What Is National Income? Define!

What Is National Income
National Income is a major component of macroeconomics. It helps to evaluate and compare the economic performance of an economy for different time periods. The actual performance of economy helps to make the programs and policies like fiscal policy, monetary policy, exchange rate policy etc.
National income is the sum of all individual income in a country during a given period of time. It is the income received by the various factors of production. To produce goods and services, a producer has to employ factors of production like land, labor, capital and entrepreneurship. To employ these factors he has to pay wage for labor, rent for land, interest for capital & dividend for investors. The sum of all these payments is the national income. National income is also known as national product or national expenditure. It is a flow of output, income and expenditure. If Yi is the income of the individual than national income is y=∑Yi.
Different economists have given definition of national income from different angles. According to Marshall-“The labor and capital of country acting upon its natural resources produce annually a certain net aggregate of commodities, material & immaterial, including services of all kinds. This is net annual income revenue of a country or the national dividend”.
According to Pigou- ‘The national dividend is that part of the objective income of the community including, of course income derived from abroad, which can be measured in money”.
Different economists can define the term ‘National Income in different but conclusively we can say national income is the sum of income paid to or received by various factors of production.
Factors to be included in national income
1)      Income of all individuals or factors of production from their participation on economic activities which includes:
·         Wages, salaries, bonus, commission and other benefits received from employer before deduction of tax and social security contributions like insurance, provided fund etc.
·         Net income from rental & royalties of individuals.
2)      Total undistributed profits by private business corporations should include in individual income. After adding such profit on individual income we will get total private income (PI).
3)      National Income(NI) is computed by adding undistributed profit of public corporations in private income(PI).
4)      National Income does not include transfer payments like:
·         Government transfer payments eg. Social security allowances
·         Business transfer payments eg. Business contribution on charity.
·         Individual transfer payments eg. Gifts or income sharing among individuals.
5)      National Income does not include the income receipts from the capital gain on sale of assets since it arise from  increase in price not any value addition on that assets.
6)      National income does not include income received from public borrowing as they cannot add any value. But interest on such borrowing will included.
7)      The proceeds received from the sale of assets are not income and not included in national income. However, current flow of services of these assets, eg. Services of houses , interest from bond, etc. are income and are included in national income.
8)      All the costs incurred in the process of production or distribution have to be deducted from the gross receipts occurring from the sale of goods or services.
The summations of point (1) and (8) give rise to Net Domestic Income(NDI)
9)      Net Domestic Income plus income of normal residents from abroad minusincome paid for foreign employee equal Net national income (NEI) or NI.

So, Net National Income(NNI)= Net Domestic Income(NDI)+Net Foreign Factor Income(NFFI)
           Or, NI= GDI+NFFI
Here, GDI= Gross Domestic Income.

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How To Make Your Day Perfect

Our life is simple and making it successful and extraordinary is simple as well. If you follow some rules in your daily life, your daily life becomes wonderful. And your whole life is the collection of your days. So, making your life beautiful is not a difficult task. It is simple, easy and within you. But it only requires some clues, some ideas and strong commitment and dedication to follow them. I am going to give you only 9 ideas to make your day a special day but if you follow them daily for  one month then you can feel the change.

  • Sleep Less. This is one of the best and simplest idea that you can do easily to make your day(life) productive and rewarding. The healthy and young people do not need more than six hours to complete sleep and maintain up their excellent state of health. Try getting up  early and save one hour, after some days or weeks and it becomes your habit. Now you have extra one hour in a day, 30 hours in a month and extra 365 hours in a year. Just imagine that what can you do in the 365 hours, that you have saved by getting up one hour early which you are wasting in the name of sleep. Remember that quality of sleep is important more than quantity.

  • Walk twice in a day. Morning and evening walk are the best nature’s ideal exercise. Walk in the natural setting are very best. Walking early in the morning gives you freshness and different energy which results in your working positively. But remember one thing while you  are walking do not think about work or about the bills or about the challenges you might be facing. Kept the rest of the tension and work pressure back and simply enjoy the walk. Let your senses drink in the beauty  of nature and the crispness of the air for a change. So many people who have mastered the art of growing younger have also mastered the habit of daily walk.
  • Do exercise daily. I already said that walking is a type of natural exercise that brings freshness within you. Need an emotional lift? Or need to blow off some steam after a stressful day? A workout at the gym or a brisk 30-minute walk can help. Physical activity stimulates various brain chemicals that may leave you feeling happier and more relaxed. You may also feel better about your appearance and yourself when you exercise regularly, which can boost your confidence and improve your self-esteem.

