Successful investing is about managing risk, not avoiding it
Investment ratios are used by accountants, CFOs, current and future investors and among others to determine a company’s financial performance. Ratios show the story behind the numbers and can be used to pinpoint your new investment, but they are also used by a company’s management team to establish the current financial status of the firm. When used for the latter purpose, a company will act upon the results found in most cases.
Your mindset about money will actively create your own financial reality.
The phrase “It takes money to make money” might be one that you are familiar with. It might be a saying that is frequently used in your family or among your friends, but overall it is a saying that inspires a certain way of thinking. In this post I will talk about several phrases and different mindsets that can have a major impact on your financial position.
In today’s world, wanting to invest is increasing in popularity, especially with the younger generations. Personally I am very passionate about investing and I do not believe in the old narrative of putting your money in a savings account. Nowadays a savings account will get you less than 0.5% interest a year and there are even banks that stopped paying interest altogether. In this article I want to share a few basic, but very key reminders for those that consider investing, but are new to the concept of it.
It is March and that means that we can start filing for our tax refund. That is of course, if you do not owe the government any more. If you are lucky you will get a big sum of money back from the government, and everyone who is eligible for a tax return is thrilled about this time of the year. But why should we stop getting so excited about it? To dive right into it, let’s look at some numbers.
I am not permitted to explain the rules of the game. Nor to acknowledge whether or not we’re playing one.
Setting up an automatic payment, with the intend to pay yourself, is a great way to improve your saving habits. And from all the little tricks I could think of, paying yourself first is definitely the most efficient one.
If you do not change direction, you may end up where you are heading.
To gain control over your expenses and your financial habits, you have to start somewhere. After setting your goals and figuring out your inner circle, it is time to get more practical. In this article I will share three steps you should get started with right now to raise your financial awareness.
The Conservatism Principle actually is a guideline used in financial accounting when recording transactions on the company’s books. But after learning about this principle, I could see how this can and should be used in personal money management as well.
It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.
One of the most basic things to consider when managing your money is the Law of Association. Although this doesn’t seem to be linked to your finances in any way, it can impact both your income and spending tremendously. First, let’s take a step back; what is the Law of Association exactly?
Too many people spend money they haven’t earned, to buy things they don’t need, to impress people they don’t even like.
The Golden Rule of Finance is one that makes a tremendous amount of sense to many, but only a few truly know how to apply it. The above mentioned quote by Will Rogers hits the nail right on the head as it is a great explanation why people cannot live up to the Golden Rule. Here is how it goes:
This one step – choosing a goal and sticking to it – changes everything.
Goal setting has become very popular and more people are using it as a strategy to get a clearer vision of what it is that they want. And honestly, sometimes people don’t even know what they want. There are people going through life never really aiming for something or never trying to achieve a higher purpose. Personally, I think setting goals is not only important to set eyes on the prize, but also to obtain fulfillment.