Posts Tagged ‘collect’

Banks are the growth engine of an economy. They make loans to fund new businesses, construction, and consumer spending. And they collect the ‘spread’ between what the short-term rates pay to borrow and the long-term rates they earn when they lend.” -Porter Stansberry

Barring an utter collapse of the U.S. government, Social Security should still be around when you’re ready to collect.  But it shouldn’t be the only thing you’re relying on.  Ultimately, it’s up to you to ensure your comfortable retirement.” -David Eifrig

“Treating people fairly is like putting money in the bank and collecting compound interest.” -Mark Ford

One of the main strategies of the banking industry can be described in the term arbitrage.  Basically, it is the difference in the interest they collect from their loans and the interest they pay their depositors.  Most of the time they are doubling their money, many times more.  Knowing this simple, but very effective, tactic, why not turn the tables and follow the bank’s own business model.  Pay yourself arbitrage; pay yourself like the bank pays itself.