  • Become a highly disciplined time manager. Become a punctual person. Reach at accurate time in the meeting, do not wait yourself and do not make waiting for others. If you are punctual in timing then only you can make other punctual. Be ruthless with your time. Set aside a few minutes each morning to plan your day. Plan around your priorities and focus on not only those tasks which are immediate but not important but especially on those which are important but not urgent. If you do not waste any time daily being punctual you can save a day in a month which you can invest in a productive work. And this surely allows plenty of time for achievement of the many goals we desire to accomplish.
       Read here how to get success . 
  • Do one thing that you fear each day. Doing that thing which you fear is the most difficult. You never want to do that works. But if you daily a work that you fear most than it boost your confidence level and after some time it becomes your habit and there will none work remain for you to fear.

  • Make excellent habit of reading something daily. Separate some time for reading daily. Read the biographies of the world’s leaders and learn from their habits, inspirations and philosophies. Cultivate the important practice of active role modeling and increase your knowledge level. Knowledge is power. People who have achieved success are not necessarily more skillful or intelligent than others. What separates  then is their burning desire and thirst for knowledge. The more one knows, the more one achieves. Reading something positive and inspirational before you go to bed and as soon as you wake up in the morning creates positive in your mind and inspire your day. You will soon note the benefits as these thoughts will be supporting you throughout the day.

  • Meditation is the best idea to reduce your stress and increase your concentration towards work. It encourages for healthy lifestyle and as well this practice increase self awareness and happiness. Meditation brings the brainwave pattern into an Alpha state that promotes healing. The mind becomes fresh, delicate and beautiful. Meditation sharpens the mind by gaining focus and expands through relaxation. A sharp mind without expansion causes tension, anger and frustration. An expanded consciousness without sharpness can lead to lack of action/progress. The balance of a sharp mind and an expanded consciousness brings perfection. Meditation makes you aware - that your inner attitude determines your happiness.

  • Music is a universal language that doesn’t need to be translated to be understood by people from around the world. It makes us dance and can even make us experience an array of emotions. But the beneficial features of music are not limited only to the level of having fun. If you listen the enthusiastic music daily in the morning it encourages you towards your work and makes your day perfect. Listening music can be a type of meditation as well. It reduces your stress and pain, improve your hearing and health and enhance your memory. But most importantly music brings freshness on you.

  • Laugh at work and be known as a positive achiever who adds outrageous value to all you do. You don’t have to laugh out loud; being quietly and privately amused also has benefits. For that matter, just smiling for no reason at all can improve your mood. A good sense of humor can't cure all ailments, but data are mounting about the positive things laughter can do. A good laugh has great short-term effects. When you start to laugh, it doesn't just lighten your load mentally, it actually induces physical changes in your body. It increase relaxation response and reduces pain and stress. Laughing out loud, being quietly amused, anticipating something funny and even forcing a smile or chuckle can all lead to increase in positive emotions and neutralize negative emotions, which can help keep us on the “upward spiral” to greater happiness.  
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How to be a Successful Entrepreneur ??

Being entrepreneur is not easy and to be successful entrepreneur is a hard task.
Before start read here 5 tips to start side business. and how to start & run a business.

Entrepreneurship is a task which need patience and handwork. It requires time management, workload management and planning. 

I have already written in following articles about 
10 business success tips for young entrepreneur. 

How to make it as a freelance entrepreneur. 

Now again I am elaborating success tips for entrepreneur here.

1. Do what you enjoy.
What you get out of your business in the form of personal satisfaction, financial gain, stability and enjoyment will be the sum of what you put into your business. So if you don't enjoy what you're doing, in all likelihood it's safe to assume that will be reflected in the success of your business--or subsequent lack of success. In fact, if you don't enjoy what you're doing, chances are you won't succeed.

