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
shuttle from Midway Glen Ellyn ..If you, like most people, have not seriously considered what... Read More
It is possible to eat a healthy, balanced diet without... Read More
We live in a crazy world. Someone ought to sell... Read More
Everyone needs to maintain their lives. What I mean by... Read More
Address labels are many things to many different people. If... Read More
As the saying goes: "Buyer Beware". If you see ads... Read More
You've decided you want a bigger, better and more desirable... Read More
Super-mumsIt seems that the proof of maternal efforts is no... Read More
It's the little things in life that make it interesting.... Read More
Do you struggle from week to week trying to make... Read More
Holy Shenanigans! More STUFF?Loosing one's business due to lack of... Read More
You should thoroughly consider your business needs when selecting a... Read More
The cries are heard from the distance, "I need help... Read More
I've been sharing the following idea with people for a... Read More
With almost two thirds of university entrants from England and... Read More
Saving for a Down Payment is hard work, so it's... Read More
Identity theft is a serious crime that continues to grow.... Read More
Financial freedom cannot be achieved without budgeting. Budgeting involves tracking... Read More
Have you ever wondered what it would be like to... Read More
Women are charged more for dry cleaning services. Don't fume,... Read More
The Prudential has dubbed those who refuse to leave home... Read More
Are you interested in saving money off your grocery bills?... Read More
Does it feel like you have to be Sherlock Holmes... Read More
How many drawers did you have to look through to... Read More
People haven't always written checks to buy goods and services.... Read More
shuttle from O'Hare North Chicago ..Before buying personal or business checks you should inform yourself... Read More
Predatory lending exists in the mortgage industry. It's typically when... Read More
Saving may seem easier if you were saving for a... Read More
Saving for a Down Payment is hard work, so it's... Read More
Did you have a piggy bank when you were a... Read More
When people speak about the increasing age expectancies, they generally... Read More
At a time when the entire world's attention is focused... Read More
Have you ever stopped to think about how your "mood"... Read More
Have you ever thought about what you are going to... Read More
Super-mumsIt seems that the proof of maternal efforts is no... Read More
Today many women are struggling with debt and it's even... Read More
My personal opinion is that in today's new economy, it... Read More
Many don't realize that our basic utility bills provide the... Read More
Your food budget is the most flexible area of your... Read More
If you recently became a single parent and see your... Read More
For me, the most terrible time of each month is... Read More
Here are some tips that can help you save money... Read More
If you've been to a shopping mall lately, you've probably... Read More
Car donations and used car donations are the way many... Read More
If you, like most people, have not seriously considered what... Read More
Most consumers are aware of the importance of their credit... Read More
Many people spend their little income haphazardly without any planning... Read More
Whatever your reason for having a tight budget, the truth... Read More
Has anyone been to the gas pumps lately? Soon $3... Read More
1. Lighting & Light Bulbs Install low energy light... Read More
Personal Finance |