Owning a Slice of the Ship - shares, bonds, and who gets paid first

On the Tank board, the water you save does not sit still: it goes out as “slices of ships, loans to others”. This lesson is what those two words mean, and why the order they are paid in decides almost everything about them.

Before you start. You need the tank from Nineteen and Six - where the water goes: a surplus is water left over after the taps. You also need two ideas from earlier in this chapter. From Why a Coin Today Beats a Coin Next Year - present value and discounting: money promised later is worth less than money now, so a lender charges for waiting. From The Pipe That Drains Faster Than It Fills - debt, APR and the minimum-payment trap: a loan is a schedule of payments with interest on top, and this lesson looks at that same schedule from the lender’s side.