How to Calculate Interest Volume – The % you are really paying.

What Are You Really Earning

Most people do not look at all the sides of an equation to find out the truth about whether they are getting ahead or lagging behind, financially. What makes us different is that we help our clients see the losses and then show them how to avoid as many as possible.

How much are you really paying in interest dollars, even if you pay cash?

This is why just looking at interest rates has gotten so many people into financial trouble.

We must also understand interest volume & interest velocity.

Compare how much you are paying with how much you are earning – in dollars rather than percentages.

First we will begin with how much you are really paying? Follow the instructions below.

Use these slides to help you figure out how many interest dollars you are paying financing institutions and compare it to how many interest dollars you are earning on your investments

Now compare to how much you are really earning, in dollars, not percentages.

100% – 50% = 50% + 100% = 150% – 50% = 100% / 4 years  = 25% average rate of return

An Average 20% rate of return can mean multiple things for you. An Average 20% ROR can mean the difference between a $440 increase over two years or a loss of  everything. If you don’t look at the dollar amounts and only focus on rates of return, you don’t really know what is going on.

Average rate of return is math calculation.  Actual rate of return is a Money Calculation.  Math is Math.  Money is Money.  Math is not Money.

A Mutual Fund can legally, morally and ethically advertise that they are getting an average  20% return for any of the following scenario’s

March 18, 2012 · Jennifer · One Comment
Tags: ,  · Posted in: DEBT ELIMINATION, INTEREST 101 - rate vs cost, Interest VOLUME, L21) Diagnosing Debt

One Response

  1. Son - July 17, 2014

    Thank you!

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