MONEY MASTER

Up to what extent you can drown into debt in a month, and come out of debt smoothly by repaying, is best shown by your debt to income ratio. This ratio of debt and income is the key method to determine the availability of cash from you monthly income for repayment of your loans….or, in other words, it expresses your true borrowing capability. That’s why creditors consider debt to income ratio a very effective tool to figure out your monthly payment, and your true financial situation. This ratio clearly calculates the total amount of loan an individual can take. There are 3 categories of debt to income ratio: Front End and Back End Ratio Your creditors tend to analyse your debt to income ratio with two numbers 33/38. 38 is the back end ratio. It is the long term debt ratio. And front end ratio is 33, which is the ratio of housing expenses. Housing Expense Ratio The payments of an individual’s housing normally means each and every payment you need to make in your day to day life. That i...

Upto what extent you can drown into debt in a month, and come out smoothly by repaying, is best shown by your debt to income ratio. This ratio of debt and income is the key method to determine the availability of cash from you monthly income for repayment of your loans….or, in other words, it expresses your true borrowing capability. That’s why creditors consider debt to income ratio a very effective tool to figure out your monthly payment, and your true financial situation. This ratio clearly calculates the total amount of loan an individual can take. There are 3 categories of debt to income ratio: Front End and Back End Ratio Your creditors tend to analyse your debt to income ratio with two numbers 33/38. 38 is the back end ratio. It is the long term debt ratio. And front end ratio is 33, which is the ratio of housing expenses. Housing Expense Ratio The payments of an individual’s housing normally means each and every payment you need to make in your day to day life. That includes a...

How do you deal with debt? How do you pay the monthly credit card charges, minimum amount or full amount? What is the best way to reduce debt? Before we go into reducing debt, we have to understand what are debts. Debt means we are using future money now, in one way, we are killing inflation, if properly utilize this tool, but without proper planning, the interest alone will be enough to kill us before we manage to hedge the inflation. Thus, to fully utilize debt as a tool for us to increase our net worth and in another way, making money for us, one must have very strong discipline in the debt repayment. There are some debt which actually favors us, while some will get us deeper in the world of debt. Good debts are like property loan whereby the property will have value in the long run and credit card although it can be damaging, if not used properly. Bad debts are like getting personal loan or charge credit cards just to buy electronic gadgets to show off. Guess, I'll stop at th...

I wonder how many of the bloggers who drop by here are fans of Stephen R. Covey. Anyway I guess it's important for us to set our perspective right, all the more if we want to wealthy. One must first develop the right habits. What habits one may ask? The effective habits, I believe as suggested by Stephen R. Covey. Probably if we look at the lives of those successful people such as Bill Gates, Warren Buffet, Michael Dell and many others, there are a few things we may find it to be similar, is that all of them have an effective habits and hardwork. I'll probably just simplify it as Stephen did in his book, 7th Habits of Highly Effective People, although I don't agree with him in coming with the 8th Habit book. After all, how is it possible to keep developing new habits without getting rid of some of the old ones. Therefore, I shall start by mentioning the need in PRIVATE VICTORIES, but I might not start with Proactive. Because I believe it's not about Proactive, but befor...

It was Mother's Day last week, and I am sure that many of us bought our beloved mum special gifts and maybe treat her a meal. Before I began writing on Budgeting Mother's Day Spending, I wish all the mothers in the world, a Happy Mother's Day, though it is kind of a little too late. Anyway, for those who has yet to celebrate Mother's Day with their beloved mum, I do hope that they will not be too stingy or cost savvy about the spending. I'm sure that the every mum would be very happy if her children even decided to cook for her or just do something special on this occasion - nothing fancy, but maybe spend some extra time with her or buy her favorites recipe book, etc. Mother's Day official date might be the 2nd Sunday of May, but if one cannot make it last week, then he or she can celebrate Mother's Day on some other day, but at least we do something to show our love for our mum and honor for her. My family (total seven of us including my brother's girl ...