Being careful with your money is extremely important. Here are a few advices regarding financial issues. Prepaid cards require the cardholder to load money onto the card before the card can be used. Purchases are withdrawn from the card’s balance. The spending limit does not renew until more money is loaded onto the card. Prepaid cards do not have finance charges or minimum payments because the balance is withdrawn from the deposit you’ve made. These cards are not actually credit cards, and they don’t directly help you rebuild your credit score. Prepaid cards are similar to debit cards, but are not tied to a checking account. A lot of people use them as a way to stay within budget.
What Is a Payday Loan? A payday loan is a type of short-term borrowing where a lender will extend high interest credit based on a borrower’s income and credit profile. A payday loan’s principal is typically a portion of a borrower’s next paycheck. These loans charge high interest rates for short-term immediate credit. These loans are also called cash advance loans or check advance loans.
Terms: Asset: An item of a tangible or intangible nature that has value or benefit, such as the capacity to generate revenue or interest. An example of a tangible asset is real estate and an intangible asset is a business brand name.
Cash flow: The cycle of money coming into and out of an account according to income/revenue and expenses. Negative cash flow is when expenses fall due before income/revenue is available and the account experiences a shortfall. Positive cash flow is when income/revenue outstrips expenses and there is excess cash in the cycle.
For our finnish readers here is a resource that you might find useful : Money and savings. Mortgage, or home loan: An agreement between a lender and a borrower who is a property owner where the property is used as collateral or security for an amount borrowed to purchase it.
GAAP: As a new investor, it’s important to know the distinction between like measurements because the market allows firms to advertise their numbers in ways not otherwise regulated. For instance, often companies will publicize their numbers using either GAAP or non-GAAP measures. GAAP, or Generally Accepted Accounting Principles, outlines rules and conventions for reporting financial information. It is a means to standardize financial statements and ensure consistency in reporting. When a company publicizes its earnings and includes non-GAAP figures, it means they want to provide investors with an arguably more accurate depiction of the company’s health, like removing one-time items to smooth out earnings. However, the further away a company deviates from GAAP standards, the more room is allocated for some creative accounting and manipulation (like in the case of EBITDA). When looking at a company publishing non-GAAP numbers, new investors should be careful of these pro-forma statements, as they may differ greatly from what GAAP deems acceptable.