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Friday, April 8, 2016
What is an important concept to creating wealth? Velocity of money! Velocity of money is an economic term used to describe gross domestic product divided by money supply. When it comes to your personal finances, velocity of money is simply output divided by input—the amount of effort and money you put in to something like an investment or business and how productive or beneficial it is. Does it generate a profit? Does it bring value? Does it increase your revenue? The more exchanges made with the same dollar or the more simultaneous uses we find for each dollar spent, the more wealth is created. Basically, it's the old idiom "the greater bang for your buck." Dalemdfg.com