Financial Wisdom For Everyone

Welcome to PlanetFAQ.com

At PlanetFAQ, we simplify personal finance and investing for beginners and beyond.

Our Mission

Your Journey

We guide you step-by-step through budgeting, money management, and global investment trends.

Quick PlanetFAQs

What is the difference between saving and investing?

Saving is setting money aside for short-term goals with zero risk (like a bank account). Investing is buying assets (like stocks or real estate) with the expectation that they will grow in value over time, though this comes with some risk.

Why does a dollar today buy less than it used to?

That is called Inflation—the gradual rise in the price of goods and services over time. Because inflation erodes the purchasing power of cash sitting in a piggy bank, investing is crucial to help your money grow faster than rising prices.

How does Compound Interest work?

Einstein reportedly called it the "eighth wonder of the world." Compound interest is when you earn interest on your money, and then earn interest on that interest. Over time, this causes your wealth to grow exponentially, not just linearly.

What is the difference between a "Bull" and a "Bear" market?

These are terms for market trends based on how the animals attack. A Bull market thrusts upward, signifying rising stock prices and optimism. A Bear market swipes downward, indicating falling prices (usually down 20% or more) and pessimism.

What is a good credit score?

Ygenerally, a FICO score above 700 is considered good, and anything above 740 is excellent. A higher score unlocks lower interest rates on loans and mortgages, saving you thousands of dollars over your lifetime.

What is the "Golden Rule" of investing?

Diversification, or "don't put all your eggs in one basket." By spreading your money across different types of investments (like stocks, bonds, and real estate), you reduce your risk. If one basket falls, you haven't broken all your eggs.