Personal Finance

Money is Only a Tool, But You Are the Driver
Personal Finance

Money is Only a Tool, But You Are the Driver

We often think that having more money is going to solve all our problems when in reality YOU are who is going to solve all your problems. Yes, having money helps, but it is not the be-all, end-all. “Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” - Ayn Rand We have to remember that money is only a tool that should be used wisely to get the most benefit out of it. The money will take you wherever you want, it will help you reach the heights you want, but it is still YOU who is climbing, you are still the driver of your life. Money makes life easier, yes, but it does not solve all your issues. Money can’t buy a better relationship or perfect health. The mindset that once you have money, you will be able to achieve all you w...
Most Common Financial Mistakes Made by Millennials
Personal Finance

Most Common Financial Mistakes Made by Millennials

Millennials are considered to be irresponsible and deemed so by boomers. Millennials might have different ways of doing things but that does not make them irresponsible. Yes, they make mistakes but it is just like any other generation who went through a learning curve. Making mistakes is a huge part of the learning process. Here are some of the common financial mistakes that are made by the millennials: Having Massive Credit Card Debt One of the initial challenges young adults face when they start earning is to buy everything they dreamed of in their college years. This leads to buying material possessions which exceed the savings of most young adults. These goods are usually surplus to needs and one ends up paying more than its actual cost of it over time.  When you’re young...
Ways to Minimize Your Debt!
Personal Finance

Ways to Minimize Your Debt!

Knowing how to manage your finances is one of the most important skills you will need to have. One of the key aspects of it is figuring out how to live debt-free and minimize the debt you already have. Here are some of the ways to minimize your debt. 1. Handling Your Mortgages Most people live some of their life in debt and a house mortgage is one of the most common reasons. Few of the ways to handle it better can be: Aligning your mortgage with income - For example, if you get fortnightly make your mortgage payment fortnightly as well. This cuts down on the interest to be paid.Frequent lumpsum payments - When you get a work bonus, make money off of investments or get tax refunds, consider putting that money into your mortgage payment as it can cut months off the loan term....
5 Important Student Loan Mistakes to Avoid
Personal Finance

5 Important Student Loan Mistakes to Avoid

Are you afraid of paying too much interest on your student loans? Student loans are one of the biggest debt traps you could fall into. Particularly if you are uninformed about the whole process and, as a result, make easily-avoidable rookie mistakes. According to a report by LendingTree, the era of taking student loans without any financial risks is long gone and students are drowning debt without knowing how to avoid the situation in the first place. In 2008, 69 percent of students took student loans with an average debt of $29,800. A five-figure loan can easily turn into six-figure if you make the mistakes discusses below in this post. Here are the 5 important student loan mistakes to avoid. 1. Not seeking Federal Student Aid U.S. Department of Education has a student lo...
5 Things to know before Adding a Spouse to a Deed
Personal Finance

5 Things to know before Adding a Spouse to a Deed

So your spouse moved into your home and you want to add her to the deed? A lot of people impulsively decide to add their spouse to the deed. So, if something unexpected happens, she can claim the house or your assets. This is a great idea if you really trust your spouse and have other more valuable assets under your name. But this asset is the only valuable thing you have, then you should be careful before adding your spouse to the deed. Here are 5 things to know before adding a spouse to a deed. 1) Are you purchasing the asset with your own money? If you are purchasing a house or a property with your own money or money that you inherited from your parents, then it would not be a great idea to add your spouse to a deed. In this case, you want to be the sole owner of the p...
What is the Capital Asset Pricing Model?
Personal Finance

What is the Capital Asset Pricing Model?

The Capital Asset Pricing Model or CAMP can be defined as a financial model that can be used in order to determine the theoretically relevant required rate of return from an asset so that decisions can be made regarding the addition of assets to a well-diversified portfolio. Thus, the main aim of CAPM is to calculate the required return depending upon the risk management. This model uses a risk multiplier, known as beta coefficient to calculate the required return. Founders of this model: This theory of Capital Asset Pricing Model was first introduced by Jack Treynor, William F. Sharpe, John Lintner and Jan Mossin, based on the previous works of Harry Markowitz. In 1972, Fischer Black, an eminent economist invented a different version of this theory. It was called Black CAPM or ...
Planning Personal Finances is not too tricky – Here’s How to do it!
Personal Finance

Planning Personal Finances is not too tricky – Here’s How to do it!

Financial planning is one of the essential things to do if you want to make sure that your future is finically secured. Planning out your finances will provide you with numerous benefits. Also one doesn't have to be an expert in planning their finances.  There are ways in which you can easily plan out your personal finance. Have a look at it. Planning a budget that suits you It is the first and the most basic rule that should be applied to the whole process of preparing your personal finance. To start with, first, try to analyze why you need to plan a budget. It will act as a road map of you in the process ahead. A budget clearly defines your income, your expenses, and your savings. You can allow a specific amount of your income to both the expenditure and your savings. You...
How to Determine the Salary Scale of your Employees?
Personal Finance

How to Determine the Salary Scale of your Employees?

In any kind of firm that may exist, one of the top concerns for any employer is the salary that they will be getting. Now it is very essential for the owner of the business or the one who facilitates the salary to be able to determine the compensation that an employer should be getting. This can be done by referencing to a payment scale. This enhances clarity in the fiscal transaction and encourages clear communication. Now here are some of the best ways to determine the salary scale for the employer that you must follow- Access the position So before you go ahead with the process of determining the salary scale, it is essential to understand and analyze the position’s value that you are going to pay. For this try to go through a detailed information about that job and what a...
What is Marketing ROI?
Personal Finance

What is Marketing ROI?

The ROI stands for Return on Investment. It is basically the measurement of the profit which is earned from the various investments made. This way the efficiency of the investment can be found out. One can also use the value of the ROI to compare among a number of different investments on the basis of their efficiency.  With the help of the marketing ROI, the amount of the return that is received on a particular investment can be measured directly with respect to the cost of the investment. Now there is one thing to be noted that, since the value of the ROI is measured in terms of the percentages, one can use to compare with the returns that are obtained on other investments. This way it became quite handy to measure different type of investment. How to calculate the ROI? T...
What is Annuity and What are its Benefits?
Personal Finance

What is Annuity and What are its Benefits?

An annuity is defined as a contract that is made between two different parties one being the purchaser and the other being the insurance company which is designed with its objective of the retirement purposes.  These contracts are signed up for long terms between the two groups. Here either the purchaser makes a single contribution or a long term contribution which varies over a fixed duration of time.  After this the insurer makes payments on a periodic basis to the purchaser which starts at a particular date in futures that is during the period of retirement. What is the main purpose of annuities? Initially the main objective of annuities is to provide insurance against some kind of superannuation or the issue of outliving an individual’s income streams. But with gr...