Interest:
(1) The profit in goods or money that is made on invested capital (2) a charge for borrowed money generally a percentage of the amount borrowed (3) a feeling that accompanies or causes special attention to an object or class of objects.

- Webster’s Dictionary

I have been thinking a lot about interest lately. According to Webster’s Dictionary there are three definitions of interest.

In the first definition, “Interest” means a type of profit. In the financial world the concept of interest – specifically compound interest is fascinating. The power of compound interest to create wealth is unparalleled. A relatively small amount of interest grows and grows until the amount you started with has doubled. In fact there is something called the “Rule of 72” which states that if you divide the number 72 by the interest rate it will tell you how long it will take to double your money. For example, if you are earning 7.2% interest, in ten years you will double your money without adding anything (except interest) to the original amount. That is the power of compound interest working for you!

Of course the opposite is also true. According to the second definition, “Interest” means an amount charged to borrow money. When you pay interest on any type of debt it increases the amount of the debt. Consider this: If you buy a $50,000 with a 30-year mortgage at 5% interest the total cost of that home will be $96,627.60! You end up paying almost double the original amount because of Interest. That is the power of compound interest working against you!

Now lets look at the last definition of “Interest”; a feeling that accompanies or causes special attention to an object or class of objects. According to this definition, “Interest” is something that holds your attention. We’re talking about paying attention to something that holds your Interest. We’re not talking about money – or are we?

In a financial sense, Interest can either make you rich or make you broke! I believe what we think about can have the same affect – it can make you rich or make you broke also. What is it that holds your attention – or interest? In other words, what holds your interest? What are you thinking about?

As you can see from the first two definitions, interest is something that can work for you or against you. Are you interested in (or paying attention to) things that can work for, or against, you? When we focus on negative things we end up paying a charge because we are borrowing time and energy that could be used for something positive and constructive. We are taking that time and energy and directing it on something that is negative and even potentially harmful.

Instead of paying interest, make your interest a source of profit. Profit in life comes in many forms besides money such as good health and healthy, strong relationships. Perhaps you should lose interest in the TV and gain interest in some form of exercise. The exercise is a form of interest that brings profit while watching TV is a form of interest that brings a charge that you pay in medical costs.

I have read from many different sources, “we are what we think about.” We all tend to think about things that hold our Interest.

For what its worth, get interested in things that will bring you profit.