Money Archives

The 7 Basic Economic Principles You Should Know

How do economies work? What are the universal principles that apply to all economies of the world? In his book The Undercover Economist, Tim Harford provides a clear and down-to-earth explanation of how an economy works. He distills seven basic economic principles and illustrates how they manifest in real-world economies. Keep reading to learn about Tim Harford’s economic principles: scarcity, price targeting, externalities, missing information, the stock market, game theory, and globalization.

Daniel Pink Sales Tips: Clarity Is Key to Selling

What does clarity mean in the context of sales? What are the seven components of clarity? Daniel Pink, sales guru and author of To Sell Is Human, puts high importance on the new ABCs of selling: attunement, buoyancy, and clarity. There are seven components to clarity and if you master them, you will be able to close more sales. Here is what Daniel Pink says about clarity in sales.

What Is Crowdfunding and How Does It Work?

What is crowdfunding and how does it work? What are the best websites to crowdfund a project or a business venture? Crowdfunding is a way of raising money for a project or a business venture from a large number of people, each contributing a small amount. Typically, crowdfunding is done on the crowdfunding internet platforms such as indiegogo and seedinvesttechnology. So what is crowdfunding and how does it work? Read more about tips and strategies to effectively raise money through crowdfunding and familiarize yourself with different crowdfunding platforms.

Conscious Spending: 4 Tips to Get You Started

Would you say you are a responsible spender? Do you tend to live above, below, or just in line with your means? How can you get better at conscious spending? It’s common to think that being successful means living a lavish lifestyle and not having to think about what you spend money on. Though living the lifestyle you want while investing and growing your wealth is an admirable goal, it’s still important to learn how to consciously spend money. Keep reading for tips on developing a conscious spending mindset.

The Undercover Economist by Tim Harford: Overview

What can you learn from reading The Undercover Economist? What are the main takeaways from the book? The Undercover Economist by Tim Harford will help you think like an economist without boring you with endless graphs or complex math. You’ll learn why you make the economic decisions that you do and what happens when the basic economic principles that efficiently govern much of the world break down. Below is a brief overview of Tim Harford’s The Undercover Economist.

The Importance of Saving Money for the Golden Years

Do you save money? At what age do you think you should start saving for retirement? What’s the importance of saving money? Many people balk at the idea of consistently saving money. They may be deeply in debt or may not think saving is important. Though saving money may not seem important, it’s necessary to ensure you have enough money to retire comfortably. This article discusses the importance of saving money and how to do it to be able to recover comfortably.

The Stock Economy: Lifting the Veil off the Stock Market

How does the stock market economy work? Why are so many people deterring from buying shares? The stock economy is a sector of the economy that is shrouded in secrecy. Complex jargon scares potential investors who don’t have a background in economics or finance. This article will help to lift that curtain. It will explain how stock prices are valued and why companies hire economists to help them play the stock market.

Information Gaps in Economics: What Are They?

What are information gaps in economics? Are seller-buyer information gaps good for the economy? When one party doing a business deal has more information than the other party, there is an information gap. Usually, the information gap is such that the seller has more information than the buyer. When this is the case, the market is not running efficiently. This article explains the information gap, discusses how to close it, and examines how to solve broken health care systems using these economic principles.

What Is a Perfect Market in Economics?

What’s a perfect market in economics? Are perfect markets even possible in the real world, or is it all just theory? Even though we rarely find perfect markets in the real world, it’s useful to understand the idea of perfect markets because economists usually start there when they see imperfections. Economists attempt to remove these imperfections. In this article, we’ll discuss the effects of imperfections in the marketplace, or externalities, and discuss when governments should step in to prevent negative externalities.

The Free-Market Economic System: Explained

How does the free-market economic system work? How are goods priced in such an economy? In the free-market economic system, products are generally almost equal to the marginal cost, or how much it costs to keep a business afloat. Plus, modest profits convince investors to keep their money in the business than in savings. This article takes a look at how the free-market system and its implications for taxes and non-market goods.