Managing Personal Finances Essay
Managing Personal Finances
Managing personal finances is an important skill to acquire. However, no where in school is this subject taught. As a result of a lack of preparation, our society is subject to a high percentage of people who lack financial success. Those who are successful at managing their personal finances will find that they are successful in many other areas as well. To learn how to manage personal finances there are books and web sites that provide a step by step guide to successfully managing personal finances. Those who lack financial success often possess many of the same traits.
The first reason most people lack financial success is because they lack knowledge, or better yet, a desire to gain knowledge....show more content...
This is similar to goal setting in respect to that one must dream to make a dream come true.
A big mistake commonly made by the financial failures is conforming. Listen to the advice of mother's: "If so and so jumped off a cliff would you?" Don't do what everyone else is doing; dare to be different! Don't be afraid to take calculated risks. This does not mean that you can actually jump off of a cliff, because that would be a foolish risk, this means again to foresee the results and consequences of your actions. The successful people in society are the ones who don't do the same thing as everyone else. For example, look at the modern art. This type of art is so profitable because it is so different from any other art created.
It is also important to beware of credit. Don't borrow excessively, because it will soon become debt, which has interest and other consequences. Instead, set a budget and stick to it firmly! Attitude is also an issue in financial success. If a person has a poor attitude, he will only get what he deserves! If the worst is expected, the worst will happen. It all comes down to the power of one's mind. Think positively! When setting goals, focus on the positive aspects, and don't include any negative words. Everything can be rephrased to be positive. Successful people are optimists! In order to be an optimist, only associate with optimists. The
Essay on Money And Inflation
Money and Inflation
The nation's economic stability has many factors which amount to inflation.
Inflation may be caused by a number of problems, but there are some specific examples which have direct control over which way the prices and spending sway.
Inflation simply means that the American dollar, in this case, is less valuable on the foreign exchange market and the gold standard is moved to higher prices; which simply means that more currency is needed to exchange for gold.
Any slight change in investments or a company's cost premium could change the entire economy because of the domino effect acting on the rest of society.
For an example, flooding in a particular region of the country could cause inflation. In the long run, the...show more content...
People out of work means that less consuming will take place, meaning that other businesses will hurt due to the lack of sales, perhaps causing those other businesses to move up their own profit margin, in turn creating the same cycle at a faster rate.
With businesses under, the unemployment rate would be phenomenal. People would be seeking government assistance while the government itself is so far in debt and tied up in credit. The government assistance would add to the already huge problem of the federal government spending more than it has. The result of all the hand outs would cause an enormous dent on the federal deficit. The deficit is already bad enough, but in a case like this, the government would try to do something to prevent a long recession.
The Federal Reserve bank tries to balance the economy out by influencing other banks to print up more money to make up for the losses. This may stop the ship from sinking all the way, but this decreases the value of the dollar because of the excessive amount of money in circulation. The dollar is less valuable on our own market, so prices rise. The dollar is also less valuable on the foreign market which means that it takes more money to equal a yen, mark, or pound. Also, the value of an ounce of gold is worth less due to the gold standard, which lets gold be redeemed for dollars. Inflation has occurred and value of the dollar has decreased. If most people
Money Is Life Essay
Money is power. Money is shelter. Money is clothing. Money is life. Most people think that you can get by in life without money, but in fact you need money for all things to survive comfortably. You need money to buy a home, you need money to buy clothing, you need money to buy food. Money is powerful because you need it to get all things in life.
Money is powerful. It is needed to provide a warm and durable shelter. According to the website www.rentcafe.com the average rent price for an apartment in Battle Creek is $670.There is no way in the world that you could come up with almost $700 monthly without having any type of income coming your way. You most definitely are going to need some sort of job and also have to put in a lot of hours to...show more content...
