Loans aren’t bad. Our financial system is based on trust, risk, and the ability to repay loans. Very few people can afford to pay cash for a house, so it’s off to the banks to get loans. Interest isn’t bad. Debt is probably necessary for anyone to get into a car, or into a home. But what happens after is where the magic can happen, or where the financial disasters can happen.
Interest is the eighth wonder of the world. Those who understand it, earn it. Those who don’t, pay it.
Albert Einstein
Mathematician- Did you earn any interest last month? If you didn’t, you may not understand interest.
- Did you pay any interest last month? If you did, you may not understand interest.
With a basic understand of simple and compound interest, let’s dive into the heart of Homes in Order, $1=$5. Let’s see how you can turn your $1’s into $5’s, and then, even better, how you can turn your $2’s into $1,000’s.