|Changing Thinking — Changing Lives|
Are you willingly, but unknowingly and unnecessarily transferring your money to others -- who then lock it away out of your reach?
The problem is the way most of us think about our money.
Both of these ways of purchasing creates a loss for us, which means a lower net worth. When we pay cash, the money is taken from the bank where we were earning a little something on it, thus interrupting the compounding effect of that growth. Yes, over time we can put it back in and do it all over again, but each time we go through that process the money we lost would have grown to vast amounts, had we been able to let it keep working for us.
And over the course of time, paying interest to someone else is a cost or expense that has become a huge problem that most of us are trying to solve by earning unrealistic returns in the market on a very small part of our reserves.
So when we stew and worry about how we're going to pay for whatever it is we want and need, we're left with these two choices. We either pay interest to someone else for using their money, or we lose the money we could have earned, and would continue to earn over years, because we paid in cash.
A popular new movie demonstrates the problem:
• Review of the new movie "The Big Short"
|Proud Advocate of Becoming Your Own Banker|