Money & Math

Money is not just about math, but it is essential to run the numbers to make sure you are making an informed decision. This section includes the maths part of personal finance including calculators, how numbers work out in different situations and in general the numbers behind the money.

How much house can I afford? You got to be kidding me!

As I mentioned in my early retirement post, we would like to buy a house this year. I spent a couple of weeks in the city we want to move to (more on that later) and looked up houses. First, I didn’t have a solid budget; I looked up houses that didn’t seem outrageously priced. After some time, I [...]

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To ROTH or not : Should you Invest in 401k or ROTH IRA/401k?

When thinking about starting to save for retirement, the first question most of the young investors have is “Should I invest in traditional 401k or a ROTH 401k“?  There are many variation of the question – ” Should I continue investing in traditional 401k even after the company match or start a ROTH IRA”? Or [...]

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Stay at home or to work : What is the financial & professional price?

Some of our friends are pregnant or have just had a baby. So the conversation of staying at home or going back to work after maternity leave comes up fairly often. When I expressed my interest to stay at home for a couple of years after we start our own family to one of the [...]

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Are passive investors smarter than active investors?

Active investors are dumber than passive investors. A new study says so. Passive investing is boring, active investing is much more interesting… Active investing is the only way to beat the market… Passive investing is for those who don’t know/care about investing… I have heard all of these in any debate about active vs passive [...]

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Power of Compounding – The Magic Wand

As is often attributed to Einstein, “The most powerful force in the universe is compound interest” Compound interest is defined as the interest calculated on both the principal and the accrued interest. On the surface it just sounds like another boring mathematical concept that we were forced to memorize during school. Why should you care [...]

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