Sometimes we hear people brag about their new car, new home, luxurious apartment, expensive jewelry, designer clothing, or high tech gadgets. These boasters enjoy bragging about their prized possessions to communicate that they have achieved a certain social status. In the mind of the untrained financial professional, these people are “Doing It Big!”, “Flossin”, and “Shinin.”. The sad truth is that many of these people are “Smelling Good, Looking Good, and Broke!” Why? Because it’s not what you have, it’s what you’re worth.
Whether you are a business expert or you have troubling balancing your checkbook, life requires that you participate in business transactions (such as: financing a new car, leasing an apartment, buying a home, or purchasing insurance). But the sad truth is that most people lack the required education and experience to make sound business decisions. The result of the lack of business expertise leads to major confusion between assets and liabilities. In simple terms, some people think that they are financially “getting ahead” when they are actually setting themselves back.
Rashad Phillips, MBA is a Tax Accountant, Small Business Advisor, and an Award Winning Business Journalist. Check out his full article on Old School 105.3′s Website at the link below.