Is Your Money Working For You?
Many people we have recently talked with are confused as to where they should be placing their money. The fact is, many banks are reporting an influx of monies coming into their banks, which is known as “Intermediation”. People are hoarding their money because they fear what the future may bring. The sad part about this is that monies that are placed in a checking/savings are earning extremely low interest. Even CD’s (Certificate of Deposit) are also offering very low interest rates.
One thing we do know for sure is that past history shows how real estate always seems to find a way to survive the toughest markets. It may be down now, but it is a pretty good bet that a rebound will occur.
We think that most people are missing the boat by having their money sit in a bank when they could be taking advantage of some of the best real estate deals that have been offered in a long time. In addition, interest rates are being offered below 4% by some of the lending institutions!
The ones who take advantage of a weak real estate market and extremely low mortgage rates are the ones who really profit from our weak economy. Think about this…If you purchase a house that two years ago was worth $300,000 and is now being offered at $195,000, chance are that within two years that house has a good chance of going back up in value to maybe $230,000 - $250,000. Take the lower of the two and figure your rate of return on your money. It is way, way, way more than what it would have been just sitting in the savings account.
And here is your morning coffee...
INSPIRATION FOR TODAY:
TAKE THIS QUIZ!
Here's a short list of questions. Take time to answer them and today's message will be crystal clear. It needs no further explanation, so enjoy!
Name the five wealthiest people in the world.
Name the last five Heisman Trophy winners.
Name the last five winners of the Miss America pageant.
Name ten people who have won the Nobel or Pulitzer Prize.
Name the last half dozen Academy Award winners for best actor and actress.
Name the last decade's worth of World Series winners.
How did you do?
The point is, none of us remember the headliners of yesterday. These are not second-rate achievers. They are the best in their fields. But the applause dies. Awards tarnish. Achievements are forgotten. Accolades and certificates are buried with their owners.
Here's another quiz. See how you do on this one:
List four teachers who aided your journey through school.
Name three friends who have helped you through a difficult time.
Name five people who have taught you something worthwhile.
Think of a few people who have made you feel appreciated and special.
Think of five people you enjoy spending time with.
Name half a dozen heroes whose stories have inspired you.
Easier?
The lesson?
The people who make a difference in your life are not the ones with the most credentials, the most money, or the most awards. They are the ones that care.
