Your Bank Is Not Your Friend

If you do not know by now, banks make their money from loans. The capital that is used to make these loans is primarily comes from the bank customers.The banks profit from the interest that they make from their loans. Understand that the difference in the amount of interest that you earn on your money versus the amount of interest that banks charge for other people to use your money. The difference between interest charged on the loan that the banks make compared to the interest given to the depositors is the "spread". While the big banks can earn interest between 5 to 30% while we are lucky to get 1% on our deposits.Realize that banking institutions provide all types of loans including credit cards. Do you honestly not have a problem with the fact that banking institutions are making between 5 to 30% in interest on our cash? Everyone can whine all day about the banks. The fact of the matter is that the banks are in business to make money from our deposits.You need to quickly come to the realization that, unless you are happy with the big banks having all the fun, you have to find investment alternatives. Believe it or not there are other types of investment strategies that will provide with much better returns in comparision to a simple bank account. Here are a couple of alternative investments that you can consider: Invest in the Stock Market. While the stock market may be considered risky, no one can argue that the potential return on your investment is unlimited. Tax Liens. What makes this investment so attractive is that it is secured by real estate. In some states you can earn as much as 15% on your cash via tax liens. Commercial Real Estate. Many real estate gurus would tell you to invest in single family homes for rental income. They ,for the most part ,never mention investing multifamily properties which can give you immediate cash flow along with an increase in your overall net worth. Invest in a business start-up. You can become an angel investor

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