PACED DECISION MAKING ESSAY
Problem
I’ve been given 1,500 to spend on whatever I want or need. The problem is I’ve never had this amount of money before to use. I’m confused on whether I should save, spend or invest the money. I haven't had the first hand experience of investing and saving money. I want my money to be in good use but now I have to figure out which alternative is best for me.
Alternatives
Save
My first alternative is to save. I have multiple choices on how I want to save my money. I am able to put it in the bank in multiple kinds of savings accounts, also use my own personal safe & save by reducing my money in certain areas. I’ll have more money to use when I need for emergencies. Meaning I can put my money in an emergency account and use it when I’m in need. I will also gain interest by doing that overtime. I can also use CD’s which gives me the opportunity to invest and reinvest my money which will make more money. Doing that will make my money grow faster.
Invest
My second alternative is to invest. I can put my money in a bond and the company will use my money and in return they will pay me back and with interest. I can put it in the stocks also and decide with the shareholders how we want they money spent. Eventually if the company blossoms I will get a share of the company. A mutual fund would be a combination of both a stock account and a bond. I can also put my money in a mutual fund and watch as the investment grows. Also if the company I’m investing in grows there will be more money for them and me. Also the company will acquire more employees which will decrease the unemployment rate and help the stock market and the economy.
Spend
My last alternative is to spend. I can spend my money multiple ...
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...ding on the type of savings account I have and bank. I picked Saving rather than investing because theres a risk in investing , if the company or whatever I'm investing in doesn't work out I can lose a substantial amount of money and I can't use it right away until the interest builds or the company grows. With spending it feeds my personal needs but won't benefit me in a smart way. I can buy luxuries, I can't use it on emergency if I'm spending it all, but I can use it now. Theres also no growth involved in spending it. Saving is the best alternative for me and the economy its safe and secure. I gain more with saving than I could spending and investing. Also by saving the bank is able to lend out money people need, and later paying me back more in return. That will benefit the businesses and grow the economy. Overall saving is the way I would spend my 1,500 dollars.
There are many different ways to save money and there are different things to save for. A savings plan for an immediate want is apparently different than a savings strategy for retirement. One may choose to select stocks, bonds, or mutual funds for a savings strategy, however, my personal choice is to invest in bonds first, then mutual funds.
In the eyes of most of my peers, saving is not even on their radar for something they should be concerned about, and spend outrageous amounts of money going out to eat everyday and acquiring new clothing and technology weekly. In the same way they are obsessed with keeping up with trends, I am with seeing the number in my savings account increase, rarely spending the money earned from babysitting and yard work, and looking for investments where I can place my money to help it grow. As early as I can recall I have had a savings account, where my mother urged me to place and least a half monetary gift received, and this habit of saving guides my spending today. My mother sometimes gives me money to spend on a night out, of which I don't think I have ever spent half, and always save the excess to use in future events. Even as a child my mom would apply a certain budget to what we could spend on back to school clothing and supplies, and I would and still do scour through newspapers and the internet looking for coupons, to get as under budget as possible, then enabling to save the
Decision-making is one of the hardest tasks individuals have to endure. Deciphering between whether or not the decision you make will benefit you, if it will hurt someone else, what are the pros, the cons, and if the decision you make is eleven moral in itself. When decision-making the study of ethics plays a major role as to which decision you ultimately decide on. Ethics evaluates the morality of actions based on principles set by theories, individuals or in some instances cultures. Morality is an enormous part of decision=making which comes into play every single day in human life. Ethicists create theories based on the morality that exists in our lives in regards to certain situations. In particular, the utilitarian theory is well known
Why save money when you have nothing or no one
convert to a defined contribution plan. A defined contribution plan such as 401K is like a saving
have more money for equally important things such as saving for your child's college fund . Used auto parts
People like me also find it prudent to hold on to emergency funds as a precautionary demand. The positive side to using this method is that people will have readily cash on hand. The negative aspect will cause a person to lose out on any interest earned; however in most cases the intent to put away emergency cash is measured against, the amount of interest rate they can make through putting their money away in a saving account. The more attractive interest rate offered the better justification in why an individual will not hold on to a greater amount of cash. When discussing savings we cannot overlook the need to hold money as a store of value, otherwise known as asset
... a long happy retirement. If people merge accounts together to gain a better view of how money is being used, and pay themselves first, as well as sacrifice unneeded luxuries, then it is certain that there will be substantial savings. People can also enter into investments sources such as stocks or pensions to have money in an unusable source, so that it cannot be used until desperate need like retirement. Prepare now so that the future will be enjoyable as relaxing, as it should be.
Problem: The current problem now is finding out something useful to do with my money. When it comes to spending the money i would rather find a better way to spend it. I usually use it in food that last’s only 3 minutes. I would rather use it in something more useful and priceless if i can. I need to find a way to use the money in a more economy contributing way; or even in a donating/helping others type of way.
In conclusion, the best way to manage your money is to keep a budget and record all your transaction to see where your money is going. Living with a budget isn’t the easiest thing in the world, but it can be a great alternative to worrying about how you are going to pay for your expenses. Budgeting allows you to create a spending plan for your money; it ensures that you will always have money for the things that are important to you. Following a budget will also keep you out of debt. If you don’t balance your budget and spend more than you make, you will have financial problems. Many people don’t realize that they spend more than they earn and slowly sink deeper into debt every year.
When it comes to the reasoning and problem solving of any issue there are various ways to come to a decision; thinking is the mental process that allows the people in the world to deal with it effectively, according to set goals, plans, ideas, and desires. Thinking involves the gathering of information that forms concepts and engages in problem solving, reasoning, and making precise decisions for the benefit of whom is concerned. Thinking according to Kirby and Goodpaster (2007),"is an internal mental process that uses information as input, integrates that information into previous learned material and the result may be knowledge or may be nothing". Creative thinking, logical thinking, and persuasive thinking are three types of thinking. Each of these types of thinking affects the critical thinking process in various ways. The three thinking types will be compared and contrasted, as well as applied to affects they have in the critical thinking process. Every person has a primary style of thinking that is used most to help in his or her decisions. Finally, critical thinking will be applied to the decision making process by using workplace examples.
An employee does an unsatisfactory job on an assigned project. Explain the attribution process that this person's manager will use to form judgments about this employee's job performance.
...ed to consult a broker to purchase company shares. It is always important to research the company you are thinking of investing in thoroughly. It is best to hold onto stocks for a long time as there are fees when buying or selling, and the tax implications that will apply. Bonds are usually safe investments and are often backed by the federal government.
Saving money will help someone in the future b providing the feeling of security. Usually someone will save money for a certain goal in life. Therefore the first step is test goal for the certain amount on money you need to save. Setting goals can be short-term goals can be usefully can analysis the amount you have to pay at the moment. Saving money doesn’t mean refraining from buying what you love. Are you wanted to buy new clothes or even a house doesn’t hesitate to make that purchase. However take in to account the down payment and compare costs. Being able to plans and set goals on certain can help save a small amount thus accumulating over time. Long –term saving can be a little harder and takes dedication and time. Saving an up a certain a...
Saving money brings security for any future expenses. The earlier in life an individual begins to save, the better they will be set financially in the years to come. There are several reasons why it is important to save money. A few of these reasons are for emergencies, retirement, and simply for luxury spending. Having money will benefit each of these examples.