First Rule of Your Finances

Before you we can tackle all of the topics within personal finance everyone needs to understand the #1 cardinal rule.

So what happens if you somehow spend and save more than you make? You take on something called debt. This happens when the right side of the equation, that is the expenses or savings become too large and exceed the income side of the equation. If you remember nothing else from this course, remember don't ever spend and save more than you make. When you borrow money (take on debt) in order to spend more today (splurging now) then you are sacrificing the amount of money that you will have available in YOUR FUTURE.