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The Money Machine 104 – Assets

Money assets

Assets are probably the least understood part of financial statements.  Like I’ve mentioned before, I have a lot of education about finances and also work as a full time finance professional.  But even after all that technical education, I still did not have a fundamental common sense understanding of them. Firstly, standard, technical definitions of assets all orbit around the concept of how much an asset can be sold for.  The normal understand that most people have of them is that they are the big tangible things you own such as house, real estate, car, art work, tools, etc.  Both are correct …ish. The definition that I use is more nuanced than those.  I think that assets are on a scale between ...

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The Efficacy of an Emergency Fund

emergency fund

Can anyone predict what is going to happen tomorrow? Today’s merriment may end into a grave misfortune tomorrow. So what we need is to remain mentally prepared all the time. And a financial preparation for the unknown helps us to overcome the challenges in whatever form they may appear; job loss or a deadly disease in the family. This preparedness is provided by an emergency fund. Now what does an emergency fund actually mean? It is actually a monetary backup set aside for days that are an emergency. An emergency situation may arise in a number of ways and it is a situation when you need extra cash’s to come out of the fix. In theory, an emergency fund is built with ...

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Consider Savings Account for Your Kids?

Saving account

Gone are the days when a couple of dollars pocket-money would buy a bag of lollies, a lucky-dip at the toy shop and still leave some change to put in the piggy bank. Kids are growing up in a much more financially driven society where expenses are higher and money management is a survival skill. In order to equip their kids with the knowledge and skills they will need in order to lead a successful and secure life, many parents are now giving their kids a head start by teaching them about how to save their money from an early age. More and more mums and dads are opening up savings accounts with their banks for their child. But what are the ...

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