ECONOMICS OF MONEY

HOW MONEY ORIGINATED?

            Money is neither invented nor discovered. It evolved over years. Several centuries ago, there existed a system named the barter system. The barter system is the system where the goods and services are exchanged with each other. For example, If a person says X sells vegetable to another person Y, then the person Y have to sell fruits to the person X. Thus they exchanged goods between them. As time evolves, yellow metal and paper currency was used by the people. The yellow metal is nothing but gold, silver. In this system, the people used gold and silver to buy goods and commodities. As time evolves, the government has said that no need to use gold metals and they will issue notes, i.e, currencies with the value written on them. The government has ordered everyone to use and accept this. As long as people trust the system introduced by the government, paper currency is available. This is how money evolved over a while. Today, there are multiple forms of money. They are credit cards, debit cards, mobile banking, electronic wallets.

HOW DO WE SPEND MONEY?

            There are five forms of spending. They are needs, wants necessities, comforts, and luxuries.

NEEDS: Needs are the things that you must require at that time. Some of the common needs of a man are food, clothing, shelter, transport, communication, education. For example, as a college student, you need to have a phone since many study materials have been sent to your devices.

WANTS: Wants are the thing that you desire to have. Unlike needs, wants have options to choose from. If you do not have those things, it will not affect you. For example, well-furnished home, time-saving home devices, AC rooms, etc.,

NECESSITIES: Necessities have been categorized into three types: 

  • Necessities for life: This includes the basic things you need to run life on earth. Example: Food, clothing, and shelter.
  • Necessities for efficiency: This includes the bike for college students, a car for a businessman.
  • Conventional necessities: It is a social habit of practicing some habits. For example, people spend more money on wedding receptions.

COMFORTS: Comforts are the things that make life more enjoyable. The examples include a Well-furnished home, AC bedrooms, etc.,

LUXURIES: Luxuries represents the higher strata of spending. For example: Having a BMW car, buying diamonds.

       The important point is that needs and wants change with time. For instance, when you are a college student, having a Macbook pro is want. But when you are in the corporate world, having a Macbook pro becomes the need. Necessities, comforts, and luxuries will also differ from time to time and people to people. In the 1990s having a phone is a luxury, in 2000 having a phone is comfort and now it is a necessity to have a phone.

TAX, SAVINGS, AND INVESTMENT:

TAX: The part of our earnings has to be paid to the government in a form of taxes. The reason why we have to pay the taxes is that the government sets up the environment for our earnings. Taxes enable the government to maintain the city infrastructure by providing good roads, hospitals, and transports. To be a good citizen, we must pay the taxes honestly. The tax rate will be increased if some of the people are not paying their taxes properly. Once we paid the tax, then that money will be the government’s money. There are two types of taxes namely direct tax (income tax) and indirect tax (GST).

SAVINGS: Savings is the money that remains after you spend the money from your earnings. You can put your money in a savings bank account. The money in your account will be safe. The ability to convert them into cash is high. The rate of risk is low in a savings account. If you need money within one year, then put the money in a savings account. The ideal equation is INCOME-SAVINGS=EXPENSE.

INVESTMENT: You can invest the money in bank deposits, mutual funds, equity shares, fixed deposits, gold. The return of the money will be higher or lower. The risk of losing money varies by the investment you made. It is a long-term process generally more than 2 years. The liquidity depends on the type of investment. If you want to need the money a few years later, then invest the money.

Women empowerment

Amongst covid-19 pandemic, 2021 budget has potential to increase women labor force participation up to 2 percent this year.

