The Wise Investor
paying for the item itself, the interest is simply paying
someone for the privilege of borrowing money.
There are many ways to reduce the money you waste on
interest, and I will go through these shortly. The number one
way, however, it to simply save up for purchases, instead of
buying them on credit. It is quite common, my dear, for
people to pay double the price for items, once interest
charges are taken into account.
This is money that you can't afford to throw away. I
have heard people complain that they can't afford to pay
cash for an item, and they need some form of credit.
Well, my dear, if someone can't afford to pay for a
purchase, how the hell can they afford to pay twice the price
A fair point, thought Kate.
"The topic of borrowing and credit is so important," John
continued, "that I wish to devote the whole next hour to it.
First, however, we must get our priorities right. See that
icecream van over there?" said John, pointing to a van under
a nearby tree.
"Yes," replied Kate.
"Let's eat!" he said with a childish grin as he leapt from