Growing up in a house where money was not an issue I had a privilege that I was unaware of. I work for my money just like anyone else, but I have my parents to help me through life experiences such as attending university. All in all, these moves do demonstrate HuffPo putting its stamp on the former AOL News operation, and the balance has proved tricky , at least initially. After understanding the basics of finance management, you can use the available funds systematically to get all the required things properly done. Liquidity: Liquidity is an important term to understand even in personal finance.
If they are not, put down all your daily or monthly expenses and figure which expense can be reduced in order to balance them against earnings. To understand the basics of personal finance , check out some of the commonly used financial terms and definitions. Savings: Amount of money you save from your income/salary after meeting your monthly expenses. These are some of the basic terms used in personal finance which will help you to understand and manage your finances effectively. These terms make for a great starting point on one’s journey to understanding finance better.
Before you can calculate finance charges, you need to decide on an interest rate. Most states have laws setting the maximum interest rate that a merchant can charge consumers. Other states peg their maximums to a specific market rate, such as 5 points over the federal funds rate. Your next step is to decide what portion of your customer’s account balance will be subject to finance charges. Daily Finance was launched in 2009 and is operated from Virginia, United States.
For example, if you have a 30-day grace period, and a customer buys something on credit on August 20, that customer will not start incurring finance charges on that purchase until September 19, the 31st day after the sale. If you use a grace period, take care to assess finance charges only on the portion of the balance that’s out of the grace period. Since you’ll be charging interest on a daily basis, you must convert your annual interest rate to a daily rate. Expressed as a decimal, that’s 0.12. Divide by 365, and the daily rate is roughly 0.000329.
To calculate a day’s finance charge, multiply your customer’s balance that day by the daily rate. For example, a customer with a balance of $1,500 would incur a charge of about 49 cents a day. DailyFinance is a website that offers readers with financial news as well as tools and advice to manage personal finance. The invest section features content related to stocks, mutual funds, market news, ETFs, bonds, commodities, and more.