"Loanership is Being Paid for the Use of Your Money"
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Fixed income investments are generally what some have called "loanership." They're fancy IOUs. What're called debt instruments.
They're somebody promising to "gladly" pay you Tuesday for the money with which to purchase a hamburger today.
They pay you interest for the use of your money. You lose the ability to buy something now with that money, but in return you get some form of payment or interest.
In effect, you give up the ability to buy a hamburger today, in exchange for the promise of more money in the future.
If you have enough capital, you can make a very nice living on interest alone
Credit card companies do it.
Mortgage companies do it.
Banks do it.
Loan sharks do it.
Many wealthy people do it.
I recall reading once in a book that how wealthy you are depends on how much money you owe compared to how much money people owe to you
If you owe lots of money on your house, car, student loans, business loans and credit cards -- you're relatively poor.
If you loan lots of money to people, you're relatively wealthy.
Time does pass, and so it brings you streams of income
(Some types of income investments are actually hybrids of debt and equity.)
Next, you must understand that debt instruments pay you based on the time value of money: Interest
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