Chapter Five
Out of Sight, Out of Mind
Very few know the true extent of their financial costs (excess taxes, interest paid, interest lost, fees and certain insurance costs)… plus the even more damaging effects of their related economic costs.
Virtually no one “projects” what the dollars they spend on their financial costs could grow to if they were kept and invested. You should. It’s huge. It is what creates your lost fortune (the one you create for financial institutions and government); and, it helps you determine the greatest use of your dollars.
The fact is this: much of that “lost fortune” can be added to your “realized fortune”, what you are able to accumulate… if you know how to identify, prevent, and then invest those saved financial costs.
The way the financial costs of interest expenses alone offset investment growth looks like this:
$100 per month invested at 8% interest for 20 years = |
.$59,295 |
$100 per month paid at 8% interest for 20 years = |
-$59,295 |
Net Real Gain in 20 Years = |
|
Note: The interest cost on a standard five year car loan (what you get from a credit union or bank) with a “stated” rate of 8% actually averages 17.8% per year. So, the real results are far worse than shown above. The investment would have to earn 17.8%, before tax, just to stay even with the interest paid. They don’t give you one; but, to see a standard loan repayment (amortization) schedule, and the true cost of standard loans, click “Next”.
 Back |
 Next |
|
