Post 1

  It all started with math.

1 + 1 = 2

4 x 4 = 16

4 x P = how am I supposed to know? P is a letter. Unless P means something else. If P equals a number like 10 for example, then 4 x P = 40. By the way, sometimes people will write this as 4P. So 4 x P can also be written as 4P and can also be written as 4 • P. Multiplication is sometimes written as x or as • .

9 ÷ 3 = 3, this is the same as writing 9 / 3 =3, also the same as writing   

1000 - 100 = 900

 = 2 x 2 x 2 = 4 x 2 = 8. By the way  is the same as writing 2^3. When a small number is above another number to the right like that, its called a "power" in mathematics.

 = how am I supposed to know? You haven't told me what the symbol i is equal to.

3 x 2^3=3 x 8=24. You always take care of the ^ before the x

Let's combine some of the tools above:

1 + ((4 x 4) ÷ 2) - 5 = 4

The (  ) are parentheses. You always complete what is in the tightest pair of parentheses and work your way out.

Why the hell is this important to understand?

This is the equation for calculating the monthly payment on a 30 year mortgage:

If you want to be financially burden free at retirement age, you need to either save a ton of money or have bought a home when you're young. When you buy a home, you would typically put some money down and borrow the rest from a bank. The bank will give you the money on the spot to buy the home, and they will let you pay them back over 30 years plus interest. They total it up and chop it into monthly payments. They use the equation above to calculate your monthly payment. If you're a grown-ass person, you should know this equation. Even if you've never taken a math class before you should be able to figure it out using the tricks I showed you above. Lets use an example to see how the equation can be used.

Let's say you bought a $500,000 home. You put $100,000 down. Then you borrow $400,000 from a bank. You put this value in place of "P" in the equation.

Let's say you got a loan with 3% interest rate. Take 3 and divide it by 100, you get 0.03. Divide it again by 12, you get 0.0025. You put this value in place of "r" in the equation.

If you make a payment every month for 30 years, you will have made 360 payments total. You put this value in place of "n" in the equation.

Let's perform all our replacements in the equation:

You carry out the calculation on the right side of = sign.

You will get A = $1686.41. This will be your monthly note to the bank.

Once you understand this equation, you will be more comfortable about getting a loan. Once you are comfortable with that, you will be comfortable with buying a home. Once you buy a home, you will set your self up for a good retirement. The cherry on top is that the value of your home could go up over time. If you decide to sell it, you could make a big profit. If that $500,000 home you bought, goes up in value to $700,000, you will make a $200,000 profit.