Net worth is the difference between the total assets and the total liabilities of an individual. Thus, a net worth statement is required to include all assets.

A tax rate of 10% is applicable on LTCG (Long-term Capital Gains) earned on the sale of equity shares and equity-oriented mutual funds.

Treasury bills would be considered a risk-free investment. They are backed by the central Government, thus the possibility of loss is negligible. It is a short-term investment, so funds are liquid and can be used in case of exigencies.

Amount received= Principal amount + (principal amount*rate of interest*time)

Our cash inflows should be greater than the cash outflows for maintaining good financial health. A cash flow statement helps in ascertaining our total cash inflows and outflows over a particular period of time. Net Cash Flow = Total Cash Inflow - Total Cash Outflow. A positive net cash flow indicates that our total income exceeds our expenditure. Whereas, a negative net cash flow shows that we are spending more than we are able to earn. Try to be on the positive side of the cashflow statement.

IPO, or Initial Public Offering is a process by which a private company can go public. It refers to the first sale of shares by the said company to the public. It increases the capital raising opportunities for the company. Additionally, it helps in generating publicity of the company among the people.

Debit and credit cards are issued by financial institutions. Debit cards are linked to your savings and current account. While making a transaction using a debit card, the amount to be paid is deducted from your account. It does not allow any credit facility and carries some annual charges. A credit card, on the other hand, allows its holder to make credit transactions. The condition being that the holder repays the amount with interest and extra charges, if any.An annual fees is paid to the credit card company in order to use the credit facility offered.

A taxpayer is exempted from paying tax under the new regime if their total income does not exceed 250000. 5% tax is charged on income falling between 250001 to 500000. However in such cases, a rebate of 12500 can be availed, ultimately making the tax liability nil.

Inflation refers to the increase in the general price level prevalent in the economy. It erodes the purchasing power of our money. Basically, the more inflation rises, the less our real income is.

Equity investments are highly volatile in nature. They are always subject to market risks. There is an uncertainty about the amount of returns to be earned. It may so happen that the entire investment turns bad and losses are incurred.

Insurance is a means to secure oneself from financial losses. The person availing the service is called the insured, and the entity that provides the insurance is known as the insurer. The insured has to make periodical payments called premium over a fixed period of time to receive a lump sum amount at the end of the maturity period or when the claim is made. There are different kinds of insurance: Life Insurance, Health Insurance, Auto Insurance, etc. Although, in case of life insurance, the loss is not financial in nature, but the insurance claim received by the beneficiaries, specially if received upon the death of a close one, can be of great financial help if they were dependent on the deceased.

A credit record is a detailed history of an individual’s borrowings and debt. A credit score shows the ability of an individual to repay a loan taken. The higher the credit score, the better is the individual’s creditworthiness.

Net Worth is the difference between total assets and total liabilities.Consider asset as anything that puts money in your pocket and liability as anything that takes money out of your pocket. Having more money incoming depicts that you have a better net worth.

A debenture is a medium to long-term loan taken by companies to raise funds at a fixed rate of interest. The debenture holder is not given any voting rights

To increase our income, we should try to invest in different investment avenues available. It is true that to gain more returns, one needs to take higher risks. To mitigate these risks, one can diversify their portfolio. Portfolio diversification means to spread the investments among a number of different asset classes. Diversification lessens the risk arising out of one particular investment with the security that some other investment might provide.