22 thoughts on “Destiny teaches some financial literacy”

  1. Basically don't pay off a 4% loan if u can invest that money and get back more than 4%… which you always can.

  2. Hawaii being the most expensive for mortgages is meaningless. The state is basically a city. City mortgages being more expensive than rural mortgages isn't rocket science.

  3. 12:30 No Destiny. Low monthly payments on single loans allow you to have more disposable income which than allows you to qualify for other loans. Their is absolutely an argument for putting more money upfront to qualify for a lower monthly loan IF that is not the only loan you are seeking.

  4. Banks loan out money because they are allowed to ''create'' money. While you do win from the loan, as long as you don't default AND don't pay back the capital for as long as possible (seriously a bank DOESN'T want you to pay them back the capital) banks are making money.

  5. Damn. This is literally going to change my life. I paid off all credit cards a year or so ago and I'm close to paying off student loans after almost a decade. Now I got an idea of how to math the future!

  6. Actually, before a crises it’s better to pay back your loans when the economy is still doing well. Then as a downturn starts, you can start investing saving and even on credit for cheap as they lower interest rates to boost the economy. Then you sell shit as the economy tops out, and pay back your loans fully. Then start over – every 7-10 years approximately. I would not suggest using leverage unless you know something big is happening.

  7. Well at 4.25% intrest and 2.5 % inflation then your at a 6.75% loss each year and if the stock market averages about 7% then your really not ging to be making very much.

  8. You've gotten 6.8%?! I've been calculating my projected return at like 5%. I was going to retire at 30, now I'm going to retire at 25!!!

  9. banks loan out money as generally they make a profit on you paying them back, also when you invest/put your money on hold where you accrue interest they use that to make investments just like you have. they generally play the 90-10 rule, where they only hold 10% as reserve and use the other 90% to make money from the money they control.

  10. I understand what he’s saying. But if you payed off the loan sooner, you could be investing money without being in debt for even great return?

  11. Why do banks lend money? Because they can lend out 10x their deposite amount so they're effectively creating money and getting interest to do so

  12. I'm in highschool and I have no fucking idea what this man's is talking abought but I if something has below 7% I should pay min payment and invest the money in other things

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