day to day rants
Hot Old “Investment”...
Could there be a correlation between the fact that banks pay
.005% interest when our money's deposited with them ,while charging 20% when it's borrowed from them, and the enormous profits banks typically report?
Of course there is! So why do we use banks at all? I think one reason is safety of our deposit. We trust the banks to return the amounts that we put on deposit more than we would trust, say, a second cousin of a friend with a great investment concept... Secondly we use banks because of the perceived shortage of investment opportunities which will yield a reasonable return over time with certainty.
So dollars languish in banks, slowly eroding in purchasing power due to low interest rate returns and inflation rather than doing something truly useful for their owners.
What if it were possible for you to obtain 20 to 50 percent annual return on your investments without involving the banks at all? Would you be interested?
A loonie saved is still a loonie earned. In fact in our times a loonie saved is a loonie and tax. So it is much more profitable to save the dollars we have than to earn new ones, pay the tax on them and bank ever reducing amounts.
Why not buy in bulk today the items we will need tomorrow at a greatly reduced cost?
Products go on sale all the time. Sometimes there are great discounts in pricing for various items which we commonly consume. When you buy only small quantities as you need them you may find yourself running out of soup and craving it which necessitates a trip to the store incurring expenses for gasoline, parking and speeding tickets, bribes for cops, and so on. Also there is the loss of your valuable time to consider- something to do while waiting in those maddening lineups...! Or... you could be comfortably at home considering the likelihood that the price of the item you had the foresight to buy in bulk will rise before it is ultimate consumption, further increasing your "return"!
No money? Credit card debt piling up? No need for despair! In fact, here is where this plan shines the brightest! First of all, you'll want to check the rate on your card. Obviously the higher the rate the greater the challenge. But let's say your card charges you a pretty typical 18 %. Its easy to see that a 50 percent sale on a non-perishable you regularly consume is a deal, even if you put a years supply on your card. Buy a whole years supply and you'll be able to apply what you normally spend on hamburger, flour, paper products or what-have-you directly to your card balance. Even without thrashing through all the math, its obvious you will come out ahead. Its critical that you are aware, though, of the normal price of items and don't get burned buying low quality product.
So in summary if you have a spare money in the bank or available credit consider the potential return on a purchase of items that you are going to need within the next 12 months. And while you are busy considering, consider also the immediate, certain savings of buying in bulk coupled with the fact that the money you save is not taxable on any basis whatsoever!