I’ve learned a very important lesson over the last 41 years. There are two types of people—those who “get paid” and those who “do the paying.”
My first experience with this happened at the stock brokerage firm where I worked in my late 20s. I started working with extremely wealthy account holders. In fact, I talked with millionaires on a daily basis.
I quickly caught on to one of the ways they became wealthy—they got paid to invest.
These wealthy clients invested and reinvested in dividend-paying stocks. Some affluent investors earned thousands of dollars a month doing absolutely nothing at all… except making one smart decision to buy dividend plays.
In doing so, they got paid to wait…
These investors didn’t care if these dividend-paying stocks treaded water or even dropped while they owned them. They still got paid at least four times a year as they played golf and enjoyed their grandkids.
By buying dividend plays, they got a piece of the corporation’s earnings in dividends whether the stock went anywhere at all.
Those are the people that “get paid.”
Then there are the people that “do the paying.” These are the worker bees that live paycheck to paycheck. They pay for everything in their lives and never catch a break. They don’t invest in anything like this either. They either waste money on the latest craze in stocks, “safe” U.S. Treasuries that pay pennies, or don’t invest at all.
Let’s try to be more like the ones who “get paid,” shall we?
The New Breed Of Income Investors Get Paid Daily
I want to tell you about another income opportunity. Instead of getting paid quarterly like the wealthy brokerage clients I met years ago, you can get paid monthly—or even daily if you’re trading in the Forex market.
It’s all possible with foreign currencies. Yes, not many investors know this, but Forex firms pay you interest to hold certain high-yielding currency pairs overnight.
For instance, if you simply buy the South African rand in the foreign exchange market, you can get an overnight interest rate of 5.5 percent right now. You don’t get paid at the end of the quarter either. You get a piece of that 5.5 percent each and every day of the week, as long as you’re buying the rand.
Compare this to the average money market account in the nation now paying 0.61 percent, and you’re getting paid nine times more to sit and do nothing. The only difference is where you choose to place your money one time.
And considering the dollar now pays less than 1 percent in a bank account or money market account, it’s worth it to look at higher-yielding currencies regardless.
Do You Really Want To Hold Sinking Dollars Anyway?
Now, on top of this, it’s no secret the dollar has been falling for the better part of the last 40 years (ever since Nixon took us off the gold standard).
But take a look at how much the buck has dropped in relation to the strong South African rand over the last two and half years. The rand has gained almost 45 percent (on an unlevered basis) against the sinking dollar. On the chart below, you can see how the dollar has plummeted against the rand…
Imagine Gaining 45 Percent On The Rand, Plus Interest As The Dollar Fell
Think things are going to get better for the dollar? I don’t think so.
The main reason why our dollar continues to suffer is because our economy is not the powerhouse of fiscal responsibility it once was. We have a debt that’s too large for most Americans to even comprehend.
Recently some politicians have talked about instigating a “debt ceiling” so we would stop spending. But just last week, Treasury Secretary Tim Geithner effectively nixed that idea. He said “we can’t afford a debt ceiling.” Translation: Geithner wants free reign to keep spending.
I think that statement right there shows you the path that the U.S. is going to take for the foreseeable future. The U.S. is intoxicated with debt, and the dollar will be the victim. End of story.
So would you rather get paid to hold foreign currencies that pay much higher interest rates? Or do you want to be the sucker that has to pay out sinking dollars for everything you consume?
Decide Today To Become The One Who Gets Paid
The decisions you make today will determine your tomorrow. Will you be the one that parks your money in a U.S. dollar-denominated money market or savings account?
Or will you park your money in a higher yielding currency that can pay you interest over the long haul that is five to eight times greater and protects you against the sinking dollar?
The choices you make today will determine your financial future. But in the end, it’s a simple choice—get paid to do nothing, or be the one who does the paying.
Have a Nice Day!
Editor, Currency Cross Trader
P.S. Personally, I prefer earning rollover interest trading spot Forex. But if you’re not ready to trade foreign currencies in the Forex market, there is another long-term way you can get “paid to wait” with foreign currencies. It’s another secret of the super-rich that we called “unclaimed dividends.” Click here for the full details.