Let me start with a caveat. I do not benefit at all if you invest in equities. Or if you buy real estate. Or if you keep your money in banks or LIC. I am indifferent to what you actually do. Why should it impact me at all? Except that in a kinda roundabout way […]
Most writers of personal finance have spent half their lives talking about the virtues of compounding, well, at least I have. So not compounding your money is bad. That is done and dusted. What can be worse? Borrowing. Borrowing is worse than not compounding your money – it is a case of NEGATIVE compounding. […]
Sometime back I decided to write about something which I have been advocating for years. How will you like it if I can postpone your tax payment from the year 2014 to 2034? You will love it right? First of all it means your money compounds for 30 more years, and you are paying with […]
What are the options that a person has when he/ she chooses to invest in a debt instrument? Well the choices are: 1. Bank fixed deposits: requires very little explanation. 2. Company fixed deposits not a big range of companies available, but a good option. 3. Company Bonds: Right from Tata to Sriram and […]
Which is the safest country to invest? USA Which is the safest instrument to invest in? Bonds So the safest investment in the safest country has to be the US Gilts, right? Re-think. Re Rethink again. Welcome to the world of REAL RETURNS and inverse relationship between interest rates and bond prices. The USA has […]
We saw what kind of bills and debts we pay…in the part 1. So first is we need to acknowledge it as a debt Second there has to be a cost of not paying the debt. Which means we pay a debt (which we acknowledge as a debt – especially if we have a choice). […]
If we have a debt (or a bill) we normally pay it on time, right? Hey no. Not always do we like to pay our debt or bills. We pay our bills only on the following conditions: 1. We acknowledge it as a debt: I borrow money from friend A and lend to the business […]