Problems in the Field of Finance
As the world becomes smaller due to the ease of travel and the opening of the World Wide Web, the state of the world’s finances becomes more transparent. Sadly, the financial world is not in the best of conditions at the moment. The odd thing is that the problems a person has with his or her personal affairs, is often the same problems a country might have with their finances. Both groups tend to ignore a budget, overspend, and fail to save money.
Budgets were made to be followed. When a budget is constantly ignored at home, then the finances break down. The family cannot go on vacation or repair the roof. If a country fails to follow a budget, then the funds are not always available when and where they are needed. An example of tightening of a budget would be the laying off of teachers and over-populating classrooms. A budget should be made and followed no matter how big or small the entity is that has made the budget.
If a person overpays for a new pair of shoes, then he or she may spend the rest of the month living off of peanut butter and jelly sandwiches. If a country overspends due to any reason, then the money has to be taken from another arena. Then the dreaded budget cuts begin. Paying ten dollars for a screw for a plane when the screw was produced for dimes would be an example of overspending. If an entire company goes to Las Vegas to train and then can not make the payroll the next week, then that company has overspending issues. Government overspending is reported almost daily.
Saving money will save any person, group, or government on a rainy day. But, are there ever reports of how much money a government has saved? The answer is no. Saving needs to take place across the board nationally for a sound financial world to exist. A strong world of finance is important and saving money is a key ingredient.
It is interesting to note that personal financial problems are relative to the world of business and to the world of government. On a large scale, a country’s poor finances can damage the country’s reputation and infrastructure. These problems are not adhering to a budget, overspending, and not saving for a rainy day or two.