Nirmala Sitaraman, Minister of finance, the government of

India shared that budget 2021 has the potential to increase the employment of

women. COVID-19 pandemic had disproportionately impacted women

forcing them to drop out of the workforce. The women labor force participation according to the center comes down from 25 percent to 21 percent, due to job loss by women. In urban India only 12 out of every 100 still employed are women, a shocking

statistic, down from the already low 18. No doubt the covid 19 pandemics have resulted in many challenges such as pay disparities and expensive child care is an economic downturn that hit women workers measurably harder than men. Whenever the economy shrinks people lose jobs, then look for another job but women aren’t sitting it out so much as being pushed out by disproportionate job loss, 

lack of child care, pay disparities, and lack of public policy to support working women. women with children are much more likely to report that working from home has hurt their productivity and affected their careers  .there are three drivers of increased women labor force participation 1.Jobs that exist in locations where the woman has family support.2) Contemporary and new skilling (like digital marketing, for instance) that allows for marketability3) A government mandate that enables small businesses to be rewarded for hiring more women. The allowance of women to work in all shifts is a move towards reducing the gender divide brought in by COVID-19. This will help industries such as IT and BPO in Special Economic Zone’s, manufacturing companies in sectors such as Textiles, Pharma- as well as large organizations with a national presence. The textile industry, one of India’s ancient industries that employ the largest numbers of women has received a big stimulus with the announcement of seven Textile Parks. The third aspect which would allow small businesses to be rewarded for hiring women has not seen any pull in any of the budgets presented in the few last years. Large organizations in metropolitan cities have already bought the business case for both genders that led to women’s employment being enhanced. It is the 2 and 3 level metropolitan cities and towns that need the influence of involvement. And this is where there is a large population of women – educated, career-seeking, and yet unable to earn

reasonable money due to the non-availability of jobs matching their aspirations. As per data, young women in the age group of 20-24 across urban locales, are more interested in being employed than similar-aged women in rural India. As such, this is a very important talent pool, waiting to be engaged. The BPO and micro-enterprises in these locations will require a stimulus to engage women more proactively. Had the budget addressed this, by providing a bit small, yet encouraging a sum of money to employers of women, India would have seen a jump in women’s job creation to almost double-digit increases, which will have a multiplier effect on the economy.

Media mere puppet for politicians and giant corporations.

Media, the fourth pillar of democracy act like a puppet in front of politicians lately. With many toolkits, cases highlight. Excessive paid news reporting during Election. Exhibits how media is governed by political parties. Today massive advertisement by the political parties shows the nexus between media and political parties. Showcase their close economic connections. Media also alleged for running agenda and propaganda for their allied politician during elections. Which hampered the credibility of the media. Many journalists appear to favor their alleged political parties openly in their text, report, and debate. Even the questions asked in interviews are biased one sustaining only one side or party. Its been observed during elections, this funding increase manifold. To dominate media investment partnership, toolkit, gifts, privileges are some tactics that political parties used without coming into suspicion. Such malpractice is performed by political parties to bribe the Media. To use it as a weapon during election campaigns. witnessed in the way media seems divided in their message. They showcase only the positive side of their party, their positive work shaping the idea and ideology of the common people. Media runs agenda and propaganda to deviate audience from the basic problem of the society and shift towards the direction their funders want. media propagates only those messages there supportive parties want. Maximum paid news reports are linked with political parties. Many politician leaders names are highlighted and summoned by the election campaign. But lack of proof and unwillingness lead to no fruitful result. And no severe action was taken place. Now media listen and write only what there investor wants. The incomplete, partial and biased information shared by the news channel became a hindrance for the sovereignty of the country. Severe actions and identification of the political parties became the necessity of time. the large number of manipulation on the part of the media shows that it has lost the credibility and trust that people have in them prior. Passive audience are consuming the biased or manufactured message that can hamper the autonomy and sovereignty of the country. Nowadays, Beside politicians many private institutions and cooperate giants seem to invest their large chunks in the media .For example, Mukesh Ambani, his family and friends owned INX Media recently. That show media became a puppet now.

Income inequality in India

Shared Moral Blindness - Ted's Thoughts

How has the unpriviliged community in India fared within the last few decades? Has their scenario changed?

There square measure actually several changes that one might observe within the last twenty years. Access to food grains from the general public distribution system at a supported rate has improved; several villages are electrified; a lot of youngsters are attending primary colleges in villages and concrete slums; bathrooms are made in many villages; several currently use mobile phones.

But has there been any important modification within the financial gain of little and marginal farmers among Adivasis and Dalits?

This is in all probability a a lot of complicated question to answer. after we started our journey as development practitioners twenty years past, we have a tendency to had to conduct a village study.

