Frugality Is The New Trend In Managing Money

My mom taught me about frugality. She introduced this to me in her own simplest ways.

She told me that we have everything we need at home. No need to go grocery shopping more than twice a week. All meals are planned as we follow a certain meal calendar, that way we can eat balanced meals and avoid unhealthy cravings.

When our neighbor's kids have new stuff, she always tell us that we can also have those if we are willing to work hard for it. She instilled the value of being contented with what we have. I even lived on a strict budget when I was in college.

Now that I am married, I remember everything that my mom told me and it really helps as we prepare to have our own family soon. Frugality is the new (maybe old, but it is definitely coming back nowadays) trend in managing money.

If we want to live a secure life and have some savings to hold on in the future, then we have to start now. We have to learn and find new ways to track our expenses, save money and invest those that we have in excess. Are you up to the challenge?

Drawdown Dangers – What It Means To Traders

Drawdown is a word that is feared and hated by every trader, but it is an inevitable part of playing the markets. It is simply how much your account loses from its peak. Suppose you start with $10,000 in your account, and after a succession of losses the account goes down to $7000. That means you have lost $3000, or 30% of the original starting $10,000, and therefore your drawdown is 30%. Drawdown is relative to where your account peaks, so say you had a good run and built the account up to $12,000, then lost $3000 again, bringing it down to $9000. Your drawdown this time would be $3000 from $12,000, or 25%. Maximum drawdown corresponds to the lowest your account ever hits. Sometimes you will see trading strategies detailing how much maximum drawdown is expected to be when using them – usually the more risky strategies will anticipate a greater drawdown while expecting a higher profit on average. Drawdown is particularly dangerous because, the way statistics work, you ...

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Saving One Income