Mabuya Academy

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Hello everyone.
Last time, we toched on inflation.
Let go deeper, 5% inflation.What does that mean to as a consumer.

In simpler terms, your buying power is now reduced by 5%.Example ,E100=E95 which means you lost E5 due to inflation.Let say E100 bought a bag of cement 42,5 N(50 kg) yesterday but today that E100 will not buy the bag of cement.

Thank you all

Helo everyone
Taxes
Tax is money deducted from your gross income in certain period of time.

We going to look at the progressive tax system or type.In progressive tax, when your income increases and payout increases.In short tax and income are direct proportional.

It applies to income tax like salaries, wages, small business.

Businesses like sole proprietor pay income tax.

Thank you all

Hello everyone.
Budget is a plan on how to use certain resources at your disposal.Like money.

Before you budget you must know how much you have.Don't budget on something you don't have.

In budget we normally have components which is income and expenditure.Income is money you earned or receive yet expenditure is money you spend or use.

Let say your income is E1500,which means your expenditure must not exceed E1500.

You can use what we call 50-30-20 rule on your budget.It simply means 50% of your income buys your basic needs like food,30% you buy the things you want then 20% you save and pay debts if you have any.If you don't have debts you can invest.

We ll continue on budget next time

Be financially wise

Thank you all

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Inflation
Inflation is the price of goods and services.In simpler terms.

What causes inflation?
1.cost push
2.demand pull

Today let look the COST PUSH.
It is the increase of production cost of a certain product.The aim of every business is to make a profit, in order for a business to make profit.Revenue must greater than total cost.We ll touch on costs and revenue next time.

Let look a practical example: fuel hike Thursday midnight by E1.20. What is the meaning of this to the supplier (business) and consumer(buyer).
The production cost for businesses will increase that leads to price increase of a certain product.

Let use bread as an example: let say producing bread cost company X E3 and transport is E0.50 before fuel hike which means total cost is E3.50. But company X can't sell it at E3.50,as the company wants to make a profit.Let say company X use the mark-up pricing at 10% which makes is E0.35 as consumer we going to buy the bread at E3.85 before fuel hike. After fuel hike production cost is E3.25 and transport is E0.75.The new total cost will be E4.00,let say the company keep it 10%.As a consumer,you ll buy the bread at E4.40

The price increased from E3.85 toE4.40.

Let do little math
E4.40-E3.85=E0.55 is the change.

I hope it make sense.
Tell a friend to like this page for informative content like this.

Thank you all.
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Hi everyone, this is Mabuya Academy official page.It is only for educational purposes.So please let make it friendly to everyone.We don't use wrong language,let respect that.

Thank you.