Lesson One – Investment Definition and Explanation

Investment is one of the fundamental concepts in finance. No financial discussion, website or blog is complete without clearing and explaning investment. I intend to write about investment in detail with reference to households and individuals, as a tutorial, starting from defining and explaining investment as a phenomenon and then slowly incorporating complex topics in further posts.

Definition of Investment

"Investment is the concept of putting 'surplus' money to things such as stocks, bonds, real estate, starting a new venture, buying a capital good etc. with a hope / forecast to have capital gains or continuous streams of positive net income from This employment of money. "

With reference to individuals, it is generally recommended to use surplus money for investments, as there is a very thin line between investing and speculating, so investment decisions should be made very wisely and with proper research and analysis. Investment always comes with a risk of losing the invested amount, and this loss would not be in the control of the investor then, it is always advisable to measure and research all risks involved.

Investment is a parallel concept to savings, where savings is done with an intent to cope with increasing inflation, Investment on the other hand is done with and intention to earn revenue streams or have capital gains from money invested, and it also generates employment and increases The production level of a country. Individuals save or invest their surplus money based on how much risk they are willing to take. More risk taking individuals prefer investing over savings.

Evaluating Credit Card Offers: Essential Terms You Must Understand

Credit card offers, they're everywhere! They appear in your mailbox. They pop up while you're surfing the Internet. They're in slick brochures next to the cash register or gas pump. They're in full-page ads in the Sunday papers.

If you need a new credit card, how do you choose? You should evaluate each offer carefully, and to do that you must understand these essential terms.

Annual Percentage Rate (APR) :

The interest rate charged on your account balance. (But see "Balance Calculation Methods," because the rules for computing interest from your balance and your APR can vary.) Your statement will typically show the APR and a monthly and / or daily rate based on the APR that's actually used to calculate your Monthly interest. There may be several APRs applicable to different portions of your balance, for example an introductory rate, a regular purchase rate, and a regular cash advance rate.

A fixed APR is set by the credit card company, which can generally change it with as little as 15 days advance notice, especially if you run afoul of any of the "gotchas" in the terms. These "gotchas" are often very consumer-unfriendly. For example, many companies these days reserve the right to raise your rate if you've been late on a payment to another, unrelated company.

A variable APR is tied to some widely used economic index, such as the Prime Rate. It may be stated as "prime + x%, currently y%," for example "prime + 7%, currently 13.5%." This means that when the Prime Rate is 6.5%, your APR is 13.5%. When the Prime Rate goes up or down, so does your APR. But beware, because some of the same "gotchas" apply to variable APRs as to fixed APRs. Read the fine print. It may state that if you're late with one payment, your APR will no longer be variable but will rise to an exorbitant fixed rate, usually over 20%.

The penalty APR is the rate to which your APR will immediately be raised when you violate any of the "gotchas" in the terms. This rate is usually at least 50% higher than the regular APR. Again, be sure to read the fine print to see what situations will trigger the penalty APR. You'll often see these: failure to pay this or any other account on time, exceeding your credit limit on this or any other account, excessive credit balances on your accounts in aggregate.

Balance Calculation Methods:

These are important to understand, because your APR is only part of the story when it comes to calculating the interest you'll be charged each month. The other part is how the balance is calculated to which the APR is applied. In any case the balance is multiplied by the daily or monthly interest rate. But the balance calculation is not as straightforward as you might think.

1. Two-Cycle Balance. This is the worst method from a consumer's point of view because it can lead to the highest interest calculations. Unfortunately, it's also becoming the most widely used method. To calculate the balance, add together the average daily balances for the current billing period (sometimes even including new charges) and the previous period. Here's why this is so unfriendly to you. Say you have run a balance for a few months and finally pay it from $ 200 down to zero at the end of May. You think it's safe to use the card in June for a new $ 100 purchase, and if you pay the $ 100 by the end of the June grace period, you will not owe any interest on it. But you're wrong. Since your average daily balance in May was not zero (say it was $ 120), and since you used the card in June, your interest will be calculated on May's average balance again, so even if you pay the whole June purchase in June, you Will still owe additional interest. In other words, you must wait two months, allow the account to cycle once with a zero balance, before it's safe to use it again – "safe" in the sense that you will not incur extra interest if you pay the balance in full By the end of the grace period.

