dollar spent should fall into one of three categories: 1) Business expenses; net-worth acceleration is anchored by your business. Don’t fear spending money here. If one dollar spent translates into ten dollars tomorrow, the risk and returns are worth it. 2) Living expenses; food, shelter, transportation, insurance—your household should be run like a fine-tuned machine. 3) Debt reduction; if it isn’t needed for basic living expenses or can’t be reinvested in your business, it should go toward repayments. Pay down credit cards or reduce the principal on loans, such as mortgages or student loans.
