People with $200,000

[gavinmccallister]

Imagine how Americas savings rate would go up if people with an extra $200,000.00 invested it for 6 months @ 5% and give that interest money to someone that needs it under the guidance of the giver helping them grow that $10,000.00 into a freedom from debt.

[Joan.of.the.Arch]

But could our economy withstand all that saving?

[gavinmccallister]

I believe our economy could stand the saving, imagine how things would be or could be different?

[gavinmccallister]

So people would give away their interest to someone that needs it, and helping them use that $10,000.00 to help them become a millionaire. Through people helping people, and holding people accountable for their decisions and helping them make wise decisions with their free money. I think that we could all be millionaires and everyone could help raise up future millionaires through the giving away of some of their interest.

[Ima saver]

It would only be $5000 in the money was invested for six months.

[gavinmccallister]

$5,000.00 would still be alot to help some people if you helped someone out for less then two years they would have $100,000.00. Now, I would still expect them to work and the giver would continue to work and save his money, just give away the interest from the $200,000. Could anyone see themselves doing this if they had an opportunity to do it?

[Ima saver]

How would they come up with $100,000 in just 2 years??

[gavinmccallister]

woudn't you get $5000.00 interest every month if interest is compounded daily and credited monthly?

[vsjhoc]

Warren Buffet announced today that he is leaving most of his $44 billion (that's billion, not million) estate to the Bill & Melinda Gates Foundation for doing good things. I can't remember if it's for fighting world hunger or disease. If it's properly managed, it should make a real difference, right??

vsjhoc

[gavinmccallister]

How does compound interest work I times 200,000 by 5% and it comes out to 10,000.00 so wouldn't you get $10,000.00 every month in interest?

[Ima saver]

But that is $10,000 per year. At the end of year one, you would have $210,000 and at the end of year two you would have $220,500. You just make about $10,000 a year, it would go up a little every year. To make $10,000 a month in interest you would have to have more than 2 million dollars and that would actually yield, $8333 per month.

[Ima saver]

In other word, take the amount of money you make, multiply it by 5%(yearly) and then divide by 12 (months) That is what you would have. $200,000 x 5%= $10,000 interest per year divided by 12= $833 interest per month.

[cschin4]

We are already doing that, it is called taxation. Wealth is created by one person and taken away and given to another. But, even on at an individual level this will not work. Those who are not wise, frugal, thrifty will fritter any amount of money away. The wealth is not appreciated when given but rather when earned.

[gavinmccallister]

Do you think that it would work if you gave the money to someone that really wanted to make it, what I am trying to get to is we could help each other get richer faster and with that comes only good things because there would be less poverty. I know money isn't everything, but to help people to not have to struggle that would be great

[cschin4]

No, I don't. If someone wants to learn to handle money in a frugal way, he or she can educate himself and do the necessary hard work involved. Yes, it is harder for some people. And, those who can't help themselves are given a social safety net. But, there are many people who don't want to do what is necessary to become debt free.

[jodi]

Originally Posted by cschin4

The wealth is not appreciated when given but rather when earned.

Beautiful quote! I just finished The Richest man in Babylon and that phrase could not have summed up the entire book any better.

[Ima saver]

I agree, and I enjoyed that book too!!

[lillyb]

I definitely need to read that book but can't find it at the library. Yes, I think people that strive to better themselves appreciate wealth when they've earned it, not when given. If you don't like your situation, change it. Plain and simple.

[Ima saver]

Gavin, did you understand the math to figure out how much interest you will earn? If I could get $10,000 a month interest on my $200,000 in the bank, we would never have to work again!!

[Broken Arrow]

Just for fun, to get $10k per month out of $200k would require 60% APR!

The math for calculating interest has been presented in the past before, but I'm not sure if he read it or not.