Earn 20 Percent on Your Money – Guaranteed

by Ron Haynes

GW_94There is no quicker nor sure-fire way to improve your current financial condition than to pay off high interest debt, especially high interest credit card debt. Remember that “a penny saved is a penny earned” and you’ll save yourself big bucks in interest charges. Whatever you don’t spend on high interest debt is just like earning that same amount of interest on your money, and if you put your money into a savings account, your rate improves even more.

Over 60 percent of those with a credit card in the US carry a balance with rates in some cases as high as 26 percent. If you’re like the average American who carries about $10,000 in credit card debt, you’re probably giving away between $1,800 and $2,600 or more per year to credit card companies. What could YOU do with that extra cash?

  • You could save for your retirement (also known as investing in your future).
  • You could save for a child’s college education so they don’t have to go into debt for their education.
  • You could help someone who really, really needs it.
  • You could start a business of your own.
  • You could purchase your own freedom.

High interest credit card debt is the scourge of our society and has become a prevalent practice around the world. It has given us a false prosperity, a thin veneer of success and accomplishment, but in the end, it bites us back. We pay for those throwaway items over and over again because the payments always seem to pay the interest, never the principle.

Even if your took that ten grand in a cash advance, thinking you’d make your fortune in stocks, just remember that the S&P 500 has a historical average of 10 to 12 percent. You’re still falling behind by 6 to 16 percent! And THIS year, the old S&P has lost money — a lot of money — down by almost 50 percent in the past 12 months, about half of that in the last 3 months.

Such high interest rates on credit card debt means that it should tower over student loans, most car loans, mortgages, and other debts in how you prioritize your debt payoff plan.

Give yourself the best gift of all this holiday season … shred your credit cards and feed them to the Grinch!

photo credit: Pro-Zak

[tags]grinch, holidays, credit, credit card, guaranteed return, interest, money, financial, finances[/tags]

About the author

Ron Haynes has written 1001 articles on The Wisdom Journal.


The founder and editor of The Wisdom Journal in 2007, Ron has worked in banking, distribution, retail, and upper management for companies ranging in size from small startups to multi-billion dollar corporations. He graduated Suma Cum Laude from a top MBA program and currently is a Human Resources and Management consultant, helping companies know how employees will behave in varying situations and what motivates them to action, assisting firms in identifying top talent, and coaching managers and employees on how to better communicate and make the workplace MUCH more enjoyable. If you'd like help in these areas, contact Ron using the contact form at the top of this page or at 870-761-7881.


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{ 2 comments }

Joshua @ Accountable Living

What is always interesting to me is the two sides of this equation as it relates to unpaid balances and a debt free person.

We use the argument that when we have a balance outstanding and pay it down aggressively or make additional payments that in effect we are “earning” money by not paying interest. So it sounds great. I “earned” 12% by paying extra on my card this month, goes the thinking.

But then, once we pay off the card (house, boat, whatever), we tend to forget that and all we can see is the % rate earned in our savings account (MMA, bond, etc. ). I earned 4%, we’ll say.

But in truth, we are still benefiting from the payoff / paydown we did. It has far reaching effects. So when you are feeling a little down about what you are earning right now, if you have paid off / paid down on debt of any kind, remember this: You are living in the reality of the “earnings” from those extra payments. Those “earnings” are freedom.

Early Retirement Extreme

That 20% is technically not earned on YOUR money ;-)

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