equity

Wow, I’m so glad you've opened this email. Someone wants to get rich!

DEFINITION
What is equity?

• Equity means the value of ownership in something. Equity is the value of what you own minus what you owe.

• For example: Imagine you buy a house for $200,000, but you still owe the bank $50,000. Your equity in the house is the difference between the value of the house and what you owe. So, in this case, take $200,000 (the house's value) minus $50,000 (the loan), which equals $150,000. This $150,000 is the equity you have in the house.

PRACTICAL ADVICE
Comparison shop

• Ashlea and I just moved, and we’ve been going to store after store to figure out what an actual good deal looks like on a new couch.

• Don’t just go to one or two places, and use those as your measure of good value. Go see them all! Or just check online too!

OUR COMMUNITY
What are your questions? Or share a win!

• Reply to this email with any personal finance question you have, or share with me any wins in your life! (I’ll respond to your questions anonymously in future emails)