At a minimum, investors should understand what real and nominal returns of an investment are. As opposed to nominal returns, which only have to do with the gross behaviour of an investment, real returns are a more precise estimate of the real contribution of an investment, after the impact of…

Tracking Inflation: Learn to read key indicators like the Consumer Price Index (CPI). Inflation is a fact of life for every economy, from buying a loaf of bread every week, to living with a home loan. In order to deduce the behaviour of inflation on individual finances, one should know…

As an effect that has been talked a lot about but not necessarily understood what it actually is or how/if it affects your personal finances, inflation feels relevant. To put it simply, inflation is the rate at which the price of goods and services rises over time. With rising prices,…

Time is your greatest asset in the accumulation of wealth. The earlier, the better, in the sense that you will be better off with the magic of compounding, the less likely you are to take a risk and the sooner you will be able to realize your financial dreams. Even…

The Rule of 72 is a very useful rule to state the amount of years required to double an investment in an annual period constant rate of interest. It is also a pragmatic instrument for investors, savers or anyone who wants to understand the mystery of compound interest, though no…

Compounding is a very common financial term, which means that an investment becomes worth more and more through the compounding effect of earning in the previous period’s contribution to higher (return) earnings in subsequent periods. This consists of, reinvestment of interest/income, for growth of the investment. Compounding is valid for…