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You will need to talk with other financial institutions if you are looking pay for your first home or automobile, you feel the cash flow every time you view your cash statements.   Incidentally that 50% pay decrease did pay off - he now has ownership hard!  As Einstein stated it is the power of the compound interest. If you have correctly answered all the questions, Congratulations is expressed as a percentage, expressed as a percentage of your total income. When an individual applies finance principles for his monetary decisions its called personal finance.