Spend time studying the following chart and understand the difference of being a wealth creator and growing your money Tax-Free while building up your cash reserves. THE CHOICE IS YOURS! This is Really Important!!! Pay Cash Debtor Creator of Wealth The Principle of Wealth Creation through Collateralization, Using Other People's Money! Have You Considered Who You Are Or Who You Want To Be On This Chart? Do you understand this chart? If not, I would encourage you to study it again. Let's say you have a $40,000 CD in your local bank earning 4%, and you were thinking of cashing it in to purchase a new auto. This information gets back to your banker, and he gives you a call, and tells you that he will loan you the money @ 6% and if you will leave your CD in his bank at the 4% rate, it will be to your advantage". Should you believe him? No! He is misinformed. You may have a 2% difference in interest, but the truth is you cannot get ahead with this strategy. What if you deposited $1000 in your local bank and they were paying you 2% on your deposit, and your neighbor walks into the bank the same day and borrows $1000 at 8% build a higher fence between his yard and yours? Your bank charges him 8% interest on the loan. What is the spread? Would you guess 6% or 300%? If you guess 300% you would be correct! Yes, your bank is making 300% on the spread, and that does not take into consideration fractional banking, where your bank will use your
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