The need for Financial Planning in Households - Free Essay Example

Sample details Pages: 23 Words: 7045 Downloads: 8 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? Financial planning is a must for every household. Financial planning goes beyond savings. It is an investment with a purpose. Don’t waste time! Our writers will create an original "The need for Financial Planning in Households" essay for you Create order It is a plan to save and spend future income. It should be carefully budgeted. Financial Planning is the process of meeting your life goals through proper management of your finances. Life goals can include buying a house, saving for your childs higher education or planning for retirement. Today you find people living beyond their means, having credit card debt, making risky investments and doing things that are irresponsible and against the basic principles of financial planning. Further the proliferation of new and often complex financial products demands more financial expertise. Also turbulent conditions and changing tax laws compound the need for adequate financial planning. Thus it has become inevitable for all to get into financial planning and understanding financial products. Financial planning envisages both short term and long term savings. A portion of the savings is invested in certain assets. There are various investment options in the form of assets: bank d eposits, government saving schemes, shares, mutual funds, insurance, commodities, bonds, debentures, company fixed deposits etc. Financial planning isnt something that happens by itself. It requires focus and discipline. It is a six step process that helps you take a big picture look at where you are and where you want to be financially. Your Parents were right: money doesnt grow on trees. It actually grows on other money which is where we get the old saying, It takes money to make money. Money does have an amazing ability to make more money. The good news is it doesnt take much money to make this happen. SAVINGS = INVESTING Saving is what people usually do to meet short term goals. Your money is very safe in a savings account, and it is usually earning a small amount of interest. Its also easy for you to get to your money when you need. Investing means youre setting your money aside for longer term goals. Theres no guarantee that the money you invest will grow. In fact, it is normal for investments to rise and fall in value over time. But in the long run, investments can earn a lot more than you can usually make in a savings account. Why are savings and investing so important to your financial goal? For one, saving or investing money for your financial goals makes you less tempted to spend it. But the best reason for investing is that your money is actually making money for you. Any interest or investment gains get you that much closer to your financial goals. And you didnt have to do anything for it! Start saving early and youll be prepared when you need it, whether youre saving for a home, a childs education, or your retirement. If you start saving in your 20s, youll be off to a great start. If you dont, youll play catch-up for the rest of your life. Youngsters have an advantage that older people dont have: time. When they understand this concept and use time in their favour, young people have a much better chance of pursuing their dreams and reaching their financial goals. The Price of Procrastination You know that the more time you have to invest, the more money you are likely to end up having. But the flip side of that is true too. By waiting to invest, youre paying an opportunity cost. Its easy to say that you dont have enough money to start saving and investing now. Id rather wait until I have more money. But that decision probably costs you more than you think because the power of compounding works both ways. It costs you because waiting eans giving up earning compound interest from even just a small amount of money. Ask yourself the following question:- Could you spend 10 percent less than you do now, still have fun and put that money to work for your future? If you could save 10 percent of your income for future goals, what would those goals be? It takes more than luck to get what you want out of life. People need to know that by paying yourself first making saving a priority they can do more than just dream about what they want in the future. Whether ones income is small or large, setting aside some of it for investments requires selfdiscipline. By maintaining discipline to postpone buying certain things theyd like to have now they can enjoy the longer term benefits of having that money work for them through savings and investments. BUDGETING The first step in your financial planning is budgeting. Budgeting is a process for tracking, planning and controlling the inflow and outflow of income. It entails identifying all the sources of income and taking into account all current and future expenses, with an aim to meet an individuals financial goals. The primary aim of a budget planner is to ensure savings after the allocation for spending. Benefits of budgeting ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ It puts checks or balances in place in order to prevent overspending at various levels ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Takes into account the unexpected need for funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Helps discipline yourself ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Helps one maintain his/her standard of living post retirement Steps for budget planning:- Step 1:- Calculate your income: This should include income from all sources, including your paycheck and interest from any investment Step 2:- Determine your bill for essentials: List out your essential expenses, which may include rent, grocery, clothing, telephone and electricity bills and fuel and car maintenance. Calculate the amount spent on each. Step 3:- Note down your total debts, including interest payments on the same. Step 4:- Determine your bill for non-essentials: Your list of non essentials may include vacations, gifts and trips to restaurants. Calculate the amount spent on each. Step 5:- Calculate your savings: This is done by subtracting the figure obtained by adding steps 2, 3 and 4 from the figure obtained in step 1. Realize that unexpected things come up in life. You may have to break your budget plan, or reconstruct it, occasionally. However try to avoid debt to cover the shortage and stick to your budget as much as possible. Inflation Effects On Investments When you are planning your investment, it is critical that you take into account the effects of inflations on your investments. At its most basic level, inflation is simply a rise in prices. Over time, as the cost of goods and services increase, the value of a rupee is going to go down because you wont be able to purchase as much with those rupees as you could have in the last month or last year. How does inflation affect my investment decision? A Vada pav which used to cost Rs.2 five years back now the same costs Rs.7. The cost increase is not as a result of increase in quantity or better quality. The increase is a result of increase in prices of ingredients which have increased as a result of inflation. Change in the prices of some assets:- Assets Price then (2001- 02) Price now (2009-10) Sugar (1 kg) 46 85 Cooking Oil (5 liters) 390 500 Gold (10 grams) 17,138 37,138 Silver (1 kg) 7,868 28,345 Rice (1 kg) 30 75 Petrol (1 liter) 61.46 76.83 Diesel (1 liter) 43.88 52.74 Inflation is greatly feared by investors because it grinds away the value of your investment. Example:- If you invest Rs.1,000 in a one year fixed deposit that will return 5% over that year, you will be giving up Rs.1,000 right now for Rs.1,050 in 1 year. If over the course of that year there is an inflation rate of 6%, your expenses which were Rs.1,000 in the previous year will increase to Rs.1,060 at the end of the year. Thus even after investing your money for 1 year you are worse off compared to the previous year because the returns delivered by your investments has been below the inflation rate. What are the steps that an investor can take to avoid the adverse effects of inflation? Try to determine your real rate of return which is the return you can expect after factoring in the effects of inflation. In addition to being aware of the current rate of inflation, it is rucial to be aware of what inflation rate the experts are anticipating. Both the value of current investments and the attractiveness of future investments will change depending on the outlook for inflation. Also remember fixed income investments are particularly vulnerable to the effects of inflation. If you are locked into a particular interest rate, and inflation increases your earnings will not keep up and you will earn a negative return. Risk and Return Risk and investing go hand in hand. Risk can be defined as the chance one takes that all or part of the money put into an investment can be lost. The good news is that investing risk comes with the potential for investing reward which is what makes the whole process worthwhile. The basic thing to remember about risk is that it increases as the potential return increases. Essentially the bigger the risk is, the bigger the potential payoff. (Dont forget the two words potential payoff. There are no guarantees) Even seemingly no-risk products such as savings accounts and government bonds carry the risk of earning less than the inflation rate. If the return is less than the rate of inflation, the investment has actually lost ground because your earning arent being maximised as they might have been with a different investment vehicle. While you stay invested it is crucial you take necessary measures to manage your risk. Once you invest in any asset class you should mo nitor your investments and keep yourself updated about various market happenings to avoid any pitfalls. Always check the potential risks when quoted returns are unusually high. Power of Compounding As you pursue your financial planning, the most powerful tool for creating wealth safely and surely is the magical power of compounding. Albert Einstein had once remarked, The most powerful force in the universe is compound interest. Compounding is a simple concept that offers astounding returns: if you park your money in an investment with a given return, and then reinvest those earnings as you receive them, your investment grows exponentially over time. With simple interest, you earn interest only on the principal (that is, the amount you initially invested); with compounding, you earn interest on the principal and additionally earn interest on the interest. Consider what the power of compounding does to an investment of Rs.12,000 a year (that is, an affordable Rs.1,000 a month) in a scheme that offers a 9 per cent return, over 30 years. The total investment of Rs.3.6 lakhs (principal) grows to Rs.17.83 lakhs over that period. Compounding rewards disciplined investing and works best over long tenures. In the above example, the first 20 years yield is just Rs.6.69 lakhs. The last 10 years show the multiplier effect of the power of compounding. The longer you leave your money untouched, the faster and bigger it grows. For instance, stretching the above investment pattern to 40 years will give you Rs.44.20 lakhs. Compounding, thus, is a wonder tool that lets you make the most of small investments made over long periods of time to accumulate phenomenal wealth. It works best if you start investing early, and leave the money alone. Compounding is, in fact, the single most important reason for you to start investing right now. Every day you are invested is a day that your money is working for you, helping to ensure a financially secure and stable future. Time Value of Money As time passes you will realise that if 10 years back you could afford to purchase a full lunch for Rs.10, today you might afford to get a few pieces of vegetables only. This means that the value of a thousand rupee note would be higher today than after five years. Although the note is the same, you can do much more with the money if you have it now because over time you can earn more interest on your money. By receiving Rs.1,000 today you are poised to increase the future value of your money by investing and gaining interest over a five year period. At the most basic level the time value of money demonstrates that time