The Economy

You probably are very familiar with the cliché `The Economy`. Day in day out, this term is used in reference to many different things and under different circumstances. Most often though and mainly in our African or to be more specific our Kenyan context, the term is never accompanied with good news. It is usually associated with the negative events in the society like high fuel costs, high interest rates, unemployment, and inflation e.t.c.

Well, to a greater degree, all the above negative situations are part and parcel of what `the economy` is all about. However, `the economy` is not limited to only negative things.

`The Economy` generally refers to all the activities involved in the production, distribution and consumption of goods and services within a given geographic region. This region could be a country, continent, a section of a continent or even the whole world. Therefore, anything and any activity involving production and distribution of goods and services within that given region constitutes `The Economy`. Continue reading “The Economy”


Public Finance

When talking of public finance, two things come into mind:

I.            Sources of government revenues

II.           Application of those revenues by the government in provision of public services to the citizens.

From the foregoing, it’s clear that public finance basically deals with how the government raises revenue and how it uses the revenue in provision of public services to the citizens. This is a topic of major concern to all citizens; since how the government raises and uses its revenue has a direct impact on your personal lifestyle as an individual.

The government mainly gets its revenue from taxes which are imposed on you the citizen either directly or indirectly. The other source of income happens to be borrowing either locally or externally. Both these sources of revenue have a direct impact on the economy of the country and hence they end up affecting you the citizen either favorably or unfavorably. Continue reading “Public Finance”

Real Estate Investment

You probably might have come across this word, ‘Real Estate’; and probably you might have just ignored it as one of the many English words you may not need in your vocabulary database. However, after a short while and if you really would like to grow wealthy and escape the pangs of poverty, ‘Real Estate’ might just be the best word you ever came across.

Real estate simply means land and any structure or building that is erected on it. So, when you look around, what you see is real estate: the land and the buildings.

Real Estate investment on the other hand is the commitment of funds in real estate with the aim of getting returns. This involves acquisition of the property or land (mostly through purchase), developing it, managing it and then generating income from it. Continue reading “Real Estate Investment”

Money Markets

Money markets are a section of the financial markets where money is the key commodity being traded there. The other section of the financial market is the capital market.

Money markets deal with short term credit instruments for the government, financial institutions and other large corporations. In other words, this is where companies and the government go to borrow money to finance their short term investment needs and projects; unlike the capital markets where they go seeking for funds to finance their long term investments.

In addition, companies and other investors may put their money in the money markets as an investment of their cash in the short term when they do not immediately need the cash. This is due to the short maturity period of money market financial instruments which mature between one day and less than one year. Continue reading “Money Markets”

Capital Markets

When companies and the government want to raise some money to fund their long term projects, they have various options to raise the funds – otherwise known as capital

  1. They could reinvest some of their previously earned and retained profits;
  2. They could borrow money from banks or other financial institutions;
  3.  They could invite the public to invest in their projects or companies by injecting funds into them;
  4.  And finally they could borrow money from the public.

It is the last two options that conceptualize the concept of capital markets. This is when a company or the government goes to the public to raise funds (capital) to finance their long term investments. The raising of this capital can be through borrowing or direct investment of the public in the company. Continue reading “Capital Markets”

Personal Finance

Personal finance involves the various things that affect our lives at the individual or family level on matters concerning money. It is a process and not a one stop thing that you do in a day and then forget about it. It takes time and deliberate effort to plan your personal finances and live a happy life within your means.

In personal finance, it`s not a matter of just making money and spending it; but it`s about you choosing the kind of lifestyle you want to live and then getting the necessary financial resources and managing them to help you live that life that you have chosen.

Personal finance entails sources of income which are mainly the various forms of investments at the disposal of an individual or a family. The various investments include: stocks, bonds, mutual funds, savings accounts, government papers e.t.c. Continue reading “Personal Finance”

Financial Literacy

Hey guys, most of us may have heard about financial literacy and personal financial development but really never had the chance to understand it better and deeper.

Well, if you are one of those people, you need not to worry. In this site you will get all you need to know with regards to finance and economics, and how they both work together to influence your lifestyle.

Moreover, you will also get to learn more about how to manage your incomes and develop a sound and long lasting, efficient personal financial plan that suits your lifestyle of choice.

It`s a great journey people and we can only walk together to explore its adventures corporately. You are all welcome to this great site; your questions, contributions and criticism will be highly appreciated.

Welcome all and find the root of all happiness in this world!