May 31, 2016

www.investopedia.com/articles/markets/052616/how-do-you-invest-dao.asp

The Decentralized Autonomous Organization has captured the imagination of the cryptocurrency community and the investing world more generally. It’s promise to create people-less companies through the use of smart contracts has vaulted the blockchain-based currency ethereum to a market capitalization of $1 billion—second only to bitcoin’s—and made the project the largest crowdfunded venture in history This organization exists entirely on the blockchain. There are two forms of crypto currencies that you may be familiar with and they are bitcoin and ethereum. The Decentralized Autonomous Organization—and the organizations it will invest in—functions based on smart contracts, or protocols written into the blockchain that govern how they do business. The next question is how to invest in the DAO? First get some bitcoin, and the author used a service at Coinbase, convert it to ethereum, then you can use it to get a DAO token which will allow you to vote on proposals. This review is very brief and I recommend reading the article if you’re interested in learning more about investing in cryptocurrency. In my opinion, the introduction of this form of currency is one step closer to a one world currency. As technology becomes more advanced, I believe a person needs to stand firm in his beliefs. The culture will change but your internal principles should remain the same.

http://www.investopedia.com/articles/etfs-mutual-funds/052716/should-investors-still-buy-index-mutual-funds-current-stock-market-prices.asp

As of May 4, 2016, the Standard & Poor’s (S&P) 500 was up 1.9% year-to-date. An S&P 500 gain posted in 2016 means the eighth straight year of positive returns for the index. Naturally, many investors are wondering if the stock market is due for a pullback given that the market has continued rising for so long. Several factors go into determining the overall health of the economy and the stock market. Interest rates, unemployment, economic growth, productivity, the relative valuation of equities and investor sentiment all come into play. There are currently signs that China and Europe are slipping into a recession, and there are concerns that     this weakness may spread into the US. In times of uncertainty, investors often exhibit a “flight to quality,” the behavior characterized by selling riskier assets and investing in safer securities such as Treasury bills. Also keep in mind that lower interest rates will cause investors to look for securities that offer higher yields. Loans and other forms of borrowing become cheaper, encouraging economic growth through business expansion and increased spending. In theory, this activity should increase revenues and earnings, helping to push equity prices higher. A few ratios you should use when choosing a stock are: price to earnings ratio, price to sales ratio, price to book ratio, and enterprise value to earnings before interest, taxes, depreciation, and amortization ratio. Index funds are one of the best ways to achieve broad stock market diversification at minimal cost. They are generally meant to be held for several years or longer in order to ride out some of the market’s inevitable ups and downs. If your time frame of investing in paper assets is five years or longer then it would be good to have some index funds in your portfolio.

https://www.entrepreneur.com/article/275813

New startups should fully understand that running out of money is one of the primary reasons that businesses fold shortly after a launch. This scenario is a proven statistic, but startups can avoid joining the ranks of failed businesses by being smart about how they spend their startup capital. Here are ten tips that will help you manage your startup capital: know when you’ll break even, keep your eye on cash-flow management, always maintain a cash reserve, manage funds better, collect receivables immediately, offer discounts to collect payments earlier, extend payables when you can, spend only on essentials, be smart about hiring, and make the best use of technology. Knowing when you’ll break-even will force you to set milestones, and plan a budget accordingly. The best way to ensure you will break even is to take the habits you do in your personal life and apply them to your business and vice versa. If you don’t have a budget, and you’re not in the habit of sticking to a budget, how are you going to properly manage your cash flow? Who will hold you accountable, and will you do what they advise you to do? Keep an eye on your cash flow management, and make sure you’re not spending too much. “Every month isn’t enough,” says Derek Flanzraich of Greatist. “Nearly every week I’m checking both my personal and business finances.” Every business will experience shortfalls so it is essential to have a cash reserve to help cushion the lean times of business operation. In order to manage your funds better, a business owner should not be the one managing the money. I believe that the owner should have a basic financial literacy in order to understand the verbiage that a CFO or accountant will use. Also if his or her hands are off the money, then the person will be less likely to misuse the funds. Ideally you want to collect on your invoices immediately, and if not the author recommends no longer than 15 day terms. Obviously as you run a more commercial and industrial type business those receivable times will extend out longer. Keep in mind your working capital cycle and make sure it is always turning. Another way to collect payables faster is to offer discounts, but if you offer a discount then you must enforce the collection very strictly. On payables if possible you want to be able to extend it to 60 days or longer. The more time you have to pay your vendors, the more time you have to allocate funds and use funds in areas where it may be needed. I do have a word of caution. I do not recommend this type of behavior with any lender. Most banks will let you have a 10-day grace period, but if you are habitually 30 days late, then don’t be surprised if the bank is unwilling to lend more money or makes you amortize your debt if you have a working capital line of credit. Outside of the most essential purchases, you want to minimize spending and eliminate costs that aren’t essential to your operation until you’re profitable. “The secret to successful hiring is this,” says Marc Benioff, CEO of Salesforce. “Look for the people who want to change the world,” From personal experience, I’ve seen a business be really successful, because they know what type of clientele to serve and offer their products to, and they hired highly motivated and skilled employees. These employees have an established good reputation in their community and an existing book of business. This particular business model has helped this business have success in its competitive industry. Finally, with technology becoming more affordable, take advantage of cloud technology, or even back-up hard drives to store your essential financial and company data. If you’re uncomfortable with cash flow management, then I suggest letting me do a financial check-up in which I will take a financial pulse and examine your personal finances for any areas of weakness. “Walk with the wise and become wise, for a companion of fools suffers harm.” Proverbs 13:20 NIV.

