What does Equity has in Common with Dieting?
Equity, in a sense, holds a similar understanding compared to dieting for health.
Equity is the difference between the worth of the property and the amount that has already been paid on the property. If you have a $100,000 property and have been paid $60,000 for it, then you have equity of $40,000, to which you could make a loan against for a sum of $55,000.
Dieting has a similar concept as equity. If your calorie intake limit for a day is 2,000 calorie and has taken 1,200 calorie for the day, then you have 800 calorie left to meet your daily quota (or less than that if you want to lose weight, via, for example, south beach diet phase 1.)
What kind of loan you can take against your equity is similar to what kind of food you can eat against the glycemic index food list – the less, the better.
As absurd as it may sound, but grasping the concept of equity can help you do more with your asset – this is also applicable to your health.
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