The average financial gain of Adivasi households in an exceedingly village of Bihar’s Lohardaga district (now Jharkhand) was around Rs 15,000 in 1996. This matched with the findings of comparable such studies in different areas of the Central Indian Plateau (CIP) conducted by our peers throughout a similar time.

Similar studies by development practitioners show that across the CIP, the common financial gain of little associated marginal households in an Adivasi space was Rs 55,000-60,000 in 2020 — a rise of just about fourfold from 1996.

The financial gain of those individuals failed to modification abundant within the last twenty years, if we have a tendency to take under consideration the rate. The Net present value (NPV) of Rs 15,000 in 1996 was around Rs 67,000 within the year 2019.

Rising inequality

The scenario changing at the national level?

India’s per capita gross domestic product (GDP) multiplied 5 times between 2000 and 2019; to $2014 in 2019 from $443 in 2000.

This doesn’t mean that financial gain of the complete population has multiplied. The highest one per cent in India attained twenty one per cent of total country’s financial gain in 2019. This was eleven per cent in 1990.

The top ten per cent attained fifty six per cent of the country’s total financial gain in 2019; rock bottom ten per cent attained solely 3.5 per cent.

Wealth distribution tells an analogous story. The richest ten per cent Indians closely-held 80.7 per cent of wealth in 2019.

The Gini (inequality in financial gain distribution) constant points to associate increasing difference in Republic of India. The constant in 2014 was 34.4 per cent (100 per cent indicates full difference and zero per cent full equality).

The constant multiplied to 35.7 per cent in 2011 and to 47.9 per cent in 2018. India is just second to Russia within the world in terms of difference.

Agricultural work is one of the most common way to sustenance in villages. A complete of 26.3 crores households are concerned in farming activities in India, per the most recent census knowledge for 2011.

Of this, only 11.9 crore folks are land-owning farmers; 14.4 large integer are landless staff and peasants. A minimum of 86.2 per cent of all farmers in India own simply 47.3 per cent of the crop area, per the agriculture census knowledge 2015-16.

During 2010-11 and 2015-16, the proportion of tiny and marginal farmers grew to 86.2 per cent from 84.9 per cent, whereas the overall range of operational holdings grew to 146 million from 138 million.

There are 126 million tiny and marginal farmers, that points to fragmentation of lands which a lot of medium farmers have become tiny and marginal farmers. These farmers along in hand concerning 74.4 million hectares of land — or a mean holding size of simply 0.6 hectares every.

Between 2010-11 and 2015-16, the amount of tiny and marginal farmers rose by concerning nine million, per agriculture census 2015-16.

Per capita land holding of rock bottom sixty seven per cent marginal farmers reduced to 0.38 hectares from 0.4 hectares within the last 20 years. The world isn’t enough for farmers to grow food for even six months.

Nearly 17 per cent smallholders have a mean land holding of 0.4 angular distance — a discount of 1.42 angular distance in 2000. The typical holding of scheduled tribe marginal farmers is 0.48 ha; for scheduled Caste, it’s solely 0.37 ha.

The country has another 3.76 crore households of landless laborer within the same time.

Pandemic made it worse

French economic expert Thomas Piketty, in his book Capital in the 21st Century, came up with a straightforward plan to elucidate difference in terms of wealth distribution takes place in associate degree economy.

He believes, once the come back on investments (r) is over the speed of economic process (g) of the country, a lot of wealth gets accumulated within the hands of a couple of (who own the suggests that of production) as compared to the busy category.

Piketty showed that the typical rate of come back on investment was 5 per cent throughout history. He finished that any rate below five per cent can cause a lot of difference as a lot of wealth are going to be generated for a couple of investors as compared to people who don’t own any suggests that of production.

Whether Piketty’s findings, largely supported Europe and also the u. s., are applicable for countries like India where economic history and pathways are totally different, is debatable.

However, a thirty five per cent increase within the web value of the billionaires in India throughout the novel coronavirus malady (COVID-19) pandemic, once India’s growth was negative ten per cent, could force US to assume if Piketty was right.

