Where does the money come from and where does it go? | Bank Loans

Money exists only because everyone believes it exists. So if we all started to believe that bananas or bitcoins could pay for our purchases, we would start collecting them and claiming them in return for work.

From the individual’s point of view, money comes from work and you should not leave it to the bottom of your wallet. Saving secures your future.

Why do we even spend money?

Why do we even spend money?

Ever since people have exchanged, for example, cereals for butter, there has been a need for some kind of mutual trust, which allows for the exchange of goods without knowing the other party personally. Since everyone believes that money brings goods and services, it is possible to exchange even unknown people. At the same time, one can specialize in individual professions. If we didn’t trade anything with anyone, everyone would have to be equally adept at growing tomatoes for building a house.

On the other hand, if we did not have a single currency in use, every day we would have to remember an immeasurable amount of different exchange rates. If you specialize, for example, in philosophy lectures, you would pay the store at the box office telling what Plato and Socrates were thinking. The shoe merchant pays for the shoes, the owner of the dairy farm for milk. So the average person should remember how valuable milk is compared to shoes, philosophy lectures, or anything else. The soup would still be confused if the milk was spoiled, the shoes would wear faster than those made by another shoemaker, and the lecture on philosophy would be long-winded. In addition, a shoe retailer may not want milk right now, and those interested in a philosophy lecture may not be found nearby.

A solution to this problem was found by tying the value of money to something else, for example squirrel skins, gold or silver. Although precious metal was a means of payment, it was accompanied by banknotes, which were receipts of deposited gold. During World Wars, states issued extra banknote money to finance their warfare. This increase in the amount of money broke the link between the value of precious metals and banknotes. However, the attempt was made to restore the value of money to gold and silver without success – nominally the connection was cut off in the 1970s.

Indeed, money today is mainly about trusting a debtor, such as an entrepreneur or a private individual, to pay off their debt through profits or wage income from goods or services within the agreed time. Finally, money comes from believing in the future.

How do banks and the central bank report to this?

How do banks and the central bank report to this?

Money comes from banks granting loans. It is a common perception that banks only lend exactly what they have in store somewhere. However, this is not the case; banks hold only a small percentage of the money they borrow. How on earth can bank loans get out of nowhere? If I have a drill to a friend, I need to have a drill before I can lend it.

The bank must keep 10% of its reserves, which in practice means cash or deposits with the central bank.

  • Someone goes to the bank to deposit 1000 €, the bank keeps 100 € or 10%.
  • The bank lends € 900 to someone else.
  • When the loan is repaid, 10% of this, or € 90, is left in the bank and the remaining € 810 is borrowed. -When the € 810 loan is repaid, 10% or € 81 is left in the bank and € 729 is still lent.

Thus, if the reserve requirement is 10%, banks can increase the amount of money tenfold. The reserve requirement may also be another percentage. So the money comes from the bookings on the bank’s balance sheet.

The system works because not all bank customers will demand their money from the bank at the same time. Have you ever heard such a saying: You can’t keep the cake by yourself and eat it at the same time? The saying is not true in this case, because the retail reserve system allows you to invest money efficiently and productively, but also to use it when needed. The downside is that the bank would go bankrupt if everyone wanted to withdraw all their money and clear all their debts in one second. However, governments guarantee bank deposits of up to € 100,000 for individuals.

Individuals handle loan and deposit issues with a commercial bank, while commercial banks handle the same with a central bank. The central bank regulates the amount of money in a country or group of countries and maintains price stability. The central bank can influence the amount of money lent by banks by raising or lowering the key interest rate. They can also control bank lending and lending for short-term bank needs against collateral.

Banks therefore need to assess the likelihood that individuals and companies will be able to repay their debts. If the bank makes a mistake, it is responsible for paying the debt. However, governments and central banks can sometimes help banks.

How is it possible that the whole system has not collapsed?

How is it possible that the whole system has not collapsed?

However, the average person does not have to worry about losing their money at the bank as it is still the safest option to keep money for deposit protection. Banks have been doing the same for hundreds of years. Money comes and goes as before.

Economic growth is ultimately based on the belief that everything will be better in the future. This is possible when new and different inventions are made and efficiency is increased.So far, there have always been new inventions. Governments, communities, companies and individuals are investing in scientific research and other innovations.

Sometimes a new invention has been a bakery on the street corner in a better location, a steam machine or new packaging material.


