Save - Invest - Prosper
Authors
Employment and Wealth are the sources from which income is earned by a person.
From that income, the person has the option to spend something for his consumption and save some thing and invest it further. He also has the option of borrowing if he has to spend more than his income. He can convert some of his wealth into cash and spend it.
If he invests some of his earning in any period, his wealth increases and earns more income to him in future periods.
Financial planners help an individual in his spending/saving decisions as well as his investing/borrowing and wealth reduction activities.
Wealth managers may focus on managing wealth or accumulated investments in various assets.
Financial planners may provide a person with information on how various persons in his income/wealth group are spending and saving money and provide a bench mark.
Some of the lumpy expenditures in life need to be planned before hand and savings is to be accumulated over a number of periods. Financial planners help a person to articulate his lumpy expenditures and facilitate planning for the same. Financial goals and dreams are a jargon for this exercise of planning for lumpy expenditures.
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Income |
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Employment |
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WEalth |
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Consumption |
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Investment |
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