Manolos on a Mission

Archive for the ‘Economics’ Category

Most people who own a credit card may not be aware of the basic features of these helpful plastic cards. Oftentimes, what is only known is the ability of the credit card to allow its owner to make buying transactions without the need of having cash on hand – for having a credit card is as good as having money on your wallet. Other basic features involved with this powerful and friendly plastic sheet are credit limit, payment schedule, annual fee, penalty, and incentive scheme.

The credit limit is the maximum amount the owner can charge on it which includes the worth of procurement, balance transfer, penalty fine, and cash advance. The ruling on credit limit is not standardized. There are companies which strictly do not allow consumers to go over the credit limit while other companies allow them to over-borrow which comes with an equivalent fine.

The payment schedule is the timetable when the billing charge ends for a specific month followed by the arrival of the bill to the owner. Afterwards, an agreed upon grace period is given to the owner to make necessary payments before a certain fine is inflicted.

The annual fee is the payment for the credit card service that is obtained from the owner on a yearly basis. Other credit card companies allow the deferral of annual fee usually on the first year as a form of promotion.

The penalty and the incentive scheme are two different sides of the credit card system. One has a negative effect while the other has a positive effect on the owner. The penalty imposes a certain fine to the owner for not conforming to the agreement while an incentive is given for certain reasons such as promos or as a reward for being a loyal credit card user.

Though money cannot buy everything it has been proven able to buy “most” things. Most people say money cannot buy good health, yet good health can be obtained if you feed yourself nutritious food which money can buy and when you get sick an excellent health service can only be obtained if you have money to pay for it. They also say money cannot buy happiness, yet you can usually be able to do the things you enjoy if you have the money to spend. Shopping makes some people happy so does taking a vacation at a premiere beach resort. Both activities require money to be able to do them. Therefore, we should realize that money is not entirely a luxury. A large part of what money can do falls under our necessities that are required for us to survive.

Earning money is the way to generate money and two forms of earning money are through getting a job or creating your own business. Living within your means so you can save money and make it grow is also another way to earn money from the money that you have already earned before. With money comes the power to survive our daily lives.

The next time you think of spending money in an unnecessary purchase, remember that this money can be something that you could have added in your savings that you can use in the future. Money is important, though it should not be the entirety of our existence. Money should be valued, for without it everything will be very difficult. Give importance to it but do not worship it. Appreciate its power and use it properly.

Inflation is the rate where the prices of commodities rise with effect of consumers losing much of their purchasing power. In a logical sense, it can be a change in the value of money which is bounded and affected by time. Usually, inflation is measured in a yearly basis where the term annual inflation rate came from. A more vivid illustration of inflation is that the value of one dollar in 1950 is largely different in the value of one dollar in the year 2000. There is a possibility that a person who has a dollar in 1950 is considered a millionaire in the year 2000. That is an illustration where inflation has made a great impact since a long span of time has elapsed between two dates.

Since nothing is constant except for change, even in the economic sense stability is a status that is difficult to maintain. Thus, inflation is very much inevitable. What governments, banks, economists, tycoons, and consumers can do is to aim to stabilize inflation in such a way that it can be easily predicted. It is a fact that the value of money cannot be forced to remain stagnant so the best that can be done is to acquire the ability to know before hand how much increase in prices and decrease in purchasing power will occur in the coming year. This way, everyone can prepare and take actions on how to cope to inflation.

A directive applied by most governments to help its people from having a hard time getting along with inflation is the promotion of cost of living allowance in salaries. The cost of living allowance permits the adjustment of a person’s salary in accordance to inflation. Since many experts have devised methods to approximate the behavior of inflation, companies can easily adjust employee salary to match the upcoming change in purchasing power.

Welcome to our site!

We are the Manolo brothers and we have just started a business five years ago. We gained a lot of experience and knowledge in being entrepreneurs . And now, we want to share the knowledge we have gained about Business, Finance and Economics to others.

In this site, you will be able to read about business, finance, economics and investments as well as advertising and marketing.

Hope you enjoy reading!