literally is money the value of the money you have now is not the same as it will be in the future and vice versa. CHOOSING THE RIGHT INVESTMENT OPTIONS The choice of the best investment options will depend on personal circumstances as well as general market conditions. An investment for one objective may not suit the needs of the other. Right investment is a balance of three things: Liquidity, Safety and Return. Liquidity This will cover the ease with which the investment can be covered to cash to meet expenses. Some liquid investments are required to meet exingencies that arise in the normal course or otherwise. Safety This is about the risk factor of the investment. The worst case is losing all the invested money. The milder case is losing on the income or low income growth or investment growth. Inflation is also a risk, as the purchasing value of money reduces. Return Income generated by investments is another factor to consider. Safe investments offer steady but lower income and risky investments offer high returns or no returns at all! There are several short-term and long-term financial investment options available, some of which are given below: Thus, there is a staggering variety of investments to choose from. In the following chapters we will focus on these and explain about them. ASSET ALLOCATION STRATEGY Every Asset class has its own risk and returns. Equity Investments are considered to be risky investments as they might lead to erosion of entire capital invested, whereas government bonds are considered to be risk free as you can be confident that the government will not default on its interest payments. This is where asset allocation plays a crucial role. Asset allocation is a technique for investing your money into various asset classes that would suit your income and risk appetite. Asset allocation involves tradeoffs among three important variables: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Your time frame ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Your risk tolerance ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Your personal circumstances Depending on your age, lifestyle and family commitments your financial goals will vary. While allocating your funds to various assets, it is important to see that you distribute your funds across various assets to benefit from diversification. Normally, in an age based asset allocation, the amount allocated to equities is based on the clients age. The premise of using this model is as the investor gets older, his portfolio should be more conservative. However, as this is just a thumb rule, an investor is the best judge of what suits him the most. SELF PORTRAIT To know exactly where you stand financially, having financial statements compiled is one of the best ways to gain this kind of insight. A key component of a financial statement is a detailed and complete accounting of assets and liabilities associated with the person. Identifying Goals The most important step in financial planning is identifying and understanding what you want to accomplish. Money is merely a tool to be used to satisfy your desires. By understanding what you truly want, it is much easier to plan for how much you need to accomplish your goals. Identifying Assets Once your goals are identified, it is time to assess what assets are available to meet them. Assets need to be categorized as to their liquidity and the stability of their long term value. The key to identifying and categorizing assets is understanding when and how they generate cash. Make a list of all your assets which include your house, investments in shares, mutual funds, fixed deposits, money lying in the savings bank account etc Identifying Liabilities Indentifying your liabilities is as important as identifying the assets available. Ideally, the assets should be more than the liabilities. Else, planning is required to invest in assets to meet the liabilities and have some assets left over for earning income and investment purposes. Likely Future Earnings When estimating your future earnings you need to make certain assumptions. Some of the safer assumptions can be as follows:- If you are a salaried employee it is safe to assume that your salary income will increase at a rate of 8% p.a till retirement. Rate of return on debt investments can be assumed as 7% p.a. and return on equity index as 12% p.a. Likely Future Expenses Here again you need to make assumption like:- Long term inflation rate of 5% p.a Household and personal living expenses (including entertainment, education, marriage etc) expenses increase at a rate of 8% p.a (3% more then the rate of inflation) Planning Matching cash inflows from assets to cash outflows from liabilities is the crux of financial planning. In financial planning, goals are considered liabilities due to the fact they generally require cash outflows. This is a multi step approach. Example:- Suppose your goal is to save enough money for your childrens higher education Step 1: Determine the no. of years till your child will require higher professional education Step 2: Determine the education cost today. This calculation usually involves taking the current price of a professional course and multiplying it against an estimated annual rate of inflation. Step 3: Suppose it costs Rs.1,00,000 today for a professional course. Rs.1,00,000 x 1.05^20= Rs.1,79,585 would be the cost 12 years from now and with an expected 5 percent annual inflation rate. Step 4: The next step is to figure out the present value of that future cash outflow. To do that you would take the future value of the money and divide it by your expected rate of return. The future value of the Rs.1,00,000 equals Rs.1,79,585 as calculated above. The present value of that future value with an estimated annual return of 8 percent for 12 years is 1,79,585 / 1.08^20, which equals Rs.71,315. So you need to put Rs.71,315 today into an asset that will earn you 8 percent annually on average to be able to pay for your childs education in 12 years that costs 100,000 in todays terms. Step 5: For every cash outflow you anticipate in the future, you need to calculate the present value of that outflow and find an asset that can be used to cover the future cost. This process need to be repeated for all your future goals. Calculate your future expenses and start saving for it today so you are in a position to meet all of them. SAVINGS INVESTMENT RELATED PRODUCTS Banks Bank deposits are safe investments as all bank deposits are insured upto a maximum of Rs.100,000 under the Deposit Insurance Credit Guarantee Scheme of India. Banks are subject to control and regulated by the Reserve Bank of India. They offer various types of deposits, depending on the needs of the customer. Bank deposits are preferred more for their liquidity and safety than for the returns thereon. It is possible to get loans up to 75 90% of the deposit amount from banks against fixed deposit receipts. TYPES OF DEPOSITS AND KEY FEATURES Savings Bank Account ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Often the first banking product people use ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Low interest. However, highly liquid ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Suitable for inculcating the habit of savings among the customers Bank Fixed Deposit (Bank FDs) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Involves placing funds with the banks for a fixed term (not less than 30 days) for a certain stipulated amount of interest ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The ideal investment time for bank FDs is 6 to 12 months as normally interest on bank less than 6 months bank FDs is likely to be low ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The time frame assumes importance as early withdrawal carries a penalty Recurring Deposit Accounts ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Some fixed amount is deposited at monthly intervals for a pre-fixed term ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Earns higher interest than Savings Bank Accounts ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Helps in the saving of a fixed amount every month Special Bank Term Deposit Scheme ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ This is the only Tax Saving Scheme available with banks ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Relief under Section 80C of the Income Tax, Act available ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Term deposit of five years maturity in a scheduled bank is mandatory GOVERNMENT SCHEMES Tax Savings Schemes The Government has launched Income Tax Saving Schemes including: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ National Savings Certificates (NSC) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Public Provident Fund (PPF) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Post Office Scheme (POS) Bonds A Bond is a loan given by the buyer to the issuer of the instrument, in return for interest. Bonds can be issued by companies, financial institutions, or even the Government. The buyer receives interest income from the seller and the par value of the bond is receivable by the buyer on the maturity date which is different types. Company Fixed Deposits Key Features ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Fixed deposit scheme offered by a company. Similar to a bank deposit ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Used by companies to borrow from small investors ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The investment period must be selected carefully as most FDs are not encashable prior to their maturity ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Not as safe as a bank deposit. Company deposits are unsecured ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Offer higher returns than bank FDs, since they entail higher risks ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Rating can be guide to their safety Mutual Funds A mutual fund pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. The combined holdings the mutual fund owns are known as its portfolio. Each unit represents an investors proportionate ownership of the funds holdings and the income those holdings generate. Salient Features of Mutual Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Professional Management Money is invested through fund managers ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Diversification Diversification is an investing strategy that can be neatly summed up as Dont put all your eggs in one basket. By owning shares in a mutual fund instead of owning individual stocks or bonds, the risk is spread. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Economies of Scale Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than what an individual would pay for securities transactions. