Finance & Fury Podcast

Welcome to Finance and Fury, “Say what Wednesday” Where we answer questions about the world of personal finance. This week, the question isn’t from a listener but a common one recently from people I have been meeting with. Best strategy for surplus cash: to reduce debt or use it to build wealth? Why is it important to ask this first? Finite resources – economic problem Wants and Needs – We have a lot of them Physical things Experiences like travel or going out Resources – A lot of things cost money – Which is typically more limited than our imagination Balancing act – Use what you have to get where you want to be Budget and Cashflow – What is left after everything is paid for? Things that reduce your cashflow Taxes – Decreases what you have left Lifestyle costs Debt – Mortgage What is spent on each, versus what is important  Now versus future needs – Your now needs will seem more important Uses of disposable income – A hard decision Factors that should help to determine: Stage of life and