• Each individual, family, or business has a personal "economy" of its own.

• Bottom-line performance is based on the "profit and loss" of all its parts.

• Every economy faces the problem of substantial and continual "wealth transfers" (transfers of personal wealth to government and financial institutions caused by how we are taxed, how we save and invest, and how we pay for the things we buy).

A large part of our income is systematically and continuously drained away throughout our lives by interest expenses, taxes, fees, and certain insurance and other costs. As much as 34.5 cents of every disposable dollar is spent on interest alone*. This robs us of wealth. It is a fortune transferred from us to financial institutions and government largely because we use the financial methods they promote for their self interests. They amass wealth and huge buildings by controlling the economic power of our money. Financial planning does nothing to solve this problem.

As “cash flow” implies, we can look at our personal economy as a “plumbing system” with money flowing through various “pipes” into various “buckets”.  But, our pipes have leaks and our buckets have holes, some of them hidden, causing the excessive drainage to government and financial institutions.

In the attempt to get ahead, we may try to pump money into the “savings" bucket faster, and take excessive risk.  By exposing hidden drains and the magnitude of the drainage, Personal Financial Economics proves that this cannot work efficiently.  Perceived gains are offset by losses in other parts of our personal economy.

Simple economic strategies will fix pipes, plug holes and recover much of the drainage, literally turning a negative into a positive.  For many of us, investing the recoverable drainage alone would create a comfortable retirement.  It is the easiest, safest, and most effective path to financial security and wealth creation.  But, it is not in the best interest of financial institutions to teach us these things.  So, to win, we must learn from economists.

Personal Financial Economics:

Enables individuals, families, and small businesses to keep more of their money, now and throughout their entire lifetime.

Creates an imposing moat of financial security to protect our “financial castles” against a broad range of negative forces and events.

Builds personal financial power and independence while reducing dependence on financial institutions, government, and current fads.

How Personal Financial Economics Works:

Financial success is achieved by becoming economically positioned to reduce or eliminate costs; including income tax, loan interest, insurance, and other costs. Saved costs can be invested for increasing personal wealth. This approach adheres to economic principles, promoting “process” (how money is used) over “product” (where money is put).

* “Becoming Your Own Banker”, R. Nelson Nash (Strongly recommended reading.)