Economics And Finance, Are They Same?


The sole aim of the study is to identify the similarities and differences between Economics and Finance. Economics is believed to be the footing for Finance. It comprises many broader aspects like production, consumption and distribution of goods, inflation, recession, supply and demand. There are studies for government income and expenditure, the impact of business proposals and not the least the favourite index for investors to know the companies and markets. The financial segment is tailored with programmes including prices, interest rates, capital allocation, future cash flows, and much more to the business stake holders.

finance1It is a common scenario that both economics and finance are categorised as separate disciplines. However, it is a fact that Economics offshoot Finance. They lie together in a domain and influence each other to attain stability. Investors do not segregate them because modern economics is no more confined to general education, but towards significant calculations and heavily quantifiable stream in practice. Economics is the powerful resource for analysing the fluctuating markets, tax regulation and policies of government etc to reach perfect conclusions in decision making. In the corporate-sector, Economics are the key to monitor the GDP, deficit and inflation in the market, thereby preventing the lodge of investments into the growing sector.

hand drawing graph chart and business strategy

hand drawing graph chart and business strategy

Finance, on the other hand, outweigh economics and converges on cost, money flows, value and risk management. Finance managers are more proficient with capitals, evaluation of risk and kick around the hurdles of business proposals. Finance finds its abundant applications in reckoning values, judgment of financial tools, estimation of fair value to name a few. Apart from that applied finance has a lot of stock-pricing models and bonds which give outstanding results when compared to the theoretical explanations of Economics.

In a nutshell, both have specific roles to play in today’s unpredictable market scenes whilst the drawbacks they converge to a certain extend and cannot be separated as two.

Read More : Concept of Collaborative Consumption


Is Economics An Easy Learning?


Economics prevails in almost every aspect of our day to day life. The overall understandings of the world we live in, particularly the volatility of global markets probe us to learn this independently. It is, in fact, a good idea to figure out the innermost workings and estimation of price and goods that we use daily. Learning Economics do not require the comprehensive knowledge of them although your specialization lies beyond the subject. A little dedication and interest towards the real-life applications would change the scene dramatically.

eco1Today, various methods are implemented to master economics without stepping back to schools or colleges. The most convenient tool is the lectures on Youtube, which are pre-recorded set of videos that can be accessed either by a subscription charge or freely. Although there are no rooms for clarification and questioners, rewinding the videos repeats the lectures, which solves most of the issues. Studying with textbooks adds a bit more to the learning, solving mathematical calculations and verifying answers. This is a boon to most e-learners who do not find reserved time to be physically present in theory halls of the University.

ecoThere are numerous MOOC’s Massive Open Online Courses available for the passionate economics learners. These provide an opportunity to post queries which get answered within a stipulated time. The major benefit of these courses are, you can select the term, whether it is short or long offered by Universities, and do this as part-time or full-time. You may also drop in between or continue later according to your convenience.

Apart from that, learning from the books and journals gives precise knowledge and good basic understanding of the subject. The only effort involved is to find time for reading them and assimilating the contents. Hope this article will help you develop a life-long passion for this interesting subject.

Read More : Smarter Means To Save Money


Think Twice Before You Spend!


The data from social media is an increasingly valuable resource for all corporate personals. This may range from the celebrity experts who tweets the changing markets to the annoyed consumers penning down on Facebook walls. Most of the important insights in the business sector are updated and displayed on the social media which would lead to the basic know-how of the secret trends in share broking. The information highlighting their brand, competitors, adverts or campaign are all allowed to monitor so as to channelize your business to higher levels.

Banks are capable of estimating the market fluctuation according to the situation prevails via social media. Everyone in the industry undergoes hassles with that of the changing economy. Inflation and Unemployment are the root factors that define a nation’s economy. The proportionality between labour market statistics and inflation determines the financial doctrine of a country. Regardless of whether you are employed or not, the balance of income and expenditure is necessary to meet both the ends of your home. Low-interest rates had been backed by the government which was the major cause for an increase in borrows. A comprehensive approach should be made while creating a spending-borrowing agenda.

Low-interest rates are often reinforced by the government to reduce the lending and promote reinvestment to the economy. It is obvious that your assets will have a long term value only when the stability of the economy is maintained. Hence, the practice of borrowing should be in check and invest cautiously. The fluctuations with the interests and the government control may eventually make you run out of your budget. Avoid extravagance, which means squandering a car, or buying a new home based on low interest will lead to debt. During these periods, make wise purchasing decisions which depend on income and the value of your assets in future.

Thus, low interest means that it is the relief from those shoot up bills and potential to recover the debt rather than giving out more money.

Read More : A Sound Decision For A Sound Future


More About The Father Of Economics


The renowned economist Adam Smith is considered to be the father of modern economics. He was the scholar and has many books to his credit. His first book was “the theory of modern sentiments” he indexed the free market regulations and competition. Among all his write-ups, the one that made his place rigid in the history is “An Inquiry into the Nature and Causes of the Wealth of Nations” where he mentioned about the building up of Nation’s wealth. Smith completed his schoolings from the University of Glasgow and then his graduation studies from Balliol College at Oxford University.

economyThe book “Theory of Moral Sentiments” discussed many ideas on charity and human ethics which was a good piece for the critics to spawn. It broadly asserts the concept of morality and sympathy, and its effect on communication. Other than scholastic research on economics, this book contradicts the economic views of the public in the matter of work and betterment. The master work of this Scottish scholar, “The Wealth of Nations” accounts on the industrial sector of Europe which is the first book designed for simplifying the ideas so that an average reader could imbibe, and now referred to as the classical economics.

