Articles
Leveraging your Money with Ultimate Cycler
by Bryce Jackson Business Mentor, Success CoachThe Fast Track to your Financial Freedom
Think
about the money you deposit in a bank. The bank happily pays you
interest from the day you deposit the money. And the longer you agree to
leave it there, the higher the interest rate the bank is willing to
pay. Did you every wonder why?
The answer lies in what the bank
does with your money after you deposit it. You may say that the answer
is very simple; they lend the money back out at a higher rate. That
answer would be accurate but not complete. In fact, they do not just
lend your money out. They effectively lend out up to TEN TIMES your
deposit. They have the advantage of LEVERAGE.
The reason for
this is that the Federal Reserve Bank only requires banks to keep a
portion of their loans in reserve; currently 10%. As the bank makes a
loan, the loaned money is deposited back into the banking system and a
new loan is made. This happens repeatedly until ten times the amount of
the original deposit is loaned.
So the bank is very happy to pay
the 2% interest on your loan when they will in effect be able to lend
out ten times the amount at, say 6%. So on your $1,000 deposit, they pay
you $20 and they earn $600. Not a bad return, considering they are
using YOUR MONEY. Of course, the more the bank receives in deposits and
the more loans it can make, the greater its returns and profit.
Now,
there's absolutely nothing wrong or evil with the way banks make money.
In fact, it is essential to an expanding economy for the banks to
create money in the way they do. What most of us don't realize is that we can use the same principles to expand our own money supply.
We simply have to apply these principles to our own investing. Ultimate Cycler
What the bank does is use leverage, i. e. , other people's money and velocity, continually moving that money, to continually expand their profit base.
Individuals have the same opportunities but many of don't realize it. A
simple example of compound interest can illustrate how individuals can
use their money to increase their own wealth and cash flow:?. Click on
link below to see illustration
http://www.recyclingyourdollarsonline.com
Bryce Jackson, Success Coach, Business Mentor, 40 yrs exp
whatablessing.bryce@gmail.com
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About Bryce Jackson 
Business Mentor, Success Coach
134 connections, 2 recommendations, 353 honor points.Joined APSense since, November 22nd, 2010, From Rome, United States.
Created on Dec 31st 1969 18:00. Viewed 0 times.
A Black Economic Solution!
"IF WE DO NOT EXERCISE OUR UNITY NOW, WE DON'T DESERVE FREEDOM!"
Now more them ever before we as a people need to close ranks and start to recycle our money so that we can build our own economic system. No longer can we depend on the J.O.B. to give us the security that it once did for our parents.
In the last 25 years the middle class family has made no financial progress, and if the average middle class has not, then it best assumed that the Black middle class economic situation has reversed.
We can take control of our communites once we learn the rules of the money game. Untill we do that we will remain beholding to the great grandchildren of the ones who worked our ancestors on the other plantations, for a J.O.B
See a video presentation here about recycling dollars: http://www.recyclingyourdollarsonline.com
May 25th 2011 13:42