Business debates who benefits most from time. When borrowing money, the debtor gains the benefit of time until the repayment date. Since the period before repayment favors the debtor, the debtor compensates the creditor with interest. However, as the repayment date approaches, time shifts to favor the creditor. After the due date, the debtor loses the benefit of time, known as ‘acceleration of debt,’ and must repay both the principal and interest. Time benefits debtors but poses risks to creditors. Therefore, lending money without interest results in a loss. All of this illustrates the power of time. Time is money, and money derives its value from time. The most important factors for CEOs to focus on are time and, next, opportunity cost. - Joseph’s “just my thoughts”
When farming, it doesn’t mean it doesn’t rain, but if it rains just twice a year, it ruins the farm. If it rains heavily, it causes a flood; if it doesn’t rain for a long time, it leads to drought. Regularity is a crucial habit that enriches our lives. So is money. Money that comes in regularly every month is more valuable than money that arrives all at once. A small but consistent action taken every day can radically change your life. However, the reason this is hard for us is that the effect must accumulate over a certain period before you can feel a significant difference. Patience accomplishes very valuable things that money cannot achieve. - Joseph’s “just my thoughts”