What's the best way to get clothing on your body? Money. Most people spend a couple hundred to a couple thousand dollars on clothes every month. Most of it is just a habit but clothing is in fact a necessity. If shopping for clothing becomes a habit for you it's going to cost even more money and you are going to suffer even more if you spend more on clothes. But still, money is needed to buy clothes. If you're looking to save money on clothing you can go to Goodwill, Salvation Army, or in Battle Creek there is a Charitable Union. Now, for the Charitable Union you have to have a social security card in order to shop there, you get a limited amount of things per person in your family and you can only go once a month which would help you a lot with getting things that you need but not go overboard. Shopping at Goodwill or the Salvation Army the items aren't too pricy most clothing is under $10. Also at the Salvation Army they have a sale once a week at a certain time where anything of a specific colored tag is only $.69.Therefore, even maybe for a small price you still need money in order to have decently looking clothing; on top of paying money for a home and
Money and Banking Essay
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The use of money and its transmission through the economy by means of a banking system characterise modern economies. Money has been used for thousands of years, but has evolved to more sophisticated forms and its transmission has improved over time. There have long been questions over the effects money and banking have in the economy. Frequently they have given rise to intense debate, and are seldom far from discussion on the economy's performance, prices, exchange–rates and so on. The British economy was the first to industrialize. It developed a sophisticated financial system around the same time. The relationship between the two has been a constant topic of discussion.
Beyond the point thus described changes in money can only...show more content...
Secondly, it provides an earning outlet for those with surplus funds and provides funds for those with a deficit. This process, known as intermediation, freed a huge amount of wealth that could be used productively. When banks combine monetary and lending
Figure 1. Source: Capie and Webber (1985)
functions in the best way they constitute a powerful intermediary for channelling available funds to where they could be used to the greatest effect to promote economic growth. This was the British experience when industrializing in the eighteenth centuryModern British banks were amongst the earliest to develop. They precede industrialization, growing out of financial capitalism of the seventeenth century, and then played an intimate part in the process of industrialization and economic development that gained pace in the eighteenth century and that has continued since. The early associations of banking with goldsmiths and scriveners gave way in the eighteenth century to links to different kinds of businesses, notably brewing and retailing, or to those engaged in the transfer of funds – such as tax from the provinces to London – and therefore sometimes to solicitors. In the late eighteenth century their number grew enormously, so that there were hundreds of individual banks. There were a lot of failures too as the system groped its way slowly towards a more stable form. The banks of the early nineteenth century were small, locallybased, often with only one office.
Essay about History of Money
History of Money
Let us consider a problem. You catch fish for your food supply, but you're tired of eating it every day. Instead you want to eat some bread. Fortunately, a baker lives next door. Trading the baker some fish for bread is an example of barter, the direct exchange of one good for another.
However, barter is difficult when you try to obtain a good from a producer that doesn't want what you have. For example, how do you get shoes if the shoemaker doesn't like fish? The series of trades required to obtain shoes could be complicated and time consuming.
Early societies faced these problems. The solution was money. Money is an item, or commodity, that is agreed to be accepted in trade. Over the years, people have used a...show more content...
In fact, during Alexander the great's period, the grainaries were linked together, making cheques in the 3rd century BC more convenient than British cheques in the 1980s. The Egyptians had in fact invented the first giro system.
Most early cultures traded precious metals. In 2500 B.C. the Egyptians produced metal rings for use as money. By 700 B.C., a group of seafaring people called the Lydians became the first in the Western world to make coins. The Lydians used coins to expand their vast trading empire. The Greeks and Romans continued the coining tradition and passed it on to later Western civilizations. Coins were appealing since they were durable, easy to carry and contained valuable metals.
During the 18th century, coins became popular throughout Europe as trading grew. One of the most widely used coins was the Spanish 8–reale. It was often split into pieces or bits to make change. Half a coin was 4 bits, a quarter was 2 bits, a term still used today.
Coins containing precious metals are an example of "commodity money." The item was traded because it held value. For example, the value of the coin depended upon the amount of gold and silver it contained.
The Chinese were the first to use paper money, beginning in the T'ang Dynasty (618–907 A.D.). During the Ming Dynasty in 1300 A.D., the Chinese placed the emperor's seal and signatures of the treasurers on a crude paper made from mulberry bark.
