Financial Economics

SAVINGS PARADOX was the starting point, advocated by Keynesians, of income redistribution from the richest (who save a lot) to the poorest; income redistribution carried out by means of a progressive income tax and a system of social benefits (unemployment benefits, welfare) results in increased spending for given population incomes; the paradox of austerity is only true for the short term – for a given productive capacity; in the long term, austerity is a source of investment financing, and the rate of economic growth depends on its size; the paradox of austerity has been used by left-wing economists as an argument against precaution and a high propensity to save, considered a traditional value and the foundation of the capitalist system.


INVESTING YOUR SAVINGS : Think about why you want to invest your savings. Do you want to achieve financial stability, secure your retirement, raise funds for your children’s education or achieve other goals? DETERMINE YOUR INVESTMENT PROFILE : Defining your investment profile will help you understand your preferences and risk tolerance. Do you prefer safe, low-risk investments, or are you prepared to take more risk in exchange for potentially higher returns? Gain an understanding of different investment instruments: There are many different investment instruments, such as shares, bonds, index funds, real estate, commodities. 

PENDING CONTROL is an indispensable part of saving for families with their own household budget, as well as for large corporations with huge financial resources. Without proper money management in terms of spending, it is impossible to effectively set aside large sums of money for the so-called ‘black hour’. Therefore, it is useful to know how to control spending properly in order to effectively accumulate sizable funds for private and corporate investments. Planning a household budget should start with being aware of your income and expenditure. It is best to start with the simpler task of determining your income, which is most often from a few specific sources. The more difficult task is to determine all household expenses. How do you establish a household budget? start planning your household budget? Calculate all sources of income – include salaries, stipends, social benefits, possible passive income, etc. Reserve funds for fixed expenses – identify and reserve funds to cover fixed expenses (e.g. rent, utilities, loan instalments, etc.).



1 Planning If you earn little, you should plan your spending.   How do you plan your spending? First of all, you need to set your budget. Maybe you should look for a cheaper flat or change your mobile phone provider? 2 Shopping list Nowadays, shop shelves are overflowing with products. Everything looks tempting, everything is on promotion, everything makes us spend money on unnecessary things. If you earn little, these are expenses that will drain your budget considerably. 3. savings account Every person should have a savings account, even more so one with a small paycheck. Keeping money in a sock has long ceased to work. With a good savings account, you can divide it up for specific purposes and even block withdrawals from it. You can also set up automatic transfers, so that a planned amount will “put itself away” each month. Even if you earn little, you will save a large sum per year. Find additional sources of income: If possible, look for additional sources of income, such as casual work, part-time work, selling things you no longer need or freelancing. Save regularly: Even small amounts saved regularly can accumulate over time. Try setting up automatic transfers to your savings account from each paycheck, even if it is a small amount.


COST OF BUILDING A HOUSE UNDER 70 m2 You have to pay approx. PLN 1,400 – 1,800 per square metre for modular buildings in a closed shell state. The cost of building a 35 m2 house therefore oscillates within the range of PLN 49,000-63,000. In the case of a finished building with an area of less than 70 square metres, you can close in the amount of PLN 200,000-250,000. How much does it cost to build a 70-square-metre house? Such buildings can also be erected without a permit, which reduces the expense of the project (on average, you have to spend about 300 000 for the whole thing).