That’s right – slowly. Everyone else talks about making money fast and other get rich quick schemes; therefore, I thought I would shed light on making money from a different perspective.
From my article, Radio GaGa, I mentioned I would bring up another ad relating to money.
Whether the ad is for a loan, bank or beer commercial, ads need to convey a message and get people to act or perform – such as send money here versus going there so to speak.
Advertising can be fun. Advertising can be manipulative. Advertising sometimes needs to be short and sweet, or quick to read.
Take the following ad – Save More, Think Less – I saw at Bank of America.
It’s a catchy ad, or slogan. Either way, the idea is to put the phrase in our head and get us to remember the particular company.
I don’t have a problem with BoA, I don’t bank there, but none the less, their sign can apply to any bank. As a matter of fact, Chase Bank has an ad talking about saving is the new spending (or something to that effect). Both banks, and others for that matter, want people to save money, i.e. make deposits. No big deal, yet. I’ll explain in just a minute.
Saving money, or setting money aside is a smart thing to do. However, the problem I see comes in the “think less” category.
Making money requires a little more knowledge and effort.
I’ve written articles, and chapters, on money. Take renting stocks for example. The concept is very easy, but you can’t just think less when dealing with options and investments.
Putting money in a savings account only requires a simple action, yet can be very costly.
Take into account those deposits I said I would talk about.
If you put $25,000 in a CD for 5 years at 3% (if you can get that right now), you would have $28,981 in five years which is a gain of $3,981 or an average of $796 per year.
That’s not a lot of money when you consider inflation and taxes. And, $25,000 is a fairly large deposit for many people.
(Even if you think we might be in a period of deflation, what are car prices for a Toyota Camry today versus 1990? Higher. What will typically happen in the future. Higher prices.)
To put this in a different perspective and using the Rule of 72, at 3% interest, your money would take 24 years to double. At 1% which might be on short term CD’s, your money would double in 72 years!
Therefore, if you want to think less, go ahead and let the bank use your deposits to make the big money, but don’t complain when they do… you and I have the opportunity to save more and think more as well.
