Originally Published on Forbes.com
When Is A Dollar Not Worth A Dollar?
October 7, 2013
Not all dollars are created equal. If you don’t know the difference, you could be sabotaging your savings and retirement goals. A dollar in your wallet is not the same as a dollar of equity in your home. A dollar in your 401(k) retirement account is not the same as a dollar of cash value in a life insurance policy. A dollar in your paycheck is not the same as a dollar of equity in your business. If you want to be in control of your money, you should find out which is which.
We can separate money into two categories: dollars controlled in one way or another by government (regulation and taxation); and dollars controlled by you—call them useable dollars. Anything that can be measured in dollars will probably fall into one or the other.