Archive for the 'Credit and borrowing' Category

Payoff Mortgage or Invest….continued

Let us take a real life case and see what is to be done when you have a lump-sum amount. Should you repay the loan amount or should you Invest that money? The sad part is YOU need to take a decision TODAY and you will be judged (you may be the judge) after 5, […]

Inflation Indexed bonds….how TIPS works

The government keeps talking about Inflation Indexed bonds – we are not clear when it will come. We have no clue as to how it will be structured in India. However this is how it should work if they do a cut and paste from the US – TIPS is the US product. Principally this […]

Should I pay off my housing loan? or invest the money?

I have handled this question many times, and have come out with similar answers. However here are some questions which are IRRELEVANT …. 1. How much has the house appreciated by: Many people write in to say ‘I paid Rs. 20L now it is worth Rs. 37 lakhs’…This is completely immaterial. Your house appreciating has […]

Borrowing is NEGATIVE compounding….

  Most writers of personal finance have spent half their lives talking about the virtues of compounding, well, at least I have. So not compounding your money is bad. That is done and dusted. What can be worse? Borrowing. Borrowing is worse than not compounding your money – it is a case of NEGATIVE compounding. […]

Debts and bills that we pay..part 2

We saw what kind of bills and debts we pay…in the part 1. So first is we need to acknowledge it as a debt Second there has to be a cost of not paying the debt. Which means we pay a debt (which we acknowledge as a debt – especially if we have a choice). […]

Sir your credit card has been refused…

One big PSU bank – which has been actively wooing me to open an account- called me and offered me a credit card. Here is the story. No exaggeration. Please believe me, it is the absolute truth. I anyway did not want the card, so can laugh at it, but if somebody wanted a card […]

Middle class is saving less…

I wish I could do an article like that in India. I have always been screaming that we do not have enough good quality publicly available data. Does not matter whether I am talking about investing, saving, spending,….read this data driven article by Motley Fool http://www.fool.com/investing/general/2012/06/15/4-shocking-examples-of-the-decline-of-the-middle-.aspx  Post Footer automatically generated by Add Post Footer Plugin […]