Managing and handling money is not as simple as earning, spending, and saving. There are a few universal principles of money management that must also be followed. Each individual is unique, hence one’s way of handling money may not work for the other. This is where the universal principles become handly. Everyone can follow the…
What is the present value concept? Suppose a person invested Rs.1.0 crore in a real estate property. It will be a good investment if he gets back his invested amount, with some surplus (see this example). A simple example. Suppose, the investment (Rs.1.0 Crore) was made today. If the person gets back Rs.1.2 Crore after…
Savings + Investment Portfolio + Philosophy = Wealth Accumulation A high-rise building stands on a strong foundation. If wealth is like a high-rise building, then what is its foundation? There are three constituents: (a) savings, (b) investment portfolio, and (c) knowledge of the philosophy of wealth building. It is a common belief that high income…
Where to invest money in India? There are more than 100 investment alternatives available in India. Here in this blog post, I have compiled it all in one place. I’ve challenged myself to indicate 100+ ways of investing money. There can be a plethora of ways to invest money. But unfortunately, we know only a…
I was surprised to note how incomplete the information available around us is about the ways to invest money. Most write-ups point us only to investment options and say nothing more about them. People interested in knowing about the ways to invest money need more information. For example, stocks are an investment option. But how to invest in stocks? Readers would…
Investments cannot be effective until done with a purpose. Hence, experts always advise goal based investing. But let me ask a simple question. Why we generally invest money? Because it is the right thing to do. Many people buy and sell investments without any specific purpose or goal in mind. For them, practicing investment is…
There is a concept of finance that says that there is a ‘time value of money.’ It is one of those concepts which works as a foundation of all money management. But before we can understand the time value of money, we must know who should care about it. Theoretically speaking, everyone is affected by this concept. But…
The question, how to build ten crores by investment is vague. It only talks about the end goal. But how to reach there? That is what we will answer in this article. Also Read: How to become rich. Before we can answer the question, we will have to ask a few more questions to remove the vagueness. The…
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. Why do we need to calculate the present value? It is a method to check if an investment is worth…
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 one is wondering where the money is going? This query starts a chain of thoughts in our minds. Eventually, we realize…
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 had so much learning for us I feel, had our teachers exemplified us more about compounding returns in those days…
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 the external agency for this activity? It is not wrong, but it has its own limitations. The success is dependent on the skill of the allocated personal finance manager. More…