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Liquidity Just like individual shares, mutual fund units are convertible into money by way of sale in the market ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Simplicity Buying a mutual fund unit is simple. Any bank has its own line of mutual funds, and the minimum investment amount is small ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Investors should examine each of the above feat ures carefully before investing in mutual Funds. Types of Mutual Funds Each fund has a predetermined investment objective that tailors the funds assets, regions of investments and investment strategies. At the fundamental level, there are three varieties of mutual funds: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Equity funds (stocks) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Fixed-income funds (bonds) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Money market funds All mutual funds are variations of these three asset classes. For example, while equity funds that invest in fast-growing companies are known as growth funds, equity funds that invest only in companies of the same sector or region are known as specialty funds. Mutual Funds can also be classified as open-ended or closed-end, depending on the maturity date of the fund. Open-ended Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ An open-ended fund does not have a maturity date ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Investors can buy and sell units of an open-ended fund from / to the Asset Management Company (AMC), at the mutual fund offices or their Investor Service Centres (ISCs) or through the stock exchange. The prices at ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ which purchase and redemption transactions take place in a mutual fund are based on the net asset value (NAV) of the fund Closed-end Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Closed-end funds run for a specific period ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ On the specified maturity date, all units are redeemed and the scheme comes to a close ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The units shall be listed on a stock exchange to provide liquidity ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Investors buy and sell the units among themselves, at the price prevailing in the stock market Money Market Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Invest in extremely short-term fixed income instruments ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The returns may not be very high, but the principal is safe ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ These offer better returns than savings account but lower than fixed deposits without compromising liquidity Bond/Income Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Purpose is to provide current income on a steady basis ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Invests primarily in government and corporate debt ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ While fund holdings may appreciate in value, the primary objective of these funds is to provide a steady cash flow to investors Balanced Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Objective is to provide a balanced mixture of safety, income and capital appreciation ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Strategy is to invest in a combination of fixed income and equities Equity Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Invest in shares and stocks ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Represent the largest category of mutual funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Investment objective is long-term capital growth with some income ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Many different types of equity funds because of the different types of investment objectives Foreign/International Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ An international fund (or foreign fund) invests in the equity of the companies which are outside the home country Sector funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ These are targeted at specific sectors of the economy such as financial, technology, health, etc. Index Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ This type of mutual fund replicates the performance of a broad market index such as the SENSEX or NIFTY ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ An index fund merely replicates the market return and benefits investors in the form of low fees Equity Shares A stock market is a public market for the trading of company shares at an agreed price; these are securities listed on a stock exchange. The shares are listed and traded on stock exchanges which facilitate the buying and selling of stocks in the secondary market. The prime stock exchanges in India are The Stock Exchange Mumbai, known as BSE and the National Stock Exchange known as NSE. The purpose of a stock exchange is to facilitate the trading of securities between buyers and sellers, thus providing a marketplace. Investing in equities is riskier than and definitely demands more time than other investments. There are two ways in which investment in equities can be made: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Through the primary market (by applying for shares that are offered to the public) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Through the secondary market (by buying shares that are listed on the stock exchanges) Having first understood the markets, it is important to know how to go about selecting a company, a stock and the right price. A little bit of research, some diversification and proper monitoring will ensure that the investor earns good returns. Depository System In order to invest in shares, it is necessary to understand the term Dematerialisation of Shares, as almost all shares now are in Demat form. Earlier, there used to be physical share certificates issued, which are now converted to Electronic form. For this, an understanding of the depository system becomes essential. A depository is an organisation which holds securities (like shares, debentures, bonds, government securities, mutual fund units etc.) of investors in electronic form at the request of the investors through a registered Depository Participant. It also provides services related to transactions in securities. It can be compared with a bank, which holds the funds for depositors. Benefits of availing depository services include: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ A safe and convenient way to hold securities; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Immediate transfer of securities; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ No stamp duty on transfer of securities; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Reduction in paperwork involved in transfer of securities; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Reduction in transaction cost; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ No odd lot problem, even one share can be traded; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Nomination facility; Change in address recorded ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Transmission of securities is done by DP eliminating c orrespondence with companies; ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Automatic credit into demat account of shares, arising out of bonus/split/consolidation/ merger etc. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Holding investments in equity and debt instruments in a single account. Points to Remember ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Participants range from small individual stock investors to large fund traders, who can be based anywhere ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ One of the most important sources for companies to raise money ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Stock market is often considered the primary indicator of a countrys economic strength and development ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Stock prices fluctuate, in marked contrast to the bank deposits or bonds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The reasons for investing in equity must also be reviewed periodically to ensure that they are still valid ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Sometimes the market seems to react irrationally to economic or financial news, even if that news is likely to have no real effect on the val ue of securities itself ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Over the short-term, stocks and other securities can be battered or buoyed by any number of fast market-changing events, making the stock market behaviour difficult to predict. Investment Philosophies ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Evaluate risk of every investment ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Have clarity on short term and long term needs of the family ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Decide the investment based on the needs ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Do not invest in any scheme that you do not understand ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Do not invest on trust. Have everything backed up by documents ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Take into account tax implication of every income ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Do not blindly follow market tips and rumours ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Anything that appears unnaturally high or low will have some catch disguised ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Do not follow schemes where you may protect the interest but lose the principal ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Invest with knowledge after understanding the product well PROTECTION RELATED PRODUCTS Insurance Policies Insurance, as the name suggests is an insurance against future loss. However, although life insurance is most common, there are other schemes that generate regular income and cover other types of losses. Life Insurance Life Insurance is a contract providing for payment of a sum of money to the person assured or, following him to the person entitled to receive the same, on the happening of a certain event. It is a good method to protect your family financially, in case of death, by providing funds for the loss of income. Term Life Insurance ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Gaining popularity in India ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Lump sum is paid to the designated beneficiary in case of the death of the insured ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Policies are usually for 5, 10, 15, 20 or 30 years ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Low premium compared to other insurance policies ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Does not carry any cash value Endowment Policies ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Provide for periodic payment of premiums and a lump sum amount either in the event of death of the insured or on the date of expiry of the policy, whichever occurs earlier Annuity / Pension Policies / Funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ No life insurance cover but only a guaranteed income either for life or a certain period ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Taken so as to get income after the retirement ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Premium can be paid as a single lump sum or through instalments paid over a certain number of years ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The insured receives back a specific sum periodically from a specified date onwards (can be monthly, half yearly or annual) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ In case of the death, it also offers residual benefit to the nominee. Units Linked Insurance Policy ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ A State Life is a life insurance policy which provides a combination of risk cover and investment. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The dynamics of the capital market have a direct bearing on the performance of the State Life Insurance Company. