The other day I was talking to a couple of my friends at a coffee shop and we were discussing the inability for average workers to get ahead. John had just received some money from a relative and had spent the day trying to get a good rate for his investment. He had only been offered 5.5% and wanted more.
He had $10,000 to invest and was happy with an interest rate of 5.75%. The best “at call” rate he had found after much research with financial institutions. He was after a safe investment during these uncertain times.
My other friend responded, “I wish I had the spare $10,000 to invest in the first place!”. He went on to say that how difficult he found it to save any money after paying his bills each week. (Something you hear all the time)
We got out the napkin and a pen and looked at the situation. He had put all his efforts into running around to get an extra 0.25% on his money!
So instead of getting $550 in interest on his ten grand for the next 12 months, he would now be receiving $575…. Big deal….
An extra $25 for the year! He probably spent that much driving around and in phone calls.
What a...