Posts in category Investing Basics →

How often did you wish your teenager were a little more careful with pocket money? Or your parents, who are about to begin their retired life? Or even yourself – maybe fewer of those costly college parties could have helped you pay off your student loan sooner?
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(This post is a part of the series on Basics of Finance and Investing.)

You and I, as members of the household sector, want to invest our money, whereas the business sector wants to raise money to pay for real assets. Such supply and demand requirements create an atmosphere of synergistic interactions between these two sectors.
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(This post is a part of the series on Basics of Finance and Investing.)

It helps to know the main components of a financial world, the forces they exert and the interests they represent. There are three major players: household sector, business sector and government sector.
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(This post is a part of the series on Basics of Finance and Investing.)

Your education and bank balance – both are your assets, and more of the first can help you get more of the second. Which one of them helps the economy? Both, actually, but in very different ways.
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(This post is a part of the series on Basics of Finance and Investing.)

The short answer to this question is that we should invest to be able to shift our purchasing power from the high earning phase of our life to the low earning phase. Many of us earn more than we need to spend in our working life (note the italic – some of us spend more on our wants rather than our needs). It is the exact opposite when we retire – we spend more on our needs than we earn. Therefore, we must have adequate funds available when we retire to live out the rest of our life.
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We all need to know the three “ing’s” of managing money – spending, saving and investing. The first two – spending and saving – are easy to track. Looking up your credit card statements from time to time will give an idea where most of your paycheck is going. And because what is not spent is saved, these statements will also tell you where some of your paycheck should not be going.
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