FIN CHAP1

• Earnings


  Money obtained in return for labor or services, incomes derived from investments or products, the amount of money you make from doing a job, calculated as savings and investments less expenses, typically referred to as after-tax net income, gaining money by working, selling products and or services or receiving investment returns
• How to earn


  1. Sharpen skills

  2. Develop entrepreneurial mindset

  3. Map career plan
• Entrepreneurial mindset


  A way of thinking that enables you to overcome challenges, be decisive, and accept responsibility for your outcomes, a constant need to improve your skills, learn from your mistakes, and take continuous action on your ideas
• Entrepreneur


  Someone who innovates, uses his skills, interests and unique ideas to build his own business, organizes, manages, and assumes the risks of a firm, takes a new idea or a new product and turns it into a successful business
• Entrepreneur


  • Enjoys a position of prestige in the community because of his many contributions to society especially in providing jobs to people and providing needed goods and services, rewarded by a sense of accomplishment for having created something out of nothing, psychological rewards far outweigh the material ones
• Positive attitude and outlook


  • A must for successful entrepreneurs, sets the tone for the rest of the company and influences corporate culture, negative thoughts undermine forward motion and the progress of the company, not to mention the management's ability to lead staff and motivate employees, part of what gives entrepreneurs the fortitude to weather the business downturns
• Entrepreneurial functions


  1. Perceives opportunities in the environment

  2. Takes risks to make use of these opportunities

  3. Mobilizes capital for a business

  4. Introduces innovations

  5. Organizes labor and productions

  6. Makes decisions

  7. Plans ahead

  8. Sells his products and earn profit
• Career planning


  A process of systematically matching career goals and individual capabilities with the opportunities readily available, acquiring a required degree, finding a job in a good company or be self-employed, showing up for work each day and eventually securing a retired life with lump sum payment, includes self-assessment, research, experimentation, decision making, job searching, and accepting a job offer
• Steps for career planning


  1. Explore career options

  2. Conduct field research

  3. Determine your job target

  4. Build your credentials and resume

  5. Prepare for your job search

  6. Launch your job search
• Importance of career planning


  • Gives a student the much-needed direction and makes it clear where they see themselves in the future, encourages individuals to explore and gather information, which enables them to synthesize, gain competencies, make decisions, set goals and take action, a crucial phase of human resource development that helps the employees in making strategy for work-life balance, the ongoing process where you strategically plan your career goals and create your future work success by designing learning and action plans to help you achieve your goals
• Career development


  A crucial phase of human resource development that helps employees in making strategy for work-life balance
• Career development


  1. Strategically plan your career goals

  2. Create your future work success by designing learning and action plans to help you achieve your goals
• Career development


  • Helps employees synthesize, gain competencies, make decisions, set goals and take action
• Active Income


  Wages, tips, salaries, commissions and income from businesses where there is material participation
• Passive Income


  Earnings derived from rental of property or other enterprise in which a person is not actively involved
• Portfolio Income


  Income from investments, including dividends, interest, royalties and capital gains
• Earned Income


  Money made by doing something or spending your time
• Profit Income


  Money earned by selling something for more than it costs
• Interest Income


  Money earned from lending your money to someone else
• Dividend Income


  Money received as a return on investment from the company shares that you own
• Rental Income


  Money collected by a landlord from a tenant or group of tenants for using a particular space
• Capital Gains


  Profits from the sale of an asset
• Royalty Income


  Money received as a result of letting someone use your products, ideas or processes
• Factors Affecting Earnings


  • Years of experience
  • Education
  • Performance reviews
  • Boss
  • Number of reports
  • Professional associations and certifications
  • Shift differentials
  • Hazardous working conditions
• Earnings


  Money obtained in return for labor or services, incomes derived from investments or products, the amount of money you make from doing a job, typically referred to as after-tax net income
• A person's career choices, ability to find employment and ability to advance determines his or her expected earnings and standard of living
• How to earn


  1. Sharpen skills

  2. Develop entrepreneurial mindset

  3. Map career plan
• Entrepreneurial mindset


  A way of thinking that enables you to overcome challenges, be decisive, and accept responsibility for your outcomes. It is a constant need to improve your skills, learn from your mistakes, and take continuous action on your ideas.
• Entrepreneur


  Someone who innovates; uses their skills, interests and unique ideas to build their own business. They organize, manage, and assume the risks of a firm, taking a new idea or a new product and turning it into a successful business.
• Entrepreneurial functions


  • Perceives opportunities in the environment
  • Takes risks to make use of these opportunities
  • Mobilizes capital for a business
  • Introduces innovations
  • Organizes labor and productions
  • Makes decisions
  • Plans ahead
  • Sells his products and earn profit
• SMART goals


  Specific, Measurable, Attainable, Relevant, Time-bound
• Career planning process


  1. Self-assessment

  2. Research

  3. Experimentation

  4. Decision making

  5. Job searching

  6. Accepting a job offer
• Career planning gives a student the much-needed direction and makes it clear where they see themselves in the future
• Career planning encourages individuals to explore and gather information, which enables them to synthesize, gain competencies, make decisions, set goals and take action
• Career planning is the ongoing process where you strategically plan your career goals and create your future work success by designing learning and action plans to help you achieve your goals
• Responsible earning involves realizing that career choices greatly affect lifetime earnings and standard of living
• Income


  Earnings received as wages, rent, profit, or interest
• Launching your job search


  1. Writing a targeted resume

  2. Making calls

  3. Writing cover letters and thank you letters

  4. Conducting interviews

  5. Doing research

  6. Consistently updating your resume with new skills, knowledge, and experience
• Importance of career planning


  • Gives students direction and clarity on their future
  • Encourages exploration, information gathering, decision making, goal setting, and action taking
  • Crucial for work-life balance strategy
• Activities involved in career planning


  • Strategically planning career goals
  • Creating future work success by designing learning and action plans