Money is Fungible & Why That Matters

As humans, we love to give certain jobs to certain dollars, and we fail to recognize the fact that these dollars are completely interchangeable.

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I hope to give you a better understanding of what people mean when they say that money is fungible and why it’s important to understand the concept.

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Money is Fungible & Why That Matters

The Senator from opioid-addled West Virginia expressed his concern that the child tax credit dollars could be used by some parents to buy illicit drug.

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Since money is fungible, if you give people some money and money is spent by some of them on untoward activities, you can easily make a connection between the two.

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People love their dividends. An oft-stated goal of some want-to-be retirees is to be able to live exclusively off of their dividends.

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The end result is that you have the same dollar value in stocks in your entire portfolio as you did beforehand.

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Along with a slightly smaller bond allocation, even though the only assets you sold in your taxable account were stocks.

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The idea is that if you buy one rental property when your kids are young, the rental income of the property could pay for your child’s entire tuition.

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If you give him a gift card for a place that he’d never, ever spend his money, you’ve succeeded in giving him some non-fungible money.

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Money is Fungible & Why That Matters

As humans, we love to give certain jobs to certain dollars, and we fail to recognize the fact that these dollars are completely interchangeable.

I hope to give you a better understanding of what people mean when they say that money is fungible and why it’s important to understand the concept.

Money is Fungible & Why That Matters

The Senator from opioid-addled West Virginia expressed his concern that the child tax credit dollars could be used by some parents to buy illicit drug.

Tax Credit Money Spent On Drugs?

Since money is fungible, if you give people some money and money is spent by some of them on untoward activities, you can easily make a connection between the two.

People love their dividends. An oft-stated goal of some want-to-be retirees is to be able to live exclusively off of their dividends.

Paying for Everything with Dividends!

The end result is that you have the same dollar value in stocks in your entire portfolio as you did beforehand.

Sell Stocks Without Selling Stocks!

Along with a slightly smaller bond allocation, even though the only assets you sold in your taxable account were stocks.

Sell Stocks Without Selling Stocks!

The idea is that if you buy one rental property when your kids are young, the rental income of the property could pay for your child’s entire tuition.

Buy One Rental Home & College is Paid For!

If you give him a gift card for a place that he’d never, ever spend his money, you’ve succeeded in giving him some non-fungible money.

Give Him a Gift Card!

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