2. Take what you do seriously.
You cannot expect to be effective and successful in business unless you truly believe in your business and in the goods and services that you sell. Far too many home business owners fail to take their own businesses seriously enough, getting easily sidetracked and not staying motivated and keeping their noses to the grindstone. They also fall prey to naysayers who don't take them seriously because they don't work from an office building, office park, storefront, or factory. Little do these skeptics, who rain on the home business owner's parade, know is that the number of people working from home, and making very good annual incomes, has grown by leaps and bounds in recent years.

3. Plan everything.
Planning every aspect of your home business is not only a must, but also builds habits that every home business owner should develop, implement, and maintain. The act of business planning is so important because it requires you to analyze each business situation, research and compile data, and make conclusions based mainly on the facts as revealed through the research. Business planning also serves a second function, which is having your goals and how you will achieve them, on paper. You can use the plan that you create both as map to take you from point A to Z and as a yardstick to measure the success of each individual plan or segment within the plan.

4. Manage money wisely.
The lifeblood of any business enterprise is cash flow. You need it to buy inventory, pay for services, promote and market your business, repair and replace tools and equipment, and pay yourself so that you can continue to work. Therefore, all home business owners must become wise money managers to ensure that the cash keeps flowing and the bills get paid. There are two aspects to wise money management.
The money you receive from clients in exchange for your goods and services you provide (income)
The money you spend on inventory, supplies, wages and other items required to keep your business operating. (expenses)

5. Ask for the sale.
A home business entrepreneur must always remember that marketing, advertising, or promotional activities are completely worthless, regardless of how clever, expensive, or perfectly targeted they are, unless one simple thing is accomplished--ask for the sale. This is not to say that being a great salesperson, advertising copy-writing whiz or a public relations specialist isn't a tremendous asset to your business. However, all of these skills will be for naught if you do not actively ask people to buy what you are selling.

6. Remember it's all about the customer.
Your home business is not about the products or services that you sell. Your home business is not about the prices that you charge for your goods and services. Your home business is not about your competition and how to beat them. Your business is all about your customers, or clients, period. After all, your customers are the people that will ultimately decide if your business goes boom or bust. Everything you do in business must be customer focused, including your policies, warranties, payment options, operating hours, presentations, advertising and promotional campaigns and website. In addition, you must know who your customers are inside out and upside down.

I have already written a blog about how to grow your business by focusing your customer

7. Become a shameless self-promoter (without becoming obnoxious).
One of the greatest myths about personal or business success is that eventually your business, personal abilities, products or services will get discovered and be embraced by the masses that will beat a path to your door to buy what you are selling. But how can this happen if no one knows who you are, what you sell and why they should be buying?
Self-promotion is one of the most beneficial, yet most underutilized, marketing tools that the majority of home business owners have at their immediate disposal.

8. Project a positive business image.
You have but a passing moment to make a positive and memorable impression on people with whom you intend to do business. Home business owners must go out of their way and make a conscious effort to always project the most professional business image possible. The majority of home business owners do not have the advantage of elaborate offices or elegant storefronts and showrooms to wow prospects and impress customers. Instead, they must rely on imagination, creativity and attention to the smallest detail when creating and maintaining a professional image for their home business.
9. Get to know your customers.
One of the biggest features and often the most significant competitive edge the home based entrepreneur has over the larger competitors is the he can offer personalized attention. Call it high-tech backlash if you will, but customers are sick and tired of hearing that their information is somewhere in the computer and must be retrieved, or told to push a dozen digits to finally get to the right department only to end up with voice mail--from which they never receive a return phone call.
The home business owner can actually answer phone calls, get to know customers, provide personal attention and win over repeat business by doing so. It's a researched fact that most business (80 percent) will come from repeat customers rather than new customers. Therefore, along with trying to draw newcomers, the more you can do to woo your regular customers, the better off you will be in the long run and personalized attention is very much appreciated and remembered in the modern high tech world.

10. Level the playing field with technology.
You should avoid getting overly caught up in the high-tech world, but you should also know how to take advantage of using it. One of the most amazing aspects of the internet is that a one or two person business operating from a basement can have a superior website to a $50 million company, and nobody knows the difference. Make sure you're keeping up with the high-tech world as it suits your needs.. The best technology is that which helps you, not that which impresses your neighbors.

