Interest, which us cool cats call “juice,” is always flowing. It pours into the lives of those who know how to find it, while draining resources from those who buy stuff with money they don’t have. It’s much easier to build wealth when the juice is flowing toward you rather than away, but the trick is discovering just how to make that happen.
Writing at Own the Dollar, Miranda offers a roadmap from shaking off the chains of interest.
She recommends starting by paying off your debt with the highest interest, then generating a reserve fund and investing it in high-yield savings and certificates of deposit. After that, you can use some funds to move into higher-interest, higher-risk investments, such as bonds and peer-to-peer lending. You can use the interest on investments to pay down debt, continually working toward edging yourself into the promised land.
The advice is easier to dispense than follow, and takes staunch discipline.
What have you done to make interest work more for you than against you? What has stood in your way?
How to Get Interest Working for You Instead of Others [Own the Dollar]