In today’s fast-paced world, credit cards have become more than just a convenient way to pay for goods and services. They are powerful tools that can either help you achieve your lifestyle goals or trap you in a cycle of debt. But how do you know if your credit cards are working for you or against you? Are they helping you live the life you’ve always dreamed of, or are they slowly turning into a prison yard, limiting your financial freedom? A recent study by Matthew J. Bernthal, David Crockett, and Randall L. Rose, titled Credit Cards as Lifestyle Facilitators , sheds light on this very question. The research, published in the Journal of Consumer Research, explores how credit card practices can influence your lifestyle, either positively or negatively. Let’s dig deep into the findings of this study and explore how credit cards can be both a blessing and a curse. The Dual Nature of Credit Cards: A Research Perspective Credit cards are a double-edged sword. On one hand, they ...

  For those who’ve ever wondered why the stock market sometimes feels like a rollercoaster ride, a groundbreaking study has revealed that stock prices overreact to new information, leading to predictable reversals. This means that when investors panic or get overly excited about news (such as quarterly earnings report, merger & acquisition, dividend announcements, inflation rate, oil prices, insider buying/selling etc), they often push stock prices too far in one direction, only for those prices to snap back later. Think of it like a rubber band: stretch it too far, and it’ll eventually snap back to its original shape.   The research, conducted by Werner F. M. De Bondt and Richard Thaler, dives deep into the psychology of investors and how their emotional reactions can lead to systematic mispricing in the stock market. If you’ve ever felt like the market doesn’t make sense, this study might just explain why.   The Psychology Behind Overreaction The study d...

  In the world of finance, whether personal or business-related, understanding where your money goes is crucial. It’s not just about how much you earn or how much revenue your business generates; it’s about how effectively you manage and allocate your resources. This is where the concepts of cost centre, cost unit, and cost item come into play. These terms may sound technical, but they are foundational to making informed financial decisions that can determine the survival and growth of your finances.   In this article, we’ll explore these concepts: what they mean, how they work, and why they are essential for both personal and business finance. We’ll also share real-world examples, practical tips, and actionable insights to help you apply these concepts in your daily life. By the end of this article, you’ll have a clear understanding of how to track, analyze, and optimize your costs to ensure financial stability and growth.       What Are Cost Centre...