Don 'T Build A Glass House If You' Re Worried About Saving Money On Heating

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As Philip Johnson said: "Don't build a glass house if you're worried about saving money on heating." I think what he meant by this quote was that people tend to be worried about money in many factors, most of whom are financial mistakes they've made in the past. The quote says to be smart about managing one's money in terms of saving and spending. This bring me to the statement that: some economists have said that one's income determined the amount one saves, but the interest rate determines how it is saved—cash, checking accounts, savings accounts, bonds. This statement is correct, and I'll explain why.

Assess this statement in light of the material in Chapter 10

In today's economy, there are individuals that earn more revenue than they use to purchases goods and services, and there are also individuals whom wish for more money than they currently have or can incur. Income can determine the amount one saves because it means that each individual has their own income amount that is different when comparing it to another individual. One individual who earns $100,000 a year can save more than a person that earns $50,000 a year, theoretically speaking and removing all the other factors that could be involved as how much each individual spends or consumes. …show more content…

Treasury Bonds - who are basically risk-free, since they are backed in full faith by the U.S. government. Savings account also pay interest, but have low interest payments and do not keep up with inflation either, still meaning that T-bonds are the safest

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