Representative money is tokens or
Essay On Money Market
Emerging Economies Selected: India and China
Money Market
1. India
It is a market where short–term funds with maturity ranging from overnight to one year in India which are close substitutes of money even the financial instruments. It had diversified from conventional platform of treasury bills and call money to commercial paper, certificates of deposit, repos, forward rate agreements and most recently interest rate swaps.
"The money market fulfils the borrowing and investment requirements of providers and users of short–term funds, and balances the demand for and supply of short–term funds by providing an equilibrium mechanism" (Money Market in India, 2017). It serves as a mechanism through which central bank's intervention in the...show more content...
Commercial Paper
"It is an unsecured, short–term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short–term liabilities." Maturities on commercial paper is usually below one year. It's issued at a discount from face value and shows market interest rates. It has collateral and so it is unsecured. It is usually issued by firms which have high credit rating.
India
It was introduced in India in 1990 and it is issued in the form of promissory note. "It was introduced in India with a view to enabling highly rated corporate borrowers to diversify their sources of short–term borrowings and to provide an additional instrument to investors" (Singhania, Singh, & Prajapat, 2016). "Subsequently, primary dealers and all–India financial institutions were also permitted to issue CP to enable them to meet their short–term funding requirements for their operations" (Singhania, Singh, & Prajapat, 2016).
China
"In an effort to promote the direct funding of corporations, improve the liquidity of the shortened of the interest rate market and foster a more responsive pricing of credit risk, in May 2005 the PBoC allowed non–financial firms to issue commercial paper (CP)" ("BRICs and Beyond", 2007). At End–September 2006, this segment of the market was already worth ($33bn, or 1.3% of GDP), representing just over half of all non–bank corporate interest–bearing liabilities and nearly 5% of the total market.
Essay On How To Make Money
When you usually think of high paying jobs, artists are not on the first line of the list. At least that's what "they" tell us. Well this time, "they" are wrong. Not only can you earn a living from something like photography, but you can be rich. We're talking six figures rich. So if you have a camera, a good eye and are asking how to make money with it all, then sit back and follow these tips. How to Make Money From Photography:
HOW TO MAKE MONEY WITH PHOTOGRAPHY: TAKE ADVANTAGE OF INSTAGRAMERS
Instagram is the death of photography, say a lot of snobby artists. Sure, you could make the argument that the internet increased competition for photographers but try thinking about it in a different light. Suddenly, everyone is a photographer...show more content...
So just get a few loyal fans to attend your photography workshop and buy your products and you'll be good.
HOW TO MAKE MONEY WITH PHOTOGRAPHY: GET A CHEAP SIGNIFICANT OTHER
No, this doesn't mean go online and get a mailorder bride from Estonia or something. Instead, find a significant other that is smart with their economics. Don't marry someone that drains the bank every weekend. A huge part of "how to make money" is saving money.
HOW TO MAKE MONEY WITH PHOTOGRAPHY: JUST START DOING IT
Starting with zero customers is intimidating. But you know what? Van Gough was once in that position too. Do you think he popped out of the womb with millions of rabid followers? Definitely not. It takes a long time to build up an audience. So just start working away, stay patient and don't give up. Once you've done that, it's time to start your own "How To Make Money With Photography" blog. Keep reading to find out what that means.
HOW TO MAKE MONEY WITH PHOTOGRAPHY: START A BLOG
Right now you're reading an article entitled "How To Make Money With Photography." Hopefully, you're learning something but better yet, hopefully, it inspires you to write a blog of your own. You're probably thinking, "Why do I a need a blog? I'm a photographer!" Well, there are such things as photo blogs. Starting your own blog helps you get discovered on Google. No more
Wealth and Money
f you wanted to get rich, how would you do it? I think your best bet would be to start or join a startup. That's been a reliable way to get rich for hundreds of years. The word "startup" dates from the 1960s, but what happens in one is very similar to the venture–backed trading voyages of the Middle Ages.
