Economics

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by tesbellg
Last updated 6 years ago

Discipline:
Social Studies
Subject:
Economics

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Economics

The borrower is a slave to the lender!

Saving is for short term purchaces, including anything in less than 5 years. If you are wanting to increases your prosperity, saving must become a priority! Doing so is all in your attitude, it's an exercise of both character and emotion. Many believe that if they become rich they'll magically transform into evil snobs. This is not true! Money is "amoral," meaning it is neither good or evil, it is up to you what to do with your wealth. So go ahead and climb out of your debt trap.

Saving

Investing

VS.

The safest way to invest your money is in a mutual fund. By doing this, you and a group of others are investing into multiple bonds or stocks which creates diversification and lowers risk. If you were to invest a $100 a year from the ages of 25 and 65 with a 10% interest rate, you will have a grand totall of $1,176,000. This is called compund interest. Never invest your money into only one stock or bond. You will average only a 7% interest rate and it is very possible you could even lose money.

"How did you bankrupt?""Two ways. Gradually, then suddenly."-Ernest Hemingway,The Sun Also Rises

After you save enough money depending on your income, you can invest a portion of it and watch it grow. Investing is where you will seriously increases your fortune for the long run.

The average American has $3,800 in savings. America as a whole has a savings rate of -0.6% compared to france who has a 15% rate.

Build your wealth!

The key step to saving is not spending more money than you have. You have to tell yourself, "I do not need this thing to make me happy." Stay away from loans and credit cards. The borrower is a slave to the lender.


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