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The investment risk is generally borne by the investor ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Most insurers offer a wide range of funds to suit ones investment objectives, risk profile and time horizons. Different funds have different risk profiles. The potential for returns also varies from fund to fund ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ ULIPs offered by different insurers have varying charge structures. Broadly the different fees and charges include- Premium allocation charges, Mortality charges, fund management fees, policy/administration charges and fund switching charges Health Insurance Health Insurance policies insure you against several illnesses and guarantee you stay financially secure should you ever require treatment. They safeguard your peace of mind, eliminate all worries about treatment expenses, and allow you to focus your energy on more important things. There are several health insurance or medical insurance plans in India. These can be divided into the following categories based in the coverage offered: Comprehensive health insurance coverage: These plans provide you complete health coverage through a hospitalisation cover while at the same time also creating a health fund to cover any other healthcare expenses Hospitalisation plan: These health insurance plans cover your expenses in case you need to be hospitalised. Within this category, products may have different payout structures and limits for various heads of expenditure. The hospitalisation coverage may be reimbursement based plans or fixed benefit plans. These plans aim to cover th e more frequent medical expenses. Critical Illness Plans: These health insurance plans provide you coverage against critical illness such as heart attack, organ transplant, stroke, and kidney failure among others. These plans aim to cover infrequent and higher ticket size medical expenses. Specific Conditions Coverage: These plans are designed specifically to offer health insurance against certain complications due to diabetes or cancer. They may also include features such as disease management programs which are specific to the condition covered. BORROWING RELATED PRODUCTS With todays heightened cost of living, debts become a usual thing. A number of people apply for personal loans, car loans, mortgage loans, and a whole lot of others. There seems to be a loan for everything. Often, financial troubles begin as a result of too large debt. DIFFERENT TYPES OF LOANS AVAILABLE Personal Loans Personal loans are usually taken when you have to meet unexpected needs that are beyond a persons immediate financial means. People often get into financial trouble by taking out personal loans just for the extra money, or to purchase frivolous items, and then find that they cant make the monthly payments required. Key Features ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Be ready for high interest rates of 14-18% p.a, high fees and even higher monthly instalments ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The application process can be time consuming, taking weeks to be approved and funds disbursed, quite impractical for those unexpected immediate needs ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Rates and terms of the personal loans can vary tremendously, careful comparison is wise, helping to ensure that the consumer does not pay more than necessary for those emergency funds ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Take your time and do the homework before taking a personal loan ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Not advisable except for emergency requirements Housing Loan A home loan is just another loan with your house as the collateral. If you are buying your first home then it is important to understand the ins and outs of home loans. There are many variations according to the economy and what the market is doing that determines things that are going to apply to your home loan. Key Features ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Banks finance 75-80% of the property value ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Banks have recently started to offer lower fixed teaser rates for a short period of time. Then after some time the interest rates jump up and become variable. Be careful to read the fine print. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Most housing loans have a minimum lock in period of 3 years or more. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Heavy penalty charges for pre payment ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Hidden fees include appraisal fees and other charges associated with the loan ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ If you want to sell the house the loan becomes payable immediately Reverse Mortgage The whole idea of a reverse mortgage is entirely opposite to the regular mortgage process where a person pays the bank for a mortgaged property. This concept is particularly popular in the western countries. Key Features A senior citizen who holds a ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ house property, but lacks a regular source of income can put his property on mortgage with a bank or housing finance company. The bank/ housing finance company pays the person a regular paymentÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The good thing is that the person who reverse mortgages his property can stay in the house for his life and continue to receive the much needed regular payments. So effectively the property now pays for the owner. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The way this works is that the bank will have the right to sell off the property after the incumbent passes away or leaves the place, and to recover the loan. It passes on any extra amount to the legal heir Draft Guidelines of reverse mortgage in India prepared by RBI have the following salient Features: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Any house owner over 60 years in eligible ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The maximum loan is upto 60% of the value of residential property ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The maximum period is 15 years ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The borrower can opt for monthly, quarterly, annual or lump sum payments at any point, as per his discretion ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The revaluation of the property has to be undertaken by the Bank or HFC once every 5 years. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The amount received through reverse mortgage is considered as loan and not income ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Reverse mortgage rates can be fixed or floating and hence will vary according to market conditions depending on the interest rate regime chosen by the borrower Loan against Securities The main purpose of taking loans against shares is to preserve investment, apart from taking care of personal needs. People also resort to such a loan to meet their contingencies and get liquidity without actually selling the shares. It is advisable to take loan against securities only when you are expecting a certain sum of money a few months down the line and you need some funds in the interim. Key Features ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ RBI allows banks to lend up to 75% of the value of demat shares and 50 per cent of the value of physical shares. However, banks can, and do, fix their own limits with respect to the extent of funding within that range ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Banks have an approved list of securities that they lend against and this list varies from one lender to the other. This list also gets revised from time to time ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Loans against mutual fund units are based on their NAV value ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The amount of loan that you will get depends on the valuation of the security, applicable margin, your ability to service and repay the loan and other conditions ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Interest rates usually range between 14-18% ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Charges vary from bank to bank and usually include processing fees (1-1.5%) and documentation charges ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€š  ¢ Only fully paid shares are accepted ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Scrips in the name of corporate, minors, Firms, HUF, and NRIs are not eligible for finance under this scheme. Credit Card Debt Credit card debt is usually resorted to when all other option including personal loans are exhausted. Credit card debt is unsecured therefore it carries very high interest rates. A credit card gives you the power to spend money even when you dont have the funds. Lots of young people misuse it by spending on frivolous things Stay away from credit card debt: Lots of young people are having problems with credit debt. Paying only the minimum is costly and will ensure that you have debt for a long time. Try to consistently pay as much as you are able towards your debts you will be glad you did. Key Features Interest rates on credit ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ cards are probably the highest compared to other credit facilities. The interest ranges from 18-36% p.a ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Debt keeps accumulating via interest and penalties. If you are not paying off your outstanding balance before the interest free period expires then you will be paying a high interest rate. This can make it hard to reduce your credit card debt ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ As most credit card limits are low some borrowers tend to neglect the fact that the interest payment is relatively small on a month to month basis. This is a dangerous practice because the amount of interest you pay can quickly jump to exceed the value of your actual debt ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Be very careful of having multiple cards and be very careful of taking up the marketing promotions from credit card providers when they actively try and get you to increase your credit card limit Steps to Avoid Excess Debt Set debt limits ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Decide how much you can afford to be in debt. Then, make sure that your total debt is below this amount ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ You may also want to set a limit on how much money out of each paycheck you are willing to spend on debts. Having this sort of limit can be very useful in ensuring that you do not overextend your credit Shop carefully for debts ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ If you do need a loan, be sure to do your research well. Always understand how much you will pay for your loan in interest and look for the lowest interest rates and the most affordable debt you can find. This will ensure that you do not end up overspending on interest rates ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Once a year, check to make sure that you are still getting the best interest rates and best loan deals possible Dont give into temptation ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Once you show that you can handle some debt, many companies will be eager to offer you more credit. Companies may start sending you credit card offers and your lenders may offer you additional credit products ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ While it may be tempting to take out lots of new debt, you need to be wary of doing so. Only take out a loan or credit service when you really need to Automatically have money go towards your bills ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Many banks and employers will allow you to have some money automatically deducted from your paycheck ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ This can be a great way to ensure that your bills get paid promptly. Plus, since you wont even see the money, you are less likely to miss it ADVANTAGES OF FINANCIAL EDUCATION The pressing need for financial education comes from two areas. Firstly is the deterioration of personal finances. Today youngsters resort to living beyond their means, have credit card debt, and making risky investments. Second is the proliferation of new, and often complex, financial products that demand more financial expertise of consumers. Turbulent market conditions and changing tax laws compound the need for sound financial education. Even Government servants are moving from defined contribution regimes to schemes with benefits for retirement, at their option. Therefore, retirement planning becomes very important. Some Advantages Of Financial Education Are:- ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Helps build a secure financial future. Lack of financial knowledge can affect an individuals or familys ability to save for long-term goals and make them vulnerable to severe financial crisis ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Prepared for financial emergencies. By incorporating contingencies in your financial plan you are ready to face unseen circumstances head on ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ People who are financially literate are reluctant to buy financial products that they do not understand and thus do not fall for marketing gimmicks ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Feeling a sense of accomplishment. Financial education is effective at moving people closer to their goals ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Makes a more responsible individual with a disciplined approach to money. Helps people from overspending and inculcates a habit of savings and investments ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ You become more aware of questionable lending practices adopted by banks and other lenders to sell their products ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Feel like you are setting a good example for your family ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Money management skills can benefit other aspects of your life.

