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I love earning interest!!

February 23rd, 2007 at 01:51 pm

The interest on my 5.25% money market account got added to my account yesterday. I love earning interest. I told my husband that our net worth increased by $1793.73 yesterday and he said, how? I was surprised!! I said, it is one month's interest on our money market account. He does not seem to realize that when we are building a house, we are losing a lot of money in interest. Buyers should be aware of that also. We lose about $2000 a month in interest. We use our own money to build. If we had to borrow from a bank, we would be paying even more interest.
Anyway, it was nice to see that $1793 added to our account, plus I have more interest being payed to a jumbo c.d. that I opened. I am keeping track of how much interest I earn each month.Wow, I like this!

3 Responses to “I love earning interest!!”

  1. Lux Living Frugalis Says:
    1172239055

    Track it Ima and added it to those houses - if they are selling faster it may be that your price is too low. How do other builders handle this issue?

    Could you consider yourself loaning it to the house and charge the house the interest you'd be making if the money were left in the bank?

  2. Ima saver Says:
    1172248309

    Good idea!! Most of the builders we know, get construction loans and pay interest. I guess they add it to the cost of the house.

  3. scfr Says:
    1172254384

    Ima - I know you're "losing" interest while building the houses, but don't forget that is where your profits come from! My husband's business also periodically needs fairly large infusions of cash, but the profits from his business more than make up for the loss of interest income.

    But yes, you certainly could or should factor in the loss of interest income as an expense of the house building (in the same one someone who is borrowing money expenses the interest they pay).

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