Posts

Showing posts with the label personal finance lessons

What is your Margin of Safety - Personal Finance Lessons

What is your Margin of Safety - Personal Finance Lessons  The so-called 'Margin of Safety' is not  limited to stocks traded on the Stock Exchange. We need Safety and precautionary measures in the events we encounter on a regular day basis. As we approach Health and Economic issues, the question arises as to whether we have done this before. We have been hearing lines like 'Small drops make an Ocean', 'Prevention is better than Cure' for a long time. But in realty and practice, we fail to implement it and then get into trouble. Examine for yourself what your current status in the Following questions... If you or someone in your family has an unexpected Health or Financial problem, what is your immediate solution you have to overcome it ? If you are experiencing loss of a Job, what is your next Plan you have ? What is your Emergency Fund ? What is your 'All Time Prevention mode' Strategy ?  We have been saving in a single instrument for a long time and con

The Two sides of Time Value of Money

 The Two sides of Time Value of Money Just as a Coin has two sides, so money has a two things for time to grow. No matter what investment avenues we invest in, there are few things to know that go beyond the Investment returns. They are like Inflation, Taxes and Reinvestment opportunity. Most of us have a laid back attitude when it comes to painting a picture about Money. Yes, every one thinks that for growing wealth - Big Profits or High returns is important. However the Profits or High returns are not the only reason for money to grow. It's time, the Investment period is always important and considered to be as Mandatory. The more time we give our money to grow, the more it's growth will be. The reason for this is the benefit of Compound Interest. Power of Compounding is the eighth wonder of the world. It is the miraculous weapon of the Super Rich today. There is another side of Compound interest is available as well. If the Compound interest would benefit for the Future weal

6 Key Points to be a learner on Personal Finance

6 Key Points to be a learner on Personal Finance The essential necessity of a human being is the one thing that we all know - Food, Clothing and Shelter. In the Modern age, the Basic Education and the Financial Security will be added as, 'Needs'. But we are leaving behind Financial Security and buying countless products and services without any need. When an individual is going to buy any Financial Products, one should be aware whether it is needful or not. Without knowledge of buying the above said things, it would trap into the unnecessary financial trouble. Therefore, one should aim to use every possible thing that you need or buy the required thing. That being said, there are six things that can be learned as a basic on Personal Finance, Understanding the difference  between Savings & Investment Inflation Financial Planning and it's Goals Delayed Gratification The Power of Compounding (School Mathematics) Think Investment like your own Business Our