FINANCE

Articles Invited

CatholicWomenWorldwide.com  offers Catholic Women a global platform to share their stories, experiences, and hard earned truths. We are seeking vibrant voices who will capture an audience and evoke a desire to be strong in Faith, Responsible family life and Financially sound. We invite articles, asking for answers, suggestions, advice on all these matters so important to them. If you believe that your writing  can bring in these valuable changes in Catholic Women world over please do share. Use: email: philwillrose@gmail.com.

Thank You.

Rules to understand the way of Doubling and Tripling Money !

There would be a hundred questions tossing around in the mind when it comes to investing Money and safe play. Most common of these questions are on how much profits would be earned if the money is invested, what is the period of investment, is there a specific timing or pattern to be followed while investing and so on. Understanding financial rules would be really helpful and do wonders for you, if you are looking at investing options and returns. We actually need not reinvent the wheel since there are a few thumb rules which can solve the queries in just about a few seconds!! For example – the Rule 72 would help with the information of when exactly the money will be doubled. And there are so many other rules which would help understand when the money would triple and quadruple. All of these can be done without the help of calculators or spreadsheets, Isn’t this awesome! These rules are also good in terms of simple interest and compound interest calculations. Let’s look at them – # The Rule of 72: The rule of 72 is the primary rule every investor should be aware of and is fundamental. This is a very simple way of knowing how you can double your investment and how long it would take for you to do so. The rule can be applied as, Time for investment to double = 72 / rate of return (%) Example: If any of your investments gives an annual return of 12% then the number of years it would take to double the money is (72/12) = 6 years. This Rule can also be helpful in case of comparing different investments, calculating bank savings and, so on. Secondly, this rule can also be helpful for you to understand the time your investment is going to take to halve itself due to inflation. Example: If inflation hits at 4% then your amount (72/4) = 18 years to halve itself. # The rule of 114: Rule 114 is yet another interesting step that would help you understand how long it would take for the money to triple. The Rule is as follows: Time taken for the money to triple itself = 114 / Rate of return (%). Example: Assuming the mutual funds with the annual return of 12%, the time that takes to triple your money would be calculated as (114/12) = 9.5. # The rule of 144: The third rule in the sequence is 144. This particular rule would help you understand how money invested can become four-time its value. This rule would significantly help  people who stay invested for a long time and see the quadruple result of the original amount invested. The rule is as follows, Time for the investment to grow four times = 144 / Rate of return (%). Example: As discussed in the above case, if the mutual fund is with a 12% annual return, then the time that would take for the money to becomes four times is (144/12) = 12 years. The above-mentioned rules can help you to understand the financial process in a better way and help you to take the right investment decisions. Understanding and following these rules will for sure help you benefit and realise how money can grow. While these need to be followed, it is also prudent to seek professional help from financial advisor who have the right experience, who will be able to suggest the best possible solution.

Source-II LTD

There’s no denying that adult life is full of responsibilities, not least having to gain the ability to successfully manage your money. It’s very easy to worry that your nest egg isn’t what it should be, but luckily, there are numerous tips and tricks that you can learn in order to keep your finances right on track. Here are 9 ways to know that you’re good with money even if you believe you’re not; make sure : 

1. You have a budget
2. You can cover your bills each month
3. You have clear financial goals and are actively working toward them
4. Planning ahead vs. impulse buying
5. You only buy what you can afford
6. You use credit wisely
7. You save regularly
8. You’re planning for retirement
9. You double check for unnecessary fees.

( Edited) 

Also  Read Article  On ‘BUDGETING…..’ Below.

Most people who are financially unstable spend a lot more than they earn. You probably know people who buy expensive cars, smartphones and many other things, but you have no idea where they got the money for all this. Wealthy people, on the other hand, maintain a very clear division of financial expenses:

• 20% for savings
• 25% for rent or mortgage
• 15% for food
• 10% for entertainment
• 5% for transportation

The remaining 25% is spent on clothes, medicine, and education.
If you follow this plan, you can achieve at minimum economic stability, and even perhaps slowly get rich and save correctly.

Also  Read Article  On ‘BUDGETING…..’ Blow.

It’s never too early to start teaching kids about money. It will enable them to make smart decisions as they become young adults.  

Financial literacy is an important skill set that we need to acquire in order to make sound financial decisions. The goal: having enough resources for any emergencies or opportunities that arise and planning for important milestones, such as college and retirement. 

Financial literacy is about more than just understanding the basic concepts of investing. It’s about demonstrating a firm grasp on all the different aspects of personal finance, including real estate, retirement planning and tax filing. Understanding these concepts will allow us to navigate the financial world. 

