What is finance and what do you need to know? Finance can mean different things. It may refer to your personal financial situation. It could refer to your investments or a business's investments. It could refer to a credit or loan purchase.
Financing can be involved in your life in different ways. For example, if you are going to invest in a large purchase such as a house or even a car. Large furniture purchases and credit cards all fall into these categories. Interest rates are the most integral part of financing. Why else would a company want to loan you money or offer you credit? How else would they benefit? They benefit from the interest that you have to pay in on financing your loan. There are different types of financing options available.
The percentage rate is the amount of interest that you pay. The percentage rate is the certain portion of your loan or credit that you pay back in interest. For example, if your loan was for $40,000 and your interest rate was 12.3% then you would pay 12.3% of $40,000 in interest. The interest would be added onto your $40,000 and you would pay it back via your monthly payments.
Fixed rate: A fixed rate means your interest rate will stay the same no matter what. People usually prefer these. If you can get a low fixed rate, it will stay with you even if other average interest rates are going up. Balloon rate: A balloon rate can fluctuate with the times and the stock market but depending on the situation, this can be beneficial to you as well. You will have to decide which you think is best for you.
There are different types of financing options as we mentioned earlier. Probably the most common example of finance in the United States is credit cards. A credit card allows you to make purchases with the card. The bank issuing the card will pay on your behalf and you then pay the bank back, plus the interest. The bank makes money off the interest and you get what you want right away.
The same thing applies to pay-as-you-go or rental furniture companies. There are even rent-to-own housing services now where your monthly rent can go towards buying the house if you want to stay. Financing should be a way to help you achieve something that you're going to be purchasing anyway. Financing can get you in your house quicker than saving up the cash. Become knowledgable and financing can be a tool that will serve you well.
The author has found that most people have little or no knowledge about financial matters. She believes this is not a "bad" thing. It's just that they haven't been taught about money. The "good" new is that financial knowledge is a learnable skill, just like learning to ride a bike. She enjoys sharing and teaching people how to have a harmonious relationship with money and their finances. Kathleen Sutera is passionate about finance and is the webmaster of Finance How
If you want money you need to learn how to... Read More
**If it's Spam, it's a Scam!- If it sounds too... Read More
The first step to financial success lies in knowing your... Read More
If you've been thinking about filing for bankruptcy, your best... Read More
I've been sharing the following idea with people for a... Read More
Ever wonder where address labels come from? AveryŽ is perhaps... Read More
What is finance and what do you need to know?... Read More
If you are the normal consumer, then you've probably experienced... Read More
On the other hand, there are those people who are... Read More
I have been a loyal user of Quicken(R) for more... Read More
When you received an energy (heating) bill last winter, were... Read More
Have you seen the recent article on a new "green"... Read More
Budgeting. It's a word we're all familiar with. Everyone knows... Read More
Creating a budget can be a very difficult task. Although... Read More
Gas prices have soared to unimaginable heights of late. Since... Read More
Most Americans have been brought up to be concerned about... Read More
If you die without making a Will in the UK,... Read More
For me, the most terrible time of each month is... Read More
Women are charged more for dry cleaning services. Don't fume,... Read More
Before buying personal or business checks you should inform yourself... Read More
Commonly referred to as the first of the three major... Read More
Next to our physical health most of us are primarily... Read More
1) HOW TO LOOK FOR A JOBA) The Chronological Curriculum:1.... Read More
If You Have an Existing Account and 5 Minutes, You... Read More
Confused about whether you can contribute to a Roth IRA?... Read More
Good money management needn't be difficult. In fact, there a... Read More
So, you've made the decision to apply for a credit... Read More
You've analyzed your past expenses, put them into spreadsheets, loaded... Read More
Would you be interested in freeing up 10% to 15%... Read More
Vacations Made Easy: Buying a Florida Investment PropertyA relaxing beach... Read More
The gas that we fill our tanks with every week... Read More
Now there are ways to save money in the grocery... Read More
Holy Shenanigans! More STUFF?Loosing one's business due to lack of... Read More
We all know that money doesn't grow on trees, but... Read More
Most of us, especially those of us who have debtor's... Read More
With almost two thirds of university entrants from England and... Read More
Women have a love/hate relationship with money. Most of us... Read More
Creating a budget can be a very difficult task. Although... Read More
Developing and living by a household budget is by far... Read More
Recent security breaches at several credit card companies continue to... Read More
We have heard a lot about consumers' personal information getting... Read More
Investing is a subject a lot of people don't want... Read More
If you want money you need to learn how to... Read More
Millions of people have a checking account and many people... Read More
It doesn't take much for you to get behind on... Read More
Saving for a Down Payment is hard work, so it's... Read More
Things are so expensive these days. We seem to be... Read More
We live in a crazy world. Someone ought to sell... Read More
Today I passed a thermometer at a bank that read... Read More
1) HOW TO LOOK FOR A JOBA) The Chronological Curriculum:1.... Read More
Most consumers are aware of the importance of their credit... Read More
When people speak about the increasing age expectancies, they generally... Read More
For most of us the process of getting out of... Read More
People haven't always written checks to buy goods and services.... Read More
Now that we are in the month of June I... Read More
The lists of bank and savings accounts that are available... Read More
Before buying personal or business checks you should inform yourself... Read More
Address labels are many things to many different people. If... Read More
It is estimated that we, as consumers, waste an average... Read More
The British government at the beginning of this year officially... Read More
It's the little things in life that make it interesting.... Read More
My personal opinion is that in today's new economy, it... Read More
Sticking to a budget can be difficult, but with so... Read More
Do you have a 401(k) retirement account? Are you vested... Read More
What is it about being frugal, why do it at... Read More
With interest rates being at an all-time low, I can... Read More
Personal Finance |