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Just my thoughts #0777

The Trap of Compound Interest: Many view compounding as beneficial because interest earned is reinvested to increase profit. However, for those who are in debt, compound interest can increase the burden, leading to even greater losses. This effect disproportionately harms poor people, who often pay higher costs and face greater opportunity costs than the wealthy. While compounding enhances gains for those profiting, it intensifies harm for those losing money. This structure benefits the powerful, as the rules are designed by those in power. As a result, the desire for power can drive people toward questionable actions. - Joseph’s “just my thoughts”
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Just my thoughts #0413

Let’s say someone bought a building with a bank loan. If the landlord fails to pay the interest, the bank is forced to pay the principal. If the principal isn’t paid, the bank can put the building up for auction, even though the landlord owns it. Interest is the cost of borrowing money over time. The reason I can purchase a building without using my own money is that I can leverage time through interest. When we say time is money, it doesn’t just mean to save time and live diligently. It emphasizes that time truly represents money.


- Joseph’s “just my thoughts”




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