If Your Money Sleeps, You Lose
BANKING ON YESTERDAY
When you leave your money in the bank, you are banking on yesterday. Be this, I am implying the value of your money will not continue to hold true when it is sitting still not doing anything. By “parking it” in the bank, your money is actually losing value. Have you checked the Interest Rates lately???
When I was a teenager, (a long-long time ago), you could get 5% interest on your money in a Savings Account. Today, you can’t even get that in the bond market or CDs (certificate of deposit). You can’t even get this rate in a Money Market Account.
Let’s say you found a bank that was offering 1% interest. You deposit $1,000.00 in your account and draw it out 1 year later. Now, you have (in cash) $1,010.00. Wow, you made $10! No, you actually lost! That’s right! A year earlier, you had another $1,000.00 and you went shopping until you spent every last penny! This year, you take that $1,010.00 and you go and buy the exact same items you bought 1 year earlier. The store where you are buying the very last items counts your money and says you are short $40 for your purchase. You don’t understand because those exact same items cost you $1,000.00 last year and this year you have $1,010.00 but you are $40 short of your purchase!
Do you know what happened? You earned 1% interest on your money but inflation over the last year ran at 5%!
YOUR MONEY HAS TO KEEP WORKING
The Government is concerned because the rate of saving is down. Do you see why it is down? I have heard this from a number of Entrepreneurs: Savers are losers! Why do they say that? Because if you park your money in an account that is going ton pay you less than the inflation rate, then your money is losing value.
How do you keep your money working? There are a number of ways to have this happen however, many people can not afford to participate in several of these. So, it leave one option open that will allow you to turn a little money into an ongoing source of income. This is the premise of Residual Income. This term is often associated with Network Marketing. This term can be applied to anything that you can apply the principle. Which is to build something that will continue to pay you even after your effort to build it is done.
This is not limited to Network Marketing but it can be applied to any form of an online business that you can become a part of or develop your income from.
BANKING ON TOMORROW