The Fast Track to your Financial Freedom
Think about the money you deposit in a bank. The bank happily pays you interest from the day you deposit the money. And the longer you agree to leave it there, the higher the interest rate the bank is willing to pay. Did you ever wonder why?
The answer lies in what the bank does with your money after you deposit it. You may say that the answer is very simple; they lend the money back out at a higher rate. That answer would be accurate but not complete. In fact, they do not just lend your money out. They effectively lend out up to TEN TIMES your deposit. They have the advantage of LEVERAGE.
The reason for this is that the Federal Reserve Bank only requires banks to keep a portion of their loans in reserve; currently 10%. As the bank makes a loan, the loaned money is deposited back into the banking system and a new loan is made. This happens repeatedly until ten times the amount of the original deposit is loaned.
So the bank is very happy to pay the 2% interest on your loan when they will in effect be able to lend out ten times the amount at, say 6%. So on your $1,000 deposit, they pay you $20 and they earn $600. Not a bad return, considering they are using YOUR MONEY. Of course, the more the bank receives in deposits and the more loans it can make, the greater its returns and profit.
Now, there's absolutely nothing wrong or evil with the way banks make money. In fact, it is essential to an expanding economy for the banks to create money in the way they do. What most of us don't realize is that we can use the same principles to expand our own money supply.
We simply have to apply these principles to our own investing and The OnexPro System
What the bank does is use leverage, i. e. , other people's money and velocity, continually moving that money, to continually expand their profit base.
Individuals have the same opportunities but many of don't realize it. A simple example of compound interest can illustrate how individuals can use their money to increase their own wealth and cash flow:…. Click on this link to see a video presentation of what we are doing. It’s a series of video’s so don’t stop watching after the first one. http://godsmoneyfeeder.com
Evangelist Diana Jackson, Chicago,IL
Bryce Jackson, Success Coach, Business Mentor, 40 yrs exp