Matters affecting the financial planning [Economic factors]

Economic factors
  Economic conditions continue to change also affects financial planning. forces of supply and demand have an important role in the formation of prices of goods needs. The inflation rate is high enough to make you have to adjust spending each year, as well as with the increase in wages or earned income.
  Bank that serves as the controller of monetary instruments having a bank certificate to be a reference to the interest rates on loans and deposits for banks. Real sector gets credit disbursement from the bank will adjust the price of its products in accordance with the amount of loans granted by the bank. You as a consumer end alias buyer indirectly impacted by the amount of lending rates.
  Making financial decisions, both for individuals and families, is strongly influenced by economic factors, such as inflation, per capita income, and interest rates. Let's discuss a little more detail the terms and the effect on your finances.

Inflation
  When interpreted in a simple, inflation is rising prices and services. Inflation effect on the decline in the value of the money we hold, as happened in the 70's that a certain sum of money you are able to have a motorcycle. Compare with current conditions, with the same money, you can only buy motorcycle tires with decent quality.
  For those of you who have a steady income each year without any increases, high inflation can erode the ability of money to spend. Usually many companies measure employee salary increases adjusted for inflation, it may be called by the rate of inflation, this can be referred to as cost Of Living Adjustment (COLA)
 Inflation is also a risk that is not visible to people that like to put the money in a vault rather than in investment instruments. Value for money will decline to spend the same goods in the next year. Inflation happens when averaged averaged since the 80s could reach 10 percent-a relatively high inflation could also be caused by stretching of development in various sectors. For those of you who are planning for the child's education fund, multiply two times the rate of inflation to increase in the cost of education is needed .

Income capita
  Income capita is used to measure the value of all goods and services produced by a national economy as well as to measure the economic health of a country widely. capita income is reported as a real form of economic growth .

  Simply put, capita income would show the average revenue per productive citizens (working age) based on macro-economic indicators. Rising capita income could reflect that more specific country or society, better off than the people of other countries.

 

Interest rate
The interest rate is the biggest factor that will be taken into consideration in making financial decisions, be it debt or investment decisions. For example, Housing Loan, Car Loan, as well as other business credit. The selection of the type of instruments used affect the returns received
    Interest rates affect your financial planning, the calculation of the future needs of diverse. Of course, also need tools such as the right investment instruments to help you with the aim of fulfilling the financial goals you want.