What does economic activity mean? It means the different things that people do every day and on a regular basis. The question becomes what is a normal activity for Americans. The answer could be spending money, saving money, investing in stocks or bonds, spending time with family and friends, saving money for retirement, paying bills, getting a job and earning money, starting a business or buying a stock. This is a broad description but it will give you a good idea of what most Americans do on a daily basis.
Most of us have probably done a few of all of the above and the total sum of our economic activity should add up to more than our income. We have to save because saving is another way of earning money. Saving money allows us to use those funds for various purposes like a down payment on a house, a college education, a nice vacation, a big purchase such as a car or a computer. In order to use our money wisely, we need to learn about investing, budgeting and the art of financial management.
All of these things can help us become a better consumer, a better spouse and a better parent. These are all ways that we can earn more money and spend it wisely. It is important for everyone to have money management skills so that we can be prepared for the unexpected. A little knowledge of how the economy works and a little patience goes a long way towards economic success.
So, now that you know what does economic activity mean? When you are asking yourself questions like these, it is time to sit down and write out your goals and your dreams. When you have made your list, you can compare your goals and dreams and see what you need to do to get there.
Once you understand what is going on in the economy, it becomes a little easier to figure out a way for you to be prepared for the economic activity of the future. You are not going to be able to predict what is going to happen tomorrow, but you will have some idea of what is going on now. You need to be prepared for the times that you do predict because life is always changing. You never know when the stock market will crash or when gas prices are going to go up. You also never know when interest rates are going to go up or when the government will default on its loans.
The bottom line is that if you want to be financially secure you have to learn to manage your money. If you are not willing to learn what does economic activity mean you might find yourself in trouble when the next natural calamity strikes. You do not want to be one of the people who lose their homes, their cars and their jobs during these times. The most important . . . . . . thing that you can do right now is to make sure that you have a good understanding of what it means when the economy is doing poorly.