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Why Cash Flow is More Important Than Net Worth for Financial Freedom
Several digits are summed up to understand the financial status of an individual. These include the money/value of assets she owns and the money she makes. But not all digits should be relied on to measure her financial freedom. For instance, a person works towards good health that helps him determine what level he can be engaged at but still depends on the oxygen to survive. Without sufficient oxygen he can not survive, no matter how healthy he is. So, what holds more power, the level at whichhe can engage or the ability to engage at all? Similarly, in the financial sphere, net worth provides a snapshot of your financial health but like oxygen, the future could only be predicted by your cash flows. Wealth is just a pile of assets. Cash is real. Your net worth or your wealth is not what you own (assets) but what you are left with after subtracting what you owe (debts). For instance, Gautam Adani has a net worth of about $118.6 billion...
Investment trends and opportunities for NRIs
An NRI can simply be defined as an Indian citizen who has spent less than 183 days of a financial year in the country. NRIs are very much citizens of the country as per law. However, they do not pay tax here. NRIs form a strong community that contributes to India's growth, despite not paying taxes directly. For instance, the World Bank estimates that NRIs remitted about $79 billion in India in 2018, which is the most among the diaspora of any country in the world. But do NRIs have the right to invest in India? Yes, very much. So what are the investment options available for them in the Indian market? Investment Opportunities for NRIs Here's a look at some of the best investment instruments for NRIs to explore. Fixed deposit bank accounts: Considered the most common investment method, NRIs can simply open a fixed deposit bank account. The amount gets locked for a fixed period, but the account holder gets to earn interest...
Are fixed deposits really a foolproof way to invest?
Are fixed deposits really a fool proof way to invest? Large banks' fixed deposits are among the safest investing options. For years, this has been the go-to financial investment for many Indian savers. Fixed deposits are regarded as the safest and most liquid investment available. Let us try to learn which financial investments are actually safe through this blog. What is the purpose of investing? An investor saves money today in order to accomplish a financial goal/objective in the future. Life objectives can include purchasing a home, educating children, marrying children, and eventually living a financially independent life during retirement. To achieve financial objectives, two important variables must be generated. Save enough money. Produce adequate returns on savings The point to remember here is that saving alone is rarely enough to attain long-term goals, especially those that span decades. As a result, creating returns on savings becomes critical in reaching...