Category Archives for "Money Basics"

Aug 05

A Vicious Cycle

Debt facilitates production and trade. As the debt supply increases, money just becomes increasingly worthless unless the volume of production and trade in the real world grows by the same amount. Add to this the realisation that when we hear that the economy is growing at 3% per year, it sounds like a constant rate. But […]

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Aug 05

Debt Causes Inflation

“Banks lend by creating credit. They create the means of payment out of nothing.”(HAWTREY, M. Ralph), Former Secretary of the British TreasuryThat’s not all. Banks create only the amount of the Principal. They don’t create the money to pay the Interest. Where is that supposed to come from?  The only place borrowers can go to obtain […]

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What if I told you
Dec 18

How banks create money

Did you know that by keeping your money in the bank, you are contributing to your own inflation?It doesn’t matter if we are not in the U.S. Our currency is pegged to the dollar and for that reason alone, we are affected by the monetary policies of the United States of America. Moreover the way […]

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Dec 17

Money as Debt

Introduction This topic is very important, and central to the theme of ‘Investing’. To understand the concept of ‘Money as Debt’, one needs to understand how the ‘International Fractional Reserve Banking System’ works. The history of the Federal Reserve System in the US is also important to understand how the world economies work. The central […]

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Investing on Savings Bonds
Dec 17

How the Monetary System Works

One of the most commonly asked questions to me is ‘How does the monetary system Work’. To understand this concept let’s look at the differences between ‘Wealth’, ‘Cash’, and “Money’. As simple as it may sound, people do not know the basic differences between these three terms. What is Wealth? ‘Wealth’ is measured in ‘time’ […]

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Nov 30

7 financial mistakes you must avoid

Everybody makes mistakes. The repercussions of a mistake could be trivial or grave. A financial mistake is one such blunder that can create big problems if they are not resolved immediately.  Lack of goals: Most people don’t plan to fail; they just fail to plan. A good percentage of people are still not aware of what […]

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Nov 30

6 simple steps to help you build your wealth

Building wealth and getting rich is a topic often spoken about by many, but followed by very few. The reason for this, is that wealth creation involves time and a lot of effort. Although the process of building wealth is not complex, it is difficult to implement, simply because of the discipline it requires. Here […]

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Oct 19

Indicators to know that your financial life is in trouble

The condition of an individual’s financial life is not apparent only based on the income he earns. Sometimes, even after earning well, your financial life may not be in the best of colour. Many people are also comfortable living in the assumption that all is well. However, there are some broad signs or indicators which […]

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Money Management for Kids
Sep 07

7 Ways How I Teach My Son How To Manage His Money

So, we went to the mall the other day and passed a toy store. My son saw a toy he wanted, and I knew he has many of these types of toys. Naturally I tried to stall this by saying; I didn’t have any money. Big mistake !!!He simply said, “Dad, just use the ATM […]

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Sep 05

Tips To Control Your Spending

Income levels have shot up over the past decade. Higher income levels have also brought about a change in lifestyle and spending patterns. Nowadays, it is very easy to spend compared to saving and investing it, as the incentive to spend is huge. Advertising and marketing have reached new heights, with each brand claiming that […]

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Credit Card Debt
Sep 04

Situations when you shouldn’t use your credit card

“Life just seems to be getting simpler by the day,” remarked 22-year-old Swati, a software developer with a leading MNC. She was referring to the convenience provided by modern-day living aids like plastic money, online shopping, e-payments, deferred payments and the like. “Really,” quipped her grandmother. “We never had any of those in our days, but […]

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Aug 11

How to Create a Monthly Budget

Creating and following a budget is one of the most difficult things for many people to do. Just thinking about all of your finances can make you wish you were getting your teeth drilled as the better alternative! However, making a budget and sticking to it is important to a strong financial future and can […]

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Jul 07

Do you pass the Acid Test?

The Acid Test of Personal Finance We expats come to Dubai to make money and enjoy a better standard of living, but somewhere along the line our financial goals get diluted or forgotten. This is because we get caught in the rat-race and the fast paced life in Dubai. The prime example of this phenomenon […]

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