Episode 14: [Toolbox] It’s Time To Take an Interest in Interest

In this episode, we ask: What is interest anyway? What is the difference between compound interest and simple interest? How does compounding frequency affect an account? When is compound growth a problem? What did Albert Einstein say about compound interest? How does compound interest take affect? Where do most people look for compound growth? What’s...

In this episode, we ask:

What is interest anyway?
What is the difference between compound interest and simple interest?
How does compounding frequency affect an account?
When is compound growth a problem?
What did Albert Einstein say about compound interest?
How does compound interest take affect?
Where do most people look for compound growth?
What’s wrong with compound growth and risk?
How does a one year of loss affect compound growth?
How does a second year of loss affect compound growth?
What do most 30 to 40 year olds say about managing growth?
When do you want your market losses to happen?
What real assets do banks own?
What is fractional reserve banking?
What are the capital requirements for banks?
Why are bank loans considered assets on their ledger?
Why are our checking accounts considered liabilities?
What is the power of compound interest?
If you had a choice between acquiring a penny doubling every day for 30 days or a check for 1 million dollars, which one would you like to take with you?
What is the power of simple interest?
Why do you want to be charged simple interest?
How do lenders apply your payments on a compound interest loan to the principal?
How do lenders apply your payments on a compound interest loan to the interest?
How do lenders apply your payments on a simple interest loan to the principal?
How do lenders apply your payments on a simple interest loan to the interest?
What about student loans?
What about mortgages?
Who is first in line for your money?
What sort of interest would you like to earn?
What sort of interest would you like to pay?
How does interest work with Bank On Yourself policy loans?
What type of interest do Bank on Yourself policies earn?
What type of interest do you pay on a Bank on Yourself policy loan?
What about buying a car?
What box would you like to check?