11. Build a top-notch business team.
No one person can build a successful business alone. It's a task that requires a team that is as committed as you to the business and its success. Your business team may include family members, friends, suppliers, business alliances, employees, sub-contractors, industry and business associations, local government and the community. Of course the most important team members will be your customers or clients. Any or all may have a say in how your business will function and a stake in your business future.

12. Become known as an expert.
When you have a problem that needs to be solved, do you seek just anyone's advice or do you seek an expert in the field to help solve your particular problem? Obviously, you want the most accurate information and assistance that you can get. You naturally seek an expert to help solve your problem. You call a plumber when the hot water tank leaks, a real estate agent when it's time to sell your home or a dentist when you have a toothache. Therefore, it only stands to reason that the more you become known for your expertise in your business, the more people will seek you out to tap into your expertise, creating more selling and referral opportunities. In effect, becoming known as an expert is another style of prospecting for new business, just in reverse. Instead of finding new and qualified people to sell to, these people seek you out for your expertise.

13. Create a competitive advantage.
A home business must have a clearly defined unique selling proposition. This is nothing more than a fancy way of asking the vital question, "Why will people choose to do business with you or purchase your product or service instead of doing business with a competitor and buying his product or service?" In other words, what one aspect or combination of aspects is going to separate your business from your competition? Will it be better service, a longer warranty, better selection, longer business hours, more flexible payment options, lowest price, personalized service, better customer service, better return and exchange policies or a combination of several of these?

14. Invest in yourself.Top entrepreneurs buy and read business and marketing books, magazines, reports, journals, newsletters, websites and industry publications, knowing that these resources will improve their understanding of business and marketing functions and skills. They join business associations and clubs, and they network with other skilled business people to learn their secrets of success and help define their own goals and objectives. Top entrepreneurs attend business and marketing seminars, workshops and training courses, even if they have already mastered the subject matter of the event. They do this because they know that education is an ongoing process. There are usually ways to do things better, in less time, with less effort. In short, top entrepreneurs never stop investing in the most powerful, effective and best business and marketing tool at their immediate disposal--themselves.

15. Be accessible.
We're living in a time when we all expect our fast food lunch at the drive-thru window to be ready in mere minutes, our dry cleaning to be ready for pick-up on the same day, our money to be available at the cash machine and our pizza delivered in 30 minutes or it's free. You see the pattern developing--you must make it as easy as you can for people to do business with you, regardless of the home business you operate.
You must remain cognizant of the fact that few people will work hard, go out of their way, or be inconvenienced just for the privilege of giving you their hard-earned money. The shoe is always on the other foot. Making it easy for people to do business with you means that you must be accessible and knowledgeable about your products and services. You must be able to provide customers with what they want, when they want it.

16. Build a rock-solid reputation.
A good reputation is unquestionably one of the home business owner's most tangible and marketable assets. You can't simply buy a good reputation; it's something that you earn by honoring your promises. If you promise to have the merchandise in the customer's hands by Wednesday, you have no excuse not to have it there. If you offer to repair something, you need to make good on your offer. Consistency in what you offer is the other key factor. If you cannot come through with the same level of service (and products) for clients on a regular basis, they have no reason to trust you . . . and without trust, you won't have a good reputation.

17. Sell benefits.
Pushing product features is for inexperienced or wannabe entrepreneurs. Selling the benefits associated with owning and using the products and services you carry is what sales professionals worldwide focus on to create buying excitement and to sell, sell more, and sell more frequently to their customers. Your advertising, sales presentations, printed marketing materials, product packaging, website, newsletters, trade show exhibit and signage are vital. Every time and every medium used to communicate with your target audience must always be selling the benefits associated with owning your product or using your service.

18. Get involved.Always go out of your way to get involved in the community that supports your business. You can do this in many ways, such as pitching in to help local charities or the food bank, becoming involved in organizing community events, and getting involved in local politics. You can join associations and clubs that concentrate on programs and policies designed to improve the local community. It's a fact that people like to do business with people they know, like and respect, and with people who do things to help them as members of the community.

19. Grab attention.
Small-business owners cannot waste time, money and energy on promotional activities aimed at building awareness solely through long-term, repeated exposure. If you do, chances are you will go broke long before this goal is accomplished. Instead, every promotional activity you engage in, must put money back in your pocket so that you can continue to grab more attention and grow your business.