John Locke s Theory Of Government - 884 Words

This essay will discuss and show how Thomas Jefferson’s theory of revolution follows the speculation of government from the philosopher John Locke. We’ll additionally discuss Thomas Hobbes’s theory of government. Both John Locke and Jefferson’s theories contributed to the American Revolution and to the Declaration of Independence. Thomas Jefferson’s theory of revolution found within the Declaration of Independence follows John Locke’s theory of government in multiple aspects, as well as in both the description of freedom of opportunity. Thomas Jefferson speaks regarding the explanations for the first American colonies separation from England in his theory of revolution, we are able to see how similar it is to John Locke’s theory of government, with the precise issue of the law of nature and man’s reasons to separate. Treatise of government written by John Locke, discusses the law of nature being observed and the way all people are equal in terms of being born having natural rights. Both John Locke and Thomas Jefferson wrote throughout their times of revolution and were the voice of individuals who wished to have freedom, however were unsure on the way to attain or what they might do if freedom was achieved. The societies that they lived with having an oppressive government that was being met with resistance from several of the people who were now not afraid to challenge the authority of their time. Despite the fact that the writing of Jefferson and John Locke were inShow MoreRelatedThe Work Of John Locke1395 Words   |  6 Pagespeople s in the form of a government. The government is, therefore, portrayed, in this case, as an external power belonging to the people, by the people and for the people. These contrasting theories have generated heated arguments on which of them is analytically correct. This paper provides an analysis of the work of John Locke with regard to explaining why individuals submit t hemselves to external power to form a society. Also, the paper provides defensive evidence explaining why Locke s work isRead MoreThomas Hobbes And John Locke1346 Words   |  6 PagesContracts Thomas Hobbes and John Locke were two English political philosophers, who have had a lasting impact on modern political science. Thomas Hobbes and John Locke both spent much of their lives attempting to identify the best form of government. Locke and Hobbes were among the most prominent of theorists when it came to social contract and human rights. A Social Contract is an agreement among the members of a society to cooperate for social benefits. Thomas Hobbes and John Locke, are the two basic figuresRead MoreThe Enlightenment Theory Of John Locke1627 Words   |  7 PagesThe Enlightenment theory philosophies of John Locke offered a future that could drastically change government, economic and social ideals. Thomas Jefferson borrowed liberally from the enlightenment theory from John Locke, specifically focusing on Locks theories of the equality of men, natural rights, and that people should have a say on how the government treated people. Jefferson created a draft document created a bold experiment, America. The enlightenment philosophy of John Locke theorized that thatRead MoreJohn Locke And Thomas Hobbes1287 Words   |  6 Pagesclassified as a government. In order to run a proper political system, one must know how to balance and consider the nature of humankind and their rights. John Locke and Thomas Hobbes were both political philosophers who developed theories about how the government should work. They set up their theories around The Natural Law and the Social Contract Theory. Although John Locke and Thomas Hobbes had a similar goal, their beliefs and opinions were definitely not the same. John Locke and Thomas HobbesRead MoreThe Enlightenment By Thomas Paine And John Locke1709 Words   |  7 Pagesand science. Enlightenment thinkers who emulate these spreading of ideas include Thomas Paine and John Locke. Thomas Paine constructed The Age of Reason challenging traditional religion and validity of the Bible, while John Locke established The Second Treatises of Government which explained the need for a more civilized society with natural rights. Influences from enlightenment thinkers like Locke and Paine, are what shaped individuals attitudes about politics and religion within their societyRead More Locke and Publius: Comparing Their Views on Civil Government1500 Words   |  6 Pagesdebates, theories and agendas set forward as to what the best form of government is. Many of those individuals and groups who have written on the topic have their critics because they offer points that are highly controversial in theory and problematic when put into practice. John Locke and Publius, which is the collective name for Alexander Hamilton, James Madison and John Jay, both published essays with regards to the nature of government and largely championed the notion of democracy. With Locke writingRead MoreJohn Locke s Theory Of Religious Tolerance884 Words   |  4 PagesJohn Locke, a 17th century English philosopher is remembered for his great contributions to three issues that was important during his time and still concerns us toda y. The three topics Locke covered during his lifetime was how to handle people with different religion, determining who should rule, and how to educate our children. Locke developed theories from the three topics because they played a central role in his life. Religion politics and education influence Locke s writing and because ofRead MoreEssay On John Locke And Thomas Hobbes1076 Words   |  5 Pages John Locke and Thomas Hobbes John Locke and Thomas Hobbes, two English Enlightenment philosophers, were both very influential politically and philosophically despite having almost opposite beliefs. While each individually influenced later documents and events such as the Declaration of Independence and the American Revolution, they had an equally big impact in history. Today, everyone recognizes natural rights and the modern system of government uses social contracts every day. Thomas HobbesRead MoreNasty, Brutish, And Short By Thomas Hobbes Essay1198 Words   |  5 Pagesâ€Å"Nasty, brutish, and short†. Thomas Hobbes s famously poetic description of pre-political life that is invariably repeated in just about every political science program throughout the Western world. It is a phrase that motivates a strikingly persuasive argument for the solution of government. For Hobbes, this is the State of Nature, and thus the precursory basis for human politics. However, his pessimistic view of the State of Nature has been refuted by other men of great intellectual influenceRead MoreThe Social Contract Theories Of Thomas Hobbes And John Locke1210 Words   |  5 PagesMahogany Mills Professor: Dr. Arnold Political Philosophy 4 February 2015 Compare and contrast the social contract theories of Thomas Hobbes and John Locke In the beginning of time, there was no government to regulate man. This caused a burden on society and these hardships had to be conquered, which is when a social contract was developed. The social contract theory is a model that addresses the questions of the origin of society and the legitimacy of the authority of the state over an individual

