Individual economics and how to be financially stable .

 Individual economics is how to be financially independent and manage your finances in today’s world.

 

Economics is the most related and discussed subject in today’s world and why should it not be? In today’s indefinite world where money matters more than creating new things economics and money is the most important part because no matter who you are and where you are, no matter what you do if you have enough you will be a good person and a great man in the eyes of society and if you are poor then congratulations you may end up being alone not even with family members so today we are going to discuss about the economics of individual which I believe if one can see and understand he can be financially stable and can live a good and happy life even in the worst condition, I don’t know if what I say is all true but I am giving all my thoughts and ideas and through my experience which I see. Hope they can help you to be more stable and happy in life.

So let’s say if your age now is between 18 to 28 which we will say a good start, you just started a new job not so new but beginner, you were dreaming about buying as many things as you can when you have money, and living life by yourself and want to show your friend off that how good your income is with a great bike a good phone luxury watches and many  more,  if you are just buying everything without thinking about if it is really necessary for you or not then congratulations you will never be financial stable because you will end up with the liabilities “ things that increase your expenses and have no important use just to show off that you are rich is called liabilities:” and with no assets “ assets is something that is useful for you for example your skills you have, of you can say land or something else that give you and help you to earn more through them”  so first of all you have to control yourself, of course you are a good person you have a good personality but the world know the language of more, if you are going to buy things to show off then you will end up being depressed because there are many who is competing, you should first see how long your blanket is then spread your legs. So, the first and most important thing is that you should control and be aware of your expenses, cause at this age we are almost single or unmarried we don’t really have family duties of course we have but they are really few and after it, you can save money too, so it is a good time to save for yourself and not just save but to think and work really hard how to get financial stability through this money you have now. Another part is about investment for everyone no matter what their age is. Even if you are more than 40 first of all you should learn the basics about investment, suppose you are 27 now you have time you can learn deep aspects of investment and even if you are in your 40s you can learn investment and if you are lazy and don’t want to learn just when buying a stock, for example, see the EPS( Earning per share) PE( Price Equity that should be less than 20) and financial growth of past 5 years if you can do much better but two more important rules of investing are first buy a stock when it is on 1 year low, never buy a stock when it is trading on one year high no matter how good the stock is. There are some rules in stock trading to one is to have patience, see companies are different if you think you are going to invest today and tomorrow you will be rich then you are in a fairy tell, stocks are issued by companies and it takes time for them to make money so it is impossible for you to earn in intraday which is really famous but a hell well I would say so first of all learn to wait to have the patience of a company so it can give you enough but suppose your income is less and can’t invest too much amount then what should you do?  Then we have a great idea, it is a flowing money idea, for example, take the stock market as a flowing river, it keeps flowing but it is flowing really fast you don’t know how to take your part in it, so how can you take your water from it? First of all, you need a bucket which we would say your investment money suppose you have 5000 so what you need to do is to choose a stock that is on 1  year low or near that, then put all your amount in that one stock you can’t divert 5000 for 5 stocks it will be useless if you will do this your broker will make money, I would say do not put all your eggs in a different basket but choose one and stuck on it and eat the egg if you will follow this you definitely will make money it will be slowly but it will be good. Suppose you buy a stock price of 18 per share for 5000 you will have almost300-350 stocks what you need to do is to wait for it t go on 18.50 or 18.70 only .70 and I am sure this growth will take only 3-4 days maximum and you sell it on 18.70 you will have 200 as profit then keep repeating this task so it will be less but I am sure it is going to help you a lot.

So, it's going on too long. I suppose we will discuss more aspects of it in another chapter thank you for today see you the next day.