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FINANCIAL PLANNING – SECRET TO BECOME RICH..! PART-2

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In the  last session  we discuss about what is financial planning why it is necessary.    In this session we are going to discuss parts of the financial planning . First thing first .. in the financial planning two words are most likely used with  expenses  Discretionary expenses  Non-discretionary  expenses       What is a 'Discretionary Expense' A discretionary expense is a cost that is not essential for the operation of a home or a business. For example, a business may allow employees to charge certain meal and entertainment costs to the company to promote  goodwill  with employees. In the home, discretionary expenses are most often defined as things that are "wants" rather than "needs." What is a 'NON-Discretionary Expense' They are the expenses is cost a essential for operations for the home and business. Foe example, repayment of home loan installment,salary of employees,food and like that. Th...
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Monetary Policy - Meaning, Effect on economy & Objectives

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     Monetary Policy Generally we read RBI announces Monetary Policy or some changes happened in monetary policy. So what is Monetary policy & how it effects our day to day life..!                     Monetary policy is how  central banks  manage  liquidity  to create economic growth. Liquidity is how much there is in the  money supply . That includes credit, cash, checks and money market  mutual funds . The most important of these is credit. It includes loans, bonds and mortgages.  RBI Reserve Bank of India. Every country has its own Central bank(Reserve or Monetary bank). Meaning of Monetary Policy The term monetary policy is also known as the 'credit policy' or called 'RBI's money management policy' in India. How much should be the supply of money in the economy? How much should be the ratio of interest? How much should be ...
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