International Politics

Question: Write an essay about the International Politics. Answer: There are various questions that are raised for intervention in conflicts that are foreign (i) whether the same should be only on grounds that are humanitarian or even when there is at stake some national interest; and (ii) what is the effectiveness of the interventions that are primarily or solely carried out on grounds that are humanitarian. There has been an establishment by the contemporary international law beyond any doubt and violations that are serious with respect to human rights become a concern international. For the international community, inaction is not an option that is viable when there is a community or group which is being persecuted systematically in some part of the world or the international community. It is also commendable in this context that international actors both states and organizations have started to focus their attention towards something that is not limited to only intervention but is a more comprehensive approach to a state building post-war. The emergence norms of intervention shall be reinforced by this (ARBOUR, 2008). The ethical and moral arguments provide a wide scope for taking of action. Sovereignty in itself is no longer the shield that the perpetrator shall have for escaping the punitive measures. Through time, there have been variously debated with respect to humanitarian intervention at international level and in the face of ethnic cleansing that had been carried out in the early nineties in Yugoslavia and then recently in Sudan these debates and discussion have gained momentum (Argument and change in world politics: ethics, decolonization, and humanitarian intervention, 2003). Unarmed and armed participation are entailed by these interventions of a state or more than one state, the international organization often aid such interventions, on another state to ensure that there is well-being in its domestic group which cannot be any longer protected by its own government. The arguments that this essay mainly focuses on are (a) is the sovereignty of a state absolute, and (b) are the intervention that is purely humanitarian in nature the intervention decision is made independent of the self-interest of the intervenee. An argument that arises from the concept of Humanitarian Intervention is whether the sovereignty of the state is absolute. The sovereignty of the state is not absolute. The international community cannot intervene in the legal jurisdiction of another state's domestic affairs theoretically as per the UN Charter. In the principle articles with respect to intervention and using of force are found in the article 2(4) and Article 51(Bellamy, 2005). However the states can intervene on humanitarian grounds; however most of this intervention of the state, as argued in the essay, is based on the self-interest of the states that are intervening. Thus, the sovereignty of the state cannot be absolute, the responsibility principally of allows the intervention into states that are unable and unwilling to protect a group of citizens or all of their citizens. It may be, on a moral ground that is higher that intervention may seem to be justifiable. However, they are not effective (Chung, n.d.). The state's finite resources and imposition on them by their constituencies domestically would allow the deployment of resources fully that are needed when there is at stake the state's self-interest as well. Thus, it is not coincidental or surprising that the interventions most of them are based on self-interest and not primarily or exclusively on grounds that are humanitarian. It is on one hand claimed by the scholars that there is a duty on the international community to intervene in those conflicts where the citizens are helpless. The political realists, on the other hand, claim that if the nation's self-interest is not at stake, then there will be a lack of the incentive that the country may have for investing in the necessary amount of resources for the intervention to be successful and therefore it is like that the intervention will be a fail ure. It is on normative claims that the advocates of human rights base their arguments on with respect to when the intervention should be done, whereas the focus of the realist is strategy aspects relating to the intervention and the feasibility that it has in a world that is anarchic and in which there is no authority which is overarching (Ciurea, 2015). I agree with the opinion of the realist and argue that the decision of interventions that are based on the grounds that are solely humanitarian have a greater chance of failure. There are two main reasons for it (i) Finite Resources, the government resources are finite, and there are more needs that are required to be satisfied then the resources that are available to satisfy them (Criddle, 2015). Thus, the Government has to decide whether the resources should be utilized abroad or domestically. Those resources would be utilized more towards domestic need as compared to the cause of intervention based on humanitarian grounds with no personal stake; (ii) Governments Survival even it regimes that are authoritarian the support of the citizen is important for the survival. If there is the failure of the intervention, the rules will be blamed by its constituents. Therefore, the preference of the rulers would be to intervene in cases that are easier, that is those cases in which they are s ure that they will succeed. However, usually these are not the cases where humanitarian intervention is the maximum, the empirical evidence that exists support the view of the realist. It indicates that interventions that are based solely on grounds of good intention are more likely to fail. In Somalia, the intervention of US in the year 1993 is a critical case that supports this claim. In this case, there was a huge pressure on the government of US to provide to the Somalis who were suffering political oppression and starvation humanitarian aid. There, however, was no economic or strategic interest that the US had towards Somalia. It, therefore, intervened in its capacity that was minimal. It the street of Mogadishu there was outnumbering of the American soldiers, and they were killed, and they failed to capture the war-lords Somali. On the other hand the intervention of US in Kosovo precisely succeeded because there was considerable importance strategically that was attached to th e region and therefor there was a willingness in the government of America to invest resources for ending the conflict that was there between the Albanians and the Serbs so as to ensure that was peace that was sustainable (Ethics, Law, and Humanitarian Intervention:, 2014). However every intervention cannot be justified by human rights, it is dependent on the nature, magnitude and scope of the issue. There clearly has to be circumstances which are extreme, and there is liberty and life which is at stake if force across the international boundary is required. There are various situations of violence which are required to be dealt itself locally by the government or the local stakeholder. It is only when there are certain cases like ethnic cleansing, genocide or massacring systematically national or religious community and when oppression and extreme brutality is targeted towards a large number of the population of a state, it is only then can a response and intervention from international borders be justified. What needs to be established that it is not practical or possible to wait for a response from the local government that is there (Hill, 2009). It also has to be established that due to limited resources of each government it is not feasible that at every occasion intervention would be possible. In each one, it is necessary to calculate the risk. It is necessary to weigh the consequences that could possibly be there due to such intervention. If there is the further spread of conflict or insecurity that is caused due to the intervention, it is necessary that intervention should be stalled and should be occasioned at a moment that is more opportune. There is always a risk that is imposed by the military intervention across international for the forces that are intervening (Jayakumar, n.d.). Interventions are important from the moral standpoint for the oppressed populations benefit. However as already argued in this essay there is no pure moral which is in existence in the life of politics, and it is not necessary to pretend that there is any kind of purity that is there in this in most of the cases (Jean Buck, 2012). As far as an intervention is right, a moral agency can be there for any actor to act on the populations behalf. It is argued by moralist that the state that should be allowed to intervene should be the state that has respect towards human rights. In the legal and political realm, however, it is general the interventions that are multilateral in nature which enjoys the legitimacy. In this essay, I would also like to argue that both politico-legal factors as well should aid in the determination of justifying who is to intervene. Unilateral action may be pre-empted by decisions that are collective. The UN in this context has the most appropriate place for leading the intervention process. In Iraq, the intervention from the US and the military response of NATO are Kosovo brought forth cries of doubt, and there was a general generation of suspicion among various other states too. It is because of the fact that there is the motive that ever state may be acting unilaterally is why unilateralism has been questioned time and again. The General Assembly of UN has evidence in ample with respect to the commitment to addressing and upholding the issues that are pressing and that may require intervention to be enforced (Lechner, 2010). UN has been entrusted by states and agents are authorized to further by UN for carrying out measures that are appropriate. The issue arises at the time when the UN is unable to come to a consensus with respect to such decisions. Meanwhile, there are atrocities which are being still carried on. In such a scenario it is important the prominence is given to force that is transnational, and an active role is to be given to them for getting out of this situation of paralysis. In extreme cases, there is a partial consensus which is there among the states that are liberal that there exists a moral right of intervention is cases which are extreme in nature. It is, however, necessary that the states that are involved in the process of decision should not be acting in a manner that is for their own interest. It is argued by so moralist that obligations and rights for intervention are restored instantly if the measures of collective fail. It is however with the caution that such situation is required to be treated. There would be certain exceptions to it which can be made, if it were certain that the country which was intervening was in a position of being able to carry out the intervention in the manner that is the effect, and there is no ulterior motive which is there behind. There however still at all times mixed with this intervention an ulterior motive for the party which is intervening whether it is only one actor which is involved or whether it is multiple actors there is not compulsion or obligation on the state to intervene at a cost that is grave to itself. Thus, since the resources are very finite thus a state would only apply t his limited resources it has to intervention there needs necessarily to be a benefit that the state has for itself (Miller, 1995). The Bangladesh case is another case in point in the year 1971. Bangladesh was known formerly as East Pakistan. Had there been a General Assembly for the Council of the UNs security then it is likely that such an intervention would have been decided against due to their being a an opposition from China and USA are great powers. The decision that India took of intervening in Bangladesh was dependent solely on it own political decision. However, it aided in providing an effecting stopping to the atrocities that were occurring in Bangladesh and helping push Bangladesh and it freedom fighters towards the victory of the Pakistani Army's over occupying (Lechner, 2010). However, it needs to be clarified that intervention dos do not refer only to the use of force. Though in most cases of humanitarian intervention use of force is involved, and this is extremely important for its success that pursuance of the same should be in a manner that is forceful. The aim that overarches is that the oppressor should be defeated, who are carrying out heinous acts of oppressions such as ethnic cleansing or genocide etc. there may also be the attempt towards the method that are non-coercive during the start of the intervention through efforts that are diplomatic. Sanctions have also proved to be a useful method for pressurizing the states that are rough. Nevertheless, the military which is coercive is justified when there is the failure from all other types measures. In the case of Bosnia this was exemplified, where there had been repeated efforts which were failing for dealing with the situation without declaring a war against the perpetrators. There was humanitari an relief that was brought for the victims and there was some level of protection from the workers that was provided for the relief workers protection but there was no success that was achieved for creating in Bosnia a zone that was safe. The concern that remains is that the principle of non-intervention's relaxation would case more number of actions of military by the state. Though there is some validity to these concerns however, there is no direction provided by them for finding a solution for it. There is an emergence of an international community which will be able to override the risks that interventions which are unilateral have. There has been a success in the cosmopolitan actors in impacting the agenda setting for the affairs that are international. As was stated by Kofi Anan the former UN General Secretary that there is a need for the protection of human rights are not for the protection of those who are abusing it (Philpott, 2003). Further, it can be stated that a strong argument can be made that human interventions that are based solely on purposes that are humanitarian have chances of failing. Intervention are extremely costly unless there is some kind of self-interest which drives it otherwise it is only half-heartedly that they are carried out in some cases the use of resources for intervention that is cross-border becomes counter-productive for the state. This Kosovo and Somalia intervention corroborate this. The argument that has been developed in this essay is the realist in nature. It is in the political and legal sphere that the mechanics and procedure of intervention lie. The granting of licensing key role should ideally be with the UN. It is necessary to be able to aid those who are vulnerable that a clear consensus is reached by the actors at the international level. Reference ARBOUR, L. (2008). The responsibility to protect as a duty of care in international law and practice. Review of International Studies, 34(03). Argument and change in world politics: ethics, decolonization, and humanitarian intervention. (2003). Choice Reviews Online, 40(11), pp.40-6679-40-6679. Bellamy, A. (2005). Responsibility to Protect or Trojan Horse? The Crisis in Darfur and Humanitarian Intervention after Iraq. Ethics International Affairs, 19(02), pp.31-54. Chung, A. (n.d.). Legitimacy of Humanitarian Intervention: A Liberal Defence. SSRN Electronic Journal. Ciurea, A. (2015). Humanitarian business/Humanitarian intervention: ideas in action. Resilience, 3(1), pp.87-92. Criddle, E. (2015). Three Grotian Theories of Humanitarian Intervention. Theoretical Inquiries in Law, 16(2). Ethics, Law, and Humanitarian Intervention:. (2014). Soundings: An Interdisciplinary Journal, 97(2), pp.228-238. Hill, T. (2009). KANT AND HUMANITARIAN INTERVENTION1. Philosophical Perspectives, 23(1), pp.221-240. Jayakumar, K. (n.d.). Humanitarian Intervention: A Legal Analysis. SSRN Electronic Journal. Jean Buck, H. (2012). Geoengineering: Re-making Climate for Profit or Humanitarian Intervention?. Development and Change, 43(1), pp.253-270. Lechner, S. (2010). Humanitarian Intervention: Moralism versus Realism?. International Studies Review, 12(3), pp.437-443. Lewy, G. (1993). The case for humanitarian intervention. Orbis, 37(4), pp.621-632. Miller, T. (1995). Shifting boundaries. Women's Studies International Forum, 18(3), pp.299-309. Nardin, T. and Williams, M. (2006). Humanitarian intervention. New York: New York University Press. Nzelibe, J. (n.d.). Courting Genocide: The Unintended Effects of Humanitarian Intervention. SSRN Electronic Journal. Philpott, D. (2003). Argument and Change in World Politics: Ethics, Decolonization, and Humanitarian Intervention, Neta C. Crawford (Cambridge: Cambridge University Press, 2002), 466 pp., $85 cloth, $30 paper. Ethics International Affairs, 17(01), pp.178-181. Rajan, M. (2000). "The New Interventionism"?. International Studies, 37(1), pp.31-40. Roberts, A. (2000). The So-called Right of Humanitarian Intervention. YHL, 3, p.3. Roberts, A. (2000). The So-called Right of Humanitarian Intervention. YHL, 3, p.3.

Waves of Feminism Essays - Womens Rights, Feminism,

Essex County College The Waves of Feminism and its Contribution to Society Today Ashley Altidort ENG 232: Survey of Women's Literature Professor Hill December 12, 2018 Outline Thesis: In Women: Images and Realities, a Multicultural Anthology, feminism is the main theme. Amongst the informative and highly opinionated articles submitted from a range of musical artists to college professors, the stories all support the three waves of feminism. The first wave primarily focused on women's suffrage and political candidacy, the second on equalities within sex, the workplace, and reproductive rights. The current and last wave embraces individualism and diversity, building upon the achievements and ideas accomplished during the first two waves by increasing the significance and accessibility of ideas to a greater spectrum of people. These waves have impacted the lives of women and families by encouraging society to be a positive contributing factor to our nation's cultural production as opposed to consuming and reacting it. It will continue do so as the incorporation of media and technology facilitates a rapid communication of knowledge and ideas amongst feminism, contr ibuting to activism and creating a new medium for expressing these vivid ideas. The first wave of feminism emerged in the 1840s, and it initially sought to advocate for women's social, political, and economic position in society, until the movement shifted its focus on achieving the right to vote.

