Author: jovan

To understand the new politics stance and other pro nationals of recent times, we should look to Silicon Valley and the quantified movement of the latest generation. If Bitcoin were to lose half its present value — which is not unlikely, given its extremely volatile past behavior — Tesla will lose around A$1 billion. As Elon Musk owns about a fifth of Tesla, he would then be down A$200 million. In contrast, I own no Bitcoin so I will lose nothing. Nor is Musk doing his fans any favors. As a “rock star CEO” with more than 40 million followers…

The envelope budgeting system has been a tried-and-true method for managing finances for decades. Its simplicity—assigning physical cash to envelopes for specific spending categories—makes it an excellent tool for financial control. However, in today’s digital world, adapting this system to modern financial habits can offer a fresh perspective on disciplined budgeting. How the Envelope System Works In the traditional method, individuals allocate cash into labeled envelopes for categories like groceries, utilities, or entertainment. Spending from each envelope is restricted to its contents, encouraging mindful spending and helping to avoid overspending. Digital Evolution of the Envelope System For those who rely…

Starting a business involves more than just a great idea—it requires a firm grasp of the financial aspects to ensure sustainability and growth. Here’s an in-depth guide to help you navigate the financial side of launching your service-based business, addressing key concepts, tools, and frequently asked questions. 1. Understand Basic Accounting Accounting helps you track profitability through the income statement and assess your financial position via the balance sheet. For service-based businesses: Equity equals your ownership value: Total Assets minus Total Liabilities. Choose an accounting approach depending on your business type: Job-cost accounting for project-based businesses (e.g., client-focused consulting). Basic…

As your income grows, it’s easy to fall into the trap of lifestyle inflation — the tendency to increase spending as income rises, often leading to financial strain and missed opportunities for saving or investing. While it’s natural to indulge in a more comfortable lifestyle when you can afford it, unchecked lifestyle inflation can delay your path to financial independence and even derail long-term wealth-building goals. Here’s how to avoid lifestyle inflation, build wealth steadily, and protect your financial future. 1. Understand the Psychology of Lifestyle Inflation Lifestyle inflation is driven by the psychology of wanting more as we earn…

Improving your credit score can seem daunting, but with a targeted approach, consistency, and the right actions, you can see meaningful progress. This guide explains key strategies to help you boost your credit score effectively. 1. Understand How Credit Scores Are Calculated Credit scores are influenced by several factors. Here’s a breakdown of their weight in your overall score: Payment History (35%): Pay all bills on time. A single late payment can reduce your score significantly. Credit Utilization (30%): Keep your usage of available credit below 30%. Lower is better, with 10% or less being ideal. Credit History Length (15%):…

Job loss is a significant life event that can bring a mix of emotions: fear, relief, uncertainty, and even opportunities for growth. While the emotional toll is considerable, managing your financial situation effectively during this time is crucial. Here’s a detailed guide on what to do financially after losing a job, drawing from both personal experiences and sound financial principles. 1. Take a Moment to Process It’s natural to feel overwhelmed. Allow yourself time to grieve and reflect on what this change means for you. Take a few days or even a couple of weeks to reset. Use this time…

When companies need to raise capital, they have two primary options: borrowing money or selling ownership stakes. These two methods give rise to two fundamental financial instruments: stocks and bonds. Understanding the distinctions between these can help investors make informed decisions. What Are Stocks? Stocks, also known as equities, represent ownership in a company. When you purchase a stock, you acquire a share in the company, making you a partial owner. For example, if a company has 10 million shares and you own one share, you own 1/10,000,000th of that company. The value of your share depends on the company’s…

When exploring the dynamics of financial markets, understanding the relationship between bond prices and interest rates is crucial. Bonds are a cornerstone of the investment world, offering both stability and predictable income. However, the inverse relationship between bond prices and interest rates can perplex many. This article demystifies this connection, providing a clear and intuitive explanation of why bond prices move in the opposite direction of interest rates and what this means for investors. What Are Bonds and How Do They Work? A bond is essentially a loan that an investor makes to an entity, such as a corporation, municipality,…

Nigeria’s dynamic economic landscape presents a variety of investment opportunities, and one of the most secure and accessible options is investing in bonds. This article will guide you through everything you need to know about investing in bonds in Nigeria, particularly Federal Government of Nigeria (FGN) bonds. What Are Bonds? Bonds are essentially loans that you, as an investor, give to an entity—such as the government or a corporation—in exchange for periodic interest payments and the return of your initial investment (principal) at a set maturity date. In Nigeria, the most popular bonds are FGN bonds, issued by the Federal…

Budgeting is often viewed as a chore, but when done correctly, it can transform how you handle money. Whether you’re just starting or have struggled to make it stick, these practical tips will help you craft a budget that works for you and your financial goals. 1. Create a Zero-Based Budget Before the Month Begins A zero-based budget ensures every dollar has a purpose. Start by estimating your monthly income—whether it’s a fixed salary or fluctuating earnings. Then, list all expenses, including giving, saving, and living costs. The goal is simple: income minus expenses should equal zero. This approach eliminates…