David John MarottaDavid John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com
Host: How do I avoid financial troubles in the first place?
David Marotta: Best way to avoid financial troubles is to make sure you live well below your means and you save and you invest. The lifestyles of millionaires would make incredibly boring T.
; television, because most of them are just incredibly frugal. So, the lifestyles of the rich and famous; you can either live rich or you can be rich and the living rich, usually means, you have no money and you are leveraged and you are in debt.
Being rich is, which is it is not what you spend, it is what you save, so the first principle, just living well below your means. Compounded returns is financial Heaven, compounded debt is financial Hell. And although, bankruptcy is not salvation; it can at least release you from an eternal servitude.