Banks are the only business in the world that uses somebody else's money to build wealth! Congratulations...your compound interest is helping to build a bank on every corner across America...and it's making them filthy rich.
Here's how it works. When a bank receives money from a depositor, the bank then loans out a portion of that money. This is called fractional lending - it’s how banks make money. They loan out a portion of what has already been deposited. We deposit in - they loan out!
Many banks have minimum amounts of liquidity. That means that they only loan out a certain portion of their total deposits.
For example, let’s say a bank has 50% liquidity; that means that they keep at least 50% of their deposited money ready for customers to withdraw at any time.
But, when you leave that much money just sitting there, the bank isn’t making any significant returns. So… what do most banks do? They loan out most of the money that...
It doesn't always take a hurricane or tornado to turn your house upside down, sometimes it just takes a RED HOT real estate market! With mortgage interest rates being at an all-time low, consumers are entering the real estate market with a frenzy and the mad rush is causing quite a stir. Bidding wars are back and prices are climbing at record speed; some markets experiencing more than 30% in home values this year alone! That's great news if you're a seller...it's not so great if you're a buyer and if you aren't careful, your property will likely be worth a whole lot less than what you paid for it and you could find yourself financially upside down overnight.
The real estate frenzy we're experiencing today looks a whole like the frenzy we saw just before the bubble burst in 2007. As difficult as it is to believe, history always repeats itself so it's not a matter of IF, it's a matter of WHEN - and it looks like the time to lather, rinse, and...
If it all belongs to Him, why are we living as if it belongs to us? Are you being a good Asset Manager? How we perceive MONEY impacts every area of life! It's time to BREAK THE CHAINS...for the love of God!