How many of you save change at home ? I bet nearly everybody in one way or another. Giant empty whisky bottles, piggy banks, terramundi pots, tins, jars……….the list is endless.
The first rule of the rich is this – “Always ensure that your money is working for YOU”. Remember this phrase, think of money as a TOOL not a commodity. It took me many years to realise this and I use the piggy banks as a simple example that everyone can identify with.
The point is this, how on earth can your money (change in this example) be working for you if it is sat in a container in your house ? The answer is IT CAN’T.
Without getting too technical here, the average INFLATION rate in the UK over the years is lets say around 2% – in simple terms this means that it takes 2% more money to buy anything this year than it did last year. In other words your money is being de-valued all the time. I always have to laugh at people who boast of having thousands in the bank (earning an interest rate of 1% in most cases)..Do these people not realise that they are effectively throwing money down the drain doing this ? The secret is to invest money at a rate well above inflation.
OK back to the piggy bank scenario. Years ago, I took great pleasure counting all my pennies when the fateful day of cashing in all my hard earned change came. On one occasion I think I had over £1000.00 in change. This was in a huge whisky bottle that I had been pumping change into for a couple of years.
That money if invested periodically over the two years would now be worth around £1,150.00 so by storing this money in my walloping great whisky bottle I effectively threw £150.00 down the drain. This is just an example so please do not be underwhelmed by the measly £150.00 – it is just to make a point.
Nowadays, I never let my change build up, I cash in as often as possible and invest in crowdfunding websites. One of my favourites is http://www.fundingcircle.com . This is basically where you lend money to businesses for an annual interest rate return of anywhere between 4% and 20% – the higher the return the higher the risk so please research if going to do this. You can lend as little as £20.00 to a business and watch your £20.00 GROW – This is the key here, YOUR £20.00 will grow……..interest is accrued daily so you can log in to physically watch your money growing.
Obviously there are thousands of ways you can invest money but I am just using the above scenario to MAKE A POINT.
USE MONEY AS A TOOL TO WORK FOR YOU !
WCTW.
WORKING CLASS TO WEALTH 