Get your Money to Work for You

Message/Experiment of the Week:

Have you ever wanted your money to work for you so that you don’t have to work for money? That is something that great investors like Warren Buffett have mastered, and it can give you the freedom to create the life you truly want. Can you imagine being financially free and able to go anywhere and do anything (anytime you want) with the people you want to be with? Can you imagine the huge impact you could have on the world if you were able to spend every day focused on doing good in the world instead of checking off a to-do list for your employer?

There are all kinds of ways to get your money to work for you. One simple thing you can do right now is to check with your bank about high interest savings accounts and CDs and see what kind of options they offer. American Express has a high yield savings account that currently pays an annual interest rate of around 4%, and Ally Bank has a no penalty CD that pays 4.55%. So, if you move $10,000 in savings to an American Express high yield savings account you will make roughly $400/year just for moving your money, which means after ten years if the rate holds up your $10,000 will have made you at least $4,000 just for sitting in a high yield savings account.

This truly becomes life changing when you get your money working for you at higher rates of return. If you take that $10,000 and invest it in a business that generates a 25% annual return it will become $867,362 in twenty years if you keep reinvesting the returns, and in 25 years that initial $10,000 will be $2,646,978. There is a great Compound Interest Calculator on the US Securities and Exchange Commission website that you can play around with to see what can happen if you start getting your money to work for you: Compound Interest Calculator | Investor.gov

For an experiment this week do something to get your money to start working for you, whether it is moving $100 to a high interest savings account or buying a pressure washer to start a pressure washing business. The key is to do something, no matter how small. After you do it, reflect on it in your journal.

Quote of the Week:

“If you would become wealthy, then what you save must earn, and its children must earn, that all may help to give you the abundance that you crave.”

George S. Clason, The Richest Man in Babylon

Question of the Week:

Why does my money make so much money for me?

Videos of the Week:

7 Best Businesses to Start for Less Than $1,000:

Businesses that Never Fail? 6 Businesses with Amazingly Low Failure Rates [Backed by Data]:

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Disclaimer: This is meant to be inspirational, life-changing entertainment and insight, not financial advice. I am not a certified financial advisor.