What in the World is Interest and Why Should I Care?

Dear future millionaires,

Today marks a new start in your financial futures. The days of not knowing what do with your money are long gone. As are the days of stashing it under your pillow or behind the toilet tank or wherever you put it are over. I’m here to tell you there are so many risk free ways to grow your money. Your money  can do wonders for you while you take care of other things  like chilling with your friends or even binge watching the latest show.

The thing with money (which I learned the hard way), is not to grab the proverbial bull by the horns, but to start off slow and over time you’ll be able to turn your couple thousand into hundreds of thousands. We all see the people on the news making millions from single stock trades but NONE of them started off this way. Warren Buffett – one of the richest men alive started of his multi-billion dollar life by installing pinball machines. Pinball machines… Just let that sink in for a second.

I meet so many young people who tell me “I only a got a little money, I don’t know how this works” and just leave their money untouched.

In terms of starting slow, I can’t think of anything simpler then Simple Interest. Interest is simply the money a financial institution will pay you in return for you holding your money there. The whole idea here is to maximize your interest which will mean more money in your pocket.

Let me tell you one thing if you have in any of the Big 5 banks ( like TD, Scotia and others) you’re doing it all wrong. (savings accounts that is)

So let’s look at the following example:

Lets assume you have savings of a modest 3000$ at various interest rates for the next 2 years.

 

 

So in a 2-year period you can either get 122 dollars for free or 3 dollars for free. Many of you may be thinking how is that possible 3$ for 3000$ in 2 years – but the reality of it is so many banks do that – they give you lemons for your goldbars and crumbs for your cakes. Just a simple rate of 2% for you money gives you an extra 120 bucks. Now I don’t know how that sounds to you but that sounds pretty good.

Now I don’t know you, but I do know this, if someone were to give me 120$ no strings attached for doing absolutely nothing, I would jump at it. Now your next question is probably that is it even possible to get my hands on the 122$ dollars. And the answer is yes! I’ve been doing it for years by avoiding the Big 5 like the plague. I like credit unions or financial institutions that give me a decent return for my money.

So you may ask what’s the moral of the story: Do not expect that just because you have money at the bank you will be properly compensated. It takes a little time and research to find great gains at no cost at all.

Can you imagine if you had tens of thousands of dollars — you would be missing out on a boatload of cash!!!

This is the 1st and most basic way to get your hands on more money with many more to come.

The more interest you can earn on your money the better. A lot of times it will not cost you a single penny – but the return it can give you can mean a world of endless possibilities.

Disclaimer: I wrote this article myself and it expresses my own opinions. I am not receiving any compensation for it. I have no business relationship with any of the companies listed above. Please verify interest rates with the appropriate representatives/institutions. 

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