Expenses of consumption can contribute for its style of life (to direct a new car is amused, same that he has been bought on instalments and it created three liabilities the five years of payments). Expenditures of investment provide to income and wealth. Shades of Grey Has, it is clearly, some expenses that clearly are not defined as consumption or investment. To buy its proper house is considered by many as an investment. It is not! The purchase generally is financed and the reimbursements are liabilities. The maintenance of one marries cost money. Taxes and taxes exist to pay on it. You not to get any prescription from it.
If you intend to vender it of some years inside to make a profit on its increased value, then it can be an investment. However, if you will have that to buy another house to live in you really better it are? Expenditures of investment are necessary for the wealth creation, In order to construct the wealth, some expenditures of investment are necessary. More than it goes for investment expenditures, the greater and faster its wealth will grow. However, if very it goes for investment expenditures, and not enough it for the consumption, after that, life style can become scarce. But you can choose.
Accumulation to long of the time the majority of the people is not born rich. Certainly, some inherit the wealth, but, consequentemente, it cannot appreciate it. The wealth gains few in lotteries, but, ironically, because it has perhaps not worked for this, or is not accustomed to this, can finish wasting the temporary wealth. All, however, have a thing in common. The same amount of time goes last for each one of us, and in the same ratio. As you use that the time is significant. It imagines that with the age of 21, you invested 1,000 dollars to an average tax of annual return of 10%, and later for the time that you to reach 65, you would have accumulated $ 70,000 more than, without making any another thing.