The discount rate is nothing but our minimum expected rate of return from an investment. The concept of discount rate is used to calculate the present value of future cash flows originating from an investment. […]
Generally, we invest money in two forms. First is in lump-sum, like a one-time investment. We also invest systematically, small-small amounts each month. How to measure return on investment (ROI) in each case? We all […]
When one first starts to feel the need for a personal finance overhaul? It does not happen while just starting in a job. The need for organizing finances creeps in after few years on the job. It’s the time when […]
The compound interest formula can teach us the basics of long term investing. We heard about simple interest and compound interest way back in our school days (Class 8th). But in those days, we never realized that these formulas […]
If idea is to manage our finances seriously, we’ll resort to experts to handle it for us. But is it correct to be dependent on external agency for this activity? It is not wrong, but […]
There can be a formula for wealth building. If you are interested to know about how to build wealth then you just need to follow this formula. Who can use this formula? Anyone can use […]
Why I got interested in the concept of Net Asset Value (NAV)? Because it helped me to see my portfolio-building from the eyes of a mutual fund manager. Generally, I build my savings under several […]
“What is the need of money management; after all we earn money only to spend it one day”. I was trying to be ironic. But I’m also sure that many will not find my statement […]
Like long term investing is a strategy to invest money, ‘rupee cost averaging’ is also an investment strategy to invest money by taking lesser risks. It enables people to eliminate the need to time the […]
Long term investment is not an investment option in itself. It is a strategy which we can follow to practice investment. Let’s understand it using an analogy. One can improve ones physical health by jogging […]
Diversification: Including different types of non-related assets in portfolio is called investment diversification. It is a strategy to minimise the risk of loss in case of unpleasant price movements. Example: Suppose you bought stocks in […]
Ones present personal financial health is built upon how money was handled in the past. Better the money is handled today, healthier will be the future financial health score. When money is spent only to […]
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