on personal finance
Capitalism operates through markets. In an ideal scenario, goods and capital move freely in the market. The fundamental premise is that the market, if left to its own devices, can solve almost all economic problems through sharing, synergizing, and mutual learning. However, in some ways, state intervention is also required to help markets function with optimum efficiency.
In financial matters, operating through a checklist is very useful. This is the best way to avoid the pitfalls that one is likely to commit in the heat of a moment. Most of the investment options will reach you through a smart marketing campaign and, apparently, will look quite attractive. Hence, it is important to have a checklist ready that should help you quickly see through such options for their validity and viability. The most important point in this regard is a skeptical mindset which should have a bias towards ruling out all the grey areas and seeing clearly whether a particular risk is worth taking or not.
Some numbers and ratios are very useful in financial planning. They enable you to set realistic and achievable financial goals. They also help you quantify your financial aspirations and make it easy to navigate through the challenges that come your way. You can make correct financial decisions with the help of these numbers and ratios.
Whether to start your own business or to invest your money somewhere is a question most of us confront in life at some stage. While starting your own business puts you in the driving seat, it also exposes you to a wide range of risks. Investing, on the other hand, has its own challenges.
In this blog post, I will briefly cover the pros and cons of investing vis-a-vis starting your own business.
The businesses having limited capital requirements can either be financed individually or the required money can be pooled from a small group of people i.e. family and friends, in exchange for a share in the business. These are small businesses across various sectors and this financing framework is called private equity.
You might have observed, as I often do, that despite earning a fairly good amount of money regularly, some people continue to struggle financially. If someone is earning less, it is understandable why he is worried about money. However, if somebody is getting a decent salary or earning well from his business regularly, the financial worries can be attributed only to lack of proper management of money. This is as important or even, sometimes, more important than earning.
In this article, I will briefly highlight some of the reasons why people remain worried about their finances.
Real estate is one of the fundamental needs of any business. Mainly, it has three dimensions: commercial, residential, agricultural. It is a scarce resource as you cannot manufacture more of it. It will continue to get scarcer with the increase in population. This is the main reason why it is so attractive from an investment point of view. The second reason is the development and up-gradation of land from a lower to a higher status e.g. from rural or agricultural to urban residential or commercial.
Personal finance is a very important aspect of our life. Therefore, money management should be done deliberately and carefully. Failing to do so may have grave implications. In this blog post, I will discuss a few points which should help you manage your finances effectively.
It must be kept in mind that money management is the link between the resources available and your financial goals. If this link is not strong enough, you will not be able to optimally utilize your resources for the attainment of your goals. This is going to create a lot of mental stress.
Insurance is a useful financial product. It is, primarily, designed to compensate for the risk, implicit in the vicissitudes of life. The insurance sector is very vast and there is a multitude of solutions available in the market to cover various dimensions of risk. However, this article focuses on life insurance only.
While buying insurance, the most important question to answer is whether you need it or not and, if you do, what type of insurance you need. I suggest you have a way of knowing it independent of what the insurance companies try to tell you either directly or through their agents.
Investing, especially in the stock market, is a tricky affair. One has to study it, in detail, in order to understand it well. The understanding is also required to be backed up with emotional stability. Some of the big names, in this field, are Benjamin Graham, Phillip Fisher, John Templeton, Warren Buffett, John Bogle, Ray Dalio, Peter Lynch, Howard Marks, and Joel Greenblat who have written books on investing. One can read these books and become wiser on the subject. One may also listen to their speeches and interviews that are available on Youtube. However, in this blog post, I have made an effort to present 10 best quotes on investing from some of these heavyweights and a few others. The purpose is to share with you their wisdom on investing in a condensed form.
