Applicable Concepts

Share these EVA concepts that can be applied to ones personal economic situation and decision making process.

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Here are a few concepts we can apply to our personal wealth strategies. First, our capital has value. It has a cost of use. Assigning a zero cost of use to our existing capital can lead us to making unwise decisions on how we use it. Including just giving it away. It's valuable. Second, capital reserves are hard to acquire. It takes effort. We must respect that fact and assign a high value or cost of use to our capital. Third, whenever we deploy our capital, we should demand a high rate of return on its use. Fourth, when we leverage our capital reserves, we want to pay back our reserves at a high market rate of interest, not a low one. You want to do all you possibly can to accelerate those contributions and minimize the loss.

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