What Is EVA, and How It Can Increase Your Wealth
About this episode
The episode discusses Economic Value Added (EVA) and its impact on wealth building through disciplined capital accounting.
Every dollar of capital has a cost — whether you recognize it or not. Economic Value Added (EVA) is the principle that all capital on your balance sheet must be assigned its true cost, including money you borrow from yourself. In this episode, Brad Lowe and Mike Schwallie break down how applying EVA thinking to your IBC policy changes the way you account for capital, and why repaying the cost of that capital — even internal borrowing — is what separates disciplined wealth-building from simply...
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