In this final segment of our series on savings we shall take a look at one of the most important factors involved in the "hoarding" mechanism, "scatter hoarding". It is quite easy to see the benefits in utilizing this strategy. It protects the entire hoard from being lost if the "stash" is found. However, it also increases the likelihood that a "tree" will grow from what is not activated.
Let's say you did not scatter your hoard. If the hoard actually survived until a portion of it was activated, but it was not "stashed" in a hole that is conducive to growth, then you would have lost your opportunity to increase your potential through that hoard. You would have to depend on future gatherings and make another attempt, or you would have to sacrifice a portion of the hoard that was activated and locate a new hoard in hopes that it will be productive.
If you scatter your hoard, you increase the chances of your hoard increasing in potential because you increase the number of opportunities for it to do so. This likelihood is governed by a fairly simple statistics law called the "Law of Probability". The reason I bring this up is because in the most commonly accepted aspects of physics (Newtonian Physics), there is no probability if all conditions are known. This means that if the seeds or nuts are placed in a hole where (for whatever reason) it is known that it will produce a tree, then that is defined as a certainty. A good example is this:
"In the case of a roulette wheel, if the force of the hand and the period of that force are known, then the number on which the ball will stop would be a certainty. Of course, this also assumes knowledge of inertia and friction of the wheel, weight, smoothness and roundness of the ball, variations in hand speed during the turning and so forth."
Now it is impossible for a human being to have 100% certainty if our savings are going to grow or not in a particular vehicle; however, the more we know about the vehicles we put them in the more "uncertainty" we remove from the decision. The least amount of uncertainty involved in an action equates to the least amount of risk associated with taking that action. Our goal will be to place out "hoards" in "holes" that have the least amount of uncertainty on whether or not they will produce a tree. In other words, we will chose places that have the optimal conditions to produce growth.
When discussing savings vehicles, there are many types of "holes" to choose from to stash our "hoard". Here are some of the more common savings vehicles (hoards):
• Savings Account
• Savings Bonds
• Certificate of Deposits (CD's)
• Money Market Accounts
• Money Market Funds
• Cash (Typically Held In A "Safe" Or Some Other Hiding Place)
Now here is a not-so-common (and very effective) savings vehicle that many people who don't understand money and banking might not like hearing. (This is because they don't understand money banking; not because I am wrong)
• Line Of Credit
This vehicle makes the concept of "interest cancellation" on the debts that you owe possible. Remember, savings is a NET EFFECT. Placing your hoarded savings into a line of credit activates a little known banking phenomenon that we will discuss later. It will essentially turn the squirrel's seeds and nuts into BEARS (instead of trees). Whereas this is quite impossible in nature, the physics of money operate under somewhat different principles. The LAWS of physics are the same (universally) but the principles by which we apply those laws change as we change environments. Money operates in a very different environment and is governed by very different principles than what we see in nature.
Where am I going with this? Well, it is actually quite simple. The Universal Law of Conservation states that neither matter nor energy can be created or destroyed; merely altered in form. This works the same in all things; however, the environment in which we live and grow precludes seeds being altered and growing into bears. It is not impossible for this to happen, but the principles by which we can work within the law of conservation are limited at this stage in human development. However, the environment in which money lives and grows does not preclude what might seemingly equate to seeds turning into bears. Although this may seem a little "quirky", it is very good news for us because we ARE actually able to (figuratively) perform some "alchemy" on some of our "hoards" and turning those seeds into "bears".
Jay Davis is a seasoned Strategic Planner and Project Manager with an industry focus on Economic Development and Commerce. He is an active author who is attempting to break the world record for "Most Published Author" by attempting to publish 1404 works in the next 13 years.
Jay is also an active champion for social and economic reform. He is the founder and developer of the Power In Numbers Economic Development Initiative (Power In Commerce) and Co-developer of the Power In Numbers Network. He is the CEO/President of the facilitators of these platforms. These companies are suitably named Power In Numbers and The Power In Numbers Flagship Company.
Mr. Davis' latest venture (Power In Numbers Flagship Company) can be followed at: http://www.powerofhouston.org
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