Save time and money: tricks that will change your life

At Good finance we are determined to help you save time and money, even if you are sure that you cannot do anything more than what you are already doing to have your expenses and your day to day controlled. There is always a little ‘trick’ that escapes us; a gesture that can avoid us a few euros; a change of attitude that seems insignificant and is not …

But first of all, do you know how much you should save per month? So that you do not calculate ‘by eye’ a figure, we remind you that in an old article we already calculate that percentage, which is specifically 10% of what you earn in your work per month, according to this document from the Aviva Institute . Do you already have that figure in mind, in your personal case? Well, now we are going to help you make it an attainable goal and without hurting. We promise.

To check your progress, remember that with Good finance you can instantly see all your accounts in one place. So you can control the impact of your daily decisions on your bank account … Surely you will be surprised to apply any of these tips.

The battle starts at home

The battle starts at home

Back in the 60s Dionne Warwick sang that of A house is not a home: a house – its walls, its furniture – is not a home. What the song meant was that your flat (or your mansion) is much more than the place where you sleep before getting up to go to work day after day. An important part of your income goes to your home: from rent or mortgage to electricity, water or gas bills; sure, have the fridge full …

Nor do you have to go out of your way to have a mistake one day, but don’t make small wastage a habit. What things can we do to do what we spend on ‘living day to day’ more bearable? Here is a short list of suggestions:

1) Control your energy consumption. Forget about the ‘stand by’ mode and turn off everything you have the possibility to turn off every time you leave home. Every appliance that we leave plugged in, but not completely turned off, is a waste of energy that you will pay on your bill even if you do not consume it.

2) ‘Robotize’ your house. Surrender to home automation, which technology makes your home smart. Find out about the possibilities you have, always asking within your community of neighbors, and considering installing systems to – for example – control the lighting in your home, the thermostat, security alarms … Companies that are dedicated to this sector are grouped within LonMark Spain; Check the website to see what services they offer.

3) Have your house tidy. We already know that everyone has their order, and that chaos can sometimes be wonderful, but we are talking about procrastinating. The truth is that if everything is tidy, it is easier to organize: if we talk about the fridge, if everything is where it has to be we will see what things are missing. If we talk about your work table, get some good filing cabinets, or failing that, a paper shredder and leave it diaphanous. You will be faster and more effective in your tasks if you do not have distractions around you.

4) Be reasonable with your closet. Maybe you miss those children’s times when every morning when you woke up, the clothes you had to wear to go to school appeared magically. Now that you choose (and buy and wash and iron) you, do yourself in favor and do it the night before. Even better: spend half an hour every Sunday to choose what you will wear the following week. You’ll save time and freshly raised neurons, believe us. In addition, from time to time, go removing that jersey that you do not wear or those pants that no longer fit you and donate it, give it away or sell it online.

5) Put your washing machine well. Not that you’re accusing you of anything, but have you carefully read the instructions for your washing machine, label your clothes, your detergent? … Any stain out at 60 will make it to 40 and also have two laundry baskets Dirty (white and colored) will help you make your laundry more efficient: you will save water, energy and detergent.

6) Buy in bulk. We like great offers, especially when filling the shopping cart, but we must be aware that the 2 × 1, 3 × 2 offers, or the second unit at half price are only useful in non-perishable products; They are suitable for everything except fresh produce. You will prevent the food from ending up in the trash and you will save an average of 60 euros per quarter.

7) Dismantle your breakfast. It is one of the most important meals of the day, but you should not spend more than 15 minutes. You have to do with your fridge and your pantry the same as we have suggested for your closet: try to have your breakfasts planned in advance to be able to ‘make up’ them every morning without spending too much time. The rituals leave them for the day you don’t have to get up early.

8) Coffee, better made in your home. We already told you in another article: to save it is better that you buy a good coffee maker than depend on the bar of your work. A coffee from Monday to Friday is around 10 euros a week; per month you are spending about 40 euros on coffee. A year, about 450–500 euros. Buy yourself a coffee that you like and take home made: that way you will pay about 10 cents for coffee. Much more bearable, right?

9) Wash the dishes after eating. Well, nobody wants to wash the dishes after eating, but if you do it immediately, this task takes less time. And if you have a dishwasher, rinse your dishes and stack immediately.

Team, team, team


We’ve talked about things you can do to save time and money in your home, but what about work and routines? There are certain things you can do to be as effective as possible and make the most of your time. And what about your savings …

If you don’t want to get involved in addition, subtraction and operations to control what you spend and where you spend it, remember that that’s what Good finance is for . Every movement is registered in your accounts and if you are not an example of constancy when collecting purchase tickets, our application will make your life easier.

10) Learn to say ‘no’ when it comes to your time. Flee from unproductiveness and loops that lead nowhere. If you get stuck on a task or an argument, get away from it and take it back only when you see yourself prepared. If you see that you don’t get anything, ask for help, but don’t get caught.