The approach ahead

India’s economic process has caught up considerably. This can be the time once states ought to invest: cash must move into the hands of the marginalized.

States earn cash through taxation. Increasing tax on the rich folks is that the obvious resolution. Piketty additionally projected the same live to cut back difference. The next rate of tax for billionaires are often the simplest way to get a lot of revenue for the state.

In any case, withdrawal of Central Public Sector Undertakings associate and public sector banks can’t be a permanent resolution in an economy where difference is rising sharply.

There is a desire to trace what’s happening within the economic condition pockets of India. A periodic study could facilitate policy manufacturers to believe the problem a lot of seriously and are available up with higher ideas to cut back inequalities.

GST collection creates a record

The gross goods and services tax (GST) revenue collected in the month of December 2020 was Rs 1,15,174 crore of which CGST was Rs 21,365 crore, SGST was ₹ 27,804 crore, IGST was ₹ 57,426 crore (including ₹ 27,050 crore collected on import of goods) and cess was ₹ 8,579 crore (including ₹ 971 crore collected on goods imports). The total number of GSTR-3B Returns filed for November up to December 31, 2020, was 87 lakhs.

The government settled ₹ 23,276 crore to CGST and ₹ 17,681 crore to SGST from IGST as regular settlement. The total revenue earned by the Union government and the state governments after regular settlement in the month of December 2020 was Rs 44,641 crore for CGST and Rs 45,485 crore for the SGST.

In line with the recent trend of recovery in the GST revenues, the revenues for December 2020 was 12 per cent higher than the GST revenues in the same month last year. During the month, revenues from import of goods was 27 per cent higher and the revenues from domestic transaction (including import of services) were 8 per cent higher that the revenues from these sources during the same month last year.

The GST revenues during December 2020 have been the highest since the introduction of GST and it is the first time that it crossed Rs 1.15 lakh crore. The highest GST collection to date was Rs 1,13,866 crore in April 2019. The revenues of April normally tend to be high since they pertain to the returns of March, which marks the end of financial year. The December 2020 revenues are significantly higher than last month’s revenues of Rs 1,04.963 crore. This is the highest growth in monthly revenues since last 21 months. This has been due to combined effect of the rapid economic recovery post pandemic and the nation-wide drive against GST evaders and fake bills along with many systemic changes introduced recently, which have led to improved compliance.

Until now, GST revenues have crossed ₹ 1.1 lakh crore three times since the introduction of GST. This is the third month in a row in the current financial year after the economy has been showing signs or recovery post pandemic that the GST revenues have been more than Rs 1 lakh crore. The average growth in GST revenues during the last quarter has been 7.3 per cent as compared to -8.2 per cent during the second quarter and -41.0 per cent during the first quarter of the financial year.

Money Matters!

With time, money is the only thing that has became so important today and is continously needed everyday by everyone.

Money is the constant need and demanded by every human in the world. Without money, there is nothing anyone can buy today and without money its difficult to live now.

Earlier people were happy without money. The times where barter exchange were in place. There wasn’t use of money but still people found happiness in those simple things. At that time, money was not much of importance to the people.

After development of coins and currency notes, the world has changed. Happiness is found in the money and without money there is no happiness. In order to survive today, money plays an crucial role today for poor to the rich ones.

Money has changed the idea of happiness and today you can see every person is chasing money be it for basic needs or be it for to buy anything.

The poor, the middle class, and the rich class; every class of society are chasing behind money and constantly are working or are putting efforts to get money in order to survive. The poor ones or daily wage earners have to put in efforts everyday to get the money for buying basic things or necessities for his family. Everyday the daily wage earners earns so that they can feed themselves and their family.

The middle class have three classes: lower middle class, middle class and the upper middle class. All the levels are at a situation where they are rich from the poor and daily earners but are poor than the rich ones. The middle class people also needs money and works hard daily to earn money. The rich class or the luxury people even after being rich still constantly chase behind money and think of becoming more rich. No matter the levels, money is needed by everyone to buy or do anything in this world.

Well, if there is moneythen there is everything. Constantly people are running behind and chasing money and have forgot to live the life or to find happiness without money.

