Economic Planning – Not How To Earn, It’s How To Spend!

Though the term is quite self-explanatory, yet to understand it in a simpler way, the definition would be Economic Planning is a process of drawing a balance between supply and demand. May it be in the context of a nation or a household. Human demand knows no limit. And consequently there comes the concept of economic planning. If you can plan your economy well, you can manage to satisfy your needs using the limited resources you have. By the saying of David Cameron, “Economy is the start and end of everything”, you can assume how much well planned and organized it should be to arrange all your needs with the strength with your pocket.

Plan Your Economy Well And Remove Poverty

Now, if you consider the nation to be your household or vice versa, it’s quite relatable. For example, if you plan your economy in such a manner that it is eradicating the dearth from your life, it’s going to help the entire nation somehow. Remember, all the ‘you’s make the entire country.

So, let’s focus on its aims.

To be very precise, the aims of Economic Planning are

  • Revamping the economic system of the constitution we live in
  • Creating a fine-tune between moral and social ground
  • Upliftment of the country from a political perspective
Economic Planning - Not How To Earn, It's How To Spend!
Economic Planning – Not How To Earn, It’s How To Spend!

How To Chalk Out Your Economy

Before you plan the entire economy, there are some prechecks you must do. First of all,

  • You need to understand the objectives you want to achieve
  • Get an idea about the resources you can afford
  • Draw a flowchart in your mind to achieve the objectives
  • Make a blueprint of the schemes you will be needing to touch your goals
  • Plan your investments behind them
  • Earmark the resources for different lobs as per priority
  • Fix someone to strictly look into entire planning to be executed

How Many Types Of Economic Plannings You Can Execute

If you are up to plan your economy for a good balance between your expense and resource, you must have knowledge of the types of it. Now the thing is, there is no such design for household economic planning. However, you can get some idea from the types of economic planning designed for a nation. Generally, all these types are sketched based on the time duration allotted for them. These are mainly,

  • Perspective Plan
  • Rolling Plan
  • Annual Plans
  • Five years plan

Perspective Plan

The perspective plan is a long term plan that includes a time period of 15, 20 or 25 years of span. Not only one single plan is set to be achieved within the given period of time. Rather a long plan is divided into 5 or 6 smaller portions to be completed. You may consider it to be contextual at the state level or country level. What if you invest a small amount from your monthly earning behind your life insurance scheme? When you will get back your matured amount after 20 or 25 years, won’t it be a perspective planning of your economy?

Economic Planning - Not How To Earn, It's How To Spend!
Economic Planning – Not How To Earn, It’s How To Spend!

Five-year Plan

A five-year plan is a part of a Perspective plan. As the name says, the duration would be of 5 years. Hence, a unit of three or four ‘five-year plans’ can make a complete perspective plan. Now again, for example, if you plan a certain amount of your earning to invest behind your business to grow, another portion to support your kid’s higher education for next 5 years or a part to secure your old age, so that, after 25 years you can peacefully handover your well-settled business to your grown-up kid and enjoy a secured old age. Isn’t it similar to the combination of three ‘five-year plan’s?

Annual Plan

The annual Plan will be well described if we say a Five-year plan consists of five annual plans. An annual plan is prepared with much detailing. It gives the ‘five-year plan’ a strong base to be executed.

Now, as an instance, if you chalk out every year of your kid’s education based on expenses of a single year, this will be no different than an Annual Plan.

Rolling Plan

A rolling plan does not have any time duration. As time passes by, the previous year gets deleted from the schedule and another year gets added to it. In most of the cases, we follow this pattern in our lives.

Above all, taking all these into account, you are suggested to focus on your economy planning. Remember, even a beggar earns, but you know his character by how he spends.

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