How can we teach financial literacy to kids? 

 Most schools do not teach kids how to manage money properly, so parents have to fill this gap — the sooner, the better. However, for many kids, money is an abstract topic, especially when they are not in control of their own finances. This poses a real challenge. Fortunately, there are many apps for smartphones and tablets that aim at teaching kids and young adults about money management. 

Here are top 10 financial literacy apps for kids: 

• SavingsSpree.    
•  Renegade Buggies 
• Bankaroo.     
•  Celebrity Calamity  
• Green$treets.   
•  FamZoo   
•  PiggyBot.    
•  Star Banks Adventure  
• The GameofLife.   
•  iAllowance 

 Financial Literacy Can Be Fun 

If you thought that learning about financial literacy as a kid can’t be fun, you were wrong! These apps and their tens of thousands of young users are living proof that you only have to find the right angle to approach this important topic. It’s time for your kids to dive into the world of money — with responsibility and care. 

(Kiplinger) 

Also  Read Article  On ‘BUDGETING…..’ Below.

For many people, money is an emotionally charged issue. It may represent power, or love, or control. Our beliefs about money and our emotional attachments to it strongly influence the way we spend and handle money.

If you aren’t where you should be, financially-speaking, examine what drives you emotionally when it comes to money and try to figure out the psychological stumbling blocks that keep you from becoming financially independent. Here are 10 reasonable steps to take for that independence!:

1. Rely on yourself first for your financial security. Educate yourself about money managementand investing.​ ( of course you can take advice from  people you trust)
2. Set goals – it’s key to financial success.
3. Don’t use the money to make yourself feel good. That type of high is fleeting. Instead, do things that promote self-respect and creativity, so you don’t have to seek those feelings through spending money.
4. Spend less than you earn – it’s the secret to creating wealth.
5. Get an education. People with college degrees make, on average, significantly more money than those who don’t have degrees.
6. Build an emergency fund. Without one, losing your job or incurring a large unexpected bill could force you to take on heavy credit card debt, and could put you into a financial hole that will be difficult if not impossible to dig your way.
7. Be involved in the day-to-day management of your family’s finances and talk about money with your family members.
8. Educate children ( emphasis on girls) at an young age the value of money and value of savings.
9. Don’t let the fear of losing money, fear of failure, or fear of the unknown stop you from investing.
10. Learn from your money mistakes. Don’t let them hobble you.

( Source: Int)

Researchers have found that students who practice more responsible financial behavior show fewer symptoms of depression and a higher relationship satisfaction.

The study is based on data collected at three different time points over a six-year period and researchers tracked a group of students in the US from their fourth year of college to five years post-graduation.

Participants were asked at three different points to self-report on financial behavior such as spending, saving, budgeting and borrowing.

“We found that financial behaviors during that fourth year of college continue to have positive implications for emerging adults more than half a decade later,” said Melissa Curran, Associate Professor at University of Arizona in the US.

PS: So let us learn from this research and also teach our children this Financial Behavior at an early age.

Having a low credit score can be an extremely frustrating thing, especially if you are struggling financially and are in desperate need of some cash. Here are few tips, in brief, that you can do to improve your credit score. 

1.    Check For Errors
Before trying to fix your credit score, check if all of your information is correct. In the US, federal law entitles you to a free credit report from each of the 3 main credit score reporting agencies.

2.      Quit Relying on Credit
Carrying multiple credit balances is one of the biggest reasons for having a low credit rating. Focus on paying off all of your credit cards and only using one of them from now on.

3.      Don’t Get Any More Credit Cards
Aim to limit yourself to only using one to four credit cards. If you have more than four, try to get rid of ones you rarely use or ones that have an annual service charge.

4.    Adapt Your Bills to Suit You
Make sure to adjust your bill’s due date to a day that is convenient for you. If you get paid at the end of the month but receive bills on the 14th, then you will need to change accordingly.

5.      Pay Your Bills Automatically
If you only ever manually pay your bills, then there’s a good chance that you were late with payment or forgot about a pending bill at some point or another. To fix this problem, simply set up automatic recurring payments, so that your bills will pay themselves, taking another problem off your mind.

6.      Beware of Excessive Credit
It is important to make sure your credit utilization remains below 30%. This is because going over 30% will convey the message that you’re struggling financially.

7.      Be Proud of Your Credit History
It is important to take care not to close credit cards that are positively affecting your credit rating.

Be responsible for your finances!

PS: If you have  more suggestions to offer please let us know below.

