Money and currency
Origin of money
Money is such an integral part of everyone's daily life that it is often taken for granted. It occupies a central place in the management of personal finances. There are different views on the origin and development of money. At first gl...
Alternative views on money
The barter theory is considered the main or classical one and is accepted by economists. However, there are also alternative views. Knowing them builds the complete picture of what money is and what its role is in the economy and people'...
Income, social insurance, taxes
Why are taxes necessary?
Historically, the role of the state has evolved over time. Its existence is absolutely necessary. First of all, it has provided people with security: external – through defense, and internal – through the order it guarantees....
Tax system
Taxes can be classified into several categories. They actually build a complex system through which government spending is distributed to varying degrees among individual entities (households and entrepreneurs). Why is it important to ha...
Indirect taxes
Value Added Tax Value Added Tax (VAT) has been part of Bulgaria’s tax system since 01.04.1994 and represents the largest source of tax revenue for the state. It is regulated by European legislation and is applied in all Member Sta...
Direct taxes and tax reliefs
In direct taxes, the entity that bears the tax burden (consumer or entrepreneur) is also the one who pays the tax liability to the budget. They can be different depending on the subject of taxation, for example, income or property. Direc...
Local taxes
Indirect taxes and the main direct taxes – the tax corporate and the personal income tax – are paid into the central budget. Both entrepreneurs and consumers pay direct taxes into local municipal budgets. They form part of th...
Other payments to the state
People often equate all amounts they pay to state and municipal authorities with taxes. Although a significant portion of public obligations are collected by the National Revenue Agency (NRA), they are quite different in nature, and it i...
Income from labour
Income plays a central role in managing personal finances. It can be in both monetary and non-monetary form. The standard of living of each person depends on it. They are decisive for both savings and investments, as well as for ...
Passive income
In personal finance management, income that is not related to work and time investment is perceived as passive. Passive income is revenue that is earned with minimal or no active involvement from the person receiving it. It can be genera...
Social insurance. Pensions fund
Social insurance is a system through which the state provides protection to citizens in the event of certain social risks. The private sector may offer supplementary insurance that complements the public system but does not replace it. D...
All individuals employed under employment contracts are subject to insurance contributions to the remaining funds of the state social insurance (SSI) – General Sickness and Maternity and Unemployment. Additionally, contributions to...
Payments
Payments
Payments are the basis of economic relations. They involve a transaction in which ownership of the payment funds is transferred to the recipient. The development of money and payments is mutually conditioned (more information could be fo...
Financial planning, budgeting, saving
Financial planning
The renowned writer Alexander Milne once wrote, 'When you don't know where you're going, you’ll end up someplace else.' This thought rings particularly true when it comes to our finances. To achieve satisfaction in life, it is impo...
Budget
What is a budget? The budget is the primary tool through which financial plans are put into practice. It is a quantitative plan for a specific period of time or for a particular purpose (funding an activity, event, goal, etc.). It connects the ...
Saving
Saving allows you to postpone current consumption for a future time. It is in this way that it becomes a primary means to achieve goals which are not related to satisfying your present needs. Save for Your Goals To build financ...
The choice of a saving method depends on the goals you have set, as well as the need to have quick access to your funds when necessary. • Storing funds in Cash Accumulating cash is a possible option, but it is not advisabl...
Investing
Why should I invest?
5 guidelines for beginner investors Clarifying what investments are and why you should invest is probably the first step you should take before taking action. Investments are allocations of financial resources into specific assets, wit...
Basic investment concepts
Risk, Return, Diversification, Liquidity The world of investing offers a wide range of opportunities to achieve your financial goals, whether you're an experienced investor or just a beginner. But in all cases, one important condition m...
Types of investments
Do you want to finance your life goal and secure your financial future? Investments are a way to achieve what you desire, especially when it comes to longer-term goals. Often the question is how to navigate the sea of investment opportun...
Investment strategies
Before choosing an investment strategy that suits you, it is important to have “done your homework” – to have clearly defined your goals and risk profile, and to have a financial plan in place to ensure funding for inve...
You have selected an investment strategy that matches your financial goals, risk profile, and time horizon, and now it is time to put it into practice. When it comes to financial instruments, many people think that investing is a complicated and...
Retirement
The pension system in Bulgaria
Every person wants to enjoy a decent life after retiring. Pension insurance plays a key role in ensuring personal financial stability during this period of life. There are different models of pension insurance - based on cost-covering s...
