"interest"

Everyone lovesss to talk about interest. “I earn a 5% interest rate in my HYSA,” “this credit card’s interest rate is off the charts,” “You better pay me interest haha.” But what is INTEREST? And why are people so INTERESTED in it?

DEFINITION
What is interest?

• Interest is the extra money you earn or pay when you lend or borrow money. For example, if you lend $100 to a friend and they agree to give you $105 back after a year, the extra $5 is the interest. It's like a fee your friend pays you for using your money. Similarly, when you borrow money, like through a loan or credit card, you pay interest to the lender for letting you use their money. So, interest can be thought of as the cost of borrowing money or the reward for lending it.

PRACTICAL ADVICE
Make interest work FOR YOU

• Interest sucks when you’re the one who borrowed money, so don’t borrow money because you’re borrowed amount is only going to INCREASE exponentially.

• On the other hand, if you’re the one offering your money by investing, and your money is EARNING interest. Then your returns are going to be exponential!

HELPFUL RESOURCES
A place to earn 5% interest on your savings.

• I partnered with Step. They’re on online banking platform where you can open an account, put money in there; and start earning 5% on whatever you put in. I think you might need to set up direct deposit to get all the full benefits.

• Check it out at least HERE

• And use my code JCROD5 to get $5 just for signing up

OUR COMMUNITY
What are your questions? Or share a win!

• Reply to this email with any personal finance question you have, or share with me any wins in your life! (I’ll respond to your questions anonymously in future emails)