Considering the lockdown, still we need money in our pockets to go out. We need money for stepping out of the house, no matter lockdown exists or not. To travel you need money, to make something you need money, to live daily you need money, to go out with anyone you need money, for education, for health, for work, for every single little thing you need money.

Without money, there is no value of people. If someone has money, then only he is valued. Silly, right? But it is the fact today. Money buys you happiness today. Those who have money are respected by others. Money brings status to people. Money brings luxury and comfort. These are the mindsets that have taken place over the years.

Every human runs after money and the whole life of any human revolves around money. Every individual thinks about money every single day and the means to earn it.

Today, there is no peace or real happiness in anyone’s life. Money brings happiness for sometime but no peace. Money is the only thing that is never enough for anyone. We constantly need money for anything. We can’t live without money today. It has become such an important part of our lives that it is impossible to live without money today or in future as well.

Every thing is related to money. With money, we can buy anything but not peace or real happiness. Gone are the days when people used to be happy without money. But now, imagining living without money is not possible ever.

No matter how much rich or poor you are, you need money. It is an essential thing which is the constant need for every class of people in the society.

Money has took over the place of happiness in lives. People chase money so much that they have forgot that there is a life beyond money. But, the reality is different. ‘Aaj Paisa hai toh sab kuch hain.’

Who said? The basic necessities are food,shelter and water. No, the basic necessities in order to live is money first and then these. Without money, there is no food or shelter or water.

Nothing is free today. If you have money then only you can buy whatever you want to. Money was introduced or invented so that it can be a common medium of exchange that is accepted by everyone replacing with barter system. But who knew? That one day this invention would be so important or dominant in the world.

Money has changed lives but we can’t also deny that it has ruined many lives. The sufferings of people without money. People dying because of hunger due to lack of money. People dying or taking up their lives because of no money due to which they can’t feed themselves and their families. People dying due to certain diseases which requires lakhs of money and are incapable to do so. People involving in thefts or crimes for money.

No matter how much necessary money is today still it is one of the reason or you can say main reason for such happenings or for someone’s sadness or pain. Money has became more important compared to humanity.

To be honest, there is no humanity left around. People are busy in making money or earning money that they forget to help anyone in need.

People forget to live their lives and make memories or spend time with their families or their close ones and constantly busy in chasing money. Today, as the pandemic hit the world we as people are at our homes with our families and close ones and have got the opportunity to understand that in the end spending time with your family matters and brings you more happiness than money. In the end our life is more important.

Money matters and will always be needed for each and everything but making or keeping money more important than your family or close ones is incorrect. We need to understand that money will be always important but not every happiness is bought by money.

Can Money Make You Happy?

Money. It’s either the root of all evil or the best thing ever. People are arguing about the merits of wealth since they started saving it up. We’ve all faced the question of if we should always pursue money for its own sake, or if we might be happier without it.

Science increasingly shows that there’s a correct quantity of cash for happiness, but that countless variables make the quantity change for a small reason. The problem must be approached another way.

Philosophers have asked the same question. Every thinker who has tried to answer the question of how to live has had to wonder how much money was right to have. Here, we have got the ideas on how money affects happiness from ten philosophers which may assist you to decide what proportion money is enough.

Aristotle

In Aristotelian philosophy, virtue is the key requirement for a life well-lived. But while his stoic contemporaries thought virtue alone would assure a good life, Aristotle knew that a few other things would be needed. Among them are friendship, good luck, and money.

While he saw money as merely a tool to market other goals, he’s open about the very fact that the great life requires that you simply have a good amount of it. One of the things on his list of virtues needed to measure a full life is magnificence, which involves the donation of huge sums to charity.

He warns against the life dedicated to pursuing money, however, as this is often a life spent chasing something which is “useful for a few other ends” without ever reaching that end.


