You Be the Credit Card Company Through Bonds and Bond Funds

Ever thought how cool would it be a credit card company? I mean all you gotta do is credit money people now and they will pay you back the whole amount with interest. So essentially you did not do anything but fork over some money temporarily, and you made some income out of it.

Pretty sweet deal.

No real back-breaking work involved and your debtors are bound by a contract to pay you back. Well that's how bonds work. I mean bonds could easily become a complicated topic. Yet the root of it all is like how credit cards work.

Loan money out -> Get paid back full with interest

The catch? Gotta have money to make money. Minimums for bonds are usually around $5,000 - $10,000. Not everyone has that much cash just laying around. An alternative? Bond mutual funds! Mutual funds are loads of money that are managed by a group or individual to be invested. Cool thing about having loads of money is that you can leverage your way in to better interest rates. I won't go too deep in to that statement, but just know some bond funds can pay you EACH MONTH, and at a rate that is more awesome than your bank savings rate. Sure you'll get taxed on that income; but even taxed, that rate would probably still be higher than your bank interest rate. Banks really like to take your money and give you crumbs for it.

Why not take donuts over crumbs? :)
That's your feed for the day.
Enjoy!