Smit’s books are responsible for minimizing the government interruption and levying taxes in free markets. These ideas emulate the concept of each person and result would be the best. Any entrepreneur who could meet the needs of their customers is rewarded financially. Although they are involved in the money-making chain, they do provide the necessities of the people. Likewise, when the nation is working productively, they are gaining themselves and tackle their financial needs.

Hence Smith took a major place in the field of Economics and his ideas were widely accepted and learned throughout the colleges and Universities.


A Sound Decision For A Sound Future


All of us wish to be devoid of debts or liabilities. We wish to retire early with at least 10% of your income reserved. We dream to have a new home or car or send your children to the top Universities to study. But the challenge is to convert these intentions to practice with your framework of budget planning. Your future financial fitness is the result of the financial decisions that you arrive in your life.

Chances of success for financial fitness depend on your plan and scheduling of the budget. Do little calculations, which will be worth at the end. Find out the assets and liabilities, make a cross verification with that of your income. The net worth measures your monitory status where you should begin your budgeting. Calculations will be more successful if you do it with regard to the time. Plan ahead with flexibility. Each month is crucial and expect an additional expense which does not meet with your schedule, say for example an emergency situation occurred like medical or accident. So the plan should be flexible to cope up the situation.

Remove filthy expenses, and keep your savings as a priority. Categorise the income into alimony, bonuses, child support, disability benefits, interest and dividends, rents and royalties, retirement income and salaries/wages. Your expenses fall under child/elderly care, liabilities, education, recreation, food and housing, medical/healthcare including insurance, personal, special events, transportation and utilities.

Do not allow life-style inflation haunts your plan. To explain further, as you go ahead and excel in career and profession, you will have an increase in income where there is an increase in spending. Life style inflation will deter your financial health in the down roads, piling you with debt. Being professional, it is obvious that you need to consistently upgrade yourself with that of the peers. Over the time or as your family grow it demands to add more quality to life. Unless you have ample resources, you should always keep an eye on your needs and wants.


Smarter Means To Save Money

A home budget is a spending plan that reflects your monthly income and expense so as to understand where your money goes. Financial goals like refraining from liabilities, saving for your dream apartment or reserving an amount for your retirement will keep you forward to achieve financial health. When your budget schedule meets closely with your expenses, you are more likely to follow it. Revise the plan regularly if there is a job shift or financial dangers.

Smart applications and softwares swashed in tremendously and now for anything and everything we rely on them to initiate our needs. Financial tools and softwares are recent innovations which reduced the turmoil with budget plans. They help you create and stick to a spending plan and usually has other personal finance features for managing your money. enables the easy organization and constant persistence on a budget. The free site tracks your financial accounts securely, provided your login information, and reminds you when bills are due and keep an eye on the accomplishment of goals. It also notifies you about unusual spending patterns.

Picking the right tax preparation software is essential if you are doing it own. The tax software balances your requirements for ease of use and affordability. It also has to meet the needs of your particular financial situation. The Healthcare Bluebook does the fair prices and tips to purchase on offers.

The insurance that offers the highest life time pay out can be reached by immediate There are free trials available for credit like credit karma that allows you get the tax report. Budget-friendly softwares are easy to navigate and use although it lacks fancy features and cool colours.


Concept of Collaborative Consumption

collaborative-workflowThe word itself refers to share the economy where common man divides the resources they own to make a profit. The best epitomes are the ride-sharing apps emerged recently like the Uber where the tap on your phone gets instant access to hail the ride on a nearby station. Jobs in the sharing economy are not like the white collar type, but are informal and lack a framework of closed cabins and stringent working hours. They are based on the match with the buyers or sellers unlike that of the traditional client and the boss. There are cons for these services, viz they do not guarantee a regular income. If demand ebbs, you will be paid for the service.

collaborative-consumption-300x200These start apps have shaken away the web from even the dusty industries. They have channelized their services, and since the focus is on 21st-century customers, they could establish the feel of cheap and affordable services among the clients. The growing acceptance of the sex-positive home sharing community KinkBnB provides the charming atmosphere with comfy rooms with lavish trimmings. The site promises all sorts of holidays, from conference to honeymoons.

The Dogvacay enables to find the perfect pet-sitters around the United States for now. There are options for you to select your pet-lover according to the ratings given by the owners. Ensure the safety of your pet while on a business trip or a conference through this service. The spinlister provides a ride for rent even for an hour to reach your desired beauty spot whether it’s on a road or on snow. Spinlister enables bike lovers connected with trusted owners in a network. The Campinmygarden help campers to find super cheap garden pitches on private lawns in your loved destinations.

The question is whether this can survive for a longer period of time. Choosing the budget-friendly is not a mature concept when overlooked closely.