Rule of 78

Rule of 78

The Rule of 78 is likely to appear in a couple of our posts, so we decided to do a separate post to explain it. There is a little math involved, but it’s very straightforward. The Rule of 78  (also known as the “sum of the digits”) is often used as the the basis for companies to earn interest on loans, calculate interest rebates, or even calculate car insurance refunds. Understanding how it works and

Be Uncomfortable With Debt

Be Uncomfortable With Debt

One of our Cari$ Rules for Financial Freedom is to “Be debt free” because we believe real Financial Freedom is only achieved when you are debt free. Put another way, we recommend individuals treat debt with a healthy amount of respect (if not fear), eliminating it quickly, or avoiding it whenever possible. But if we look around, many people use debt freely, almost as if there were no consequences. In this, and a few related posts, we

APR – The True Cost of a Loan

APR – The True Cost of a Loan

We all know the interest rate on a loan is the cost to borrow money. Although at CariDollarsAndSense we believe Financial Freedom is achieved more rapidly if you avoid most debt, if you must borrow, then try to get the lowest interest rate possible. Unfortunately, determining the lowest rate is often not straightforward. The purpose of this post is to help you understand the problems involved, so you can keep more of your money (pay less interest).

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