The Presence Of Finance In Every Sector Of Life; How Do We Manage It?
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Every human is an economist of a sort and this is because each and everyday we make financial decisions that we hope they become favourable. Irrespective of how wealthy a person can be there's always that inclination that makes them want to have more for paying less. Personal finance is something everyone is involved with, from the scientist to the artist to the barber and the banker. Everyone irrespective of their field is joined in a heterogeneous market where they're necessarily spending the money they're making off their field and that's why finance is for everyone. Making money decision is something we're not fully equipped at doing and that's why we need lessons learnt from our previous finance experience to be better.
The Equilibrium Price
The seller aims to sell for more while the buyer aims to buy for less. These two diverse mindset is the reason why the market is a place for negotiation. In Nigeria for example many people diverse various strategy when it comes to negotiating a price. The seller would start from the highest price range which can still be deemed normal for a product while the buyer begins from the lowest price range and the negotiations continue until they meet at a favourable price which is called the equilibrium price. Now why is it necessary to attain the equilibrium price? It's necessary because the seller gets a sizeable and minimal profit from selling while a buyer gets a fairly good price from buying and everyone goes home happy.
Personal finance is taking charge of your money and putting it into the right places, while we have the consumer mindset sometimes we're simultaneously having the sellers mindset because we sell and buy and in a heterogeneous market no one is solely a seller or buyer. By working in a company or firm, you're selling your skills to accrue some amount of income and on a monthly or weekly basis and while you get paid you automatically become a buyer, putting plans into prospects to take care of your needs, wants or desires. Our lives radiates or shows how well our personal finance is. For example a person who makes good financial decisions will definitely be different from a person who makes terrible finance decisions irrespective of the cash flows to their pocket.
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The Need For A "Better" Finance Decisions?
The world is filled with more poor people than wealthy people and most of the time it's the rich who are benefiting from the decisions made by people who have more problems but a limited amount of money. In Nigeria for example if the average person stops buying let's say Dangote foods, the wealthy will certain not consume enough to keep the income of Dangote flowing. But then the average people are only put into consideration if it'll warrant the rich to actually make more money. The wealth distribution in the world is largely unfair and that's why prudent economic choices are always important especially to those with a limited source of income but unlimited monetary problems it helps people to stay afloat rather than sink further into the rabbit hole of poverty.
In essence Irrespective of how financially equipped we are, we would be fazed always with things like potential choices of risks for futuristic returns, buying to satiate oneself or buying to placate a need, scale of preference because of inadequacy, choices to spend minimally or ostentatiously when there's more and less. These personal decision defines how well we're doing, if we'd continue or if we wouldn't. How well we earn isn't always the issue. In a country like Nigeria, having a landed property is more of a better investment than having a posh car but sometimes lifestyle differs and a lot of people wouldn't agree. However experience is what eventually proves these things to be either wrong or right. Finance is everywhere and we're always required at one time to makes choices that we deem right by us.
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My name is @Josediccus, a young Nigerian student who is a Vlogger, A Psychologist, Poet And Sports Writer/Analyst. I'm using my contents as a process to create shared meaning as well as create expressions through which people on/off hive can relate. I believe content is a process to be enjoyed and relished and I'm up for any collaborations in my field stated above. Cheers
@Josediccus, your brother-in-pen & heart
I'm hoping to reach more people who are broken at heart and spirit, so share on any platform or reblog
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