Finance or Investment is using money to purchase assets in the hope that the asset will generate income over time or appreciate over time. Consumption, on the other hand, is when you purchase something with the immediate intent of personal use and with no expectation that it will generate money or increase in value.
Finance or Investment also helps grow the economy because it creates economic activity, such as the buying and selling of goods and services and employing people. Employed people get paid and either save, invest, or spend their money. If they spend their money, businesses make more profits. Businesses can then reinvest the profits in further business activities that expand the economy.
Of course, too much of a good thing can be bad. If everyone is investing, then no one is consuming. If no one is consuming, consumer-orientated businesses, such as restaurants and retail establishments, will suffer. This may lead to layoffs. The key is to find the proper balance between investment and consumption.
Options trading is one of the most popular investing strategies in the world. Options are not for everyone but they can be used safely to make a few extra percentage points per year while remaining safe. Here are 3 top options trading investment strategies for beginners – step by step. Read more…
Sometimes the hardest thing about saving money is just getting started. It can be difficult to figure out simple ways to save money and how to use your savings to pursue your financial goals. This step-by-step guide to money-saving habits can help you develop a realistic savings plan. 1. Record Read more…
There’s no hard and fast rule for how much of your salary you should put into your 401(k) plan account. But, in general, you should always consider contributing as much as possible, depending on your specific financial circumstances. A combination of factors will dictate how much you should personally save, Read more…
A 529 plan can be a great tax-advantaged way to save for an education—your children’s, your own or anyone else’s—and it may offer surprising financial flexibility. If you establish a 529 plan to pay for education expenses such as college, graduate or vocational school, you may be able to take Read more…
Steps you can take to make sure unexpected events don’t interfere with your long-term plans. Common sense tells us that it’s impossible to eliminate all risk from our lives, financial or otherwise. We can’t control whether markets go up or down. A divorce, serious illness or even a large, unexpected Read more…
The Internal Revenue Service is on track to send the monthly advanced payments for the Child Tax Credit (CTC) starting in July, according to IRS Commissioner Charles Rettig. The payments are worth up to $300 per child. The agency is also launching a portal where taxpayers will be able to Read more…
The IRS will automatically adjust returns for people who filed before the unemployment tax break became law, but taxpayers can also take action on their own. The Internal Revenue Service says it will automatically adjust tax returns and issue extra refunds for people who already filed their taxes before a valuable jobless Read more…
Early retirement might seem like a dream. But it’s one that you can achieve if you plan early and set goals as if your life depends on it. In fact, it does. So, ask yourself: how much do I need to retire early? At age 60? At 55? Examining different Read more…
If you’re one of the 56.7 million people who took on some form of freelance work or a side gig last year, you may have some tax benefits coming your way. Self-employed workers were eligible to receive unemployment benefits and take paid sick leave for the first time ever in Read more…
Of the millions of taxpayers who filed their 2020 taxes, a handful of unlucky ones may have their returns singled out by the Internal Revenue Service for an audit. It’s not terribly likely. In the 2019 fiscal year, only 0.45% of the individual tax returns were audited, according to agency data, Read more…
