Simple vs. Compound

You can now see that simple interest benefits the borrower and compound interest benefits the lender. . . . → Read More: Simple vs. Compound

Consumer Price Index

The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. Sub-indexes and sub-sub-indexes are computed for different categories and sub-categories of goods and services, being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index. . . . → Read More: Consumer Price Index

Basics of a Financial Statement – Part 6 – Liabilities

The Liabilities Portion

Continuing our series on financial statements, the image below explains liabilities.

A liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future. Liabilities feed the . . . → Read More: Basics of a Financial Statement – Part 6 – Liabilities

Basics of a Financial Statement – Part 5 – Cash Flow and Net Worth

The Income Statement is comprised of Income and Expenses. The Financial Statement is comprised of both the Cash Flow and the Net Worth Portions. Let’s look at the Asset Portion. . . . → Read More: Basics of a Financial Statement – Part 5 – Cash Flow and Net Worth

The Basics of Financial Statements – Part 4 – Expenses

In the previous parts we introduced the financial statement, explained the path the money takes, and introduced the income statement. This diagram explains the other side of the income statement: expenses. All your expenses need to serve a purpose. They can increase your assets, provide you with sustenance or protection, or provide for your future. If your expenses are not serving a purpose then they are harming your financial health. . . . → Read More: The Basics of Financial Statements – Part 4 – Expenses

Basics of Financial Statements – Part 3 – The Income Statement

Here is part three of the Basics of Financial Statements. The graphic below illustrates the income statement part of a financial statement. . . . → Read More: Basics of Financial Statements – Part 3 – The Income Statement

The Basics of a Financial Statement – Part 2

The financial statement has two parts: The income statement, which lists the income and expenses, and the balance sheet which lists the assets and liabilities. These will give you the big picture of how you are doing financially by showing you if your liabilities outweigh your assets or your expenses outpace your income. . . . → Read More: The Basics of a Financial Statement – Part 2

The Basics of a Financial Statement – A Visual Guide

Below is a flowchart introducing the basics of a financial statement. A financial statement is a useful tool to see where your money stands and where it will be in the future. Making a financial statement is absolutely necessary if you want to increase your wealth. This is part 1 of the basics of financial statements. . . . → Read More: The Basics of a Financial Statement – A Visual Guide

How to Establish or Re-Establish Your Credit Rating

1. You have no credit cards or loans – thus no credit rating. 2. You have had financial difficulties and have a less-than-stellar credit history but you want to improve your credit rating. . . . → Read More: How to Establish or Re-Establish Your Credit Rating