A matter of interest

Time changes the value of any object. The interest generated by that object may help you decide when and how much to invest in it.

There are some investments you will not make. They dont provide any interest to you :)
Then, there are those where a simple interest is generated. You receive a steady, predictable stream such that the object manages to retain its value over time. However, you may have an eye out on other opportunities which give you more.
Finally, there's compound interest. Here the calculation incorporates an interest from initial investment, and from the interest generated. The 'interest on interest' concept assumes that when you gain something from the object you have invested in, you put it back to nurture it further and hence gain more. If you dont re-invest your profits sensibly, and take them for granted, it's probably going to deteriorate to the level of simple interest, or lose its initial value and become a matter of no interest. But if you 'get it right', compounding interest is the best use of time and value.

Selecting which kind of interest is enough for you, at what point in life will determine where you invest. Hardly anyone wants to lose value with time, so they would atleast go for something simply interesting. There's a rate you may be intent on receiving as you feel that's the worth, but you may settle for what's available and close enough to it. But many of us do seek the best compounding interest available to us from other parties, so that we can enter a deal where both parties feel they have a win-win situation, and have their and the other's best 'interests' at heart.

Success and peace of mind that you've made the right investment, may change depending on how the deal goes, and on the economy. If the object that you have invested in goes bust, or the other party cheats on your timely payments upsetting your schedule and the pre-calculated flow of interest, or goes bankrupt, then you're .. .. at a loss, without an option. If the market rates fluctuate as they emulate the random walk of life, it can affect your point of view on your investment. If you or the other party decide to step out of the trade because you spotted a more profitable deal, then there will be an unexpected issue. The party who still has vested interests will hope they find another investor before they start losing value. And the one who opted out will be convinced that the deal that awaits is certainly better as per the calculations.
In both cases, the search to find/retain/salvage compounding interest begins again..
If you break-even in the long term, you're fine.
If you make profits, you're happy enough.. and all those bad investments change from failed decision making/ economic crisis, to lessons.

Maybe its timing, recognition of worth, a learning curve on spotting something and believing that it gives you the right rate of interest for what you invest. And then, putting the data you have in your little calculator to see what the present value is, with the planned future cash flows.

If you are still reading this, you have no work.
If you are still reading this and found it silly, then you're married or have a personal agenda against me or are a close friend of mine who's shaking their head, sighing and are about to retort back.
If you are still reading this and the post made any sense to you, then..









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.. your calculator needs new batteries.