Posts Tagged ‘purchases’

“Americans have almost no control over their own capital. And if you don’t use capital under your ownership and control, you will rely on those who do. This is fundamentally why so many purchases in today’s economy are financed through third-party lending.” -Ryan Griggs
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Far, far, far too much money – mind-boggling amounts – has been borrowed….  Students have borrowed $1 trillion for college.…  Roughly 90% of GM car buyers finance their purchases.  And as recently as 2014, 83% of their loan book was subprime, with a shocking amount categorized as ‘deep subprime’.  Deep subprime is essentially people who don’t have a credit rating or people who are currently in bankruptcy.” -Porter Stansberry

It’s good to have nice things and to get an education, but these things must be done responsibly and according to need.

One key feature of the private reserve strategy is that one builds a pool of funds from which to finance many purchases in life.  The benefit is the interest paid returns to one’s own pool instead an alternate finance company.

Save Money?

Posted: August 28, 2014 in Money Matters
Tags: , , , , , , ,

Americans want things they can’t afford.  But most people aren’t willing to save money to make purchases.  Instead, they borrow money to buy cars or televisions.” -Sean Goldsmith

Saving… is deferred consumption.” -Gregory Bresiger

“Saving, ultimately, is consumption.  By setting aside some resources for meeting financial consumption needs, we invest them.” –Detlev S. Schlichter

The private reserve strategy initially provides a build up in savings, but it also produces a higher ability to consume.  By delaying consumption, one not only builds a base of capital for purchases, but saves interest payments to an outside source.  This savings is additional capital to use for various purposes.

A private reserve strategy is not only the ideal way to finance personal capital purchases, but also fights the damaging effects of the inflationary practices of the commercial lending sector. (see How Privatized Banking Really Works)