Money Archives

Price Setting: Strategies and Effects on the Economy

What is the purpose of price setting? How does artificial lowering or raising of prices for goods/services affect the economy? Sometimes the government’s efforts to help businesses include raising or lowering the prices of goods. As with other government interventions, price setting throws off the balance of supply and demand and, thus, creates ill effects. In this article, we’ll take a look at some of the most common price setting strategies and how they affect the economy.

Henry Hazlitt: How Does Saving Affect the Economy?

How does saving affect the economy? Do you think keeping your money in a saving account or in investments has a positive or a negative effect on the country’s national wealth? Saving is generally seen as a bad thing for the economy because savings deprive spending on goods and services, thereby hurting national wealth. However, this is a fallacy—savings do the exact opposite in the long run. In this article, we’ll take a look at what actually happens when people choose to hold on to their money.

Investing for the Future: 3 Things Millionaires Do

Why is investing for the future important? How do millionaires go about investing for the future? Investing for the future is important because the wealth you build through your investments will provide financial security and additional income. Millionaires invest for the future by putting their savings in investment vehicles like stocks and allowing them to grow. Read on to learn more about how millionaires are investing for the future.

Analyze Expenses With This Alternative to Budgeting

Do you have an effective system to analyze expenses? Did you know that there is a budget alternative for managing your spending? In Your Money or Your Life, Vicki Robin and Joe Dominguez show how to use a tabulation system to analyze expenses. It serves as a budget alternative, avoiding two pitfalls of budgets. Ultimately, it provides a more holistic view of your spending. Read more to understand this effective way to analyze expenses.

The Millionaire Next Door: The Most Popular Car Is…

What’s the Millionaire Next Door Most Popular Car?

Why is The Millionaire Next Door‘s most popular car not a flashy, high-status vehicle? What car do millionaires drive the most? In The Millionaire Next Door, the most popular car is not a high-status vehicle because millionaires understand that flashy cars are overpriced, they prefer to buy quality, used cars. Millionaires prefer full-sized American-made vehicles like Ford, Cadillac, Lincoln, and Jeep. Read on to discover why The Millionaire Next Door‘s most popular car is a regular, affordable vehicle.

The Free-Market System: Benefits of Supply & Demand

Does the free-market system help or hinder the national interest? Do you think it’s better to let the economy run its course or to intervene? Many people believe that a free-market system—one in which supply and demand dictate prices for goods—serves the desires of greedy businesses rather than the consumers and the national wealth. But the price system naturally diverts capital and manpower to the industries that produce most efficiently and contribute the most to national wealth. Here’s why the free-market system is actually better for both consumers and the national interest.

The Frugal Millionaire: More Common Than You Think

What are the habits of the frugal millionaire? Why are there so many frugal rich people? The frugal millionaire next door shuns an extravagant lifestyle and instead practices frugal habits such as living below your means, budgeting, and saving money. There are many frugal rich people because they didn’t get rich through wasteful spending, they got rich by smartly investing their money. Read more to discover the habits and quirks of the frugal millionaire.

How an Inheritance From Your Parents Hurts You

How Inheritance From Parents Affects Adult Children

How does inheritance from parents affect adult children? How do you teach your adult children independence and financial responsibility? Inheritance from parents makes less capable, unemployed children more dependent, while adult children that got no inheritance from parents are more likely to take risks and accumulate wealth. You can teach your children financial independence by teaching them the values of frugality, discipline, and independence. Learn how inheritance from parents affects adult children, and what parents can do about it.

The Effects of Taxation on National Production

What is the role of taxation in an economy? Under what circumstances does raising taxes hinder the economy on the national level? Some tax-funded projects are essential to keep the country running. But when the government uses taxes to fund projects and pay wages that are unnecessary, the consequences begin to outweigh the benefits. In this article, we’ll consider the effect of taxation in the context of public works funding.

Start Working for Millionaires and Get Rich Too!

How Working for Millionaires Can Make You Rich

How can working for millionaires make you rich? What are the professions that serve the wealthy? Working for millionaires can definitely make you rich because they spend a lot of money to get professional advice and services important to them. Lawyers, accountants, fund-raising experts, and healthcare specialists are some of the professions in demand among the wealthy. Read more to further discover how working for millionaires can help you boost your income.