20. Master the art of negotiations.
The ability to negotiate effectively is unquestionably a skill that every home business owner must make every effort to master. It's perhaps second in importance only to asking for the sale in terms of home business musts. In business, negotiation skills are used daily. Always remember that mastering the art of negotiation means that your skills are so finely tuned that you can always orchestrate a win-win situation. These win-win arrangements mean that everyone involved feels they have won, which is really the basis for building long-term and profitable business relationships.

21. Design Your workspace for success.
Carefully plan and design your home office workspace to ensure maximum personal performance and productivity and, if necessary, to project professionalism for visiting clients. If at all possible, resist the temptation to turn a corner of the living room or your bedroom into your office. Ideally, you'll want a separate room with a door that closes to keep business activities in and family members out, at least during prime business and revenue generating hours of the day. A den, spare bedroom, basement or converted garage are all ideal candidates for your new home office. If this is not possible, you'll have to find a means of converting a room with a partition or simply find hours to do the bulk of your work when nobody else is home.

22. Get and stay organized.
The key to staying organized is not about which type of file you have or whether you keep a stack or two of papers on your desk, but it's about managing your business. It's about having systems in place to do things. Therefore, you wan to establish a routine by which you can accomplish as much as possible in a given workday, whether that's three hours for a part-time business or seven or nine hours as a full-timer. In fact, you should develop systems and routines for just about every single business activity. Small things such as creating a to-do list at the end of each business day, or for the week, will help keep you on top of important tasks to tackle. Creating a single calendar to work from, not multiple sets for individual tasks or jobs, will also ensure that jobs are completed on schedule and appointments kept. Incorporating family and personal activities into your work calendar is also critical so that you work and plan from a single calendar.

23. Take time off.
The temptation to work around the clock is very real for some home business owners. After all, you don't have a manager telling you it's time to go home because they can't afford the overtime pay. Every person working from home must take time to establish a regular work schedule that includes time to stretch your legs and take lunch breaks, plus some days off and scheduled vacations. Create the schedule as soon as you have made the commitment to start a home business. Of course, your schedule will have to be flexible. You should, therefore, not fill every possible hour in the day. Give yourself a backup hour or two. All work and no play makes you burn out very fast and grumpy customer service is not what people want.

24. Limit the number of hats you wear.
It's difficult for most business owners not to take a hands-on approach. They try to do as much as possible and tackle as many tasks as possible in their business. The ability to multitask, in fact, is a common trait shared by successful entrepreneurs. However, once in a while you have to stand back and look beyond today to determine what's in the best interest of your business and yourself over the long run. Most highly successful entrepreneurs will tell you that from the time they started out, they knew what they were good at and what tasks to delegate to others.

25. Follow-up constantly.
Constant contact, follow-up, and follow-through with customers, prospects, and business alliances should be the mantra of every home business owner, new or established. Constant and consistent follow-up enables you to turn prospects into customers, increase the value of each sale and buying frequency from existing customers, and build stronger business relationships with suppliers and your core business team. Follow-up is especially important with your existing customer base, as the real work begins after the sale. It's easy to sell one product or service, but it takes work to retain customers and keep them coming back.

And finally entrepreneurship is today's requirement. Is't it?? 

Please feel free to comment below:

