You’re Debt Free, Now What? Money Moves That Make Sense
First of all, congratulations on becoming debt free! It was probably a long and tedious journey, but you’ve made it! Paying off debt is a marathon, and completing the race definitely calls for a celebration! The end of a chapter means the beginning of a new one, which begs the question, now what? Many people […]
Financial Investment
A financial investment is the practice of using money to purchase and hold assets for the purpose of making a profit. These investments can include stocks, bonds, mutual funds, real estate, commodities and other financial instruments. The goal of most investors is to accumulate wealth by creating a portfolio of assets that generate returns over […]
What Is Amortization?
Amortization refers to the process of spreading out the cost of an asset over its useful life. In financial terms, it is the gradual reduction of a loan or debt through regular payments of principal and interest over a specified period. Amortization is used primarily in two contexts: loans and intangible assets. For loans, it refers to the gradual reduction of […]
Principal
In financial terms, the principal refers to the initial amount of money that is borrowed or invested, upon which interest is calculated or earned. It is the original amount of money involved in a financial transaction, such as a loan or investment, and it represents the basis for all subsequent financial activity. In the context of loans, the principal is […]
Bond
A bond is a financial instrument used by governments, corporations, and other organizations to raise capital. It represents a debt obligation, meaning that the issuer (borrower) promises to pay the bondholder (lender) a specified amount of interest over a fixed period of time and to return the principal amount at the end of the bond’s term. Bonds […]
Cash Flow
Cash flow is the movement of money in and out of a business or individual’s accounts over a given period. It measures the amount of money that flows into and out of a business, indicating how much money the company has on hand to pay its debts, cover expenses, and make investments. Cash flow can be classified […]
Capital Gains
Capital gain refers to the profit that an individual or entity realizes when they sell an asset for a price that is higher than the price they initially paid for it. In other words, it is the difference between the purchase price of the asset and the price at which it is sold. Assets that […]
Consumer Finance Protection Bureau (CFPB)
The Consumer Financial Protection Bureau (CFPB) is a federal agency in the United States that was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The CFPB is responsible for ensuring that financial markets operate fairly and transparently for consumers. It has the authority to regulate financial institutions and to enforce […]
Charge-Off
A Charge-Off is a financial term used to describe a situation where a creditor writes off an outstanding debt as uncollectible. In simpler terms, it means that the creditor has given up on trying to collect the debt and has decided to close the account. When a borrower fails to make payments on a debt for an […]
Credit Counseling
Credit counseling is a service offered to individuals who are struggling with debt management or are looking to improve their financial situation. It is a process that involves working with a trained credit counselor to review your financial situation, create a budget, and develop a plan to manage your debts effectively. Credit counselors are trained professionals who work […]