Financial concept of returns in a story…..

Return on Investment

Let me explain the concept of return on investment in layman’s terms. Let us suppose there is a person called Tom and he is walking up the street. Suddenly he sees $1000 lying on the street. Tom takes that $1000 and puts it in his pocket. That $1000 has not cost Tom anything.That is the concept of fund with zero costs.

Now let us suppose there is a person called Nick, and Nick needs $1000. He approaches Tom and asks if he could borrow $1000 dollars from him. He is ready to pay 10% interest on it. Tom knows that if he keeps the $1000 in his pocket, even after one year it will still be $1000. On the other hand if he accepts the offer of giving the $1000 at the rate of 10%, after one year he would have $1100. @11100 is $1000 plus 10% interest earned by it.

Let us suppose there is another person called Harry. Even Harry needs @1000. Now harry approaches nick and asks if he could borrow $1000 from him. He is ready to pay 5% interest. Do you think Nick would say yes? Definitely he will say no. Now Harry says that he was willing to pay 19% interest. Nick would definitely say No simply because it is costing him 10%. Nick may say yes if Harry offers to pay him 15 – 20% interest. So one reinvests only when he is getting more returns not less. Sometimes business owners do the cardinal crime of investing for less, and that is a blunder.


Save with Holiday Rentals and Enjoy

Holidays are the time with family and friends and you would want a restriction free environment. It is not possible in a hotel with its rules. So, what is the solution? Go for an array pf holiday rental options. It is the trend to rent a house for holidays and enjoy the fullest.

You can have ultimate freedom and party late night. Also you will experience the local culture much better as the holiday rentals are located within local colonies. We will try to know why holiday rentals are better option.

Holiday Rentals - The Economic Luxury


  • Privacy – No threat of hidden cameras in rooms or alley way. In hotels cameras are installed everywhere and you are always aware of it. In case of rental accommodation you get the ultimate privacy of your home. No cameras and no one to disturb you. If you are with your girlfriend or wife rentals are always the better option. Cuddle in the cozy bedroom or bathe together in the private swimming pool, with no onlookers.
  • Cook your own dishes – When you are out for long you will yearn for home cooked food. Hotels will not allow you to cook. In holiday rentals you will have your own kitchen where you can cook food as per your taste. This will keep you healthy as eating at restaurants for a prolonged period might affect your digestion.
  • No limit for number of people – If you check in a hotel you get charged per person. If someone extra comes along your budget is hiked. Not in the case of rental options. You can enjoy your holidays with no extra charges of one or two persons extra.
  • Understand the culture – With rentals you will live with the people and get the closest feel of the culture. Meet people you would never meet while occupying a room in a hotel. So do not wait and book rental options before you plan your holidays.
  • Holiday with pets – Most of the holiday rentals allow pets. Hotels will not allow it and your dog will fret at home or in dog care while you enjoy. Pets are very dear to every pet owner and you would love to bring them along. It is very easy to bring along pets in rentals and they will also love the homely environment.
  • It costs less – With all its facilities the rental accommodations cost less. They are almost 25 percent of the hotel stay cost.

Saving for the whole family

For a long time, I was the only one in my family obsessed with saving. I used to do that as a child as well- it’s not like I used to jealously collect every penny and not spend any money at all, but I did save a lot more than a person of my age would be expected to.

After I grew up, I still remained the one person who cared about saving money, which is when I realized I had to take a different approach towards the issue. What is the one way you can make the entire family save? Give them the incentive?

Adding a jar for savings

So, to build up the practice of saving, I started a travel jar. This was the jar where we would collect money for three months, and we would use it to take a small holiday at the end of that time. It certainly made people put away a section of their salaries and earnings- after all, who does not like trips, right? Soon, I started adding jars. A jar for a new TV in autumn. A jar for a new car next year (with some help from the savings jar and Ferratum, I’m certain we are going to have that by the end of this year). The contributions were not that high, but I have managed to inculcate a need to save among my family.

Does your entire family save? Do they not? What strategies do you employ?

10 Tips to save money on Car Insurance

Generally we do not pay attention to money spent on insurance premium. It is a good amount and keeping a check on this we can save a lot. Car insurance is one of the places to look for savings.

Save on Car Insurance

Save on Car Insurance


1. By and large individuals decide to pay month to month  premium. It seems to be less expensive but you are really paying  up to 24% more which will add to the expense. Pay one time to save on the monthly payments.

