The Story of Box A and Box B

Box B
The “Lending” Box

Box B is “provided” by the financial industry to finance our cars, car repairs, car insurance, liability insurance, malpractice insurance, business expenses, home improvement, home repair and maintenance, appliances, vacations, boats, college costs, investments… you name it. It is composed of car loans, credit cards, line of credit loans, personal, business, and other loans. (First mortgage loans are not included here unless the home was refinanced to pay off consumer debt.) 

Because our money is effectively locked up in their Box A we finance our lifestyle choices through their Box B.

You take the risks; you pay the costs in both “boxes”; “they” have economic control over your money; and, “they” prosper on “both sides” of your dollars. It’s all about positioning and “they” have done a masterful job of positioning you. If this was a checkers game you’d be one checker stuck in the corner facing an onslaught of “kings”. There is no back door here to escape through. The piper will be paid.  

A contractor can’t point to the check received for a job and count it as profit. Every dollar of cost related to the job must be subtracted. The same is true of what you have going on inside your “personal economy”. You are in the “business of you” with the same rules of profit and loss. Your “net” result, your “bottom line”, is what counts.

Add up all the interest you earned in your Box A items last year.
Subtract all the interest you paid into your Box B items last year.

How well did you really do last year?

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