Moneyrulebook

If you have finally decided to invest and ready to get on with your investing. First thing you do is to sit with your financial advisor and select an appropriate fund/plan. There are a range of funds to choose from. Most funds now, provide two options to get into. The two options are : 1.        Lump Sum 2.        SIP (Systematic Investment Plan) In the Lump Sum way of investing, you put a certain amount of money for a period.   The money is invested in for a duration. This way of investing is done by people who have received a lump sum of money through any ways viz., redemption of a prior FD/investment, received a bonus, selling of property , or other ways. Since the money is parked for a longer duration, it goes through the effects of compounding. The advantage of this route is the compounded returns on the whole sum obtained at the end of the tenure. So whenever you have a large amount of money,...

To measure financial health of any business, there are a few financial reports /statements which are indispensable. These are as follows:- 1.        Balance Sheet:   It summarizes the financial position at a particular time period. It presents a snapshot of the financial position at a particular time in a tabular form. It has two main components viz., Assets and Liabilities. 2.        Income Statement: It reports the income and spendings during a time period. 3.        Cash Flow Statement: It shows cash inflow and outflow from the company during a specific period.

Why is financial Planning very important? Corona Global market shutdown has been as an eye-opener for the whole world. Most of the world population has resorted to their savings now. Financial planning has been an important part to sail through such tough times. Why is financial planning important:- 1.        Absence of any kind of social security for vast majority of people         Other than some developed nations, majority of the nations do not have a social security system to support their citizens. 2.        Increased longevity due to improved medical care AND ever increasing medical costs         Cost of medical care has increased exponentially and people have to resort to sell their property and other assets to get proper medical care. 3.        Rapidly decreasing career span; retirement (voluntary or otherwise...