Capitalism is an economic system followed by a country or a society which is characterized by Privately owned businesses, a market economy and profits.
Capitalism is defined as "production for exchange" driven by the desire for personal accumulation of money receipts in such exchanges, mediated by free markets. The markets themselves are driven by the needs and wants of consumers and those of society as a whole in the form of the bourgeois state.
Personal financial planning is the process of creating and achieving financial goals.
True statements regarding personal financial planning:
As we age, the number and complexity of the financial decisions that we make increases.
There are two means for achieving financial goals?you either need to increase your savings or reduce spending.
A family's resources are limited.
CDs are the least risky investment choice when compared to flipping, renting and bonds.
A certificate of deposit (CD) is a savings certificate with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements. A CD restricts access to the funds until the maturity date of the investment. CDs are generally issued by commercial banks.
CDs are issued by the bank and are guaranteed by the government. So even if the bank goes bankrupt the investor's money is guaranteed to a certain extent.
Flipping and renting are subjected to market fluctuations while bonds are not insured.
There are two payment types that will help you stick to your budget.
1. Cash
2. Debit Card
The amount in the debit card is the only amount you can spend to stay within budget.
These method work because once you spend your money, you are done. You don?t have anything else to spend.
Credit cards, payday loans, and cash advances are all loans on future income. When you use a credit card, there is always just a little bit more you can spend. These types do not help you budget properly. In fact, these types encourage you to spend beyond your means and be out of budget.
Copyright ©CuriousTab. All rights reserved.