Startups usually involve technology, so much so that the phrase "high–tech startup" is almost redundant. A startup is a small company that takes on a hard technical problem.
Lots of people get rich knowing nothing more than that. You don't have to know physics to be a good pitcher. But I think it could give you an edge to understand the underlying principles. Why do startups have to be small? Will a startup inevitably stop being a...show more content...
There are plenty of other ways to get money, including chance, speculation, marriage, inheritance, theft, extortion, fraud, monopoly, graft, lobbying, counterfeiting, and prospecting. Most of the greatest fortunes have probably involved several of these.
The advantage of creating wealth, as a way to get rich, is not just that it's more legitimate (many of the other methods are now illegal) but that it's more straightforward. You just have to do something people want.
Money Is Not Wealth
If you want to create wealth, it will help to understand what it is. Wealth is not the same thing as money. [3] Wealth is as old as human history. Far older, in fact; ants have wealth. Money is a comparatively recent invention.
Wealth is the fundamental thing. Wealth is stuff we want: food, clothes, houses, cars, gadgets, travel to interesting places, and so on. You can have wealth without having money. If you had a magic machine that could on command make you a car or cook you dinner or do your laundry, or do anything else you wanted, you wouldn't need money. Whereas if you were in the middle of Antarctica, where there is nothing to buy, it wouldn't matter how much money you had.
Wealth is what you want, not money. But if wealth is the important thing, why does everyone talk about making money? It is a kind of shorthand: money is a way of moving wealth, and in practice they are usually interchangeable. But they are not the same thing, and unless you
Essay about Money Laundering
What is Money Laundering? Money laundering is when funds from criminal activity are converted into "clean money" and cannot be traced back to the criminal activity. The goal is to conceal the criminal activity and the criminals involved. One of the main reasons people commit criminal acts is to make money off of it. Money laundering allows criminals to enjoy these illegal proceeds without law enforcement noticing.
Money laundering can be used in drug trafficking, terrorism financing, or tax evasion. Obviously selling drugs is illegal. The drug industry is known to turn out a pretty hefty profit. Drug traffickers will launder money to hide their illegal drug sales. The United States is always looking at ways to prevent terrorism....show more content...
The third step is integration, which is when the funds reenter the legitimate economy. Often times the illegal money is intertwined with legitimate money (Cliff and Desilets 3).
Why is Money–Laundering a Threat? Money laundering can be detrimental to a country's economy. It can be difficult for legitimate activities to compete, and it can cause unpredictable changes in money demand ("Consequences of Money Laundering"). It hurts businesses due to people being able to buy products for cheaper from people with laundered money in an effort to get clean money. Also these businesses have to deal with tax increases to make up for the loss of money the government is not receiving due to money laundering. A lot of laundered money filters through financial institutions. This can cause financial institutions to risk their reputation. Whether they are an accomplice or had no knowledge of the dirty money, the bad name recognition can cause investors and customers to lose faith in the organization ("Consequences of Money Laundering"). Money laundering reduces tax revenue due to difficulties in collecting revenue from an underground economy. Laundered money generally is used to expand existing criminal activities or create new ones, thus causing an even bigger economic consequence ("Consequences of Money Laundering").
Money–Laundering Statistics The United
Essay Good Money Management
Money is something that encases our whole lives. We all know this yet many of us fall into the traps of debt and overspending without even knowing it. The feeling of never having enough money or living paycheck to paycheck can lead to serious finical troubles that can and easily will carry over into a lifetime of financial struggles. Good money management and good money habits are the same way. Those skills can make a life of financial ease or struggle. All it depends on the skills one develops now as a teen. Money management is not a completely restrictive thing. Many of the skills learned can be use to help friends and family struggling with money. It all starts with clearly seeing the problem. From here the problems can be corrected and...show more content...
