Finance Concepts


Good Debt vs. Bad Debt

Debt has always been considered as a liability. Yes, in most cases, debt is a liability because it is money owed to someone else. One classic example of a liability is a credit card debt. When you use a credit card, you’re taking a loan from the bank or company that issued the card. With that […]


Preparing Your Personal Financial Statement

In order for you to know where you want to go, you must first know where you are currently. To reach your financial goal, the first thing you must do is figure out where you are. For if you don’t know where you are, you can’t expect to get where you want to go. Knowing […]


Opportunity Cost Analysis

Opportunity cost analysis is one of the main foundations used in making financial decisions. In strict accounting terms, opportunity cost is not really a cost or an expense. However, it maybe relevant in making decisions with financial repercussions. Wikipedia says that opportunity cost has been described as expressing the basic relationship between scarcity and choice. When […]


Why do you need to borrow money?

Well, aside from the obvious reason that you need it, whether for capital or other expenses; borrowing money can help you to manage your finances if you know how to leverage debt. That is to know the difference between good debt vs. bad debt. In this article, I will expound more on the idea of […]


Lessons from Economic Recession

We are all experiencing economic recession. There are low demands of products as consumers cut spending. Companies cut costs thereby closing some of their plant operations and laying off thousand of is workforce. What lessons have you learned so far in this economic recession? What are the things will you do just in case another […]


Why do companies declare bankruptcy?

Recently, with the onset of the global financial crisis, there has been an increase in the number of companies declaring bankruptcies. But why do companies declare bankruptcy? What causes these companies to declare bankruptcy? As a research analyst of Chapter 11 bankruptcy filings, I’ve been involved in various Chapter 11 bankruptcy cases. And during the […]


Refinancing Loan Using Home Mortgage

Are you drowned in debt? Taking out a second mortgage once meant you were in financial trouble. Today, people take out home equity loans, which is another name for a second mortgage, to pay for everything from home renovations, weddings, and other loans. Although some people consider it as a smart way to borrow money, […]


What Makes Currency Rise or Fall?

I remembered before that I chatted with a foreign exchange (forex) trader when I was thinking to try foreign exchange trading online as one of investing. And I asked him: “What Makes Currency Rise or Fall?” In our discussion through Yahoo Messenger, he stated that currency trading is more stable than the stock market. He […]


Double Your Money Using “Rule of 72”

The Rule of 72 is a formula used in finance particularly in investments. This is a general rule that answers the question: “How many years will it take to double your money?” You don’t have to make difficult calculations as this rule makes it easy for you to calculate. Depending on the given rate of interest, you […]


What Makes Rich Gets Richer?

What makes rich gets richer? We notice that the rich keeps on getting richer while some of the poor gets poorer. Kiyosaki continued his teachings on his “Rich Dad Guide to Investing”. If you are not familiar, there’s this one rule originated by the Italian Economist Vilfredo Pareto in 1897 called “Pareto’s Principle or 80/20 […]