1.1 Introduction
Adopted from “Money saving growth image” by nattanan is licensed under CC BY 3.0
Take a look at the image above. This image illustrates the benefits of saving and the importance to stablise it in life. How to maintain the stabilisation? In this course, we will learn a few ways to make a financial decision by considering the economic aspects such as inflation and any uncertainty. However, note that every decision has its opportunity cost or missed opportunity. But it can be minimised through better financial decision-making.
Adopted from “Picture att note in standard chartered bank” by Mobergefinance is licensed under CC BY 3.0
Having a huge amount of savings doesn’t mean having financial freedom. A good financial management is needed. Figure 2 shows a choice for an individual to apply for a loan from a company or other financial institution. What elements should be considered before making the choice? Is it more profitable to choose Figure 2’s option or institutions with better bank discounts? Is the term of payment offered fruitful?
In this book, and each chapter, you will begin to explore the definition of the terminology of the title, the components required for the terminology, the calculation, and finally the application in finance and economics aspects.
