How do you receive funding? Regardless of whether you have a job or not, you’re receiving money from somewhere. It could be from work, a family member, a student loan, or your own savings. You need these funds to secure the necessities of your life. Similarly, all businesses need funds to operate. Ideally, a business would produce revenue right away. However, until they get established, many businesses operate on funds received from a bank loan, investors, or their owners’ capital.

What are your expenses? Rent, clothing, food, tuition—these are expenses whether they are paid for with cash, credit, or a loan. Ultimately, you will want to generate enough revenue, or income, to cover your expenses and have leftover cash. The lives of some students operate a bit like a start-up business; you may have to pay for expenses with loans until you have enough experience to generate a profit.

How does the social environment affect your life? The social environment probably presents similar opportunities and challenges to you as it does to businesses. How do you deal with these opportunities and challenges? Are you open to learn from people who are different from you? Do you embrace diversity? How do you relate to people from an older generation? What about the green movement? Are you finding ways to make your lifestyle more eco-friendly? It is important to address these issues so you can live a more harmonious life and prepare yourself for the modern work environment.

How does globalization affect your life? Not only is the world getting smaller for businesses, but the world is also getting smaller for you. Your favorite music group may be a band from Germany. You might like to chat online about movies with a friend from Japan. Just as businesses now have the opportunity to work with other firms from all over the world, you have the ability to make friends or connections on any continent. You purchase items that are designed or manufactured in other countries. As the forces of globalization continue, the chances of you working in a foreign country for part of your career continue to climb.

How do you keep up with new technology? Whether or not you consider yourself to be tech-savvy, chances are you still use some sort of technology to run your life. Perhaps you deposit your checks using the camera on your phone or settle a bet by paying your friend using Google Wallet. Similar to a business, if you don’t keep up with new technology, you may find yourself in trouble.

What sort of e-commerce do you use? E-commerce is a popular form of purchasing goods. What sort of things do you buy online? There are many online clothing stores that let you design the products yourself, like the Sole Brother Custom Sneakers online store. Perhaps you even sell things over the Internet. Posting old clothing or other unwanted items on eBay might be your way of making a few extra dollars and gaining more room in your closet.

How do you keep your business secure? As businesses work to keep personal information secure, so also should customers. You can help keep your information secure by changing your online passwords on a regular basis, making sure your wireless connections are secure, switching to paperless mail, and removing personal information, such as phone numbers or addresses, from your Facebook account or other social networking sites. Keeping your personal information secure can help you avoid identity theft or other dangerous blows to your financial health.

What types of financial goals do you have? The goals of a business typically revolve around achieving financial success. You, too, might have certain financial goals that you would like to achieve in your life. To reach these goals, you’ll need to make informed decisions about how you spend and save your money. Mini Chapter 5 can help you manage your personal finances and plan for the future.