One major flaw in this system is how big and spanned out this loan is. For a lot of teens with loans they want small amounts to make payments on. These can range from $50 to $100 dollars a month. The problem is a loan with payments of "$50 dollars a week takes almost 5 years to pay off". (Junior 3) This long term loan brings in long term interest. Interest is the rate at which people pay the bank for using their money. This amount of interest paid to the bank adds on to the amount of money you had originally taken out. Many people, adults too, fail to take this into consideration when they take out a loan or spend with a credit cards. Credit cards work the same way as a loan just on a smaller scale. These two factors can lead to large debt issues for teens and adults. Debt issues that can and will follow them for a long time along after, making it hard to get out of. Seeing the problem of debt and over spending can be overwhelming. There are solutions.
Big things have little beginnings. The first real step towards a sound financial life is getting out of any debt. This can be done by focusing in and paying off friends or talking to a bank and making loan payments larger so less interest is paid. Once debt free the next place to go is back to the bank. Start a savings plan. Just $50 dollars a month grows to $3,333 in 5 years. That is an amazing amount of money to have as a teen and allows so much more flexibility when it comes to financial decisions and purchases.
Budgeting Essay
Budget
Budget is the major financial and economic statement. The role of the budget is to keep track of the money coming in and the money going out. It is essential part of running any business effectively. It can help make a short and long term projections about financial situation, avert a financial crisis and plan for major financial changes.
The company has to be able judge its spending performance. Does not matter what type of company it is, the ability to measure performance using budgets is an important process in any business organisation. Planning helps to understand where business is at present and where it is going to be in the future. Company's planning process has to involve different developing objectives and prepare...show more content...
Another advantage is control and evaluation. It helps to think about how to correct company's problems, if they have them. Motivation is another important advantage. Budget can motivate to reach the goals. It also can force managers to think and plan for the future. Budgeting helps to ensure that everyone in the organisation is pulling in the same direction. The budgeting process provides a means of allocating resources to those parts of the organisation where they can be used most effectively.
A budget can be disadvantageous also. There is judgment and subjectivity in the budgeting process. It does not consider quality and customer service. Budgets can be seen as pressure devices imposed by management, thus resulting in: bad labour relations. Budget could results departmental conflict arises due to disputes over resource allocation, and departments blaming each other if targets are not attained. It is difficult to reconcile personal and corporate goals
In conclusion, every major company in the world uses budgeting and there is a good reason for that. It is an important component of financial success. Budgeting makes easier to achieve financial goals. It keeps track of all expenses and help to avoid crisis. It also helps companies to control their growth and provide them with realistic idea where business is going.
What is Economics? Essay
Many people think that economics is about money. Well, to some extent this is true. Economics has a lot to do with money: with how much money people are paid; how much they spend: what it costs to buy various items; how much money firms earn; how much money there is in total in the economy. But despite the large number of areas in which our lives are concerned with money, economics is more than just the study of money.
It is concerned with:
· The production of goods and services: how much the economy produces; what particular combination of goods and services; how much each firm produces; what techniques of production they use; how many people they employ.
· The consumption of goods and services: how much the population as a...show more content...
There are three types of resources:
· Human resources: labour The labour force is limited both in number and in skills.
· Natural resources: land and raw materials The world's land area is limited, as are its raw materials.
· Manufactures resources: capital
All inputs into production that have themselves been produced: e.g. factories, machines and tools.
One must bear in mind that our wants are virtually unlimited, while the resources available to satisfy these wants are limited. In other words when society demands more of a product than can actually be produced to fulfil those wants we have a problem of scarcity. An example of this would be the OPEC oil price shocks between 1973 and 1980. Yes, it is true that the price of oil rose and some individuals used substitutes but the economies of oil importing countries like Germany and Japan fell because OPEC now had more buying power since they had the control over a scarce resource. We can therefore think of oil as having become scarcer in economic terms when its price rose.
Earlier I stated that economics is concerned with consumption and production. We can look at it in the terms of demand and supply. It is simply the quantity of a good buyers wish to purchase at each conceivable price. Three factors determine demand:
· Desire
· Willingness to pay
· Ability to pay
Whilst supply is the quantity of good sellers wish to sell at each conceivable price. Supply is