It is common wisdom to keep your debt at manageable level for sound financial health. But what is the threshold beyond which debt can go berserk? That can be judged against your income level. If your debt is too high compared to your income, sooner or later you will sink into the debt trap – […]
In line with the perennial Shakespearian dilemma – to do or not to do, …., a lot of us face similar predicament when we have to decide whether to buy or not to buy another residential property.
We all come across situations wherein our personal finances go beyond control. Despite trying hard to maintain it every month, we fail. This happens as we do not keep important personal finance documents at one place and update them on a regular basis. Due to this, our entire expenses of house get mixed up and we land up in trouble.
Beside the obvious reason of the home offering us a world of our own, a house also has the potential to generate wealth through rental income. NRI investors often invest in homes with this dual purpose of earning rental out of them while away, and settling down when they return.
A dream is just a dream. A goal is a dream with a plan and a deadline, says Harvey Mackay. This quote is inspiring and is very appropriate for all of us who have financial goals to achieve in our lifetimes.
Diversification of investment means selecting multiple asset classes or investing in the different asset categories. It is a popular technique employed by most investors to lower risk and increase the chances of good returns. Unfolding your investment in different areas develops a risk-proof portfolio, which means if one investment fails, another will balance it out.
Putting your money in the securities market is risky yet profitable. Whereas, holding that cash is ineffectual. The market is really volatile, it is better if I keep the cash in my savings account or in my closet. Does this sound like you? Most people think the same when it comes to investing their hard earned money in the stock market. Individuals are behind holding money rather than multiplying it.
Two qualities are indispensable: first, an intellect that, even in the darkest hour, retains some glimmerings of the inner light which leads to truth; and second, the courage to follow this faint light wherever it may lead. Carl von Clausewitz
So you are planning to clear your home loan, you are setting aside a part of your income, and you have decided to spend less on restaurants and movies. Good that you are doing or planning to do these things. But do you feel this habit is of any use? Obviously not! You are saving, but for what? It is good that you have planned to clear your debts, but have you decided when? If you have no target to achieve, there is absolutely no point in saving.
We are all familiar with the nuances and subtleties of rowing against the tide or sailing against the wind. Undertaking to do things which are in contrast to the usual is reflected in the above quotations. In the world of investments, when someone chooses to go against the prevailing market by buying assets which are not doing well and selling those stocks which are supposedly in the ‘pink of health, the investor is practicing ‘contrarianism’.
