5 Common Personal Finance Mistakes Students Make & How to Avoid University life is an exciting chapter filled with new freedoms, and one of the biggest is managing your own money. However, without a proper guide, it's easy to fall into financial traps that can have long-lasting effects. Building strong financial literacy now is the key to a secure future. Let's break down the five most common personal finance mistakes students make and provide simple, actionable steps on how to avoid them. 1. The Mistake: Having No Budget (or "Wingin' It") This is the number one financial sin. If you don't know where your money is going, you can't control it. Simply " hoping " you have enough money left at the end of the month is a strategy for failure. How to Avoid It: Create a simple budget. You don't need a complex spreadsheet. Start by tracking your income (allowance, part-time job, scholarships) and your fixed expenses (rent, fees, phone bill). Wha...
Measuring Business’ Profitability Without Seeing Net Profit Earnings before interest, taxes, depreciation and amortization (EBITDA) and earnings before interest and taxes (EBIT). EBIT , EBITDA and operating profit are forms of profit of a company before considering interest and taxes paid and writing off depreciation and amortization (only in the case of EBITDA ) showing the core performance of the company. Where is it shown? There are 3 financial statements – • Profit & loss statement • Balance sheet • Cash flow statement It is shown in the profit & loss statement. For example- REVENUE RS.20000000 COST OF GOODS SOLD RS 4000000 GROSS PROFIT RS 16000000 MARKETING RS 2000000 OFFICE AND ADMINISTRATION 3000000 EBITDA 11000000 DEPRECIATION 1000000 AMORTIZATION - EBIT 10000000 INTEREST 2000000 PROFIT BEFORE TAX 8000000 TAX 2400000 NET PROFIT 5600000 Operating profit = EBIT- (non-operating profit) Important terms to know. · Amortization-writing off the value o...