The science of finance/Introduction

Too often, even a hard worker does not earn enough to support his or her family, has not really been trained, except by himself and some friends or colleagues, and has neither good tools nor safe working conditions .

Good wages, training, good equipment and safety impose costs that can not always be covered by previous revenues. So we have to advance funds. In other words, we have to finance our project. If we advance the funds ourselves, it is self-financing, if others bring their funds, it is external financing. The science of finance studies how human beings finance their projects.

The financing of a project can be conceived in real terms: what are the raw materials, the supplies, the labor force and the capital goods that must be advanced to launch the project, until its revenues are sufficient to cover its costs? It can also be conceived in monetary terms: what are the sums of money needed to buy these raw materials, these supplies and this labor force, and to rent or buy these capital goods?