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Be a Better Leader Today

Developing stronger leadership skills is an important act for virtually everyone in business. But becoming a better leader doesn't always require attending a pricey seminar. Sometimes, simple acts can have an immediate impact, says self-proclaimed "leadership freak" Dan Rockwell, a leadership coach and author of the Leadership Freak blog.
Here are four tips to help you be a better leader today:
Spend at least 15 minutes listening. Every day, spend at least 15 minutes with someone who has something to say about a challenge or opportunity your business is facing. It might be an employee or a contractor. But, the key is broach the subject and listen to the response without judgment. Rockwell says leaders often talk too much and don't truly listen to the people around them, who often have valuable insights. Listen to each person with the same level of attention and open mind as you would listen to a consultant or outside expert. You don't always have to follow the advice, but this exercise can help you get out of the same-old patterns of thinking.
"Becoming a better leader is often about letting other people in to have a better understanding of how to move forward," says Rockwell. "The more you need to say, the more you need to listen," he adds.
Say, "Tell me more." Instead of asking a barrage of questions, which can be intimidating to others and make them less forthcoming, Rockwell advises using the phrase, "Tell me more." This objective statement lets your discussion counterpart continue in his or her line of thinking without feeling interrogated.
Allow some doubt. Entrepreneurs are often successful because of their belief in their vision and ideals. Rockwell acknowledges how important that is, but advises them to periodically ask, "What if I'm wrong?" That's not to say you should become doubt-filled or ineffective. This is another exercise that helps you think in new ways and perhaps find opportunities that wouldn't be apparent if you simply charged ahead in one direction. Question yourself about the markets you serve - what if you're wrong that a particular segment wouldn't want your product or service? What if you're wrong about embracing new technology? What would the possibilities be if you took a different approach?

Go to lunch. Or, grab some coffee, dinner or breakfast at least once a week with someone you admire. You become like the people with whom you spend time - so get some good ones in the mix, Rockwell says. Even when it feels like you don't have time, you can always make time to have coffee or even a phone conversation with someone who has traits or experience from which you can learn. Whether it's a mentor, a colleague who always offers great insight, or someone who just seems to have it all figured out, the more time you spend with people you admire, the more they can inspire you, he says.  
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How To Manage Time??

I always remember a quote that my grandfather told to me “Time and river never return”. That means times never return as it passes once. So the chances you have received never repeated. They are just the matter of time. If you can understand your time and able to manage it, recognize your opportunities in right time then you can get success.
Before starting how to manage time, let’s talk about why time management is important?
Why time management is important?
·         Time is limited  and special resources. You can not store or save time. If it passes once it can not be return.
·         Managing time is the best key to be successful in life.
·         Managing time boost your self discipline.
·         Best management of time reduces stress upon you.
·         It help you to decide and classify your priorities.
·         Your productivity can be boost with using  less skills and time if you use proper time management skills.
You can add more and more importance of time management because there are huge number of benefits that we can get by managing time. These are only the basic  benefits of managing time that directly affect our life. Since time management have such benefits we need to focus on managing it. And should learn how to manage time. And I will tech you same.
Here are the techniques to manage your time effectively:
1)      Prepare to do list:
    You must prepare the to do list of your task. You should have a reminder system which can make you remember that which task should complete at what time.  Don’t try to hang your mind to remember everything in your mind. Use proper reminder system. Use notepad or carry a pen and dairy to prepare to do list. But this is the digital age so you can use ‘googlekeep’  like mobile app for reminder and to prepare list.
2)      Focus on your time:
Focus on your  time means use such time to complete your task at what time you feel comfort to work. There may be such time like morning, day or evening at that time you feel comfortable and fresh to work. Never give stress by working every time, but focus at one time you can complete the task.
3)      Prioritize your work:
Prioritizing is and important element of time management. Giving stress to the less important time task is not effective at all. To get effective result you have to decide which tasks are urgent and which task are less important and need to focus accordingly. This is called prioritizing. It is necessary to prepare to do list according to the importance and priority of the task for effective time management.
4)      Take a break:
Being refresh time to time is necessary to increase your productivity. Take short break after sometime of stressing work. Breaks provide incentive by giving you something to look forward to having.
5)      Leave time for fun:
Fun and entertainment is important for every person. It gives positive energy for you. While there are times when we just need to power through a large project, it's important to give yourself time for fun. Not only will it refresh your mind, it's good for your body, too. It doesn't have to be a lot of time but make sure that you do!
6)      Break down the task:
Completing a huge task at once or completing it step by step has vast difference. Split the task you need to complete into various components so that you can be able to get them completed step by step. Write these steps down, and try to be as specific as you can when you do this. You only need to solve or complete one task before moving to  the next work.
7)      Sleep properly:
You must sleep properly to be healthy and fresh. Getting proper amount of sleep will keep you refresh and energetic. So you  must sleep 6-8 every night without giving any stress to your mind.

These are the basic methods to manage  time properly and win the contest. I only give you theoretical knowledge. You need to apply practically in your life to get result.

Continue reading How To Manage Time??