Wednesday, May 5, 2010

Money Working For Us – The Ultimate Financial Success

First, work for the money, save money then grow money

While we usually work to earn income, having money work for us is the pinnacle of financial success. When money works, it does not complain, or takes a vacation or gets sick. If you are money’s boss, you are a fortunate boss indeed.

How money works? Money has the capability of doubling itself through the power of compound interest. When you let it grow, it will grow tremendously at your advantage. Money should be given time to achieve this.

Once money is big, it can give you interest amounts that is if big, and if managed properly, can feed and sustain you for life. Now, how to make money grow? When we save money, interest rate matters. If we aim money to be working for us in the future, go for higher interest rates as early as possible. It makes money grow faster.

While having income today, we all need to save, for our own financial success, even if it seems to be difficult. Aside from getting old, it’s the only chance to retire gracefully. Most of all, we do not want to work for the rest of our lives.

Money working for us

If given enough time, money saved will grow to your advantage tremendously. That is why it is always encouraged to start saving at an early age and let the money stay in the financial institution long-term. Young people, when saving early have more chances to have more money working for us, even with lesser savings. Time is on their side. Older people have to do save bigger amounts to catch-up with time; and also catch-up with financial success.

With big money on hand, you can keep it as it is by only spending the interest yield so this principal does not diminish. This is now called “living on interest” or money sustaining you or working for you. Living on interest though is not possible if the principal is small. That is why we have to save and let it grow to reach this ultimate goal.

People who are “living on interest” have the option to still work or not to work. It is most ideal though for people who are too old to work. They need money badly to work for them instead. To avoid that scenario, we should have money working for us and get financial success.

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