Now Shawn sees how $1 = $5. Before we learn how $2 = $1,000, let’s quickly review.
- If you understand interest, you will collect it
- If you don’t, you will pay it
- Interest is always at work
- The longer you are in debt, the more interest you will pay
- The faster yuou get out of debt, the more you will save
- The sooner you make a debt prepayment, the more you will save
- In fact, most new homeowners will save $5 if they prepay just $1 for the first 5 years of their loan.
- And it scales:
- 1 = 5
- 10 = 50
- 100 = 500
- 1,000 = 5,000
Now let’s look at how Shawn can turn $2 into $1,000.