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Showing posts with the label compound interest

Just my thoughts #0596

There are ‘right’ and ‘wrong’ things in the world, but many situations exist where actions can be seen as either right or wrong depending on the circumstances and outcomes. Often, when choosing a job, talent and aptitude play a significant role. It is commonly believed that if you have a job that aligns with your talents and aptitudes, you are more likely to achieve success or happiness. However, if you choose a job that matches your talents and aptitude, is success guaranteed, or is it truly rewarding? Conversely, it’s also possible to attain a certain level of achievement through consistent practice and effort, even if your talent isn’t as strong as others and your aptitudes aren’t quite right. The dilemma of choosing between the two stems from the regrets that linger over time and the pursuit of success. Individuals worry about whether they can satisfy their desire for success. There is a path to finding joy when aptitude fuels motivation to learn and leads to results. Nevertheless,...

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”