Personal finances are front and center in a withering 2020, but there are a few gaps to fill when it comes to accelerating the growth of household finances.

Steve Siebold, a certified financial educator and author of the book “How Money Works” offers some solid money appreciation tips, especially for people who may be out of work or otherwise struggling financially.

1. The Time Value of Money—The impact of compound interest (Interest on interest or reinvesting the interest) over the course of 30, 40, or 50 years is staggering. Once you understand the power of compounding over time and how critical each percentage point of interest is, you’ll want to start investing immediately.

2. The Concept of Wealth Equivalency—To retire with a $100,000 per year income, you’d need to save $2 million dollars and earn 5% interest. Less than 1% of Americans have succeeded at this. An alternative is starting a business where you can earn $100,000 per year, passively, that lasts the rest of your life. It’s an easier path where you’re most likely to succeed.

3. The Rule of 72—This a mental math shortcut that helps you determine how long it takes your money to double at a fixed rate of interest. You simply divide 72 by the interest rate you’re receiving. Right now Wells Fargo is paying .01% interest on their passbook savings account. 72 divided by .01 is 7200, which means it will take 7,200 years for $1 to turn into $2. Then they give you a credit card and charge you 17% interest, which means their money doubles every four years. Now you know why banks are so rich and you’re not.

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4. Securing Long Term Care Insurance for pennies on the dollar—The number-one reason Americans file for bankruptcy is sickness. Healthcare bills can add up to hundreds of thousands of dollars unless you have Long Term Care insurance. The problem is that stand-alone policies are only affordable to the rich. The good news is that if you know where to look you can attach a low-cost long-term care rider to a life insurance contract. It’s one of the best-kept secrets of the wealthy.

5. Create Your Own Pension—You do this by overfunding a life insurance contract where the additional cash value grows tax-free and is withdrawn tax-free. Now you know why rich people believe in life insurance contracts. It’s not about the death benefit; it’s about the tax advantages. This is all legal. It’s just not well-known by most Americans.

Take Siebold’s tips with you when you’re looking to earn money – or grow the cash you already have.

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