money and time, dispersion and concentration

money and time, dispersion and concentration 

Let's take a look at how the money we earn changes over time when we invest it, 
which banks we usually store our money in, and the basic principles of storing our money.

Banks do not lend money to people who have no money or to small businesses. They only lend money to large corporations and the rich.

The history of banks is a long one, going back thousands of years in some cases.

A bank is a financial institution that provides financial services such as accepting deposits, lending money, and providing other financial services for its customers like retirement planning or buying insurance.

The earliest form of banking can be traced back to ancient Babylon over 5,000

Even if you lend money to people who don't have money, they ask for a high interest rate.
Best of all, banks pay very little interest to those who deposit their money.

In 2020, the inflation rate is around 1%, but the interest rate is 0.7% at the time deposit rate.

So saving money to buy a house by saving it in a bank has become almost 
impossible for most people.

I have a bank deposit. I don't think savings accounts and insurance annuities are much different.

You need coverage or auto insurance for your health, but saving for the future is not a good idea.

If you raise a pension, tax is reduced, but this doesn't really mean much because the 
individual prepares in advance for insurance premiums to be paid by the government later.

So, you should have enough cash to spend when you need it, but the rest should be 
invested in the most profitable places.

Gold is growing at an average annual rate of 7%, doubling in 10 years.

Real estate has grown at an average annual rate of 10.2% over the past 300 years.

Over the past 100 years, the world's best 0.1% of companies have grown at 
a CAGR of 12%, with some of the top growing at more than 15%.

Rich people invest in this.

But we don't really have that much money.
Real estate is too big and there is really no way to invest in such a company, right?

It was like that in the past, but the situation has changed almost 30 years ago.

Not knowing that is the problem. What's really important here is the fact that we don't have money.

If you put $1000 in a place where you make a 12% profit, you get $2,000 in 6 years and 
it doubles again in 12 years to get $4,000.

Think about it.

Imagine you somehow saved $100,000 and invested 12 years.
Then it will be 400 billion won. What do you think?