“The lifetime of money-making is one undertaken under compulsion, and wealth is evidently not the great we are seeking; for it’s merely useful and for the sake of something else.” —Aristotle, Nicomachean Ethics

Thoreau

Henry David Thoreau is legendary for retreating to a cabin near Walden pound and writing a book about his experiment of living an easy, self-sufficient life within the wilderness. While his experiment is usually presented as quite it had been, his cabin wasn’t that far away from a town and his mother usually cooked and cleaned for him, his ideas on the straightforward life are still worth considering.

His time within the woods showed him the advantages of living simply; like what proportion humanity can gain by spending longer in nature and the way getting faraway from material pleasures can help us live a fuller life. While his self-imposed situation came with great security, we will all stand to find out from his ideas on the way to earn less and live more.

To have done anything by which you earned money merely is to have been truly idle or worse- Walden

Epicurus

Epicurus was a philosopher with some bold ideas on the way to make people happy. He lived in the countryside in a large house with a dozen other people where they all lived communally. He argued that the path to happiness was moderation, strong friendships, and philosophy.

Rather than accumulating wealth, one should attempt to live an easy life and find joy in things like friends, the pleasures of labor, and philosophy. While he wasn’t against having some wealth, he feared that having an excessive amount of it might lead an individual to measure immoderately, which might cause vice and unhappiness. The moderate life, however, didn’t require much money in the least.

If you would like to form Pythocles wealthy, don’t give him more money; rather, reduce his desires- Epicurus

Daily habits of self-made billionaires that can improve life

There are billions of people in the world but only a few are billionaires. Not everyone has created phenomenal businesses and changed the world in a significant manner. What makes them different from others? What gives them the energy to pursue their goals and what others can learn from them?

Despite billionaires being different in their approach, expertise, and come from different corners of the world, they have one thing in common- habits. Almost all of them share a certain set of habits that make them successful. These don’t come from one’s DNA but have been adapted with time to achieve massive success and wealth.

  • Rise early: Each and every billionaire’s success mantra has been to wake up on time. Most of them said that their day starts around 5:30 AM. It gives a person more time to think in silence, work without disturbance, and can plan the day well. Now waking up early doesn’t mean getting less sleep. It is always recommended to sleep for 6 to 8 hours to function properly.

 

  • Maintain health: Without good health, life can be terrible. No amount of success or money would able to make the difference. Whether billionaires are 40 or 80, all make sure to maintain their health by exercising regularly and eating a balanced diet. Some follow a strict workout regime, some also involve themselves in games. These sports help you teach about success and failure, which are essential skills for business and life.

 

  • Read: Warren Buffett, the CEO of Berkshire Hathaway reads 500 pages a day as he believes reading is the most valuable source of knowledge. Read books about how to do the right things, about how to behave well, how to be a good person, etc. To be updated on what’s going on in the world, read newspapers regularly.

 

  • Contemplate: Sit around and think! Daily at least for an hour give yourself alone time. In that either meditate or do some relaxing activity. Develop new ideas, organize your thoughts, and gain more clarity. It is best when done in the mornings.

 

  • Be disciplined: Set extremely high standards for yourself and the people around you. If you take an example of sports, you can’t win a game if you don’t have enough discipline to train yourself daily. Be a quick learner and don’t procrastinate. Limit all sorts of distractions that prevent you from attaining your goals. Always be eager to grow your skills.

 

  • Commit to routine: Whatever the routine you have set up, commit to it thoroughly. Typical elements of a billionaire’s routine include: waking up early, reading a lot, healthy diet, exercising regularly. Also doesn’t matter when you do your routine in a day, the most essential is that yes it is completed.

 

  • Do things differently: Many people simply follow the crowd. No matter how hard of truth this is, one can’t be a billionaire by copying others- doing what everyone else is doing. Go against the tide and make a path for your own self. If you find yourself stuck in the rat race, it may take time to get out of it but do so. Nothing comes easy and being a billionaire definitely doesn’t. Think about what you can do that will truly revolutionize your life.

 

 

 

3 Ways for Students to Make Money Online Without Getting a Job

USE Depop

Similar to eBay, Depop is a platform for those who want to sell their clothing, jewelry, artwork, and anything else under the sun. The app is well known for being populated by vintage lovers and those who want to reduce their carbon footprint by practicing sustainability. The app also includes item recommendations based on your taste, top sellers based on style, and world favourites. Users can decide to follow shops and sellers in order to keep track of the items they are selling.

