Running head: PERSONAL FINANCE: HOW TO MONITOR AND MEET YOUR RETIREMENT TARGETS 1
PERSONAL FINANCE: HOW TO MONITOR AND MEET YOUR RETIREMENT TARGETS 2
Course: CBP203
Date: 09 October 2017
My Personal Finance
Refise Beaubrun
FINANCE PORTFOLIO
Abstract
While we live in a working economy, price increases, and with so many risks one must think about the economics, it plays a big role in one’s personal financial situation. When the inflation rises unexpectedly, it escalates to four percent. I must find out how to make my budget work with the higher cost of living. There are many things that I must consider, to find a solution to my problem on how to manage my money when I reach in my retirement stage. My situation is varying in different
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As prices go up and down, I must make sure that I have enough money to put gas in my car to get to work and school. If gas prices go up, I need to spend less money on groceries, and reduce my lunch spending in half a week. As the middle class, we rely a lot on what happens in the economic world, it is not just gas prices it is also taxes, resources, and the cost of living which are changing every day.
Economics are often considered the study of decision making. Our decisions revolve around what is happening in the world of money.
What role does the government play in one’s personal financial
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When budgeting, one must look at what will be owed to the government and those in authority. Before someone makes a decision that has to do with money, they need to consider consumer prices, inflation risks, interest rate risks, income risks, and so on. These categories have an impact on one’s personal budget. Likewise, the government can be of assistance to those in distraught financial situations. The U.S. government offers welfare for those who are unable to work. While someone is out of a job, unemployment is also offered, to hold someone over until another job is found. The thing about these benefits is that it is not really the government paying for them, it is the American people. American taxes pay for the welfare of those who are unable to work, and the unemployment to those who are looking for a job.
What is the impact of taxes on one’s personal financial plan? Taxes affect most people of the working class. Exemptions and federal taxes are all taken out of one’s paycheck, and this must be calculated into one’s budget. Someone cannot make $20 an hour in today’s world, by the time that the taxes are taken out someone’s paycheck it seems more like $15 an hour. Many people cannot even live off their incomes because the tax burden on an average employee is currently about 73% of one’s income (MidiMagic, n.d.). Personally, I can say that I am affected by all the taxes from work, and personal
Thirdly I noticed that government effects how much money is deducted out of the paycheck I receive at work. The government deducts money for many different programs. One of those is the social security program. The social security program is made up of money deducted from everyone's pay this money is distributed when the employee becomes disabled, retires, or passes away. The money is there to protect the worker and their families if that person is no longer able to work. The government also takes money out of my pay for Medicare, Medicare is a program that provides medical care for people that can not afford it. There is also a federal income tax that is deducted and used for a various assortment of programs from road paving to bridge building and many other public needs.
However, economics is relative to everyone’s life. We can still feel the wound of financial crisis up to today. It’s useful for everyone to learn something about economics.
Economics is the study of how best to allocate scarce resources throughout an entire market. Economics affect our lives on a daily basis, whether it is on a business level or a personal level.
It is the study of resource allocation, distribution and consumption, of capital and investment, and of the management of the factors of production. (http://wikitionary.org/wiki/economics)
When it comes to financial planning, economics plays a major factor in people’s personal finances in many ways, it is an essential part of the world we live in today. When you buy gas, or shop for groceries, plan a vacation, economics is at the core of those choices. So why does economics play such a vital role, what is the driving force behind this? In its simplest form, it’s based on choice. We will look at a few factors that impacts financial planning and the economy, including the use of credit, and how the government affects the economy.
The crucial importance and relevance of economics related disciplines to the modern world have led me to want to pursue the study of these social sciences at a higher level. My study of Economics has shown me the fundamental part it plays in our lives and I would like to approach it with an open mind - interested but not yet fully informed.
There are two reasons help us to answer this question. Firstly, as it mentioned above, economics could provide supports to help people make right decisions. Everyone have to make a considerable amount of decisions in life and work, no matter they are politicians or housewives. For example, a wise politician makes use of economics theory to make economic decisions in order to run the country well and bringing prosperities to people. A smart housewife knows that breads’ and vegetables’ prices are economical in the afternoon under economics’ guidance. Some common rules hide incredible economics theories people might never notice because it seems so simple in the normal life. If we known these theories, we can take advantages of it to make right decisions at vital moment. Secondly, economics, as one of the most important subjects in academic circle, playing a significant role and affecting many aspects of our life. Before I study economics, I found many strange things whereas I can not explain by using common sense. For example, why are diamonds so much more expensive than water even thought water has vital importance to human existence than diamonds? Why does government levy taxes on merchandises to increase citizens’ financial burden? Why does the fast food restaurant drink can be refilled for free? After I learned the marginal cost and
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According to Sloman (2003), many people think that economics is about money. Well, to some extent this is true. Economics has a lot to do with money: with how much money people are paid; how much they spend; what is costs to buy various items; how much money firms earn; how much money there is in total in the economy. But despite the large number of areas in which our lives are concerned with money, economics is more than just the study of money. It is concerned with the production of goods and services and the ...
Economics is basically the understanding of how different economies function. Economics is the study of how to best allocate scarce resources among competing uses. Scarcity in the economy is the main problem. There are not enough resources to keep up with the demand for them. Within the discipline of economics, there are two areas of study: Micro and Macro Economics.
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