A small minority of people wanted to rule the world, so they developed various systems that would ensure they stay at the top and maintain their power; one of these systems is the Money System.
They devised an evil plan to cause the masses to spend the majority of their time working to pay their taxes (including tax on almost everything they buy), their bills, pay for travel to and from work, buy clothes to wear to work, and maybe even take a holiday.
The Money System was created to bring more wealth into these already wealthy families, by stealing from the poor.
The Banking System was created by a Jewish man who had eight sons. He taught his sons this system, and sent them out into different parts of the world. They set up banks in various countries, and applied the Credit System their father had taught them. They would give loans and charge interest, making their money work for them, instead of them working for money (leave that to the ‘commoners’).
They encouraged people to put their hard earned money into bank accounts, but offered very low interest rates on money deposited. On the other hand, if people wanted to borrow money, they charged high interest rates (the average interest rate on a loan is 9.41%). This alone made them millions every year, because the money people put in their accounts was traded on the stock market and invested into businesses (known as stocks and shares). The profits however, were not shared equally with bank account holders.
The Credit System
Do you know your credit score?
This should be part of the school curriculum, since it plays such an important role in adult life.
Without a good credit score it’s difficult to get credit. You gain ‘points’ by paying your credit card and loan repayments on time. Hence, if you don’t have any loans or credit cards, you can still end up with a low credit score. Your credit score is used to prove that you have a good track record of making repayments on time. Any time you try to take out a loan, the first thing they check is your credit score. The higher your credit score, the lower interest rate you will be offered.
However, they neglect to teach how the Credit System works to the common people. Yet they still offer them loans, knowing that because they don’t fully understand how credit works, they’ll get into debt. Late repayments also incur a cost. The interest charged guarantees a big return on the monies loaned. I currently have a ‘poor’ credit rating, but I’m working towards bettering my financial status so I can pass down generational wealth.
The Education System also fails to teach ‘commoners’ how Compound Interest – the best part of the Money System – works. Compound Interest is one of the ways those in ‘power’ were able to build generational wealth for their families. By saving a small amount of money every month, the amount saved each year will receive interest as a bonus. If the person continues saving for let’s say 20 years, they will receive interest not only on the money they saved, but on the interest. The fund grows bigger and faster each year, because they’re not only receiving interest on what they deposited, but on the interest; both the money deposited and interest are compounded year by year.
For instance, if Simon puts £50 a month into a high-interest long term savings plan, he would have saved £600 in the first year. Interest would then be added; long term savings plans offer higher interest rates than bank accounts (most banks offer around 0.08%). So let’s assume the policy has agreed to pay interest at 2.5%. Simon would now have £615 in savings.
The following year Simon saves another £600. This is added to what he had already saved the previous year plus its interest; the balance is now £1,215. The policy pays Simon another 2.5% interest on his end-of-2nd-year balance, which brings it to £1,245.
This might not seem like much, but watch what happens with Compound Interest year by year:
|Year||Saved:||Balance||Interest received||New Balance|
The savings plan rewards Simon for saving long term by compounding the interest on his balance each year. Even though he’s been saving the same amount of money, they pay him more and more interest each year. Simon is so happy to see his money growing! This encourages him to continue saving. It might not seem like a lot, but it’s better than keeping the money in the bank. Depending on how much you save each month and the interest rate you’re offered, you could end up with a much bigger lump sum at the end of the policy.
If you want to receive more money at the end of the policy term, increase the amount you put in, or extend the policy term.
Imagine if families were advised by the government to plan for their children’s future by taking out a savings plan as soon as each child is born? This could even be from their child benefit, and could be used to pay for education, or as a nice gift to start adult life, especially if they’re thinking of getting married, or need a deposit for a house.
As a young mother, I didn’t know about Compound Interest. If I had saved even £10 a month for each of my sons, they would have had a nice lump sum to start them off in life when they reached 18 or 21.
Because I started so late, I’m now paying extra per month for my policy; the earlier you start, the better.
This is the good side of Compound Interest. If you default on a loan, especially a mortgage, you could end up owing more than the house is actually worth, resulting in negative equity.
Saving is a habit. If you were not taught how to save money, it’s not something that will come naturally. The best time to learn is when you’re a child.
Teach your children how to save money so they can watch their money grow, and develop good saving habits. As you can see, it doesn’t have to be a lot every month. Wealthy people have various ways of saving and investing to make their money work for them, instead of them working for money. They have long term savings plans, and short term savings to pay for things they want to buy without credit. They only use credit cards to build their credit, in other words, they pay off the whole balance every month to avoid incurring any interest.
The Banking System
The Banking System also has another way to steal from the poor: they encourage low-income earners to take out loans and credit for things they can’t afford to buy. Bankers know that there’s a good chance that at some point, they will default on their repayments. This would mean even more money in the bank for them. For instance, if a person took out a loan for a house and defaulted on the mortgage, the house would be repossessed by the bank; notice how they say ‘RE-possessed’? This is because house belongs to the bank until every last penny is paid off.
The average fixed rate mortgage would be repaid over 30 years, with an interest rate of 5.30%. (Source: mortgagereports.com)
The interest on a £300,000 mortgage would mean the person is actually paying over £315,000 for the house.
Some people, after spending years paying off their mortgage and on the verge of owning their home outright, are advised by the banks to re-mortgage their property. In other words, take out another loan against the value of their home.
Banks have also been known to de-value houses in certain areas, and offer the owners less than they were actually worth. They would then increase the property prices far above what they had bought them for, out of the financial reach of the original homeowner, so they couldn’t buy them back. Notting Hill and Brixton are two such areas where this took place.
The banks recouped a lot of their loaned money by crashing the property market and repossessing homes.
Fortunately, property prices have steadily risen over the years, so property is still the best way to invest your (or the bank’s) money. As property prices rise, so does your investment. Some people have made thousands in interest from selling their properties for more than they bought them.
The downside is that because property prices have risen, to buy another house would cost the profit you just made.
There had to be another way to make money off property investment.
The idea of private landlords is relatively new. The plan is to buy a second or subsequent house and rent it out for more than the cost of the mortgage. The rental income could even cover the cost of both mortgages, if you got on the property ladder early.
During the ‘property crash’ by the banks, many families lost their homes. They were forced to rent from private landlords, often assisted by the government. This was a great way for property investors to make money, and recoup their taxes.
Rich people don’t work for money, they work to find meaning for their life. What’s the point in having all that money and just sitting around all day doing nothing? Without some sort of purpose, money means nothing. Most rich people aren’t trying to help poorer people get rich; if everyone was wealthy they wouldn’t feel superior. They don’t work for money, they work for power.
The Money System is a lot more complex than this, but these are just a few of the ways they have you ‘Chasing P’s’ instead of your purpose. Listen to my Spoken Word piece ‘Chasing P’s (£’s) with a Purpose’ – music produced by my youngest son ‘Azzy’!
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