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Showing posts with the label compound interest

Just my thoughts #0732

If you’re alone on an uninhabited island, you don’t need money; you only need resources and labor to process those resources for survival. In other words, there’s no need for an exchange-based economy. The exchange of goods led to the development of an economic system that dramatically increases efficiency and productivity. The monetary system was created because society consists of many people living together. To facilitate exchange, value had to be measured, and a price assigned to that value. The foundation of wealth is built on production and exchange. We all rely on others to survive. - Joseph’s “just my thoughts”

Just my thoughts #0533

To be in debt means using future time in advance. If you go into debt to avoid a difficult situation right now without awareness because you think, “I can pay it back later,” you will experience the cruelty of life against the fairness of time. Assuming that income does not change and the present is maintained, the future spent in advance will again be insufficient when the future that has been drawn up in the coming time becomes the present. In the end, this means you have to continue incurring debt. Not only do you have to repay a debt, but you also have to pay interest as compounded interest . Therefore, the present that has spent the future ahead of the past is poorer. Moreover, prices are higher than in the past. Most people in this world do not understand why debt is a burden due to compound interest. - Joseph’s “just my thoughts”

Just my thoughts #0512

To build wealth, you must live on your current income, not your future income. Using a credit card allows you to live in the present relying on future income, whereas using a debit card or cash enables you to live in the present with current income. To achieve prosperity, you need to have compound interest working in your favor. Living in the present with future income means depending on the compound interest of others , while living in the present with current income allows you to benefit from compound interest yourself. Don’t live in the present by discounting the future. Don’t discount your time; give it a premium. - Joseph’s “just my thoughts”

Just my thoughts #0504

If only interest is applied to the principal, it is ‘ simple interest ,’ and if interest is applied to the principal including former interest, it is ‘ compound interest .’ There are people who make money through simple interest and through compound interest. The same goes for spending money. The difference between simple interest and compound interest can create an unimaginable impact over time. Time is treated fairly for everyone, but if compound interest intervenes in the uniform application of time, the results of compound interest will vary greatly, even after the same duration has passed. Being poor also has a cost, which is paid by compound interest. If you want to be wealthy, you must earn compound interest, not simple interest. The best way to achieve this continuously is to engage in small but regular actions every day, whether it’s investing in stocks or acquiring knowledge . - Joseph’s “just my thoughts”