Engineer's Finance

Read Part I before reading this article.

Basically it implies that the bank gets to use your money for 51 days free of cost. Therefore, the banks have the option of leveraging these zero-cost funds and lend them at higher rates of interest. This is one of the most important sources of their profits.
At the same time a sharp cookie will deposit Rs 100,000 on April 10th instead of April 11th and remove the money on May 1st. The minimum between April 10th and April 30th now is Rs 100,000 and hence he gets 3.5 per cent a year for just keeping the money for 20 days. Continue reading →

How many of us have actually checked our savings account to see how much interest gets credited into our account for the deposits we make? A lot of people might know the answer to this one.
Now let’s change the question to “How many of us know the way interest is calculated and credited into our account?” Not too many. The answer to this one will surprise many depositors and a bigger surprise is that crores of rupees are lost through millions of savings accounts in our country. The numbers as you will see are staggering. Continue reading →

Assets

In business and accounting, assets are everything of value that is owned by a person or company. It is a claim on the property your income of a borrower. The balance sheet of a firm records the monetary value of the assets owned by the firm. It is money and other valuables belonging to an individual or business. The two major asset classes are tangible assets and intangible assets. Continue reading →

The irony that I see in most of us is that we don’t want to work but we do. The reason we give is for bread and butter. I have quoted that many a times for my own needs. I know it is foolish and stupid to say something like that but I do. This is just the frustration that I have because of lack of money. Once my needs are taken care of, my wants starts and it increases day by day and to fulfill the wants I need more money and one of the easiest ways to make money is work for money. But in reality my whole thinking is wrong, however hard I try to make money by working hard for someone else, I won’t be able to meet my wants only my basic needs will be met. Continue reading →