2. Check the coverage bi annually to check what is required. The coverage which is not necessary should be dropped to save on the premium.

3. Scan for rebates when replenishing utilizing correlation on the web. Adhering to the old guarantor implies on losing rebates. For the most part it is observed that insurance agencies offer rebates for getting new clients.Ask your current agent for new offers.The new operators are better prepared to offer discount to customers.

4. Claim protection on greater totals, and less much of the time. This aids in keeping the premium low. Figuring out how to drive securely helps for this situation.

5. Good score on credit payment also helps to bring down the premium.

6. Install anti-theft and other security gadgets .This can bring about extra rebates.

7. The most essential thing is to not let your current protection slip. It builds the expense of protection.

8. One more tip…try to package home, life and auto protection from the same service provider. This can help to save money on each of the three.

9. Driving history about habits of the driver additionally impacts the measure of premium. So, getting tickets for careless driving can increase your premium and vice-versa.

10. Government representatives or present or ex military workers may get extra rebates on premium.

Eat Healthy and Save

Healthy food seems expensive, but it is not. The money you spend afterwards on health bills can be avoided. Every penny saved is a penny earned. Also you become healthier and are more cheerful. Most of the decisions on what to eat are based on convenience rather than cost.

Eat Healthy and Save

Here are a few suggestions to eat healthy and also save in the process:

  • Eat more veggies and eggs – The easiest way to save and to be healthy is to eat more vegetables and eggs. Keep the meat on your diet but just eat less of it. It helps you control calories and save money as well.
  • Buy Groceries monthly – Make a habit of getting your groceries once a month. Stick to it and you will save on spurted buying. It also helps your budget. Make sure to buy in bulk.
  • Shop fresh – Always try to shop fresh vegetables and meat. This reduces the amount of preservatives you taking. Try to make fresh sauce from tomato instead of the bottled one. It will cost less and be healthy too.
  • Cook more at home – It is generally a practice to eat out for the new generation. Curb this habit and avoid the neighborhood eating joints. Rather cook new recipes at home. Eating out is always expensive.
  • Reduce snacks – Avoid buying Potato chips and other snacks. Rather go for helathy home made snacks. It will help to save and keep healthy.

Saving Money: 2 Habits that Save Healthcare Dollars

Save money by avoiding illness.

My mother-in-law amazes me. It took a few years for me to adjust to her way of doing things, but I’ve tried some of her housework techniques and gained a new respect for her quirks. She has a light-colored carpet all the way through the main floor of her house, something my mother would never have. She refuses to add runners to keep it clean, but it looks almost as clean as the day she bought it. Her secret? She makes everyone remove their shoes in the tiled entry way so visitors don’t track dirt beyond the tile.

Once people enter, and get past the tile, she has them to wash their hands. She doesn’t ask, but she starts talking about the reason for the visit, or engages in simple small talk. While she talks, she leads the visitor to the kitchen, goes to the sink and turns the water on. She gets soap on her hands, then offers it to the visitor who washes their hands. I have never seen anyone try to object!

Keeping the outdoor dirt confined, and having visitors wash their hands keep foreign germs to a minimum. Her home and its residents stay healthier, so she doesn’t spend a lot of money on cold and flu remedies or doctor visits. I’ve found my New Years’ resolution.. I’ve decided to adopt these same policies.

I hope you are wearing clean socks!

How I Save on Holiday Gifts

Save on holiday gifts using your crafting talent.

Since hubby travels, shopping for everything, especially gifts, falls on my shoulders. Once I realized this wouldn’t change I felt free to deviate from his ideas, using alternative gifts instead of spending carefully saved money on items I’d probably never see again. The most difficult part of my method is discovering where a recipient already shops, has existing lay away accounts, or what hobbies they indulge in.

When I can, I give a gift card. It’s always less than $15.00 but will make paying off a lay-buy easier, will provide a discount at stores where they usually shop, or will buy a little something they can use for hobby time. Fortunately, I only have 3 people who fall under my gift card category!

Everyone else gets a handmade gift. I already have most of the components needed, so I spend less than an extra $10.00 to make gifts for everyone who did not get a gift card. Women will get bath salts, and men will get outdoor drink holders, this year. While I know that I won’t see the bath salts in use, I’m pretty sure I’ll see the drink holders.

I enjoy making gifts more than shopping for them, and the boys can help out, making it a great family activity. The boys get to exercise their math and measuring skills while learning the value of giving from the heart.

How do you save on holiday gifts?