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Archive for the ‘economy’ Category

The differences which separate the disciples of Adam Smith so interesting, that affect the very concept of economics and his relationships with other spheres of life, but the fundamental distinction between the doctrines can be established, as it were in force Economics is the marking in the three systems as follows:

Individualism, the continuation of the traditions physiocratic says the harmony of all economic interests by virtue of natural laws governing this area, as legitimate for all purposes of competition, calls for the release as the only necessary condition for wealth produce and distribute the best possible way, and rejects any intervention in this order, reducing its mission to ensure people and things, to the administration of justice in the strictest sense. The most interesting embodiment of this school is Frederic Bastiat, and to it are almost all Spanish economists.

Socialism, which has many points of contact with the old school commercial is conflicting private interests, the audience sees the disorder and injustice, and wants the state to intervene and govern economic life, individual freedom by imposing limitations to prevent their mistake. This school has a wide variety of doctrines, because some of his supporters played in Communism, others extend less than the powers of the state and each sets his own way the economic organization of society, to which all aspire through public power . Proudhon was the most active and successful propagation of socialist ideas and the International is the institution that responds to them in the field events.

Physiocratic or agricultural school, which succeeds the previous one, rests on research and philosophical about the general order of the universe, and considers the economic as an element of social life, governed the same way as the others, by natural laws ensuring the harmony of all interests. These laws do not need more than the freedom to be fulfilled, and the Physiocrats ask the State to the scrupulous respect and refrain from any interference in the movements of industry and commerce. As for the origin of wealth, agriculture is, according to this doctrine, the only productive industry, the only one who gets the liquid product: manufacturing and trade are useful because they transform things, but do not create any value, not only alkalize to offset the expenses they do. Francis Quesnay, physician to Louis XV, agricultural school founded in 1758 with the publication of its economic picture, and had the most notable disciples of the Marquis de Mirabeau, Mercier de la Riviere, Turgot and Gournay, who is credited with the famous formula laissez faire, laissez passer.

The school maintains industrial capital ideas of Quesnay, and declares that labor is the source of wealth, with all applications equally productive dissects some laws of economic activity, and calls for the freedom of industry and trade as indispensable to n the action of supply and demand to be covered by the change. These principles are explained Adam Smith the year 1776 in his famous book entitled Research on the Nature and Causes of the Wealth of Nations, and from that date has already considered the economy as a science constituted and held by fundamental truths about his subject. The most important followers of Adam Smith have been to this day: in England, his homeland, Mac-Culloch Ricardo, Stuart Mill, Stanley Jevons and Cairnes, in Germany, Rau and Roscher, in Austria, and Bohm-Bawerk Mengor, in France, Say, Dunoyer, Bastiat, Molinari, Leroy-Beaulier, Block, Cauwés and Gide, in Italy, Ferrara, Ciconne, Rice Salerno and Cossa, and Spain, Florez Estrada, Madrazo and Carreras y González.

Through these points, have the facility to plan your spending, deal with contingencies that are submitted, meet their financial goals and save, so you can have peace of mind for you and your family.

1 .- Check your heritage. Subtract all the properties total of what you do not have or what you owe. This operation will result in an amount of money, which could be your family balance. Perform this exercise every month to determine if the actions you are taking are the right ones to improve their personal and family economy.

2 .- Learn to organize. Be aware that the main thing is to pay its debts ((see here fast payment plan debt), rather than pretend to save money.

If at this point is a debt that charges you a low interest, analyze and if your financial plan allows, is probably not necessary to pay all this in order not capitalized and able to allocate these funds to other priorities such as the save. Decide what issues have higher priority, which are closer to achieve and fulfill that best suits.

3 .- If possible, try not to spend the money they raise or receive additional way, for example, paid him money that paid a bonus for productivity, profit sharing, overtime, bonuses, etc. . Best save it!.

4 .- Book a portion of their money for emergencies. It is very important to have some money available to cover emergencies such as medical care for a family member, preferably, ensure that this money is invested in a bank account that is safe and who may use the money in a suitable time and bear interest above inflation. If you use this money only for emergencies and contingencies, will help you avoid making “money saved” in “cash for emergencies.”

5 .- Consider investing your money in a safe. If you consistently intended as part of your monthly expenses, quarterly or six-certain amount of money to keep protected your home, family health, car, and your most valuable belongings, to the time when unfortunate events occur and that covers your insurance, will not be in financial straits. Update your policies at the right time, consider that the inevitable are the few things that are not planned and can damage its economy and financial plans.

6 .- Use your credit card properly, try not to use much his or her credit cards, remember they are for the unexpected or exploit any opportunity that is offered them. Keep only the needed and use them sparingly.

Click here to learn more about the proper use of your card and how you can save and gain by it.

7 .- If you do not deposit their salaries in a payroll bank account, open a savings account or checking account, depositing your salary and organize your money through your account, and not spend it all at once and it can manage the best way.

8 .- Take into account and consider all possible sources of income and if you can find new ones, for example, contemplate the possibility of starting a new business, to sell what you no longer use and even calculate the amount of your pension.

9 .- If the case permits, better plan and manage the family finances with your partner, so both will be aware of the movements of his money and etre both can give good and better ideas to use it.

10 .- Coordinate if you have it, with your advisor responsible for keeping your family finances together they review and monitor bank statements, receipts, reports of their investments, contracts, expiration dates of policies insurance, etc..

11 .- Believe it or not, it is important to keep in mind and determine how much will its capacity when he retires.

Do the math according to your current salary and assuming that it will be constant, along with the increases will logically be the country’s economic situation, think also that in the event that prices rise, increase your salary.

Find out how and if it has already accumulated so far in its capacity has not deposited a large amount of resources, may be because you are very young or have little time to contribute in this system. All this must look to project the amount of retirement when retiring. If in doubt refer to your particular case Afores adviser.

12 .- Investigate options that will help increase the money they receive at the time of his pension, for example through the Afores or contracting a life insurance or an independent retirement plan.

13 .- Confirm your credit history, so you know if you can get credit at the time as necessary and according to their plans, goals and objectives.

14 .- If your credit history are not very good, then make every effort to pay the necessary improvement.

15 .- If you pay taxes as an employee, always stay aware, as a statement outside limit of time can cause a serious imbalance in its finances, as well as the amount you will pay, will have to cover fines and surcharges accumulated.

16 .- You might think it’s very early, but it’s best and most important, your will be ready well in life may ensure that his legacy remains in good hands well to prevent their loved ones, who have to perform lengthy and costly procedures.

17.-Keep in a safe place all important documents like account statements, contracts, insurance policies and anything else related to your finances and that has to do with his family. It is very important that your spouse is even aware of this place, so you can find them in a time of emergency.

The venue can be a safe in the bank or at home, also have handy a copy of them elsewhere, because for some reason if the originals were destroyed or lost, the copies will need to complete the formalities and verify the authenticity of these.

18 .- Always be prepared to face any situation, of course nobody wants to go through a divorce or death of a family, but it is better to be cautious.

19 .- Seek help if you feel unable to comply with these tips to improve their personal guarantees, approach someone you trust and who also has knowledge on the subject, as a financial advisor.

20 .- Do not be left in doubt about managing your money or your adviser is doing, rinse, investigate and never invest in anything you do not know or do not understand. And if in spite of this fails to be comfortable, feel free to ask for other opinions or take their money elsewhere.