Course Content
How does money work?
To start understanding money, we need to understand how money works. There are concepts like Pay Yourself First, Magic of Compounding, Time Value of Money and Cost Averaging that would help you understand money.
Recommended Reading
List of blogs and books for reading
The Cost of Free Advice
Case studieson the cost of advice.
The Psychology of Money
Read how your mind works when it comes to matters about money
Financial Literacy for School Students
About Lesson

Once we are aware of our money story, Personal Finance is simply about managing four components of our income, expenses, savings and investments. Managing your money is about moving them forward/backward in time. Let me explain.

You maximize your income and optimize your expenses in the present time to plan for your retirement expenses in the future. You make efforts to maximize your savings and investments of the present time to plan for your future goals.

What we just discussed can be represented in a personal finance equation, which is:

Income (t) – Expenses (t) = Savings (t) + Investments (t) where time t signifies moving money, or purchasing power, forward in time.

Much of financial planning is based on mathematics. But fortunately the mathematics is not really complicated. You probably learned the basic principles in school.

Exercise Files
Understanding Numbers about Money.pdf
Size: 348.60 KB
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