Thursday, August 31, 2006


How to be Your Own Bank

This post is an update to the Million Dollar Savings Club. If you are not familiar with this club, you can learn more by reading my post describing it.

For those of you saving along, you’ve probably come into some challenges with trying to save $1 per day. The biggest problem of course is having only 5 or 10-dollar bills on hand to put into your fund, but no singles.

By now, on day 8 you should have $8 in each pile of money (savings, investing, and giveaway). If you only have a 5-dollar bill on hand to put into your fund, you can now make change for yourself. You are in effect being your own bank!

Let’s look at how this can idea can grow as we continue to regularly add money to our savings.

On the 20th day you’ll have $20 in each pile. Then you can break $20 bills. For those of you actually in the club you’ll know this is a big deal.

Perhaps further down the road, you may need to take a small loan from a bank. If your savings were large enough you could borrow the money from yourself and pay yourself the interest. The interest would go back to you and not to the bank.

Maybe a co-worker needs to use a payday advance service because they’re low on money. Could you not loan them the money and collect a small fee for providing the service? You certainly could.

We’ll talk more about this, but I wanted to get you thinking of the world of opportunities that begin to open up because you’re starting to save money.

Being your own bank to change a 5-dollar bill into singles may not seem like a big deal today, but it’s a window into the opportunities that will follow.

Keep saving. Keep putting $1 per day into your 3 funds and your life will change in amazing ways.

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