         Also visit pages on FAITH, FAMILY, HEALTH

Disclaimer for Affiliate Links:

This site contains affiliate links to products. We may receive a commission for purchases made through these links to meet the cost of maintaining this site. The choice to buy any product is entirely yours, but it helps.

Catholic women save

People who are money smart avoid borrowing money. In our society it’s normal to go into debt to buy whatever you want. Most people cannot afford to buy a house with cash, but they go into debt for a new car, a flat screen TV, clothes, the latest version of a smartphone and restaurant meals?

Frugal people always pay cash for anything and everything they can. They pay cash for their cars, for the new TV, for new clothes. They know that paying interest credit cards  means throwing money away!

What is the secret behind their capacity to pay cash for everything they buy? They save of course! Start saving a portion of your weekly, bi-weekly or monthly paycheck in a savings account in a bank which you can use to pay for replacing a car, plan a vacation, for Christmas gifts and education, emergencies, and similar day to day expenses.

If you think it’s impossible to save in advance, then ask yourself why you can afford to pay for the item plus interest after you have charged them on your credit card. Paying interest significantly increases the cost of what you’re buying and your debt.

Savers  don’t accumulate  stuff. Typically, they recycle 90% of their stuff to a worthy cause and it works because they don’t buy a lot of stuff to begin with. St. Vincent de Paul Society, Catholic Charities, and Parish flea market sales are all good places to donate things you no longer need or use. How many times do you look at all the stuff in your closet, drawers, and garage and see things you don’t need and haven’t used in years?

Frugal people don’t ignore their budget. Using a budget means you have a plan for every penny! ( Read our article on Monthly Household Budget). Unless you know exactly where your money is going, how do you know if you are using it wisely on what is most important?

Being frugal is like being content—focusing on what you have instead of being in a constant state of wanting more and more. Save more , spend wisely!

• …If you take care of your pennies the dollar will take care of itself.

• …The secret to wealth is simple: Find a way to do more for others than anyone else does. Become more valuable. Do more. Give more. Be more. Serve more.

• …Money can bring happiness, but it can also destroy lives. … So in a way we can make ourselves happy when we have enough money to also fulfill the wishes of others, but personal happiness is more of a mental state than financial.

• … Finance is not merely about making money. It’s about achieving our deep goals and protecting the fruits of our labor. It’s about stewardship and, therefore, about achieving the good society.

• …In this world nothing can be said to be certain, except death and taxes.

• …Wealth consists not in having great possessions, but in having few wants.

• …If all the economists were laid end to end, they’d never reach a conclusion.

What is the single most significant piece of financial advice you have ever received , And how has it improved your life? Please let us know in few lines below

BUDGETING IS A HELPFUL AND WISE WAY TO MANAGE YOUR MONEY

 Monthly Household Budget Worksheet

MAKING A household budget is one of the most important steps toward getting spending under control and building a strong financial foundation for you and your family. It helps  prioritize spending, track where  money is going, pay off debts, set long term plans and carry them through.

Making a basic budget worksheet is easy. You can do it in a spreadsheet program like Google Sheets or with a piece of paper and pencil. The steps are the same either way. Here’s how to make a household budget worksheet:

List your income.
Add your expenses.
Calculate your net income.
Adjust your expenses.
Track your spending.
Write down each source of income that you bring home in a month. Focus on how much you reliably bring home, so don’t include irregular income such as overtime pay. When writing this down, list the type of income in a left hand column

Don’t worry about ideal spending habits yet. Instead, focus on what you spend. You can start by making a list of your regular monthly bills, rent, mortgage, utilities, internet, cable, Netflix and so on. As with your income, list  the expenses items on the right. Calculate Your Net Income.

Now comes the moment of truth. You should calculate your net income, which is how much you have left from your monthly income after your monthly expenses and decide how much of it will be saved and invested.

Within these numbers make necessary adjustments of your expenses and track your spending If you find it difficult, sit down and reconsider whether your target numbers are realistic. You may have set your sights too high in one particular category, so don’t be afraid to adjust and try again. In either case, you’ve gained much more control over your spending. That’s real financial progress, something you should be proud of and something that will build into real financial change in your life.

Good luck. More suggestions and advise from our catholic women readers are invited on this subject.

P. Veronica

…………………………………………………………………………………………………………………………..

“A budget is telling your money where to go instead of wondering where it went.” -Dave Ramsey

…………………………………………………………………………………………………………………………..

NOTE: (Please write your correct name and email address. Please do not post any misleading, deceiving, insulting, abusive, offensive, defamatory, obscene, indecent, discriminatory or any unlawful comments. We reserve the right to alter, modify or reject any comments not consistent with our values.)