Did you ever wish as a child that you could have a money tree that you could take from every time you wanted something and that would constantly bear fruit? Do you want to put your money to work? Do you want to stop being the one working, and want your money to work too? How to put your money to work?
Well, although we are not in a story with Beautiful Girls and Ilene Cosânzene and trees with golden apples or beanstalks that grow to the sky, the possibilities of real life are not so limited.
Yes, it is necessary to go to work and earn money, to work for money, not to water a sapling and wait for a tree full of money to grow, but if you work, earn money, you can save some of it and “plant” it to earn more.
How can you do that? Well, you have an element in the financial market, which you will find in several savings and investment products where you can “plant”, where you can allocate small amounts, constantly and have more money later.
How to put money to work? Use: The miracle of the world!
Capitalized interest or compound interest is made up of each interest accumulated in your account, on the money saved.
Let’s say you saved 1000 lei per year, which is less than a child’s allowance per month. At this amount, you receive a 10% annual return. In the first year, by depositing 1000 lei, you get 100 lei interest in the second year and thus you will have 1100 in the account. You deposit another 1000 lei for the second year. In year 3 you will get interest in the amount of 210 lei which will be added to the account balance. We have 3 branches that come from what we planted in the first year and in the second year, but also from what bore fruit last year (1000 – 100, the interest of 100 generated 10 and the 1000 deposited in year 2 generated 100 lei). By continuing to deposit the amount of 1000 lei, in year 4 you will have a fruit from each year, respectively from the seed planted annually, but also from the fruit that emerged year after year.
Thus we planted along the way, but we also received fruits and each fruit gave another fruit.
4000 lei have been deposited up to this point and we have received fruits worth 641 lei. How long do you want to benefit from the fruits of your labor? Do you want your money to work for you and generate more money for you?
You have seen that it is not difficult at all and it is not a fantasy.
Compound interest or snowballs
Have you ever been to the mountains and created a snowball, then rolled it down the slope? Did it collect snow? How much? How big did the snowball get?
Well, such benefits are brought by compound interest or interest on interest. The amount deposited is also very important, but also the interest received. The more you let time flow over your money, the richer you will become, but not overnight.
Compound interest was called the eighth wonder of the world by Einstein because it is a miracle, your final benefit is great and it is like a miracle. Your money grows, like Prince Charming grew in stories, like others in decades – in the bank. Your account can also grow if it benefits from capitalized interest at a high percentage. Your money can work hard, as is the case with an account where you receive a very low interest rate of 1-3%/year that is not even capitalized, or it can work easily, benefiting from a high yield and the power of this miracle.
https://laurentiumihai.ro/puterea-dobanzii-compuse/
How much can you earn with your money? 1000 lei
Using 1000 lei in four years you earn thanks to the capitalized interest: 641 lei, while with simple interest, with the same 1000 lei in 4 years, you earn: 300 lei.
What is your life perspective using compound interest?
There are people who want high interest but can only find it in investments. And when they find it, they consider that there is too much risk for them. That’s right! It is very risky to have money. The more money you have, the more you spend, but it is better to benefit from these benefits for as many years as possible and then the fruits can be harvested for major financial goals such as: buying a home (with the money down), supporting your child’s studies, retirement.
In conclusion, most people are scared of the idea of investing and do not put their money to work for them. Thus, they do not earn as much as they could earn. There are also people who put their money to work for themselves, to capitalize and manage to buy their own home, to close their loan early. You can recognize them by the following signs: they are around 45-50 years old, they retire and go on luxury cruises.
How do you want to live?
Most people, on the other hand, work at a job or in their own business for 45-50 years, take out a home loan that will only become personal property after 30 years, have a child and because they have higher incomes and can afford it, they pay school fees (private kindergarten, school, high school) in addition to the nanny, an additional monthly installment to get rid of debt faster, without investing, because they have the pressure of debt and the current quality of life.
Getting rid of debt 15 years early, comes the time to spend on the child’s college and if this expense was not prepared in time, there is now another financial pressure: that of the family. At the age of 50-55, with 10-15 years to go before retirement, with time pressure, the “bag” being empty and needing to be filled in the time remaining until retirement with 200,000 – 300,000 thousand lei minimum, capitalized interest appears as a very good option.
How to put your money to work? Capitalized interest, a wise financial decision
There are people who constantly make decisions and there are others who run away from them their whole lives. Most people make decisions when they have no alternatives, as in the example above. When the only option is to invest money, because time no longer helps them to collect the necessary amount or it represents a very great effort. Capitalization, used optimally is when you have “all the time in the world”. As time passes, if you do not use this interest, “all the time in the world” passes and will no longer be unlimited; time passes against you if you do not use it, and “all the time in the world” is not unlimited.
For another perspective, I invite you to read the following article: https://laurentiumihai.ro/variante-sigure-de-investitii-cu-sume-mici-pentru-pensie/
Write in the comments section: how long would you like to benefit from the capitalization of your money?
If you want to find out how you can put your money to work for you, we can discuss it in a meeting. https://www.psihologiabanilor.ro/consultanta-financiara/
Success in becoming aware of money!
©2025 PSIHOLOGIA BANILOR - All Rights Reserved - Powered by 
