By Jason I. Henderson
When you really think about it, there are only three types of money in our lives.
The first can be called Lifestyle Money. This is the money we spend on our everyday life. For example, the money spent to pay utility bills, housing (rent or mortgage), food, clothing and the all important entertainment expenses. Basically, it’s any money that goes towards supporting the standard of living we have become accustomed to.
Second, is our Accumulated Money. This is the money we have held out of our lifestyle money and set aside to grow and to be used for our future use, such as buying a home, sending the kids to college or for our retirement.
The third and last category is Transferred Money. This is the type of money most people do not consider or even know about. But just because we are not aware of something, does not make it unimportant. Often, this type of money can be the difference between financial independence and financial bondage. Transferred money is money that we are unknowingly and unnecessarily allowing to be transferred away from us. Examples of transferred money are interest on debts, unnecessary fees, taxes that can be legally avoided, etc. At Henderson and Floyd we help our clients to identify and minimize transferred money.
And that can make all the difference!