Posts Tagged ‘Private reserve’

If one thinks a thing is impossible, it becomes impossible.  As with most things in life, people fail to attempt many endeavors because they simply feel it is an impossibility.  When in reality, if they simply started, and continued with perseverance, they would find success.  Even if someone was not able to find an existing source for their private reserve of money, it can be developed through scheduled determination.  The possible begins with thinking it is possible, then producing and following a plan to make it happen.

Many Americans are voluntarily surrendering their future wealth by giving their money to others.  No, they are not directly handing this money to people walking down the street; but by borrowing money from financial institutions, they are exchanging the opportunity to build wealth for themselves in order to pay interest to those institutions.  Developing a private reserve from which to make these purchases will reverse the flow of their money from others, back to themselves.

The only thing that is impossible is the thing not tried, or never begun.  Developing a private reserve to be used for capital purchases can seem like a daunting, or impossible, task.  It may seem overwhelming at the start, but it will quickly build into a pool of money from which to draw; ultimately saving the transfer of potential wealth to others.

The problem of human nature shows no mercy for any aspect of life.  Be it losing weight, starting a hobby, exercising, cleaning out the garage, or attempting to eat right; few have overcome its grip on their life.  When it comes to utilizing a private reserve of finances, it is no different.  It is easier to simply borrow the money for large purchases rather than using, or developing, a reserve of monies.  The result of succumbing to human nature, financially, is exchanging future wealth for today’s interest payments.

What does the private reserve strategy accomplish?  It allows a person to maintain control over their money and keeps it accessible without penalty.

Many feel they have no hope in developing a private reserve from which to take control over their money situation.  They either believe it takes too long, or that they lack enough extra cash to produce results.  The solution is to simply begin; because without beginning, a person will always pay another the finance costs.

The spread banks earn are better than they seem on the surface.  Consider this:  When they borrow money from depositors (at 1%) and lend it back to them (at 4%); the spread may be 3%, but it is a 25% return on investment.  When banks do their due diligence and make intelligent loans, this is virtually guaranteed money for them.  This seems to be a pretty good reason to consider developing a private reserve and pay that money to yourself.  There are very few places a person can make these kind of returns.