Category: Finance For mere Mortals
If you can’t beat the market – follow it! This is a popular maxim, briefly describing that it’s not so easy to beat the market, but it’s really easy to follow it. As you may know, “The Market” here means the overall performance of all traded shares which is measured by stock indexes, like the Dow Jones Industrial Average Index and S&P500 index for example. So, to follow the market you simply need to invest your money in a market index. But how could you do that? How can we put some money in the Dow 30 and take advantage...
Stock markets are one of the greatest inventions of our capitalistic world. They work so simply and at the same time, nobody can predict them. You trade financial instruments there, but at the same time, it’s more of a social ecosystem than you can imagine. Its moves are driven by almost anything that happens to our society – from economic fundamentals to emotions in our brains and future expectations. The market reflects not only the financial world but it is a barometer of our society as a whole. What Is A Stock Or A Share Before taking a look at...
You can use this simple and at the same time powerful compound interest calculator to see the magic of compounding, as Albert Einstein once said, it’s the 8th miracle of the world. Why is it called this way? If you want to enrich a bit your knowledge on the matter, you can check our cool topic about what compound interest is and how exactly it works. This a very basic article about what compounding is and how the compound interest formula works. We highly recommend checking it out first, especially if this is a new matter to you. Then come...
What compound interest is Compound interest is the foundation of investing. It’s even more important, the whole financial system in our world is based on compound interest. It’s everywhere, and this is why it’s so important to understand exactly what compounding is. Here I will talk about the most commonly used compounding interest formulas in our everyday life and this way I will show you how the 8th miracle of the world works. Everybody knows what interest is. If you have $100 and put it in a bank account for a year at 5%, at the end of the year...
