Economics is the study of how people employ their limited resources to satisfy their many needs and desires, and as a result, the economy is an integral part of our lives. Economics affects our everyday lives and the choices we make on a day to day basis.
In Economics for Dummies the author writes that “Economics is all about humanity's struggle to achieve happiness in a world full of constraints”. If the essence of economics lies in the fact that a society's needs or desires outstrip the limited resources available to meet them, then we can conclude that economics is
all about choices. It is about the way human beings employ their scarce resources to satisfy their many needs and desires. Put another way, it is about supply and demand.
The South African market does not operate in isolation. Like the rest of the world, we are part of one huge global village, and our economy is influenced by what is happening both locally and internationally. Financial planning cannot be done in isolation and consideration must always be given to the prevailing economic environment.