These questions were created by Laura Rowley for us to answers. Ok, let me answer all the Qs.
1. Suppose you had $100 in a savings account and the interest rate was 2 percent per year. After five years, how much do you think you would have in the account if you left the money to grow: More than $102, exactly $102, or less than $102? My answer: More than $102.
2. Imagine that the interest rate on your savings account was 1 percent per year and inflation was 2 percent per year. After one year, would you be able to buy more than, exactly the same as, or less than today with the money in the account? My answer : less than today with the money in the account
3. Do you think that the return than a stock mutual fund.” following statement is true or false?: “Buying a single-company stock usually provides a safer. My answers: true
After done checking with the answers given, I only score 2 out of 3 answers. It shows that only I have a basic knowledge in financial, I guess.
This article gives me a lot of reason to think and revise my financial situation. Actually there’s a lot things that we don’t know can hurt us in financial ways.
The author wrote about what we don’t know about financial
· How the credit card balance to can be double in a matter of time.
· Inflation can devaluate our currency.
· Manage to handle risk diversification of investment.
Here’s some good advice that I think we should follow:
· Keep track of your spending for a month or two.
· Sign up for your 401(k) – As known as EPF in Malaysia.
· Put a number on your ultimate goal – your money should be equals to 12 times of your income for retirement.
Please read the full article: What you don’t know can hurt you financially