12% What does that really mean?

over 2 years ago

The Power of 12

12%. That doesn't seem like a very big a number. I mean, if you get 12% of a !PIZZA, you get one piece. Twelve percent of a can of soda would get you an ounce and a half. 12% on a math test? Yikes!

But when it comes to money, 12% can be HUGE. I'm talking like ridiculous. And if you're putting that return on a stable asset? It's almost too good to be true. Wall Street would kill for consistent returns like these.

Did you know that earning 12% a year on something will compound to doubling the underlying asset in just 6 years? In other words, if you put $1000 aside earning 12%, you would have $2000 6 years later. And 6 years after that it would be worth $4000. Then $8k, then $16k, I think you get the point. In 30 years, doing absolutely nothing, you can make 32 times your money. And if you want to add another 6 years? $64,000 from a $1000 investment. THIS is the power of compounding.

Now some of us may not have 30 years left on this planet, but for those who do, this is a massive opportunity to build major wealth over your lifetimes.

HBD

Of course I'm talking about the Hive-Backed Dollar (#HBD). The witnesses recently raised the interest rate to 12% from 10% (already a great number), and the opportunity just seems too good not to talk about.

Consider this, if you could get $10,000 into HBD over the next couple years, in 30 years it would be worth $320,000. Obviously 12% a year works out to 1% a month. 1% of $320,000 is $3200 per month in interest. That's $3200 per month you could get into your account without having to do a thing. Just sit back and collect. Now who knows how far that purchasing power will go in 30 years with the way our governments are running our economies, but regardless, having an extra $3200/mo certainly wouldn't be a bad thing, would it?

Playing around with these numbers is fun, but it is something everyone should look at very, very seriously. We have an opportunity to get going early on something that should be safe, secure, and right here at home on HIVE. It doesn't get any easier than that.

Think if you could get $25k salted away. 50, 100, 200, 400, 800k in 30 years. Could you live on $8 grand a month? $1M makes it an even $10,000 a month. These are real numbers and they are very, VERY attainable with a little discipline and time.

What could 12 do for you?

I just wrote another post about goals and what I want to accomplish in the next year. Seriously, take some time and do your own math. How much time do you have? What would you like to live on monthly? (don't forget the taxes) And then do the math and figure out what you need to do to get there. Start small if you want, but START!! It all adds up and it gets easier once you actually begin. You will begin to see ways you can increase your savings if it's something on which you've already put some focus.

Maybe you can take some earnings from these coins and start salting it away in HBD. Maybe you're getting an inheritance that you can put in there. Maybe you can take a little out of your check each month. Or maybe, if and when some of these HIVE tokens go up, you can add to HBD when you cash a little out. There are lots of ways to add to it. Hell, sell a couple lucky pulls on #Splinterlands cards and put the cash in HBD rather than spending it on new cards. Be creative. Everyone has a way to do it. You just have to figure out the best way for you. Make a plan and stick to it. It just works.

And do you know the crazy thing? 12% may not even end up being the highest this rate goes. It's quite possible we see this rate go to 15% or even higher over the next couple years if the HIVE ecosystem really needs to expand the pool. That takes 6 years to double down to 5. 20% takes it to less than 4. Crazy I know, but this is crypto and we all happen to be in the right place at the right time. Take advantage of it. I know I plan to.

Thanks for reading! As always, comments and questions are welcomed and appreciated. Let me know your thoughts below.