Attaining Financial Freedom In India

Adam Smith was known as father of modern economics. His views about economics were far beyond his time. In 1776, he put forward all his views about the economics in the book "Wealth of Nations". He was the advocate of free trade and specialization. His view expressed in this views are applied to nation at macro level, and can be applied to personal wealth creation at micro level. Before Adam smith, wealth of the nation was only focused on how much crop a particular nation is able is to produce. This mindset was of problem. Let me explain you with an example. India has vast area of land under it. Hence it was able to produce much. But, Britain was island nation. It didn't had enough land for it produce crop. Hence to expand its control on land it took out invasion on other countries. Adam smith's view were different. He didn't think that nation's land expansion was necessary at all. If all the land in the nation was used up for agriculture and all the individua...

To overcome the disadvantages of Coinage , there was a desire to shift from heavier currency to lighter currency. Banking became prominent in trade. This small step is a giant leap as the money in the form of paper now can be used to transact with ease and the denominations has made any trade value possible Modernization in Paper Money: Paper money was introduced in Tsong dynasty of china in 11th century. In 13th century, paper money was introduced in europe through travellers like Marcopolo and William Ruberick. Because of insecurity and impracticality of transporting large sums of money over long distances, traders started using Promissary notes. Paper money was backed by physical asset like gold and silver. i.e, You can exchange one rupee to "X" grams of silver. This was true until world war-II. 44 countries along with India(even if it was under british raj) were invited to meet at place called bretton woods in USA, to sign an agreement for fixed exchange rate. According t...

Bronze age brought world of opportunities to human race. Sophisticated tools made his day to day task easy. Humans were on a journey to make things simple. Out of that quest, Coins were brought to life. Chronology of Coins and its usage: Money in the form of small knives   and spades made of bronze  was in use in China during the Zhou dynasty, with cast bronze replicas of cowrie shells in use before this. The first manufactured actual coins seem to have appeared separately in India. The first ruler in the Mediterranean known to have officially set standards of weight and money was  P hedion.   Minting occurred in the late 7th century BC amongst the Greek cities of Asia Minor, spreading to the Greek islands of the Aegean and to the south of Italy by 500 BC. The first stamped money (having the mark of some authority in the form of a picture or words) can be seen in Paris. Advantages of Coinage: This system solved all the problems of the...

As Humans have evolved over time, Money we transact in exchange of goods or service is also evolved. Barter System: Barter System was in use as early as 6000 BC introduced by Mesopotamia and it was improved by Babylonian's. Bartering is trading services or goods with another person when there is no money involved. If you ever traded 'abc' object in return of 'xyz' object, you have bartered. Advantages: You dont need money to barter. you do not have to part with material items. Instead, you can offer a service in exchange for an item It is flexible. Anything can be traded for anything.  Disadvantages: The desired item only has the value in this medium of exchange. For example, you desired to have apple, you will transact only with the person who is willing to exchange apple. Item exchanged is not quantifiable. Example: 10 apples cant be traded for a single sheep/goat. It was long tedious process to come to an agree...