When you think about “The Bank” what comes to mind is it “money” or “security.” In this post I want you to see the bank as it really is, (infrastructure).
To beat the bank first you have to think like the bank. If you want to be successful, just study how banks make money.
Let’s start with the terminology (words used in banking).
Debit & Credit
Debit, is an entry recording an amount owed.
When you take out $100 from your account, the bank will debit (pay) you $100.
Credit, is the ability to borrow money
So when you save money into a high yield savings account or CD at the bank. The bank is receiving credit (a loan) and in return they give you interest.
If you don’t know what a CD or high yield savings account is then you can click on this link to learn more
How Banks move money
When you save your money in a bank they lend the money back out through credit cards and loans. The bank will also stay liquid only a certain amount for you to make a withdraw.
So in other words the bank will borrow your money and give you 0.006% interest. Afterwards the bank will lend you, your own money through a credit card or loan and charge your anywhere from 5 to 29 percent interest.
How to Compete
The only way you can compete with the bank is by making riskier investments and utilizing everything you have while your still young and cut cost to budget more of the money to the side.
One of the most innovative ways to invest your money now is in crypto, but don’t jump into an investment without knowing enough to base a decision off what you know.
“The more you learn, the more you earn”
Someone quoted this before and people don’t know how to utilize this quote today. This quote is for investments and business, so go out there and learn something NEW!
Thank you for reading
The Way I Save
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