Most people study in school, yet the education system does not provide financial education. Even though it doesn’t take long for us to realize that finance is an essential element of survival, isn’t it strange that schools don’t offer financial education? Economic activity is a power game where someone wins and someone loses. One person’s loss is another’s gain, and my sacrifice is someone else’s fortune. In other words, economic activity embodies the harsh reality of deciding between discomfort and the uncertain odds of a game that determines who occupies a position, even though that position has already been predetermined. This issue is further exacerbated by the fact that people have different productive capacities and society mandates that the means of value exchange is cash (fiat currency). To survive, you must first understand how social systems function. - 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”