FINANCE

Finance, basically refers to the business of money amongst the people around the world. In other words, finance can be said to be an institution for lending and borrowing of money. In today’s business world finance has become as important as food, shelter and house, because the people today have become highly status-conscious. Having a sound financial status has become the call of the day.


Finance, Business finance, Public finance, Personal finance, Investment, Profit/Loss, Global Economic Recovery, clients, cost-cutting



There are various aspects of finance. The different types of finance includes the Business finance, Public finance, Personal finance. The Business finance includes the using money for investing in any business which after execution may bring profit or loss to the investor. If the business incurs a profit, then the investor becomes financially strong and carries out the business faster, whereas if the investor incurs a loss, then he looses the money he had invested and his business fails. The Public finance includes the borrowing and lending of money from a Bank or any financial institution with a charge of some rate of interest. The banks lend money to people as loans, and charge some rate of interest on amount sanctioned as loan. Similarly there are some other financial institutions for the public in general, like the Life Insurance Institutions, who fix the money for the lives of people, or some material. The personal finance includes the personal dealings of an individual in terms of the money he earns. A person decides his investment based on his salary earned, and his requirements as basic needs, and then finally he saves the amount which is left. This is all about finance as regards the common man.
Finance has wider function and a wider role to play towards the people globally. There is a good amount of profit earned by the people by having business globally as the scopes become wide. Making a business globally means taking heed of the need of the people today. The businesses are made such that it satisfies the need of the common man and hence they can enrich their financial status. The simple examples of this kind of a business is Online Shopping, billing, etc. Thus finance is indirectly linked to the needs of the common man.
Recently in 2007-2009, there has been a great a great Global financial crisis, featured by the decline in the business and consumer wealth. There has been a loss of Trillions of US Dollars. The economic crisis basically relates to the declining of the business processes in the major developed countries like US. The direct reasons for such decline in finance is not one, for example the case that happened with the Lehman Brothers, US Bank which went on lending money to its customers in spite of having a financial deficit in its own account. Such examples were the keen reasons for such a heavy recession, as the US financial institutions had become highly indebted to its consumers at the beginning of the crisis. The situation has been poorer in the other countries, including India. But in India Reserve Bank had not been on such a verge of getting completely indebted, due to which Indian financial status is comparatively stable. The consequences of recession have been mainly shadowed amongst the people on work desk, fresher job-seekers. The people working in the companies are suffering due to cost-cutting, pay on bench processes, low pay, while the fresher job-seekers have become hopeless in search of their dream jobs.

There has been going on great efforts being made in order to overcome the recession period with time. The steps that could be taken up include uplifting of the existing systems of business, so that the companies do not incur such losses. The basic designing of the business strategies and plans should be improved as per the requirement. The financial status can be improved by designing a product to achieve the clients objectives, directly and removing the risks associated with that product. Any common product can be of ample financial importance to man if it serves the basic needs of the people in general.

Conclusion:
Man is a social being and every common man needs to attain the basic amenities of life. In bringing about this status to himself, and his family, he needs to have a sound financial background along with a healthy bank-balance. This serves as the basic for the carrying out a business and helps a person to make him becoming financially strong. Thus by carrying out any business with proper planning, one can improve the finance of a country as well as add to the Global Economic Recovery.