Internet Shopping essays

Internet Shopping essays I was looking through the business section of the Lakeland Ledger, and I came across an article on dated 1/06/02 Women Out Shop Men On Web For First Time. I wondered how they went about getting their information. I had purchased online this Christmas, and no one asked me my race, sex, or other information while I was shopping. What if my name was Chris, Jamie or Pat? Who keeps track of this, and who wants to know? Does the credit card company, the web site, or the business give this information out? How do they get it? The first question that came to mind was who keeps track of online purchases? The answer is market research groups. Some like the Pew Research Center are nonprofit, independent groups sponsored by philanthropists. Others like Dun and Bradstreet, Comscore, and Controlled Data Corp. are for profit million-dollar companies. The next questions are why are these companies tracking this, and for whom are they getting this information? Companies like the PRC give their information free to students, political leaders, journalists, and public interest organizations. Tracking the Internets effect on the economy is just one of many projects for them. How often, how much, and why people buy online is purely an area of interest. For Dun and Bradstreet or Comscore, however, there is a charge for most of their services. Their primary objective is to collect market research for businesses on and off line, add servers, content providers, government agencies, and financial institutions. They offer demographic group of the site for the web site owner. They offer advice to businesses based on what people buy, how often they buy, what sites they buy from, and how the consumer responds to ads and marketing (www.comscore.com). Finally, how do they get this information? Phone surveys and polling online users are two of the most popular ways the PRC gathers its data (www.pewinternet.org). Mem ...

How to Write Acknowledgements - Proofeds Writing Tips

How to Write Acknowledgements - Proofeds Writing Tips How to Write Acknowledgements If you are near the end of your thesis, you can start to think about putting on the finishing touches. One thing you will have to do here is write your acknowledgements. A lot of people worry about this, but there’s really no need. As we are about to show, its actually quite simple! What Are Acknowledgements? The acknowledgement section of a thesis is where you can thank everyone who has helped you in your research. It is typically located at the beginning of your thesis, right after the contents page, and shouldn’t really be more than one or two pages long. The best thing to do is to keep it concise. Who Should I Thank? Think about the people who were of crucial importance during your research. This could include friends, family or professors, or even volunteers who have taken part in your research. Its also important to acknowledge professional bodies who have given you funding or other help. How Should I Write It? There are no strict requirements for the tone of your acknowledgements; its essentially the one section where you can be a little bit more informal! Try to make sure the tone fits the person or organization youre thanking, though, maintaining a formal approach when addressing funding bodies or other official groups. Other than trying to be concise, the main thing you should keep in mind is varying your language, if only because starting every sentence with I would like to thank will sound a bit dull. There are several ways you could word your thanks. A few suggestions are: This research would not have been possible without†¦ My sincere thanks go to†¦ I am grateful to†¦ Heartfelt thanks to†¦ I would like to express my gratitude to†¦ Appreciation is due to†¦ I acknowledge the contribution of†¦ I am indebted to†¦ And that’s all there is to it! Relax and enjoy writing your acknowledgements. If youve got this far in the thesis-writing process, youre over the toughest bit now!

Christianity Essay Example | Topics and Well Written Essays - 1000 words - 2

Christianity - Essay Example There are numerous differences and similarities between the Catholics and Pentecostals. Some are complicated and others are simple. In this paper, we are going to try to simplify those that are complicated for the sake of the understanding of those who have no Christian background. To begin with, we will look at the differences between the two Christian denominations (Peterson, para1). The first difference is that the Catholic Church (the Roman Catholic), the most popular catholic church in the world, apply the infallibility and the leadership of the Pope as their link with God. The Pope is the voice of God to the congregation. However, in the case of Pentecostals they do not have a specific person they look upon as their voice from God. Instead each group has a pastor as a spiritual leader and every member of the small group can be used as a voice of God to the rest of the members (Edwards, para4-6). The Catholics teach salvation through works and faith and they occasionally have to make confession to the priest who advices them on what to do to obtain mercy and forgiveness from God. None of Pentecostal groups requires its members to make any sort of confession, though some require confession of some kinds of sins before the congregation. In addition, Pentecostals do not believe that works are part of salvation but to them, salvation is through grace (Emberson, para1). Furthermore, Catholic worship style is very formal and highly structured. Nevertheless, for Pentecostals, worshipping is usually informal with a lot of dancing in the spirit, shouting, clapping of hands and various forms of enthusiastic displays. Another difference lies in the partaking of the Holy Communion. Roman Catholics believe in transubstantiation, whereby the elements of the unleavened bread and the wine miraculously become the body and blood of Jesus Christ and only the priest takes the cup. In the case of Pentecostals, they believe that bread and vine tree juice

Managing People in Engineering Assignment Example | Topics and Well Written Essays - 1000 words

Managing People in Engineering - Assignment Example The general employment environment plays a major role in workforce recruitment and selection. For recruitment and selection processes to be successful the employment environment has to be inclusive, whereby, for example, there is support by staff for processes such as agency workforce diversity initiatives. Environment includes the external environment- this refers to the various factors that affect the ability of a manager to attract, as well as recruit new workforce. Employment environment refers to factors such as the style of management, work-life balance as well as learning and development factors. c.  Outline the processes and procedures carried out when recruiting and selecting personnel for a given engineering post For successful recruiting and selection to be achieved, the following processes and procedures are carried out. The first process involves short-listing. This involves making assessments of the applications of candidates to establish their suitability for the eng ineering post, which is done according to the job description and the person’s specification. After short-listing, persons are required to fill application blanks, which record qualifications, experiences as well as any other necessary specialty. This is an important selection process as it provides important information which can be used to properly identify the person and develop appropriate inferences with regard to his suitability. What follow is employment tests, which are carried out to match the physical.... aking assessments of the applications of candidates to establish their suitability for the engineering post, which is done according to the job description and the person’s specification. After short-listing, persons are required to fill application blanks, which record qualifications, experiences as well as any other necessary specialty. This is an important selection process as it provides important information which can be used to properly identify the person and develop appropriate inferences with regard to his suitability. What follow is employment tests, which are carried out to match the physical, mental as well as temperamental pattern of the individual. These include intelligence tests, aptitude tests, proficiency tests and personality tests. After success in these tests, the other process is the employment interview. This process is carried out to establish the candidate’s suitability, look for more information with regard to the candidate, and more importantl y, to provide an accurate picture to the candidate of job details, for example organizational policies. Interviews are also carried out because they provide a face-to-face contact between the candidate and employer, allowing the employer to assess the various personality traits of the candidate. Before the final selection is done, the process of checking references is carried out. References hold responsible positions in respectable organizations, which is why it is important for the organization to make an investigation of the references given by the candidate. Once successful, a physical and medical examination of the candidate is made. This is an important step conducted sometimes earlier in the selection process to avoid time and expenditure that may be incurred when selecting medically unfit

