KambingBujang

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