Who is Capturing Your Interest?
The word interest is …interesting. There are two definitions:
- State of wanting to know or learn about something or someone.
“He looked around with interest”
- Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt. “He’s paying 17% interest on his loan.”
If you really think about it, these definitions are more connected that they seem. Why? Because the way we use our money is an expression of who we are. It is true that what we appreciate, appreciates. Spending time with our kids, putting in the hours to grow a business or volunteering at our favorite charity amplifies all of those aspects of our lives. And guess what? The interest we give to banks has similar power.
How Banks Use Your Interest
When you place your money in a bank account, it doesn’t just sit there. The bank uses your money by lending it out to others. They make money from lending out YOUR money. And you may not always like where they put it. Some banks invest in things like private prisons and fossil fuels, or engage in shady business practices that hurt customers or communities. By the way, the same goes for the interest you pay on your loans.
So… How Much Money are we Talking About?
How big is the impact of your financial interest on the world? In 2017:
- Global companies borrowed more than $3.74 trillion dollars to expand their businesses. Where do banks get the money they lend out to companies? You guessed it: from your deposits.
- U.S. household debt reached $13 trillion dollars. The banks make money from the interest you pay on your loans, mortgage and credit cards. The average U.S. household paid almost $1,000 of interest just on their credit card balances.
Use Your Money To Express Your Deepest Self
Think about where you put your interest. Money has power. It is a mirror of who you are. It is an instrument that can help you evolve your own view of the world. When you align your financial life with what you stand for, you will feel truly prosperous.
Start Small for Big Impact
This doesn’t need to be a huge overhaul. You can take small steps toward lining up your existing money (cash, loans, credit cards and investments) with institutions that share your evolving worldview.
No matter how much money you have, you have power to express your deepest self by the way that your money moves in the world. Take your first step. Check out these resources: