True Wealth Equals Credits Minus Debits

Finances 101 should be a required class in high school. Many take Accounting 101, but not everyone. If everyone were required to take Finances 101, they would know that real wealth equals credits minus debits.

Accounts Payable & Accounts Receivable

Accountants understand the differences between accounts payable and accounts receivable. If a company does not understand, then it will go bankrupt. So, why don’t individuals really understand the difference? If you look up the origin of the word, Economics it refers to household budgets. The original economics was based on how a family would manage its bills. Something has led people to think that economics is only what bankers do.

What Are Credits?

And, that is part of the problem. The world relies too heavily on high level bankers. Individuals, businesses and governments need to understand how accounting works also. Individuals, businesses and governments all have credit scores. Knowing the difference between a good credit score and bad credit score can save you a lot of money. Do you know what a good credit score means?

We don’t want you to name the number that constitutes the good credit score in the eyes of the banks, but the purpose behind the good credit score. A good credit score means that you are creditworthy. You have a history of repaying your bills, on time. Credits are income, assets and accounts receivable. If your aunt gave you an IOU because you paid for her groceries, that IOU is a credit.

Financial Services

The financial professionals of companies like Quill Group understand that real wealth is about credit minus debits. They can help you optimize your credits and minimize your debits. The world financial situation would be better if everyone took a page from the Quill financial expert’s book.

What Are Debits?

Debits … Read more

Why It Is Important to Have a Solid Financial Plan

Finances are a very important part of life. They are also very tricky in different ways. While some people are rather skilled at making money, those same people may find it challenging to save their money. One thing that people may realize as they gain experience is that finances come in waves. There will be times when money is scarce. This is one of the reasons that it is important to have a solid financial plan. There are many factors to figure out when it comes to a financial plan.

When it comes to financial planning, it is not enough to have a plan for the present. You must also have a financial plan that factors in the future. One of the common things to plan for is getting out of debt. A lot of people accumulate debt over time, especially with student loans. In many cases, their debt is in the form of student loans. Then they are trying to pay off their loan for a good part of their career. The unfortunate thing is that there are a lot of factors that stand in the way of them getting debt free. A solid financial plan can help with this.

Another factor that needs to be considered with financial planning is retirement. In this current economic climate, retirement is a very tricky thing to save for compared to 30 years ago. . The traditional way of making money and saving for retirement is not as effective as it used to be. It is very likely that you are going to need an alternate form of income so that you can more easily save for retirement. This can be in the form of investing or starting a business. With the right skills, you can build a source of income … Read more