Money has the Ability to Grow
How money works? Money works in compound interest. It has the capability to double itself. When you let it grow, it will grow tremendously at your advantage. Money should be given time to have it grown.
Once money is big, it can give you interest amounts that is if big, can feed and sustain us. Now, how to make money grow? When we save money, interest rate matters. Be aware enough to place it to where it can grow to its maximum. Go for higher interest rates.
While we are working for the money now, we should not forget to save despite the needs to spend our money to meet our current responsibilities to provide for ourselves and our family the basic needs to live. Most of all, you do not want to work for the rest of your life.
Money Working for Us
If given the time, money saved or invested will grow at 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, even if the savings amount is not so big. Time is on their side. Older people can still save but have to do it in bigger amounts to catch-up with time.
When grown big, the interest amount of the money alone can already sustain its owner. One can rely on it as his main source of income. At this time, he is now called Living-On-Interest or LOI. LOI can happen if one started saving earlier, or for some very few lucky people, they inherited big wealth. People who are enjoying LOI have the option to work or not to work. But LOI is supposedly compulsory when one is old as it is the only choice left.
This power of money, giving interest amount, to sustain its owner, switching places with him, if known by many at earlier years, can encourage everyone to prioritize savings from the very start. We can never underestimate money’s capability to work and switch places with people in life’s cycle. Man working for the money then money working for the man.
Man Working for the Money
People who spend and enjoy their earnings while young have greater possibilities to keep on working even if they are already old. Those are the people who do not value money so much and failed to save while they had the chance and the income.