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Asset and liability

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What are assets and liabilities? According to Accounting terms ASSETS Assets are the economic resources of business or we can say assets are the property owned by the business to get benefit on future. In other words, assets are valuable resources owned by a business which were acquired at a measurable money cost for usefulness. The various types of assets are: 1- Fixed assets: Those assets which are acquired for the purpose of increasing profit earning capacity of the business and are purchased not for sale purpose, they will remain in the business till the business winds up. Example, land and building, plant and machinery etc 2- Current assets: Those which can be converted into cash within a short period say one year. These are short term assets for the purpose of converting them into cash. Example, cash in hand, debtors, stock, bank balance etc. 3- Liquid assets: Similar to current assets, but they are those assets which can be easily and in a very short period of time can be conver

Best Money Advice

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What is the best money advice ? 1.Get rid of your loans or any kind of debt first. 2.Get a life insurance as early as you can.  3.Avoid taking loans to buy cars. 4.Try to invest 20–25% of your monthly  income.The younger you are the more risk appetite you can have. 5. The power of compounding is truly a game changer. 6.Diversify your investments— equity, MF, debt instruments, gold bonds, crypto. 7.Read up about investing online. A lot of information is available for free on various publications & YouTube channels. 8.Do not invest in FDs when you’re young. The returns can barely beat the inflation . Your wealth won’t grow. 9.Avoid taking up debt to pay for lifestyle choices 10.Know your expenditure. Keep a tab. Fix a limit and don’t allow yourself to splurge more until really necessary. 11.Try to avoid credit cards as much as you can. 12.Giving money away to friends or family.   13.Know that some of it will not come back & ruin the friendship/relationship. 14.Spend

The Power of Compound Interest

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Compound interest and Simple interest The basis of this article is to make you clear about compound interest and simple interest in terms of what is compound interest and simple interest. And what is the difference between compound interest and simple interest.  It hereby declares end showing the power of compound interest.  " Compound Interest is the eighth wonder of the world " - Albert Einstein Interest is the amount charged by the lender from the borrower on the principal loan sum. It is basically the cost of renting money. And, the rate at which interest is charged on the principal sum is known as the interest rate. The rate at which interest is charged depends on two factors The value of money doesn’t remain same over time. It changes with time. The net worth of ₹100 today will not be same tomorrow i.e. If 5 pens could be bought presently with a INR 100 note then in future, maybe only 4 pens can be bought with the same ₹ 100 note. The reason be

What inflation is ?

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  What is Inflation ? What inflation is ?  What is the meaning of Inflation?  Inflation is the increase in the market value of goods and services in the market but not because of the increase in the prices of raw materials used in their production. It’s basically is a result of demand supply gap where the demand of goods is more than the supply of the particular good. Now,since the demand is greater than its supply, the people would be willing to pay more than required to fulfill their need. This will create a bit like situation where the person who will be paying the most will get the product. Thus the price of the product will increase. This effect of rise in price is called inflation.  Inflation refers to a general rise in prices of goods and services. It reduces the purchasing power of money. This means that when there is high inflation, the same amount of money buys fewer goods and services. Inflation risk is the risk that the inflows from an investment may be worth m

How to do Gold Investment like a Pro

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How to do Gold Investment like a Pro  In our previous article on  Where to invest money ,  we have considered gold as one of the best options to put your money grow.  Gold is one of the best options to invest in the U.S, Canada and specially in India. Even a  beginner can get into learning in how to invest money. Investing money in gold is worth it because it is a hedge against inflation. Over a period of time, the return on gold investment is in line with the rate of inflation. It is good to keep at least some gold in our portfolio, according to a research report from Trinity College. The report found that the best reason to buy gold is as a hedge against potential currency upheaval and stock market collapse . [Source: Google] That's because gold prices increase dramatically after a crash, but only for about 15-30 days. After that, gold prices tend to lose relative value against stocks which often rise again from a lower point shortly after the crash. What is the best way to in

Warren Buffett rules to investing

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The Warren Buffett way of Investing Warren Buffett is often presented as one, if not THE, largest financial investor in the last 100 years. His career as an investor began at a very young age, when he started trading shares at the age of 11! At 16, he had already realized a capital gain of $6000. This is quite impressive when you reduce this amount to its current equivalent of over $50,000. Today, Warren Buffet is on the podium of the richest men in the world with a fortune spending $80 billion! He is in third place just behind a certain Bill Gates with whom he shares a great friendship. Anyone seeking to become a better financial investor needs to take a closer look at Warren Buffett's history, including his greatest strategies that have allowed him to be where he is today. In the following, I suggest you discover 5 basic strategies that have enabled Warren Buffett to achieve great success. There is no single miracle investment formula According to Warren Buffet, there