Essential Economic Necessities

Document Type:Research Paper

Subject Area:Economics

Document 1

To make the right decisions, it is important that people in the society have the essential knowledge derived in economics so that it is easier and efficient for them (Williams et al). I believe that buying wants is not as important as buying needs. Needs are the necessities of life that one can often not do without. Wants on the other hand are things that make life easier and are considered as luxuries. Such wants are things that differ from one’s tastes and preferences and can often be forgone in the priority list unlike needs that have to come first in the list. That amount of money would be saved for necessities only, such as rent or food. Such discipline when it comes to savings would not only help a person to plan the amount of money at hand but also to maintain a comfortable lifestyle whereby one does not have to struggle so as to achieve the basic needs of life.

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Budgeting is also a skill that helps one know what they can afford and what they cannot. This way, one is able to avoid situations where one takes a loan and is not able to pay it within the specified period. Budgeting is also a tool that may help a society make decisions that help them move forward financially. This is because if an individual can still eat, sleep and even dress without necessarily having to work, then no one would have to push their limits trying to make ends meet. In the long run, such a society would be poor as no one wants to work hard for their entire society. Most of the countries that practice capitalism are often more developed as opposed to those that practiced communism.

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Thus the society should understand that nothing comes for free in the current economic set-up. A person has to wake up in the morning and work in someone’s company or institution where they are later on paid at the end of the month. When citizens cannot settle down and focus on making money and supporting their families, then the government lacks the chance earn through taxes and other monies that are levied. This may cripple the country’s economic growth. Generally speaking, politics affect us in many ways, since the government has control over the country. What the prices of products we buy, how much is deducted from our taxes, and our rights. When the government does not operate normally, then the overall society may not progress as it is meant to.

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This would help avoid life stress and other complications that are caused by the same (Williams, Geoff). Thus, common sense economics is a tool that can help me make my life easier and for me to make informed decisions and also help in promoting economic development. When it comes to applying for a loan, there are a number of factors that I would have to consider. First and foremost, I should be able to know what is on my to-do list and whether it is a need or a want. For instance, I may need to save money for medical practice, tuition, and school fees. For this reason, I should look for an institution that will give me a longer period of time to pay up the loan.

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