Who wants to be a Multimillionaire?

Who wants to be a Multimillionaire? Hurray! You just won a prize of Rs.1000.Now you have two options Receive the prize now Receive the prize after a year If such a scenario ever happens, which option will you go for? By natural instinct most of you will choose to take the money now. So at the most basic level, we demonstrate a time value for money which says that all things being equal, it is better to have money now rather then what happens to the money in the future…

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Rising Inflation

Rising Inflation   Have you ever wondered why the price of your notebooks are increasing year on year? Or why you need to pay more for friendship bands than last year? The answer to this is Inflation. Inflation is responsible for the rise of general level of the price of everything, not just consumer items. To put it to simply, the power of purchasing with the same 100-rupee note is decreasing because of inflation.   What is Inflation? Inflation is a long term rise in the prices of goods and…

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Doubling your Money

Doubling your Money   Have you observed that if you start early and study regularly you will score good marks in your final exams? The parallel universal truth to that is if you start saving early, you will be rich and wealthy. But before you understand the power of compounding, let’s see what role interest plays in the power of compounding.   What is interest? Interest is a “fee” paid by the borrower to the owner of money as compensation for the usage of money. Suppose you have Rs.10,000 and…

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An Early Start

An Early Start   Benjamin Franklin said an investment in education always pays the best interest. I recently received an email from a 13-year-old boy who has been reading my articles in RobinAge. He said the articles were very informative and he liked reading them, but he wasn’t very sure if knowing about money at such an early age would help him. Scientific research says that whatever the brain learns till the age of 12 becomes a part of one’s personality. Educating oneself about money is one of the 4…

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NEED V/S WANTS

NEED V/S WANTS   Individuals have limited financial resources and they cannot have everything they want. Making a personal budget can help you plan your expenditures wisely. Budgets are personal plans for spending and saving income. Spending usually involves getting a little more of a something by giving up another.   What is a monthly Household Budget? Every month, people have things they have to pay for. It could be for a place to live, food, education, travel. They also spend money on going to the theatre to watch movies…

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