classic Car can be considered a Gun Type Purchase… Property… Anything that becomes an Asset to you that either gains value in and of its self, or allows you to make profits because of it. Such as Tooling for your business.
Butter are things that either lose value over time or are consumed. For example, you can buy a pound of butter now, and in a couple months, you no longer have a pound of butter… it’s either been used up or has gone rancid. Butter is also those normal expenses we all have or frivolous spending… like that new boat you want. Because the value of that boat will go down over time.
Now, this sounds very wise to want to spend more on Guns than you do Butter. However this Financial Guru missed the 3rd and most important Thing that we Should be spending money on: MEMORIES. Continue reading Guns & Butter