RE: Why you should manage your Working Capital
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Hi @tomlee, could you give some working examples, please?
It seems to me the principles apply just as much to an individual or a household as it does to a firm.
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Yeah! The principles apply to both individuals and households. Buy more of assets than you spend on liabilities. To also manage funds at home well, when buying stuffs, go for the quality ones that'll be durable!
Okay, but I'm just trying to think about this. Let's say a house worth £100k, with a mortgage of £30k and a net (salaried) income of £20k pa ...what kind of scenarios would that create?