I know people can become bored very quickly by financial chit-chat, so we’re going to jump directly to the point that I KNOW can help you make progress in EVERY area of your life.
You either spend your money or you invest it. Every transaction is either an expense or an investment. Capital expenditures are those you expect to increase in value. Alternatively, “consumption” are expenses that have little value and/or won’t grow in value. When you purchase a home, you expect that money to grow in value. When you spend money on a vacation, you don’t expect that money to grow in value.
Every dollar is either spent or invested. It’s either capital or consumption.
Thinking through your purchases in those terms allows you to really evaluate where your money is going and if you’re building wealth or keeping yourself from it.
This same framework applies in all aspects of your life.
Every one of your food choices is either an expense or an investment. It either builds your health or it doesn’t.
Every one of the words you speak and the actions you take either builds your relationship capital or takes away from it.
With every choice you make, every bite of food you consume, every word you speak and every thought you think you’re either spending or you’re investing. Increasing value or decreasing value.
There’s financial capital but also health capital and relationship capital.
Ask yourself: Is this choice an investment in what I want or is it taking away from what I want?
Is this conversation an investment in the relationship?
Is this decision an investment in my goals or is it costing me those goals?
Every action you take is building capital or is merely straight consumption.
How can you increase the investments you make in the areas of life that matter most to you?