11) Advance your watch a few minutes. It’s a simple trick, but it really works. Not only is it useful for those who have punctuality problems: those extra 5 or 10 minutes you give yourself can make the difference between a good and a bad decision, and that is priceless.

12) Call, no whatsapees … But the messages sometimes do not arrive, or are deliberately ignored. If you need a quick response, call; Do not write. A little message can wait, but a call indicates interest and urgency. This will make you more decisive in your efforts.

13) Order online. If you know that you are going to eat out, why don’t you place the order before arriving at the site, along the way? In more and more establishments there is the possibility of ordering electronically to save queues. Do not miss them; you never know how hesitant that one is going to ask before you do.

14) Your phone, your post it. Since you have that 200,000 megapixel camera on your mobile, why don’t you use it to store small reminders? Notes, street names, restaurants, cards … Keep saving them (and making backup copies) to have your agenda well planned.

15) Ally with the calendar of your smartphone. Every mobile or tablet has its own calendar, which you can synchronize with your email, to have perfectly controlled dates, birthdays, meetings and deadlines.

16) Clean your schedule. Really. You have to call that person and you have been scrolling your calendar for about 30 seconds without finding it, finding names of people who do not remember exactly who they are … Delete them. If you are not going to call them in almost any circumstance, it may not be necessary that they are occupying a place in your directory, right?

17) Verify your usual routes. You have gotten used to that subway route to get to your job, but maybe there is a bus that prevents you from changing. Check your tours for the best option from time to time: saving gas, or transport cards, is always a good idea.

Work to live and not vice versa

Work to live and not vice versa

Let us finish with two last tips (adding up the 19 that we have promised you) to organize yourself much better to be a great time and money saver.

If you learn to live according to small, realistic savings goals, you will see that your finances will experience a qualitative leap that you will notice next month. And for a long time. But for that you need to be focused and this is how you can get it:

18) Turn off your mobile when you need it. Disconnect Do not look at the work email. Silence notifications. Do it especially at the end of the day and ‘get back’ as soon as you get up. Everyone needs rest, even those who work with localized guards. Fight against hyperconnection.

19) Delegate. If you need it, ask for help. Not only at work; also in your house, to your friends, to the teacher of that swimming workshop in which you do not finish taking off. And don’t get obsessed with your numbers: don’t let a healthy economy make your personal or family life non-existent.

We hope that one of these 19 small lessons will be useful in your day to day. Whatever you do, what we do advise you to always be aware of what happens to your money is that you do not forget Good finance . Any movement in your numbers will be communicated to you so that nothing catches you off guard.

Want to Save on Taxes? How to Save Money from Credits

Do you like pay taxes? The answer will most likely be negative. And if we do not like to pay taxes, we have to know how to reduce the tax burden, always within the rules. Today we will tell you how to save taxes in your home by introducing you to an innovative service.

Some Real Estate Taxes

Some Real Estate Taxes

One real estate feature is that … they are real estate. Therefore, they are very permeable to suffering taxes because we have no alternative. So, no wonder we have to pay:

  • Tax on Onerous Transactions (IMT), whenever we buy / sell a property;
  • Municipal Property Tax (IMI)
  • Stamp Tax (both in deed and in credit housing).

How These Taxes Are Determined

How These Taxes Are Determined

The generality of property taxes is calculated based on the Tax Asset Value. This is a calculated value with a set of more or less objective criteria which may vary from location to most controversial recent sun exposure.

Since the Property Tax Value is the basis of calculation of these taxes, it is essential to know for sure what this value will be and to frame it with the theoretical value. For example, if your home has the VPT in the finances of € 100,000 and if today the value of the house has reduced, say to € 90,000, there is soon room here to save money.

How to Save Money on Real Estate Taxes?

How to Save Money on Real Estate Taxes?

That said, we give you an innovative service. It is possible to have a professional assessment of the Tax Value of your home and have a recommendation on what to do next:

  1. If the theoretical value is lower than the current one, you can ask for an assessment in the finances and thus save money every year;
  2. If the theoretical value is higher than the current one, you will know that you should not ask for an evaluation (we know several cases of people who think they can save, ask for evaluation and are harmed).

What does this service consist of?

What does this service consist of?

To save money on taxes we have a service that does an analysis of:

  • Property Analysis
  • Analysis Permanent Certificate of the Conservatory
  • Plant Verification
  • Analysis of coefficients used
  • Revaluation
  • Management of the process with competent entities

What Results Can You Expect?

What Results Can You Expect?

Our consultants and partners have analyzed more than 15,000 properties and obtained a 20% reduction in the equity base. If we consider that annual savings could last for several decades … we are talking about significant savings. Ultimately, we are reducing a waste.