The Life of a Person with Money in Two Periods - Assignment Example

As to compute the whole interest from his savings in the bank. He will be earning double his earning for a year. But if he will increase his consume and expenses, the chances of earning big interests will decrease. Having a thrifty living with a lump of money will just put him into boredom. But to consume almost 75% of the 50% of his money to the bank for his simple living will make him live to relax and fine. All this was just if he will live alone. But if he is to live with his own family, which is composed of the mother and father, he will probably need to budget everything and balance everything.

He needs to give the bank much money to give him a big interest amount, but he needs to live, spending much money to build and maintain his family eating 3 times a day. His expenses will be tripled. Depending on the bank, interests is a matter of his own wills and decisions. That is if he will consume much of his money or spend some or more money when he really needs it. The more money he will give to the bank, the bigger it will increase his money. He will divide the money equally for him to spend on two different periods.

In the first period, he needs to be careful not to spend all his money. Preparation for period two will depend on his life after the first period. If he had spent a lesser amount of money on the first period, he would probably enjoy his second period of living since he will follow his past routines in terms of budgeting, but he may increase the amount of money to spend on it. He also has the chance to have bigger or lesser money for period two.