Making Moves through Your Private Wealth Management
Stagnant money, while you may think can be a good thing, is one of the worst ways to grow your personal wealth. We have all heard the saying, “It takes money to make money,” and when it comes to your private wealth, this is especially true. Knowing the velocity of money can help calculate your economic activity.
What Is Velocity of Money
The rate at which your money is changing hands or going into new industries. The goal is to have your money constantly circulating and growing and expanding into new ventures. The longer your wealth is staying in one spot, the longer you are losing out on opportunities to grow your wealth. A wealth advisor will be able to help you optimize the velocity of money and help you to become your own banker.
The Importance of Making Your Money Work for You
One way infinite banking works is to resemble institutions that have shown success. In this case, it derives from banks whose main function is to have its money constantly working for them. The banks can generate income through lending out money each day to borrowers and in return receiving payments with interest. The profit is then turned back around and lent out to other borrowers, and the cycle begins again.
Moving your money through assets helps generate a circulation of prosperity as your money is constantly working towards the improvement of your personal wealth. You want to avoid stagnation as cash saving means your money is just sitting and not being put to use. Having your money in different assets such as life insurance, and buying goods and services can help you accumulate more wealth and eventually becoming your own banker.