2. Average Daily Balance. This was once the most common calculation method and is still popular. Add the daily balance for each day in the billing cycle, then divide by the number of days in the cycle. Depending on the terms, this may or may not include new charges.

3. Adjusted Balance. This is the best method from a consumer's point of view, but it's rapidly going the way of the dodo. Take the balance at the beginning of the billing cycle, then subtract any payments or other credits recorded during the cycle. Do not include new charges during the cycle. For example, if your beginning balance was $ 1200, and you paid $ 400 during the cycle, the balance to which your monthly rate will be applied is $ 800, regardless of any new charges.

Balance Transfer:

This means that you're charging card X to pay off (all or part of) the balance on card Y. So the balance is, in effect, transferred from card Y to card X. Why would you want to do this? Usually to take advantage of an introductory low interest rate when applying for a new card. Look closely at the terms. Sometimes these introductory rates last only a few months. The best ones are for the life of the balance. You will often have to pay a transaction fee equal to 3% of the balance transferred. Sometimes these fees are capped at $ 75 or so. Be sure to see whether or not the transaction fee excepts what you'll save in interest. If so, do not do it. Sometimes the credit card company will agree to waive the fee, especially on a new account. Do not be afraid to ask.

Cash Advance:

A cash loan charged immediately to your credit card account. Usually there is no grace period for paying off a cash advance, which means you'll be charged interest starting from the day of the loan, even if you pay it in full by the end of the billing cycle. Also this type of charge may have a higher APR than purchases or balance transfers. Check your terms. Note that some kinds of transactions, like buying casino chips or lottery tickets, may be valued as cash advances. This can also apply to writing a purchase check to your own bank account. Be sure to read the fine print.

Credit Limit:

The upper limit on your account balance. Exceeding it may result in penalties. Be very careful if your balance is close to the limit ("maxed out"), because you can exceed it without charging anything new if you fail to pay enough. Remember that just because the company has approved you for a certain limit does not mean you can afford to take on that much debt.

Disclosure Chart:

An important portion of the Terms and Conditions statement. It's a little bit like the Nutrition Statement on a food package because the law dictates what has to be listed here. If you can not stand to read all the fine print, be sure that you read this part.

  1. Fixed APR or APRs after any introductory rate (s) have expired
  2. Rule (s) for calculating variable APR (s) if applicable
  3. Grace period
  4. Annual fee if applicable
  5. Minimum per-cycle finance charge
  6. Additional fees if applicable, such as cash advance fees
  7. Balance calculation method
  8. Late payment and delinquency fees
  9. Over limit fees

Grace Period:

The time, calculated from the account cycle date, during which you can pay the balance in full without having any interest charged. This usually applies only to purchases, and only if you've paid the previous month's balance in full and on time. (Sometimes even that's not enough. See "Two-Cycle Balance" calculation method for an additional "gotcha.")


This can be very misleading. It does not mean the company is guaranteeing to issue you the card in the offer. It just means that they chose you to receive this offer based on some general screening of your credit report. They always reserve the right to deny or alter the offer based on a more detailed examination of your records.

The History of Modern Furniture

It was in the 19th century after the industrial revolution had given birth to a new class of people that modernistic ideas evolved. The traditional dark, gilded or carved wood, covered with heavy richly patterned fabrics cave way to light and simple looking furniture. Between the nobility and the down trodden poor the middle class had emerged.

They cast aside anything that was related to the rich who had trampled the poor ruthlessly. Also influences from Africa, Asia and especially Japan had a lasting effect on designing of modern furniture. Functionality, practicality and economic feasibility were the new order in furniture. Technology and industrial advancement were already playing their role in making of simplistic yet practical furniture.

Michael Thonet an Austrian German cabinet maker was the first to experiment in making bent wood furniture and using glue for joining wood pieces. His coffee shop chair also known as 'Konsumstuhl Nr 14' became world famous and till 1930 over 50 million of these chairs were produced. Another famous chair of that era was the 'Tripolina chair'. It was made of wood, metal and canvas and was patented by Joseph Fendy in 1877. This chair was widely used by the British troops during the colonial period. The director's chair is a simple folding chair that uses a scissor action to fold and is made of wood and canvas, or any other strong material that can bear the weight of the occupant. The design of this chair dates back to the 15th century and the design has been taken from ancient Roman folding stools.

Some of the iconic examples of modern furniture are the Marcel Breur's Wassily chair. This chair uses lightweight tubular steel and leather straps. The exquisite and simplistic design of these geometric shaped planes almost makes the leather straps appear to be suspended in space. The Ellen Gray side table, the Barcelona chair and Noguchi table are some of the other icons of modern furniture.

Modern furniture is functional, practical and tastefully designed to give a feeling of comfort and lightness. It differs completely from the dark and heavily embroidered medieval furniture. Metals, plastics, glass are now used along with wood in making modern furniture and a whole new generation of fabrics and colors are used. The fabrics used are of bold and bright colors which make modern furniture look inviting and artistic. Contemporary furniture has taken many forms and shapes and furniture designers use geometric patterns to create modern furniture.

Most contemporary furniture is lightweight, easy to assemble and disassemble and importantly easy to maintain. Modern furniture also has an individualistic theme, designed to suit the type of décor people want for their homes and workplaces. Colors are popularly used to make a room or office appear pleasant and relaxing. Drab, dreary and heavy colors are no longer used. If a heavy color like black is used, it will be contrasted with white or shining steel. It is modern furniture that has changed the look of the home from a formal and staid place to a casual and relaxing environment.

Compare Policies to Find Cheap Car Insurance

The idea of ​​a low cost car policy is something that has certainly been convoluted by the variety of bad advice and recommendations that are so littered across the internet. Unfortunately, most people make the mistake of looking for a car policy that costs the least and totally forget that a car policy product is supposed to carry some basic features to be really useful. The result of such a choice is that the buyer ends up regretting his / her choice and wishing for a more complete product. In order to find complete car policy that is also cheap, you need to compare multiple policies available online and this comparison process should include almost all the relevant aspects of policy to make it truly comparable. Here is a list of those aspects.

1. The service provider:
The provider of the insurance instrument is critical for you to find a policy that is really useful because it is the provider who has to approve or reject your claims. In different words, since the provider has to honor the claims, it is important that you find one who is respectable and genuine. Therefore, you should go through different reviews and comments posted online and try to tie yourself to only the best provider.

2. The coverage of the policy:
It is also very important for you to find a policy that has decent cover. Decent cover for every buyer would be different because the needs of every buyer are different. For example, you might be a bachelore which would mean that you will not really need co-passenger cover. In contrast, if you are a married man, then you would need a product that provides cover to your co-passengers. Here, understanding your specific requirements and finding a policy that matches them is something you should not neglect.

3. Network of garages or workshops:
The purpose of a car insurance product is to make your life easier in every way possible. This means that it should not only provide the right compensation but also do so in the most convenient manner. This is why the policy provider should have a vast network of workshops and garages. A wider network would allow you to get your car repaired and also have your claims honored as conveniently as possible.

4. Additional benefits and bonuses:
Finally, there are many providers online and offline who really try to attract potential buyers by adding value to their products. This value usually comes in the form of discounts and bonus benefits. For example, the no claims bonus feature is a very common value addition tool that is used by online providers. This feature would allow you to reduce the premiums that you have to pay if you have not made claims on your previous insurance policies. Needless to say, these added features are a wonderful way to not only make your policy more useful but also reduce the cost of buying it.

Cheap car insurance is a lot more than an empty policy which costs nothing. A cheap car insurance policy should ideally be able to protect and serve you while not costing a fortune.