Starting up on this app is very elementary. The user only needs to connect their Paypal account for transactions and other payments. In addition to payments, many sellers and users on the app also participate in trades where they trade items from either store of similar value. After this step, the only thing left is setting up an account with a profile photo, a biography, and social media links, if that’s what your heart desires. From here, you can post photos of whatever you want to sell and choose the price.

If your item is a clothing item, a jewellery piece, or an accessory of any sort, wearing it in a photo for reference is normally preferred by buyers so they can see how it may fit another individual. Always take as many photos of your product as possible. This usually increases the likelihood that someone will buy it because you show all the angles of the product as well as the flaws it may have. Include a bunch of tags related to your item under the post. These tags are used for when other users search an item through keywords.

Youtube

For creators from all walks of life, Youtube is one of Gen Z’s golden media platforms. From compilations to make up tutorials to daily vlogs to art tutorials to photography tips, the platform is extremely versatile. And this is where you come in. Like the previous idea, take something you like and start a channel on it. If you’re really religious, start a channel on things you have learned or practice. If you love makeup, become a practicing beauty guru. Or maybe even just do daily vlogs and stream your routine in quarantine. The possibilities of Youtube are endless, but that doesn’t always promise you money. Many Youtubers correlate their large incomes from Youtube to brand deals, views and hard work But the message on success in the Youtube space is clear: you need to be patient. Success on Youtube doesn’t just come with the click of the upload button, you need to work for it or do something that is worth remembering. 

SELL YOUR ART

This option is much more universal than you think. Whether you are a skilled artist or not, selling paintings or art on eBay is much more simple than one would expect. If you’re an amateur then start by making a small abstract piece. If you’ve mastered an art form then you have an upper hand, show your art skills, create more art pieces since you have more time on your hand.

Decision Making 101: Opportunity Cost

How we make choices | TED Talks

Wherever we are and whatever we are doing currently, is the result of the decisions we have made in the past. You have chosen to read this article and not scroll past it or do something else like watching TV or taking a nap. You have consciously made a choice from an array of options that were in front of you. Opportunity cost is the loss of benefits that could be derived from the next best alternative once a choice has been made. By reading this article, you have forgone the pleasure that could have been derived from watching TV or energy that you’d have got from taking a nap.

Opportunity cost is a term in economics but it can be applied to almost every aspect of life and not just the things that can be measured in monetary terms. When an investor chooses to invest his money in a particular stock, the opportunity cost is the return on investment that he could have enjoyed if invested in a different stock. If that investor had an excess amount of funds, he could have invested in both the stocks but that sets things like money, time and even opportunities apart – they are limited. This elucidates the importance of making well thought out decisions.

People who are doing 9 to 5, 5-days a week jobs face difficulty in realising their opportunity costs because they have a fixed schedule and only do what they are told to. They barely make any decisions on their own and just do what their boss tells them to on a regular basis so when they finally see an opportunity to relax on weekend, they don’t look for alternatives and just go with the flow. In case of freelancers or businessmen, however, these people are much more conscious of what they lose when they decide to spend their limited resources in a particular activity. A tailor can easily sacrifice the amount of business he is sacrificing when he decides to go on a week long vacation.

Opportunity cost is everywhere and in everything we do. When a person with a job decides to party on saturday night and sleep in because it’s sunday, he gives up on the time that he could have spent with his family. When you decide to get an MBA from a named university and pay a hefty tuition fee for the same, you sacrifice not just the money but the time, 2 years in this case, that could have been spent in doing a job or learning a different skill. You still chose to go for an MBA and the reason could be because you can get a much better job that pays better than the one without an MBA. Basically, It is all about weighing your alternatives correctly and carefully.

Decision making process isn’t complicated but two of the most crucial steps are identification of alternatives, followed by thorough examination of each alternative. All the benefits that are derived from all the alternatives need to be compared and the one that seems the most satisfactory should be chosen. One can also weigh his options on the basis of what he would regret sacrificing the most.