Meaningful Social Studies Essay Example for Free

Meaningful Social Studies Essay The democratic principles and ideals of citizenship reinforces effective social studies. By focusing on rights, responsibilities, and respect, a solid base of social studies knowledge and skills develops civic competence. The foundation of four core disciplines, or strands, from the social sciences are: geography, civics, economics, and history. They are the Louisiana framework for social studies. Each of these disciplines offers a distinct perspective for examining the world. Within these strands, other social sciences, such as anthropology and sociology, are incorporated.  §103. Louisiana Content Standards Foundation Skills The Louisiana Content Standards Task Force has developed the following foundational skills which should apply to all students in all disciplines: Communication, Problem Solving, Resource Access and Utilization, and Linking and Generating Knowledge. Through research, activities, discussions, and real-life experiences, children can and will learn that diversity can be positive and socially enriching. A pluralistic perspective involves students building unbiased, open-minded views towards diversity among their fellow human beings. Teachers of this generation have the combined blessing and challenge of helping students make the most of a world that is rapidly changing. Students must develop the perspective that cultural and philosophical differences are necessary and desirable qualities of a democratic community (NCSS, 1994). I chose the concept of â€Å"Problem Solving† for Grade 6-8th in which I will be teaching in the near future. Problem solving identify an obstacle or challenge and uses the application of knowledge and thinking processes which include reasoning, decision making, and inquiry in order to reach a solution using multiple pathways, even when no routine path is apparent. Bringing students into contact with other people’s various views and conflicting values is very important. In the school and local community, therefore, problem solving/inquiry problems are most often found. Questioning and cooperative learning are two strategies that are frequently used to support meaningful learning. Questioning. This is where all learning begins. The types of questions teachers use guide students’ engagement in the lesson (Harvey Goudvis, 2000). The amount of time a teacher waits between asking questions and calling on students for responses, or responding to answers, affects student responses (Rowe, 1996). On average, teachers wait less than a second before calling on a student or responding to a student’s comment, this has been proven by classroom research. If the teacher wait 3 or more seconds before calling on a student or acknowledging a response, this can increase the length of student responses, the number of appropriate responses, and the cognitive level of the responses. Questions should be planned in advance, relate to the lesson activities, and are written into lesson plans. The Learning cycle lessons begin with questions that all students have a chance to answer. All answers are accepted by the teacher even though some answers may explain more than others. In the class such questions engaged by all of the students. In every learning cycle a central key question is planned for the exploratory phase. In a lesson focusing on the concept of presidential elections, for example, the teacher may ask the key question â€Å"What do you have to do to be elected president?† This is an open question that involves each student in thinking about the main idea of the lesson. Development phase, questions focusing student inquiry on the main concepts, skills, and attitudes of the lesson is done during the lesson. During the lesson development, many questions are narrow or closed. Questions are used to help students apply the concept in a new context, during the expansion phase of the lesson. On open questions, the emphasis is greater although some closed questions may be used. Effects of Emphasizing Student Control What students learn is influenced by how they are taught, the quality of individual and social processes occurring in the classroom, and the perceptions and understanding of social studies as a subject to be taught and learned (NCSS, 1994b). Matching Instructional Strategies to Student Needs One aim of education is to help students be self-directing (NCSS, 1994a, pp. 11–12). The amount of student control during the learning process, is a key factor. The categories, in order from least to greatest student control, are expository, guided discovery, and inquiry and problem solving/decision making. An appropriate instructional strategy is chosen by the teacher that matches the student’s level of social studies content, skill, attitudinal objectives, and developmental needs. These instructional methods are very effective and appropriate in helping students attain a particular level of learning objective. Expository, or Direct, Instructional Methods: Lower Student Control Students are provided with little control over the direction or extent of the learning process using the Expository instructional methods, or direct instruction method. Activity lessons using expository methods include the following characteristics: * The teacher controls the situation, providing adequate directions and motivation. The teacher provides ample opportunities to practice the skill in a wide variety of situations. * The teacher supplies immediate and continuous feedback focusing on correct answers. * The teacher uses lecture and closed, narrow questions to control the learning situation but must provide extensive and adequate directions for the student. Expository Guided Inquiry/Problem Solving Discovery and Decision Making Expository methods require external motivation and careful classroom management. Only lower levels of learning: recall and memorization are produced by these methods. Development of the affective areas of attending and willingness to receive information is facilitated by Expository methods. These methods are occasionally useful in the lesson development phase of the learning cycle in which the teacher explains the key idea of the lesson and the lesson focus involves the need for recall (Rosenshine, 1986). Guided Discovery Instructional Methods: Mixed Teacher and Student Control Students are involved in activities related to a concept and form an understanding of them when using guided discovery instructional methods before they are offered or explained by the teacher. A problem to investigate is created by the teacher and he/or she determines procedures and materials needed, but students collect and analyze data and evaluate the results as they relate to the problem. Guided discovery has four characteristics. 1. Students are provided with the time and opportunity to study relationships in data and form a new idea. 2. Students use several activities focusing on one concept, generalization, value, or skill. 3. Students’ main role is to investigate and discover answers to the questions posed, discussing and displaying data to do so. 4. The teacher provides directions and asks questions that help students begin activities with the learned resources selected. From data students can learn inquiry skills such as inferring, predicting, organizing, interpreting, and draw conclusions. Inquiry and Problem-Solving/Decision-Making Instructional Methods: Greater Student Control Inquiry involving significant student control over the direction the lesson takes, is the third social studies instructional method. The Students create a problem to investigate, determine procedures and materials needed, collect and analyze data, and evaluate results. These lessons have five characteristics: 1. Students are competent in basic social studies inquiry skills. 2. Students select problem areas to investigate. 3. Students work in groups, orally reporting the results of investigations. 4. The teacher guides students in defining the problem to investigate and in helping to identify resources. 5. A safe and supportive classroom environment is maintained. Activities using the Inquiry method are intrinsically motivating because students direct their own learning. A first-grader even is likely to use higher thought processes during an inquiry. For example, a young student’s social studies project could involve making a drawing showing where items in her personal materials basket (scissors, glue stick, crayons, etc.) should be placed. After the student lists three or more problems with the basket, such as the glue stick always falling over, the drawing is made. This allows the student to ask questions, communicate information, make inferences, and build prediction. Facts may form the basic content of the narrative, when writing stories about the experience, but students also often make inferences and construct generalizations. In inquiry and problem-solving/decision-making method activities, students are involved in practicing the full range of inquiry skills. Key social studies ideas and skills are carefully selected and is needed because inquiry methods reduce the amount of material covered to a greater extent than other instructional methods. Meaningful learning of generalizations and higher-order inquiry skills, as well as improved long-term memory and transfer of learning, occurs. Problem solving and decision making is what inquiry focuses on mainly. Students plan how they can participate and work together (Dunfee Sagl, 1967; Meyerson Secules, 2001). Conclusion By building on a core of effective practices in teaching and by designing activities and lessons with learning objectives in place, teachers encourage students to use their strengths and to respond successfully to challenges. They support students as active learners in meaningful activities. Focusing on helping young students identify multiple perspectives on issues and problems is a major learning outcome related to global issues. So also is discussing what are good and positive actions, moral positions, and appropriate behaviors. References Research Evaluation Strategies for Early Childhood Education. Research In Early Childhood Education in Handbook Research on the Education of Younger Children. Springer (2007). Retrieved from http://ww.library.gcu.edu.2048/login?qurl.http$3A2F%2F% www.credoreference.com/entry/sprihsei/table_of_contents. Social Studies Content Standards – Division of Adminstration www.doc.louisiana.gov/osr/28v121/28v121.pdf Sunal-Szymanski, C. Haas, M.E. Social Studies for the Elementary Middle Grades: A Constructive Approach, (4th Ed.). Published by Allyn Bacon copyright (2011) by Pearson Education, Inc. The Evolving Role of Teachers In Effective Schools in Springer International Handbooks of Education: International Handbooks of School Effectiveness and Improvement.

Choose 2 scenes in Twelfth Night and state how you would direct them Es

Choose 2 scenes in Twelfth Night and state how you would direct them Choose 2 scenes in Twelfth Night and state how you would direct them. Discuss some of the challenges you might face in directing the play to a modern audience. Being one of Shakespeare’s best romantic comedies, Twelfth Night has been re-enacted many a times, be it during Elizabethan times, or in modern times. Although set in the Elizabethan era, Twelfth Night has its charms. And indeed, it proves to be relevant and intimate to a modern audience, with its applicable themes and endearing characters. In directing a play of such mannerism, one would have to consider many factors affecting the overall effect of the play, and how it brings forth its true message and intentions. Hence, I have chosen to direct Act 3 Scene 1, as well as Act 2 Scene 3. The reasons why I have chosen the above scenes, is so as in Act 2 Scene 3, Sir Toby, Sir Andrew, Maria and Feste portray a kind of platonic love, that can be applied to a modern audience. In addition, Malvolio is shown forth as the typical puritan, who is the wet blanket for every party and discourages any kind of fun and disorder. This, hence, is also applicable to a modern audience, as the audience see Malvolio as the kind of person everyone would dislike. Thus, later on, when Malvolio is plotted against, the audience can comprehend why. This scene is seen to be a comical one, where humour is the main theme. Henceforth, Shakespeare’s theme of comedy still stands, despite later scenes of seriousness. Act 3 Scene 1 is a scene where we can see Olivia’s desperate and intensifying infatuation for Viola pouring out uncontrollably. Through Viola’s focused and straightforward rejections, we once again sense her dilemma due to her disguise, and also her devotion towards her task and towards Orsino. On the other hand, the message is brought forth that perhaps, woman aren’t always the ones waiting to be wooed. Olivia tries hard to achieve her goals (even when she fails), and gives a sense of stubbornness towards her ‘love’ for Viola (Cesario). Therefore, I have chosen to direct these two scenes. Firstly, Act 2 Scene 4. For this scene, it could be summarized as a comic scene with Sir Toby, Sir Andrew, Maria and Feste having fun amongst them. Then, Malvolio, the puritan comes in, and spoils their fun, insulting them a... ...ness, and brings forth the carefree tone of the play. Overall, this challenge still stands in the sense of showing Shakespeare’s ‘see-saw’ method in its best light. Another challenge that I think I would face in directing this play would be making the costumes fit the Elizabethan times, yet attracting the modern audience and adding a personal touch to display the play in a way impressing to a modern audience, whom I believe like to watch plays which attract them at first glance. Hence, the clothing could be modern cum Elizabethan, creating an interesting mix. Yet another challenge would be keeping the audience engaged and have continued interest in the show, so as to bring the show to them fully and meaningfully. This is important as if the audience cannot stay focused, the overall effect may be affected. Hence, perhaps the actors could engage the audience with eye contact and stand in such a way as to not have their backs face the audience (unless completely necessary). All in all, directing the play of Twelfth Night to a modern audience proves to be a challenging task, but possible with perseverance in keeping the overall comedy-romantic genre of the play.