Don't treat your personal finances like the government is treating your tax dollars

Picture a couple whose paycheques don’t cover their spending, so they top up the difference on a home equity line of credit. One of them has an idea: split the budget in two. The mortgage payments, new roof and even groceries go into an investment column — after all, well-fed kids turn into productive adults. Move enough items and the everyday budget balances.

Problem solved, except the line of credit keeps growing and the bank still wants its interest.

A financially li...