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The Power of Compound Interest

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    #16
    Just as important as saving, is analyzing compound interest from a debt perspective. I guarantee you there are more TBHers with debt than there are with savings. Compound interest will absolutely kill you from a debt perspective. That **** works against you while you’re working, while you’re sleeping, while you’re on vacation, while you’re charging something else on that credit card or while paying $700k over 30 years for a $200k house. Before anyone worries about compound interest working for them, they should eliminate it working against them. In my humble opinion.


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      #17
      Originally posted by curtintex View Post
      Just as important as saving, is analyzing compound interest from a debt perspective. I guarantee you there are more TBHers with debt than there are with savings. Compound interest will absolutely kill you from a debt perspective. That **** works against you while you’re working, while you’re sleeping, while you’re on vacation, while you’re charging something else on that credit card or while paying $700k over 30 years for a $200k house. Before anyone worries about compound interest working for them, they should eliminate it working against them. In my humble opinion.


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      Yep....👏👏👏...100% One of the most overlooked changes that's occurred over my lifetime is the universally accepted definition of "afford".....

      My Ford dealer hunting buddy recently told me this. The number 1 concern of the vast majority of his customers is one thing...."what's the payment?" A Toyota master mechanic also told me recently that Toyota is now offering 10 year financing....10 years? On a vehicle?

      Financing a business is understandable and quite often necessary, an absolute. 15/30 @ 2%/3% on a home is understandable, but, 10 years on a vehicle....boat....etc?

      I just have a hard time getting a handle around this "stacking debt" mindset. However, it's not any of my biz....

      IMOP, it ain't going to end pretty for a lot of folks....
      Last edited by Slicefixer; 10-26-2020, 11:07 AM.

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        #18
        Originally posted by curtintex View Post
        Just as important as saving, is analyzing compound interest from a debt perspective. I guarantee you there are more TBHers with debt than there are with savings. Compound interest will absolutely kill you from a debt perspective. That **** works against you while you’re working, while you’re sleeping, while you’re on vacation, while you’re charging something else on that credit card or while paying $700k over 30 years for a $200k house. Before anyone worries about compound interest working for them, they should eliminate it working against them. In my humble opinion.


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        In for the game ending WIN!!!![emoji122][emoji122][emoji122][emoji122][emoji122][emoji122][emoji122][emoji122]

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          #19
          Originally posted by Slicefixer View Post
          Yep....[emoji122][emoji122][emoji122]...100% One of the most overlooked changes that's occurred over my lifetime is the universally accepted definition of "afford".....



          My Ford dealer hunting buddy recently told me this. The number 1 concern of the vast majority of his customers is one thing...."what's the payment?" A Toyota master mechanic also told me recently that Toyota is now offering 10 year financing....10 years? On a vehicle?



          Financing a business is understandable and quite often necessary, an absolute. 15/30 @ 2%/3% on a home is understandable, but, 10 years on a vehicle....boat....etc?



          I just have a hard time getting a handle around this "stacking debt" mindset. However, it's not any of my biz....



          IMOP, it ain't going to end pretty for a lot of folks....
          ......and when it ends badly they will blame everyone but themselves!!!![emoji856] I definitely look to pick up some "fire sale" homes come the 2nd quarter of 2021 if projections come true. Could be worse than 2008.......[emoji2962][emoji15]

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            #20
            Originally posted by Landrover View Post
            ......and when it ends badly they will blame everyone but themselves!!!![emoji856] I definitely look to pick up some "fire sale" homes come the 2nd quarter of 2021 if projections come true. Could be worse than 2008.......[emoji2962][emoji15]

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            You must be taking into consideration that democrats are going to win too....

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              #21
              Originally posted by Matt_C View Post
              You must be taking into consideration that democrats are going to win too....
              Not at all. The market MUST reset. Our debt is due.....overdue. Mother Theresa can take office and the same financial scenario will be in play.

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