Austin Colby


Terms and Definitions

The WHY and HOW of Life Insurance

I believe that everyone needs life insurance at some point during their lifetime.  Few people need life insurance for their entire lifetime.   Continue reading “The WHY and HOW of Life Insurance”

Cash vs. Credit

The credit card industry in the United States is massive.

In 2015, there were $3 trillion worth of processed credit card transactions.  The percentage of GDP that the credit card industry represents has risen from 10% in 2000 to 15% last year.  American households are carrying nearly $1 trillion dollars worth of credit card debt.   Continue reading “Cash vs. Credit”

Foundational Focus | Net Worth Equation

What is Net Worth? 

Net Worth is all the stuff you have, less all the debt you owe.

Assets minus liabilities.

The number at the end of that formula (be it positive or negative) is your net worth.

If you have a home that is worth $350,000 and have a mortgage on the home of $300,000, the net worth of the home is $50,000 (minus the costs associated in selling the home).  Most people would say they have a $350,000 home.

I would say you have a $50,000 home and a monthly payment for the balance.  Continue reading “Foundational Focus | Net Worth Equation”

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