What Should We Really Be Paying Attention To?

Why pay attention to the world economics, when even your personal fundamental economics are not given the right attention?

Do you even have to worry about the world economics if you're doing well with your personal fundamental economics?

In my opinion, our personal fundamental economics are characterized by these 4 parameters:

• Income
• Expenses
• Assets
• Liabilities

You're doing well with your personal fundamental economics if your current:

• Income > Expenses
• Assets > Liabilities

You're struggling your way up with your personal fundamental economics if your current:

• Income > Expenses
• Assets < Liabilities

You're struggling your way down with your personal fundamental economics if your current:

• Income < Expenses
• Assets > Liabilities

You're doing poorly with your personal fundamental economics if your current:

• Income < Expenses
• Assets < Liabilities

What we know is that our Expenses are direct results of:

• Inflation
• Taxes
• Utilities
• Interest rates
• Education
• Health care

If these items continue to be on the rise, that would increase our Expenses, and therefore negatively affect our personal fundamental economics.

We know we can't avoid the increase of all these items. Thus, to solve this, ask yourself:

• Is your source of income always on par with, if not ahead of, inflation?
• Does your source of income come with the best form of tax relief?

What should we really be paying attention to? Are you taking any action to improve your personal fundamental economics?