Make money with investments not with banks!

Do you save your money in the bank? When you save money in the bank, do you think that the bank will give you a big profit? Well, the maximum interest that the bank can offer to you is just 5%. However, you will have to consider inflation rates. Inflation is that mysterious force which causes prices to rise. Because of inflation what you can buy for a dollar today will cost more in the future.



Here is an illustration of how a dollar cost today and the next three years with inflation rate of 2%.



year 0 ------ $1



year 1 ------ $0.98



year 2 ------ $0.96



year 3 ------- $0.94



your $1 is worth $0.94 in three years time.


Firstly, if you want to make your money work for you, you cannot depend on saving your money in the bank and trying to win the interest. In financial term, a bank does not serve the purpose of saving money. What it does is that it provides financial services, including issuing money in form of coins, banknotes or debit cards, receiving deposits of money, lending money and processing transactions.

What you can do with banks is to deposit your money. Depositing and saving money has two different meaning altogether. When you have a deposit account, it simply means an account at a banking institution that allows money to be held on behalf of the account holder. When you save money, I’m sure you want to see your money grow. When you have money, you must make your money work for you.



What you should do is this;

1. Deposit money in the bank


2. Invest money which is in the bank when it reaches certain amount eg. $5k ( unit trust, bonds, treasury bills, insurance funds, stocks, shares, business entity)


3. Earn interest from investments

If you want to have a shortcut to your wealth, this is what you must do!