Who could be the good Investor? Why is it important to invest rather than to keep all the money in the bank?
Posted by admin in Finance Wednesday, 11 May 2011 08:13 3 Comments
Is it the money you seek for ,or the people who have the money?
Posted by admin in Finance Wednesday, 11 May 2011 08:13 3 Comments
Is it the money you seek for ,or the people who have the money?
Often the purchasing power of your money in the bank shrinks as the interest rate offered by the bank is lower than that of inflation. It is integral to invest to ensure your money and its purchasing power grows over time.
okay let me give you an example:
say youv’e got $2000 or sumfin from your most recent paycheck you look to invest in a young talented film maker who wants to make an adult movie called ‘Deep Throat’ (its always good to invest in pornography my friends, it is one of the worlds biggest industries after, food, clothes, water, shelter and warmth), all you do is hand this guy a cheque of around $1000 or so…he makes the movie and wolla! its a success it is in his good moral to pay you 50% of the profit or you ask for compensation (if he disagrees you sue him (youv’e gotta be ruthless in business) ur bound to win the case) which is $5000…you have earned sumfin from doing absolutely nothing…but make sure ur investing in trustworthy people.
Keeping money in the bank is saving. Savings interests rates are usually similar to inflation rates, sometimes less. So, essentially, you don’t get any real return; instead you make the bank more money because they charge you monthly fees for keeping your cash there. You end up losing your funds gradually, if you let your money stay in a savings account for a long time.