What kind of pension can you expect one day is a question that becomes more and more relevant as you get older? In order to gain a more realistic idea, it is important to inform yourself about how the pension system in our country functi...
Prospects for a higher pension
Throughout your working life, you contribute part of your income to mandatory pension insurance - pillars I and II of the pension system. The possibilities for receiving a higher pension may also include contributions to additional volu...
Debt and credit
Debt, Credit and Credit Institutions Very often, achieving your financial goals – buying a new car, apartment renovation or something else – requires available funds that you do not currently have. In such cases, there are g...
Debt management
Loans have become widespread in our lives and people often use more than one – they pay off a home mortgage and a consumer loan, lease a car, shop with a credit card. Loans can bring benefits and improve the standard of living prov...
The cost of credit
The funds borrowed allow you to achieve your goals at the present moment. But the ability to use a certain amount of money before you have earned it comes at a price. The interest rate is a major, but not the only element in forming the ...
When you are considering taking out a loan, you will probably research the offers on the market to find the one that best suits your needs and financial capabilities. But when you apply for a loan, lenders also assess whether you meet th...
Loans and collaterals
When they lend you money, creditors take a certain risk - in life everything happens and it may turn out that you are not able to pay it back. That is why they use various mechanisms for protection against possible losses. Along with ass...
Consumer loans
Consumer loans are intended to finance various current needs – repairs, purchase of goods and services, travel, education, covering expenses, etc. Their granting is regulated by the Consumer Credit Act (CCA). It regulates vario...
Other consumer loans
"Quick" Loans The so-called "quick" loans are characterized by a simplified application process, quick approval of the application and allocation of funds. These are short-term loans that are usually used to cover urgent financial n...
Mortgage loans
Building a home is one of the most important life goals, but its implementation requires significant financial resources, which people generally do not have. Therefore, it is normal practice to seek loans from credit institutions to fina...
Insurance
The risks in our lives
You have probably heard the phrase “there is always a risk” – cliché, but true. Economics defines many types of risk – market, credit, interest rate, inflation, regulatory, etc. What they all have in common...
How does insurance “work”?
“How is it possible to pay a small amount for insurance and then receive compensation many times larger?” “Will I get my money back if I didn’t receive any payout on my policy?” – these are common ques...
Purchasing insurance
What you need to know when entering into an insurance contract Buying insurance means entering into an insurance contract and paying the premium specified in it. An informed and careful approach to this process is essential for you to b...
Choosing an insurance policy
Think about how much time you spend researching before buying a new phone—you compare models, their features, prices from different retailers. You do this to ensure your choice meets your desires and needs. But do you apply...
Motor insurance
Motor insurance is the most widespread form of insurance in our country—not only because motor third-party liability insurance is mandatory, but also because voluntary Casco insurance holds a significant market share. The many risk...
Property insurance
Our home is often our biggest investment – with the money we have invested in buying it, furnishing it, and maintaining it. It is logical this valuable asset to be protected, and property insurance serves precisely for that purpose...
Life insurances
Caring for your loved ones – this is the essence of life insurance. Through life insurance, you provide financial protection for yourself and your close ones in difficult life and health situations, while also securing funds for fu...
How you should act when an insured event with a covered risk occurs, how to file a claim for compensation, and what to expect afterwards—these are important questions that every consumer should be informed about. The terms, procedu...
Consumer protection
Have you ever thought about how much our behavior in managing our personal finances and using financial products and services has changed over the years? They are becoming more numerous, more diverse and more complex, and access to them ...
Financial institutions offer a wide range of financial products and services. European and Bulgarian legislation includes a number of provisions aimed at consumer protection, which regulate in detail the rights and obligations related to...
Five steps you can take An unauthorized money transaction, incorrectly charged fee or interest, missed deadline, delay in payment of an amount owed to you – these are just some of the problematic situations that may arise when usi...
Digital finance
Digital finance
The dynamic technological development in recent decades has inevitably influenced the evolution of money, and accordingly - on finance as a whole. Today, the very concept of "digital finance" is also constantly expanding its scope as a r...
Security in the use of financial products and services
Types of financial frauds
What are the most common financial frauds and how to protect yourself from them? In today's world, consumers have easy and quick access to a variety of financial and payment products and solutions. This dynamic environment creates new o...
The digital technologies have changed the way we manage our money – we quickly and conveniently make online payments, invest, buy and use financial and payment products and services. Along with the undoubted benefits, digitalizatio...
