This interest pays out at a lower rate than that of interest we are paying on borrowing money, but it is in some respects free money that we do not have to do much to get, other than set our money aside in a separate account that we can use for emergency purposes or larger investments to save from having to take out a loan to make the purchase
As it is clear to read, interest goes both ways, and can add up over time into debt or a small fortune depending on which side of the fence you may be on.
Secondly, the economy impacts every member of my family through employment. Without this important aspect of the economy, there would be no money coming in. Therefore, it would be much harder for money to go out without racking up tons of debt. Employment does not only provide money for my family to live off. However, but it also plays a vital role in the world of insurance, retirement, and personal happiness. The economy also determines our purchasing power with the funds that we have available after all bills are taken care of, and this purchasing power that is based on the economy has a direct impact on our standard of living. This standard can determine our personal happiness in the home environment while not always a direct correlation between the level of life, a fair amount of the time they go hand in hand. Without the economy and employment, it would be hard for my family to exist happily or easily.
Another aspect of the economy that can drastically change the way you live day to day is the inflation rate based on the Consumer Price Index (CPI). The CPI is a market basket of goods that periodically check the changing prices to determine the level of inflation over a given period. Inflation can be a serious problem, and thankfully has not been a huge factor lately throughout the United States. Increased inflation takes away from purchasing power and often scares consumers away from buying luxury items, and larger ticket items that would typically be purchased a time of low inflation.
