Author: Mwangi Waithaka

Taxes are mandatory fees charged by the government from its citizens and other entities like businesses. They are the vehicle used to meet expenses related to the general government services, goods, and activities. The amount of tax is usually calculated based on your income or the price of the products or services you have bought. Taxation is the process by which the government of a given country collects income from its citizens by making them pay taxes. Taxes do not provide immediate benefits to the taxpayer. The organization vested with the right to collect, assess, and account for taxes in…

Saving is the process of putting away a part of the current income for the future use. This portion of the current income being set aside will not be spent immediately. It will accumulate in this way over a given period of time. This money that is otherwise idle and not being put at risk with investments or spent on consumption is called savings. A portion of your income will not be spent when you are careful in the use of your money or resources. This money that has not been used is called savings. Say, for an instance, you…

Retirement is the point at which you leave your job and stop working in that area permanently, usually because of age. It is a phase in your life when you have to leave your long time career or occupation in favor of engaging in recreational activities. It is starting a new chapter in your life. When you decide to leave your working place and do not work in that type of job anymore, then you are. Someone who has retired is known as a retiree. Why do people retire? Many countries around the world have developed a structure for offering…

Giving is intentionally offering money, time and other resources to the others free of charge. It is driven by selflessness, empathy, and an actual desire to add to the lives of other people. Giving charity, advocating for issues, and helping others have a great impact on people’s lives. These acts are mainly grouped as either charity or philanthropy. What Is the Difference Between Charity and Philanthropy? Charity is usually based on individual giving and helping in a short-term way, like donating coats to flood victims, helping out, or contributing food to a child’s home.  Philanthropy often helps the society or…

Budgeting is the art of creating a budget. a budget is an instrument of managing money. It is used as an aid in planning, programming and control of your activities in relation to money. In short, a budget is a statement showing the way a you plan to spend your money and where that money will come from. Why do you need a budget? A budget shows you: Why do I want a budget? A budget helps you: Steps to Create a Budget 1. Assess your current financial situation. Get together all your financial information which includes bank statements, bills…

Banking is the branch of finance that provides various financial services linked to the movement of money like credit facilities, cash storage, investment, and other financial transactions. Banks are the major players in this industry. A bank is a financial institution licensed to accept deposits, make withdrawals, and give loans. Besides this, they offer different services such as mortgages, retirement accounts, currency exchange, forex trading, and wealth management. Generally, in most countries, banks are regulated by the national government or the central bank. What is the purpose of banking? The primary role of banks is to take in funds called deposits from…

A mortgage is loan that allows people and families to purchase, construct or maintain a home. You can also buy a plot of land, or other types of real estate using a mortgage. This arrangement involves a borrower and a lender such as a bank. The borrower receives money to buy a house and agrees to pay it back with interest over some time. The property is the collateral of the loan. Mortgages enable individuals to fulfill their goal of owning a home.Understanding mortgages is important when making decisions related to housing. This knowledge provides insights into how mortgages impact…

A loan is money borrowed from a lender that must be paid back. The borrowed money called the principal, must be returned with additional charges called interest. Loans can be used for different reasons, such as purchasing a home, funding education, or launching a business. A loan is a form of financial obligation taken on by an individual, organization, government, or other entity. The entity providing the loan, usually a financial institution lends the borrower money. The borrower agrees to a specific set of conditions which include finance charges, interest, repayment schedule, and any additional restrictions. Occasionally, the lender may require collateral to ensure the repayment of the loan. Loans play a significant role in our current financial system.…

Financial debt is the obligation to pay money to an individual, company, or establishment where you borrowed funds. You had an agreement with the lender where he had given you some money and you promised to return it in the future. You, the borrower, and the lender had come to a mutual understanding of the specific conditions of the debt, such as interest rates and repayment schedules.  Usually, the amount of money you pay back is more than what you borrowed. This is because credit providers offer a service that comes with a fee. They work out the fee by…

Bankruptcy is a legal procedure that assists individuals or businesses in declaring they are unable to pay their debts. They may be required to repay some of their debts. In many countries, bankruptcy is decided by a court order, usually started by the person in debt. When someone is unable to pay back a loan or borrowed money, they are considered to be bankrupt. Declaring bankruptcy is a significant legal procedure that can affect your finances for up to a decade. We will discuss the fundamental aspects of bankruptcy. Why do people file for bankruptcy? Bankruptcy is a legal option…