F4E: Decisions: Week 3

          The most concerning thing is decision making regarding finances. Whether to buy something or not? Whether to own a house or rent one. Where do i need to invest my money? With a gaining knowledge in the area of finance field we get more and more confidence to do such kind of activities without any hesitation.

           Everyone should have idea about where their money is going. Whether to borrow some money for some specefic purposes, is debt really needed for our growth? I say, of course yes, only if you have a better way of generating more returns than the interest that you would be paying on the capital borrowed.

Debts can be 

1. Consumer debt

2. Business debt

3. Government debt

             I would like to restress again the importance of having financially sound knowledge in order to move forward. The wealth concentration with only a very few persons is becoming more and more evident each year. According to a survey by Oxfam in 2016, it is stated that 50% of total world's wealth is concentrated with the 1% of world's population. 62 people, the High Networth Individuals, posses more wealth than 3.7 billion people of the bottom line.

              These facts show that there is severe wealth concentration with only few people which lacks diversification. There need to be serious reforms in the economic policies, business models and financial plannings of the country to counter these worsening things.

Comments

Post a Comment

Popular posts from this blog

F4E: Markets: Week 1

Let's dive into Markets.                         Markets are actually the places where the original transactions occur. Financial markets enables to borrow based on the ability to earn in the future. Interest rates determine every value of the market. When there is a change in interest rates there will be change in everything. Interest rates were determined by the central banks. Central bank charges the other banks of the nation with a interest rate called as Bank Rate, this is often calculated on basis percentage points. Increased interest rates decreases the borrowing capcaity and in turn it decreases the net spending ability of the individual or a company. Whereas the negative interest rates takes money out of the system. Central bank should carefully devise the perfect plan for maintaining a balance in the interest rates.                         Government introduc...
Read more

F4E: Decisions: Week 2

          A famous man once said " Money is the sixth sense that can buy you the remaining five ".           The best definition for finance can be said as follows: 'Finance is allocation of money for its most productive use'. The more we get used to the financial related terms the more we get the confidence in working with the finances. We feel more and more comfortable to discuss about these concepts with friends, family and community people. Let's talk Money. When dealing with money in a financially awaken manner we get more confidence on how to use it, how to spend it, how to invest it, how to reinvest it and how to manage it. It is needed by an individual as a core quality to be succesfull in his life.           Every theory needs to be concretised with the practice. "An ounce of practice worth more than a tonn of theory". We can enhance basic problem solving skills relating to finance with these 3 simp...
Read more

F4E: Markets: Week 3

 STOCKS: Stock is a group of a shares of any company. The listed company raises capital through the public offerings of the shares. The profits that the company gets will be distributed at a ratio to the shareholders. The price they get for their shares is dividend. Company can pay dividend at a time or interim.
Read more