Advertisements

Be Hands-On In Money Matters


wealthymattersEvery day,these days,scores of businesses are opening shop in the financial advisory space.Their siren call is ‘Listen to us!Give us your  money.Then relax,take it easy or go off and make more money.We will ensure you get rich and have have a great worry free life.Your family will never want for anything in this life.’Each of them have propitiatory tools and processes that they claim are magic wands that will ensure your financial well being.

The problem here is that personal finance is fundamentally personal and varies from person to person.There is a huge value component that these companies gloss over.Most of them will tell you that you need to build a corpus for your children’s education and marriage,your retirement and to take care of providing for health care.Many have readymade numbers for these goals.A few more will throw in planning for a home purchase,car purchase and perhaps a foreign vacation.But is this what you really want?Perhaps you want multiple homes in multiple locations?Maybe you wish to build them yourself,with your own hands.Log cabins anybody?How many of these plans allow enough flexibility for you to be yourself and do what you really want to do?Since it’s plans that are being sold,do planners really want to go beyond the cookie cutter variety and put in more effort?Do they have the competence to dish out advice for unique goals? Read more of this post

Advertisements

Robert T. Kiyosaki


wealthymatters.com

If being wealthy is important and you are on the look out for reading material to help you make money, sooner rather than later you are bound to come across books of the Rich Dad Poor Dad series authored/co-authored by Robert Kiyosaki and his associates.

Robert Kiyosaki,his books and educational materials are pretty controversial.He has his fans and his trenchant critics.

Read more of this post

Economic Life,Sinking Funds,Amortization and RDs


wealthymatters.comHaving an abundance of material resources and never having to hustle round in the last-minute to find the funds to do what we want to do is a good indicator of wealth.

I first came across the concepts of economic life,sinking fund and amortization as an engineering student.Adapted to our personal finances and business these concepts help us to always have enough money at the right time.

Economic life , a.k.a useful life is the period of actual usefulness of an asset.Beyond this period it is cheaper to replace or scrap the asset than to continue maintaining it.

A sinking fund is a reserve created by periodically setting aside certain sums in an account to replace  an asset in future or to repay a liability.

Amortization refers to spreading an asset’s replacement cost over it’s economic/useful life. Read more of this post

%d bloggers like this: