Money is an asset! Try living a week to 10 days without it and you will appreciate just what an asset it really is. But most people do not treat money like an asset and therefore they ruin moneys best quality. You see money treated as an asset multiplies exponentially.
Someone once said, “The value of an asset increases exponentially while the value of your labor only increases incrementally.”
The Rate of return on their money, for many, seems to be more vital than the return of their money. But the real value of money is ruined when rate of return is the focus. This is because someone else is in control of the actual money.
Consider the following:
Whose bank do you deposit your paycheck in?
Your bank or a third party’s bank?
Does your money make you or the Bank the most because of this transaction?
It has been written that “you can’t multiply wealth by dividing it.” Habitually letting others have first right to your money by depositing your paycheck into their bank, gives them control over your money and not you. This will wind up costing you thousands of dollars, if not more, over time. Each time you give up management of your money to someone else you lose wealth. When you allow others to manage your money your money now can be subject to account charges, service fees and management fees. Plus the managers of your money will make money off your money and pay you very small in comparison to what they are making.
Nobody is financially independent until they have mastered the concept as taught in the book Becoming Your Own Banker, by R. Nelson Nash. Nash teaches a concept called Infinite Banking which will teach you how to control and benefit from the financing equation which is as follows:
You give up interest you could have earned by paying cash or you lose money by paying someone else interest when you use their money. You lose money regardless.
But when you practice the Infinite Banking Concept, you can pay cash for your buys and earn the interest that banks or finance companies would have otherwise earned off you. This is because you are now using your money as an asset and the growth becomes exponential when compared with what happens when you place your money in a bank owned by someone else, or with an investment firm.