Engineer's Finance

Have you ever thought about what would happen if the bank goes bankrupt? Is the money insured with the bank? Who will repay back your amount? Will they pay back the entire amount? If so whether will they pay the entire amount or in parts? What if they don’t pay back any amount? What should I do?

These questions were constantly on my mind after seeing the financial situation of the US Markets. Major financial institutions are crashing and it is creating ripples worldwide as many countries depend directly or indirectly on the US Markets. We all trust that Bank will safeguard our money and deposit the money with them and if they don’t take care of it then what should happen to the trust and the money? This is really going to be a difficult situation to handle. People will start losing trust and take out the money from bank and start piling them up at home. If such a situation happens then the liquidity decreases considerably and there will be very less money that will be floating around. Continue reading →

Have you checked your bank statement recently? When was the last time did you see your bank statement? Did you notice anything strange? Do you have a savings or current account? Any idea of how much is the interest earned by the savings that you have in your account?

If you don’t check your bank statements regularly then I guess it is very hard for you to track your financial status. There are chances that bank might charge you unnecessarily. You might be wondering that you need bank to safe guard your money but the truth bank needs customers and not the other way around. If you decide to safe guard your money then I think bank is not necessary at all. Continue reading →

What do you think of paying yourself first? Does it sound sensible? Do you do that? Have you thought about it? Did you ever realize that you should pay yourself first?

I hope You do pay for yourself first and then others. What I mean by pay yourself first is, if you have a budget as explained here then accordingly make investments or savings. Before paying any bills or debts make sure that you pay for yourself. If you don’t take care of yourself, it is highly possible that none might be interested in doing so. Continue reading →

How many of you think of budget? Do you think of budget as a means to attain the “Financial Goal”? Is it really worth doing a budget? Can you stick with your budget? These questions were always in my mind regarding budget. I have figured out that Budget indeed is a good way to attain the Financial Freedom.

Budget is derived from the French word bougette which means purse. It refers to a list of all planned expenses and revenues.

Here is a simple method to begin your budget. I use GNUCash for preparing my budget. It is a free tool that is available. It is always good if you can prepare a budget in a yearly basis. I am not successful yet in doing it. I prepare my budget based on monthly expenses and I would suggest you also to follow on similar lines rather than going for yearly budget. Let us start with simple steps. If you follow these simple steps then I am sure you can budget effectively. Continue reading →