Editor’s note
- Banks are very afraid that you will pay off your loans early, why?
- Why banks are afraid that you will pay off your loans early
- The importance of understanding money
- Read the book ‘Money and its Descendants’
Banks are very afraid that you will pay off your loans early, why?
The biggest scam in the financial world is paying off a mortgage early.
Why are banks so afraid that you will pay off your loan early? Suppose, for example, that you borrow 1,000,000,000 rupiah to buy a house. The term is 35 years and the interest rate averages 7% per year.
The total amount you have to repay is 3,100,000,000 rupiah. If you pay on schedule over 35 years, the bank pockets 2.1 billion rupiah in interest alone.
However, if you think that banks only want that much interest, you are still viewing the problem too narrowly.
Why are banks afraid to repay your loans early?
There is a very important mechanism throughout the financial system: security.
The simple explanation is as follows: the bank takes possession of your debt securities worth a total of 3.1 billion Indonesian rupiah (IDR) and subsequently sells them to another financial institution for 2.2 billion IDR.
In this way, the bank immediately receives back its principal of 1 billion IDR. And 1.2 billion IDR is a quick profit. From the outside, it looks like a loss of 900 million IDR. But in reality, they receive the money quickly to reinvest their capital and lend out that 1 billion IDR again.
Meanwhile, the debt securities are repeatedly sold to other parties, generating multiple profits. The financial institution that bought the securities does not hold them for 35 years.
They bundle thousands of similar loans into asset packages worth tens to hundreds of billions of rupiah and then bring them to market. Investors see the low risk. Interest rates are stable at 4% per year, and they rush into the purchase immediately. The financial institution holds a portion, while the rest is reinvested. The money just keeps flowing in.
This is the snowball principle of asset securitization. When you repay a loan early, the entire profit chain—banks, financial institutions, and investors—collapses.
That is the real reason why banks are so afraid. It is not just banks; many entrepreneurs in the business world adopt the same mindset.
For example, an entrepreneur wants to open a hotel and needs 5 billion rupiah in capital. The estimated annual profit is 1.5 billion rupiah.
If he were to use only his own capital, he would only be able to open one hotel. However, he chose a different approach. He sold the profit rights to investors for five years for 6 billion rupiah.
From the outside, it looked as if he had lost 1.5 billion rupiah, but in reality, he immediately made 6 billion rupiah. Enough to open a new hotel. Afterward, he sold the profit rights again and opened another hotel.
After repeatedly investing with a starting capital of 5 billion rupiah, he managed to open eight hotels and achieve a profit of 12 billion rupiah per year.
The importance of understanding money
This is how capital management works: converting cash flow into assets, and then using those assets to generate new cash flow. Some people can only run a small business their entire lives and remain at the bottom of the economic ladder.
Others, on the other hand, thanks to their ability to convert capital, can double, triple, and even multiply the size of their companies in a few years.
If you want to become rich, you must understand one thing. Money is not just for spending. Money is an instrument to create more money.
But to do that, you need two things: the right mindset and a strong mentality. If you are currently in debt, have no money, no resources, don’t know where to start, live in fear every day, and even think about death…
How can you earn a million yuan a year then? That is about 2.3 billion rupiah. Pay off all your debts and become rich.
There is only one secret. You don’t have to save like crazy, you don’t have to make complicated investments. Even if you are someone who runs short of money every month or has credit card debt, you can still easily earn a seven-figure sum at the end of the year.
Why do poor people panic when they owe tens of millions of rupiah, while rich people remain calm, even when they owe tens of billions?
What poor people lack most is not money, but a truth that rich people will never reveal. If you offer a dog money and a bone, he chooses the bone. Because he doesn’t know that you can buy many bones with money.
Read the book “Money and Its Descendants”
Deze waarheid is buitengewoon. Ik raad je aan om “Uang Beranak Pinak” (Geld en Zaden) te lezen. Dit is een echt belangrijk boek dat je daadwerkelijk zal helpen al je schulden af te betalen.
Dit boek beschrijft bijna elke denkbare manier om geld te verdienen. Het neemt je bij de hand en begeleidt je stap voor stap, zodat je je eerste tweeënhalf miljard rupiah kunt verdienen.
Je zult beseffen dat geld verdienen net zo makkelijk is als ademhalen. Dit boek helpt je in een mum van tijd je startkapitaal te verkrijgen en financiële vrijheid te bereiken.
Tegen de tijd dat je het boek uit hebt, heb je honderden manieren geleerd om geld te verdienen. En je zult het koud zweet uitbreken. Hoeveel rijke kansen heb je gemist?
Als je kansen wilt grijpen en je leven wilt veranderen, dan is dit een onmisbaar boek op je reis naar een ommekeer. Dit is het meest effectieve boek over geld verdienen en rijk worden dat ik ooit heb gezien.
Na het lezen zul je begrijpen dat geld verdienen en rijk worden volledig herhaalbaar is met een duidelijk proces. Dit boek zal je financiële mindset verbeteren, je horizon verbreden en je portemonnee spekken.
Volg simpelweg de stappen in dit boek en je zult gemakkelijk veel geld verdienen. Of je nu 20, 30, 40 of 50 bent, als je geld wilt verdienen, koop dan dit boek en lees het aandachtig.
De methoden om geld te verdienen die erin beschreven staan, kunnen je echt rijk maken. ***tok
