Simple Interest

I'm going to take you back to math class for just a brief moment... but stay with me here! If you get this, you will understand the foundation of what could lead to life-changing wealth for you!

Consider that you loan $100 to someone for one year. You are basically giving up your use of the money for an entire year, so you're not going to do that for free!

In consideration of your sacrifice, you charge 7% interest, yielding $7 at year's end. With the return of the $100 principle, you'll have a total of $107 in your pocket.