THE STORY
I sat across from a woman last week who had been running her business for two years.
She had clients. She had revenue. She had absolutely no idea why her bank account kept going down.
When I asked her what a debit was she said 'that's when you use your card.'
That answer — right there — was costing her thousands of dollars a year.
Here's the plain English version.
A DEBIT is money leaving.
A CREDIT is money arriving.
That's it. That's the whole concept.
When you pay a bill — debit. Money left.
When a client pays you — credit. Money arrived.
The confusion comes because your bank uses these words from THEIR perspective.
When they say they CREDITED your account — that means money came IN for you.
When they DEBITED your account — that means money went OUT.
Same words. Opposite direction. That's the confusion. That's what trips everyone up.
WHY IT MATTERS FOR THE EXIT
If you don't know which direction your money is moving — you cannot run a business.
You cannot build an exit. You cannot know your gap. You cannot know if your business is actually making money or just moving it.
This is where financial clarity starts.
Right here. Debit and credit.
CTA: Save this. Share this with someone who needs it. This is Lesson 1 of Money Basics with Ali — a free financial education series under ClaritywithAli.
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