Joseph's "Just My Thoughts"

Business debates who benefits most from time. When borrowing money, the debtor gains the benefit of time until the repayment date. Since the period before repayment favors the debtor, the debtor compensates the creditor with interest. However, as the repayment date approaches, time shifts to favor the creditor. After the due date, the debtor loses the benefit of time, known as ‘acceleration of debt,’ and must repay both the principal and interest. Time benefits debtors but poses risks to creditors. Therefore, lending money without interest results in a loss. All of this illustrates the power of time. Time is money, and money derives its value from time. The most important factors for CEOs to focus on are time and, next, opportunity cost. - Joseph’s “just my thoughts”

Money is the most widely used medium of exchange worldwide, serving as a way to buy essential goods needed for life or to store wealth. Since the country guarantees the stability of fiat currency , it becomes possible to exchange ‘things for money’ instead of ‘things for goods,’ unless the country goes bankrupt. However, this amount of money cannot be increased indefinitely. When there is too much money in circulation, its value drops below the price of goods, causing those who hold wealth in money to lose that wealth. The key point is that money is limited in the market. Due to this limitation, money gains value. The government regulates this money supply through the ‘ interest rate .’ Raising the interest rate reduces the money supply, while lowering it increases the supply. This helps control prices. Therefore, understanding the interest rate is crucial for managing and valuing wealth, making it essential to know the interest rate above all else in life. - Joseph’s “just my thought...

Capitalistic thinking is not about domination by capital; it refers to financial thinking. The economy revolves around exchange. The performance of the counterparty corresponding to what I want to exchange is called ‘ consideration ,’ and a ‘ transaction ’ is the accumulation of added value by exchanging equal considerations. However, among transactions, this consideration is not relative but absolute; trading solely in one fiat currency as consideration is termed ‘ finance .’ When I obtain a loan, the bank lends me fiat currency (the bank’s consideration), but my obligation is to return the fiat principal plus the contracted interest . The consideration in this transaction is unidirectional, involving only one fiat currency. In contrast, when I buy shoes, the seller has an obligation to hand over the shoes to me, and I have a counterpart obligation to pay in fiat currency. Once these two considerations are exchanged, an industrial transaction occurs. However, as noted earlier, in f...

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”

In any business, a lessee who can pay the rent on real estate with the profits from that business is the most qualified to own the property. Businesses that generate profits based on real estate, such as stores, enhance the value of the real estate by creating local commercial areas with their sales profits. For the lessee’s contribution, the landowner can pay off the bank loan taken to purchase the property. Proceeds from business sales go to the business owner; however, as a result of the lessee’s business, the owner of the building effortlessly earns real estate revenue . Due to a lack of funds, even a hardworking lessee may find themselves donating the profits earned from their arduous efforts to unreasonable others. Although it’s not easy, it is wise to allow the entrepreneur to enjoy the potential profits from their challenging business if they can pay off the bank loan and interest with the original rent paid in exchange for owning the property. Because no one, regardless of ...

The big difference is that business allows the transfer of wealth or value to be based on production, while gambling occurs without production. Sustained productivity creates added value . The system that drives the world in any country seeks to protect this productivity through legal or administrative power. If productivity does not improve, society will deteriorate. Interest represents the added value of the financial industry , serving as the price of time for lending money. Therefore, since interest is an abstract concept agreed upon by society, it does not create new values that did not exist through production activities. If interest leads to the transfer of wealth, someone inevitably experiences a sense of loss. There are two instances in which interest is permitted in the Bible : one is when nature’s productive forces yield fruit that did not previously exist, and the other is when the neighbor’s self-sacrifice is acknowledged. Thus, when interest is recognized as a price ...

“Poverty charges interest,” said American singer Tay Zonday . If you don’t have money to buy toothpaste or a toothbrush , you will pay for the implant next year. This applies even to those with physical disabilities . People with disabilities often pay more for the average distance traveled. In contrast, the costs for the wealthy or non-disabled are cheaper and more efficient than those for others. Weakness is not merely a product of comparing superiority and inferiority. The moment I recognize my weakness, I must keep in mind the price I will pay in the future, and the world must charge me that interest. We often try to forget that this accumulation of poverty interest s makes us poorer. - Joseph’s “just my thoughts”

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”

Warren Buffett, who has amassed 99% of his wealth since the age of 50, revealed that the secret lies in “compound.” When you lend money, interest is added to the principal as income. Initially, interest is applied only to the principal, but compound interest is applied to both the principal and the accumulated interest. Therefore, at first, it seems negligible, but over time, significant wealth growth takes place. The same principle applies to reading: even if your reading speed is slow, consistently reading just a few books each day can lead to a wealth of knowledge. After a year, this accumulated knowledge creates a network effect, allowing you to quickly absorb new information. Consequently, your reading speed increases dramatically, leading to an exponential growth in the volume of material you can handle. This exemplifies the compound interest effect. Even small, consistent actions taken daily can build up and create a compound interest effect over time. Cartoonist Lee Hyun-se sta...

Warren Buffett’s assets were once estimated at $82 billion. 90% of these assets have been earned by Warren Buffett since he turned 65. The way to make money over time without labor is through finance; it’s an interest. One of the most economically effective methods is ‘compounding.’ This involves deriving interest from the principal and then earning interest again on the total of the interest and principal, continually repeating this process, making compounding the most efficient money-making method discovered by humanity. The same applies to stock investments; to achieve this compounding effect, you need to earn at least a 4% annual return. However, this is only valid for long-term investments like those of Warren Buffett. - Joseph’s “just my thoughts”

Most people substitute the issue of choice with the issue of ability. They recognize they cannot do it because scaring to make the wrong choice or lack the knowledge. Banks pay me 1 to 2 percent interest annually on deposits but charge me 4 to 5 percent on loans. It's a game where I'm losing money in every way. Then, I want to avoid putting my money in the bank. It would be better to use it to purchase that bank's stocks as a substitute but meticulous care is required. To make a choice, you have to conquer your fears. How is this a difference of ability? - Joseph’s “just my thoughts"

Before the high level of civilization, human life was tribal. However human beings were needed for the large-scale labor force for industrialization, so people were gathering in the cities for a living. That was the detribalization. These days when we are developed by social media, people are used to selectively make a relationship with those who have similar philosophies and preferences. Rather, the new media makes the retribalization in different meanings. Therefore, now human relationships are becoming more important the interests and preferences. When choosing to make a relationship, people gather according to their preferences. Communication is narrower and more easily ostracized. - Joseph’s “just my thoughts”