Many people shy away from the issue of finance and at the same time are upset by the low interest rates on banks. In this article, we want to tell you that it is more than worthwhile to deal with the topic of finance.

0% as an alternative

Let’s take a look at the current situation in the US and many developing countries. If you want to invest your money with the bank, you will receive little or no interest. In the worst case, you have to pay to keep your money in the bank.

Against this background, it is your duty to take care of your own finances. Now, you may think that you cannot possibly do the work that a bank would do for you. But the truth is surprisingly different. Everyone can take care of their finances without having to spend tons of time and years studying.

Investment in knowledge

Granted, you need knowledge, but you can learn that. We do not want to tell you that this is quick and easy. But the fact is that it’s worth it.

Suppose you acquire the necessary knowledge—depending on ambition, diligence and passion—within a year, you will benefit for several decades depending on your age. It is a big mistake to avoid short-term efforts because the long-term added value is difficult to pin down in tangible numbers.

Let’s look at a simple and very conservative numerical example. Let’s say that you have $5,000  available and save $100 per month. These specifications in combination with a yield of 10% produce the following picture for 30 years:

You can see similar calculation examples here.

It is amazing what power the compounded interest can unleash.

Argument time

Many skeptics often bring the aspect of time into the argument. You do not want to invest a lot of time every day to beat a bank’s return. But do you have to do that anyway? We are not talking about active trading here, but rather about investments that are held over a longer investment horizon.

The time invested to accumulate knowledge is undeniable, but commendable as described above. If you have the necessary knowledge, you become more independent from third parties, you keep on training, and in the worst case, you even enjoy the whole thing.

Primarily investing is a good option. Learning how to run a good selection of stocks and ETFs is relatively easy, and the time you spend is very limited.

Time spent on portfolio

Anyone who has acquired the necessary knowledge will have to spend very little time with routine, and it is not even necessary to manage something every week. It is often enough to put the existing positions to the test once a quarter or even once a year, and, if necessary, replace them with more attractive candidates. So we’re talking about 10 hours a year. Of course, a bank visit is much shorter, but you have to trust the bank consultants, pay fees, and it often has a worse return.

Active management for higher returns

However, those who enjoy the topic of finance and aim for even higher returns can do so with a little more time and knowledge.

It is very realistic to achieve an annual return of 20% with about one hour a week. Well, that’s 5 times the time, but only double the return. Please do not make this mistake and underestimate the compounding effect.

Here are the results with 20% and the same conditions as before:

Double annual return and 5 times the time leads to 10 times the final assets. The statement should be clear.


It is worthwhile to gather and apply knowledge about finance as early as possible. When you look at the alternatives, such as passive interest rates on banks or life insurance, you must be aware that you are giving money away.

Now take care of your own finances and reap the rewards for your efforts later!