If you’ve been reading this blog for some time, you may remember me asking the following questions:
1)Does a bank, or other financial institution want all of your money or just some of it?
2)When you make more money in the future, do they want that too?
3)Do they want to give your money back to you soon or a long time from now?
4)When they do give it back, do they want to give it back all at once or over a long period of time?
Do you remember, or know the answers?__
1)The financial institution wants all of your money
2)Yes, they want that money, as well
3)They want to hold on to your money for a long, long time
4)They would prefer to return your money over an extended period
Another question: What do you think financial institutions do with your money while they have it. Do you think they do like your financial advisor tells you to? Do they hoard the money and throw it into a vault somewhere and hope that it grows?
Of course not. They put that money to work for them. (Some with more wisdom and integrity than others.)
So why would financial advisors and the financial institutions they work with tell you to hoard your money somewhere? Because it helps them accomplish their goals. It gives them access and power of stewardship over your money.
If you want to be a wise steward, giving up control of your money is one of the worst things you can do.
How can you manage your money well if you can’t access it?
The key is to put to work the same principles that the banks and the wealthy understand. By doing so, you’ll increase your control, decrease your risk, and increase your certainty and return.
That’s not to say that you shouldn’t ever use a financial institution’s products. Because sometimes they can be helpful. The key is to use them in the way that most benefits you – and not the way that most benefits the institution.
Is this starting to make sense to you?
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