Finance

  Why should you be bothered about nterest rates? "Interest rates are to asset prices what gravity is to the apple. When there are low interest rates, there is a very low gravitational pull on asset prices." - Warren Buffett. Prices of assets, cost of borrowing and rewards for savings are tied to the rise, fall and stability of interest rates. Interest rate for borrowing (cost of borrowing) is the percentage of the loan amount. The higher this percentage is, the more the interest to be paid back in addition to the principal.. At lower interest rates, borrowing to buy big assets is more attractive than borrowing to aave.  At lower savings rate, a percentage of savings paid into a savings account is less than at higher savings rate. So, it makes more sense to borrow to spend and buy assets rather than borrow to save and be rewarded with low interests. At lower interest rates, spenders pay less interest and have more money to increase their spendings on consumer goods. This lead...

 Do you have a budget? Is it designed to help you grow? A budget is your quantitative plan. It is a collection of the things you want to spend money on and where the money is going to come from. It is a simply a collection of your future revenues and expenditures. Having a budget is an indication of an intention to avoid running into financial distress and focus on financial growth. Growth is a product of a good budget. What is a good personal budget? This is how a good personal budget should look like; A. Income: It must show your expected annual income. The annual income should be broken down to a monthly income by dividing the annual income by 12 months. And the monthly income further broken down to a weekly income by dividing each monthly income by 4 weeks. Your income is your is your net revenue. That is, it is what is left of your revenue after taxes, interests and all other deductibles are removed. B. Allocation of your weekly income. It is very important to always allocate ...