Solutions

SAVINGS & INVESTMENT

❝ When savings turn into investments, it makes future bright and secure. ❞

❝ When expenses become investments, it transforms into wealth. It’s the faith and vision which produces the wealth. ❞

❝ When budgeting, you can always ask yourself critical questions like these:

1. Is spending on fast food an expense or an investment?

2. Is spending too much on entertainment an expense or an investment? ❞

❝ Economic studies show clearly that 95% of the employers are employers because they systematically saved money. ❞

❝ Any man/woman who systematically saves money from early youth automatically becomes an employer. He/she may employ thousands or he may have only two or three employees, but he/she nevertheless is an employer. ❞

❝ There is an old proverb which says that "Habit is second nature", There are two kinds of financial habits: (i) Money-Making and (ii) Money-Saving ❞

❝ It needs no prophet to tell us that those who live fully up to their means, without any thought of a reverse in this life, can never attain financial independence. ❞

INCOME

❝ Your Income — means Power

Power to Purchase. Use it wisely. ❞

❝ There are two types of Income - (i) Active Income: is earned by working yourself.

(ii) Passive Income: is earned by deploying money to work for you. ❞

❝ When a man/woman is at work, he/she generates money which is known as Income. When money is at work, it generates Wealth. ❞

❝ True economy consists in always making the income exceed the out-go. ❞

CREDIT & CREDIT WORTHINESS

❝ Credit Score represents Financial Reputation. ❞

❝ Credit phenomena are exchanges of rights. This is true for all exchanges. We do not exchange rights for money. We exchange rights to other rights for rights to money. ❞

❝ Borrowing is expensive, and one does not borrow for amusement. It costs interest. ❞

❝ Borrowers must also have confidence in the future of their businesses, in their ability to make enough out of the loan to pay the expense involved, and have a surplus left over. ❞

❝ When loans are made on good mortgage security, or on collateral security, the personality of the borrower may count for little or nothing. Confidence there is, but not confidence in the intentions of the borrower. The confidence is in the "goodness" (i. e., the value and marketability) of the collateral. ❞

BANKS & BANKING

❝ Banks are vitally important centres for the making and controlling of business confidence. Having intimate knowledge of the affairs of many businessmen, of businessmen in different lines, they are in a position to wisely judge business prospects. Having great power to make or refuse loans, they can encourage or chill the enthusiasm which businessmen may independently develop. ❞

GOLD IS GOLD

❝ Gold, and no other thing, sustains all functions of money. Gold is money as soon as it is taken from the earth, without refining, without minting and without limitation. ❞

❝ Gold is a measure of value; that is, all other things are measured in gold. ❞

❝ Gold is divided into units, such as US dollar, the Indian Rupees, the English pound, the German euro, and so determines prices. ❞

❝ Gold is a storehouse of value; that is, the people of the world hold it as an absolutely safe form of property, varying less in value than anything else they can possess. ❞

❝ It is such a permanent form of value that it is made the basis or standard of future or deferred payments: not only at the end of a year, but at the end of twenty-five or fifty years. ❞