Five Mile Beach weekly journal., 1923-03-02
LDING AND LOAN NEWS AND NOTES
ID y JHTES 1H1T5T
Chief Of Building and Loan Division of the State Banking and
Insurance Department
BY JAMES

If person were to tell us that if we saved $40 a month for IL years, or
liz years, we would have no only the money saved but a income for all
time thereafter of $40 a month, we would think it a good proposion-too good
to be true-but that is exactly what a bulding-loan association does for its
MEMBERS.
For every dollar a month paid Is dues in a buildng-oan association there
will be a share matuTed of 5000 in about 112 years.; put the $500 tut at inter-
est at 6 per cent, to take mores shares, and you will receive for each sum of
5000 interest or profit at $2 a year-one dollar a month. Five shares will
mature at $1,000, the interest O which, at 6 per cent, will be $50 a year or
Sc a month.
Now, SIS or $40 a month a wages, Oh IS a part of wages, may not seem
to be very much, but coming IS interest without work o. effort it will look
like a real income. and put you in the capitalstc class, like John I. Rookie
teller, living on your income. There have been a few men who owed their
good fortunes and success in life to al invention, a lucky strike or some
fortunate discovery, but the greater number of US must perforce, look forward
to lifelong struggle and hard work unless by early economy and som self
denial we make a beginning of our fortunes by every week II month setting
aside and saving a part of our earnings.
What we save is only the beginning of a competency, or of a fortune, and
it is the interest earned O savings that makes saving attractive. At
4 per cent interest money doubles itself in Is years, and at 6 per cent doubles
in ~ years.; in a New Jersey bulding-loan association money double in a
little less than IL years. For every share you pay in $13S and receive $780,
and the average time of payment is half of 11a years, which is the same in
result as half of $13S, II 500; being at interest for 111A years, the interest
earned amounts to $2 a share.
Meeting n evening this week with a lodge in Jersey City this writer
was informed that nearly all of the older members were dependent upon their
children for support and that is what is in store for the young men of today
if they don't learn to play the greatest game in the world-savng money
Here is a concrete example of what a young nan cal do. Let him, at q years
of age, subscribe for 20 shares in a buidngloan association, paying $40 a
month. In a year he will have $780, and in liz years, or less, will receive
back from the association $4,000. He will have paid in $2760 and the interest
young woman never saves another dollar there will be a tidy sum-, but if that
is put out It 6 per cent interest say by taking additional shares in a building
loan association, the $4,000 will double in II years. At 81 years of age the
young person will have nothing; at 49, $4,000; at a, $4,000; a 90, $4,000, and
at 67 years of age, which is about the age when mos men begin to think of
retiring from work or business, there will be the comfortable fortune OF
$4,000.
Here is how each share in the first period of IL years will grow, the
figures being taken from a. association that natures in 1882 months: