What is Finance?

Finance is a science that deals with money, risk and time. To be more precise, it deals with how money deriving from various activities is spent. The importance of such science lies in the fact that it greatly influences each country’s economy, defines business networks and can determine both failures and successes. Just to make an example, a successful company that has a satisfactory turnover might easily lose everything it has by simply mis-investing its assets. That is why we might def...
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5 Lessons About Managing Money I Learned From An 8-Year Old

When you're young, life is so much easier, isn't it? Sure, you have to deal with parents, and your friends can change from day to day. But each day is its own day. Most problems don't carry over to the next day. You don't have to worry about the future. Because today is more important. There are lots of lessons we can learn from kids. Some of them are easy to incorporate into our adult live. And some of them aren't. But we can still learn a lot by watching children, whether they are our...
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Money Leaks: Slow Ways to Become Broke

There are of course huge ways to waste money, but then there are small wastes, which are referred to as leaks. Sometimes the leaks are so small, you may not even notice them, but they do add up and can end up being a huge chunk of money that could be better spent somewhere else. In this post, I am going to highlight some leaky ways you could be leaking money without you realizing it. Clunkers: Not only is buying a brand new way too expensive car a huge waste of money, but on the other hand, ...
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The Real Green Thumb and The 4 Simple Laws to Growing a Magic Garden of Wealth

It is said America has more millionaires that any other country. If this is true why are so many of us so poor? Why do so many Americans suffer with debt? Why are we as a society so overextended and buried under mortgages we can’t pay and live in homes we can’t afford in the first place? The answers are simple, yet must be explained carefully. Let’s examine rule one. Rule one: Never try to keep up with the Joneses. Each day we are exposed to a plethora of images of wealth and possessions. ...
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Going Green to Keep More Green in Your Pocket

With much of the focus on going green today, the average family can do much to help the environment. Not only will you be doing your part for global warming and climate change, you will be doing your wallet a big favor as well. Investing for the Future The winds of change are definitely blowing in the direction of green business practices and sustainability. Instead of investing with the old tried and true methods, research the options for investing in companies that are promoting a small...
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Educating Young Children about Money

My mother-in-law is very generous when it comes to giving my children money. It usually comes in the form of $5 or $10 bills inserted into holiday cards or in person during the twice-a-year visits, at which time she chooses to hand them money in a covert way; a sheepish attempt to hide the fact that she's spoiling them. During a recent visit to the local grocery store, my 5-year-old, carrying one of these $5 bills, passed in front of this display of miniature cars that read "4 for $5." He was...
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From the Archives: John D. Rockefeller, The Dow Theory, and Tulip Mania

Profiles in Personal Finance: John D. Rockefeller -John Davison Rockefeller, Sr. was an American industrialist and philanthropist. Rockefeller believed since he was a child that his purpose in life was to make as much money as possible, and then use it wisely to improve the lot of mankind. The Dow Theory - The Dow theory has been around for almost 100 years, yet even in today’s volatile and technology-driven markets, the basic components of Dow theory still remain valid. Tulip Mania and th...
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Do you make bad financial decisions? Blame evolution.

According to this article in the Los Angeles Times, evolution accounts for a lot of our strange ideas about finances. Most people would rather earn $50,000 a year while people around them made $25,000, than earn $100,000 a year while people around them earned $250,000. Irrational, but in this case, relative social ranking trumps absolute financial status. Thousands of experiments in behavioral economics, neuroeconomics and evolutionary economics conclusively demonstrate that we are every...
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Secrets That Helped The Rich Get Rich

Reader's Digest recently posted a article titled Secrets of Self-Made Millionaires. While I don't think there are any "secrets" to becoming a millionaire, it's good to be reminded of what is important, especially by those who have already made it. I really liked the following quote: “For the rich, it’s not about getting more stuff. It’s about having the freedom to make almost any decision you want,” says T. Harv Eker, author of Secrets of the Millionaire Mind. That is one of the description...
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Most Read Posts of 2007

How often a post is read, doesn't always reflect quality. Often it is just an indicator of how it ranks in Google or where it's linked from. Some of these posts were whipped up in a couple of minutes, others took more time and research. But, for what it's worth these are my 1o most read posts of 2007: Smart Money Remains Invested Fundamental Indexing vs. Traditional Indexing Your First Million Is the Toughest Spending Money: Needs vs. Wants Understanding Capital Gains Tax To...
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