If you need agreement in prayer, or if you’re in need of a financial checkup you can reach me in the contact me section.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, ” GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG

May 24, 2016

http://www.investopedia.com/articles/basics/06/assetperformance.asp

For stock investors, the balance sheet is an important consideration for investing in a company because it is a reflection of what the company owns and owes. There are three categories you want to look at on a balance sheet: working capital adequacy, asset performance, and capitalization structure. Within this article, the author examines cash conversion cycle (CCC), fixed asset turnover ratio, return on asset ratio, and the impact of intangible assets. The cash conversion cycle helps show the condition of a company’s working capital position. This cycle also helps show how well a company is managing its accounts receivable and inventory. Calculated in days, the CCC reflects the time required to collect on sales and the time it takes to turn over inventory. The shorter this cycle is, the better. Cash is king, and smart managers know that fast-moving working capital is more profitable than tying up unproductive working capital in assets. The CCC is also known as the operating cycle. Investors look at this cycle to determine a company’s stability and performance. Conversely, erratic collection times and/or an increase in inventory on hand are generally not positive investment-quality indicators. When you’re investing in a company, take the time to look over the balance sheet, income statement and statement of cash flows and you’ll see the heart of the company. The numbers don’t lie. Property, plant and equipment (PP&E), or fixed assets, is another of the “big” numbers in a company’s balance sheet. A lot of your manufacturing companies will have a higher concentration of fixed assets. The fixed asset turnover ratio is determined by dividing net sales by average fixed assets. The higher the number of times PP&E turns over, the better. Return on assets (ROA) is considered to be a profitability ratio – it shows how much a company is earning on its total assets. ROA is determined by dividing net income by average total assets. A higher percentage return is ideal to look for. To keep this review from being too long, intangible assets come in three categories: intellectual property, deferred charges, and purchased goodwill. A further analysis can be read in the article. Assets represent items of value that a company owns, has in its possession or is due. Of the various types of items a company owns; receivables, inventory, PP&E and intangibles are generally the four largest accounts in the asset side of a balance sheet. As a consequence, a strong balance sheet is built on the efficient management of these major asset types and a strong portfolio is built on knowing how to read and analyze financials statements. Financial literacy is essential in life to managing not just your personal finances but your investments also. I encourage you to constantly seek wisdom from those who know more than you. “Walk with the wise and become wise, for a companion of fools suffers harm.” Proverbs 13:20 NIV

http://www.marketwatch.com/story/how-i-paid-off-65000-in-debt-in-just-15-months-2016-05-11

To an outsider, Durango, Colo., resident Matt Kelly, now 50, was the picture of success. He had a job in banking, a large condo (complete with a pool table in his son’s room) and frequent vacations (he traveled extensively to run marathons).

But inside, he was freaking out.

The Kelly’s faced a problem that many Americans face today and that’s consumer debt. Roughly two in three Americans have consumer debt (excluding a mortgage), with nearly half carrying credit card debt (the average household has $15,762, according to NerdWallet) and one in five having student loan debt ($48,172), according to a survey of more than 3,000 American adults released in February by Gallup. The problem was that they were just paying the minimum balance, and not standing to face the behavior. But when they decided to pay down their debt, they shared these steps: slash your monthly expenses, have a garage sale, sell big-ticket, earn extra money to pay down debt, and downsize. They slashed their monthly expenses by lowering their food costs, and reducing money spent on entertainment. They had a garage sale and found there were items that they personally didn’t have an attachment to, but they also sold items of higher value which yielded $3000. The Kellys put their tax refund and some other monies they earned —Cheri worked lots of extra hours as a speech therapist — towards paying down debt. One of the biggest steps they did was to downsize. They used the proceeds of their old condo as a down payment on a smaller condo, and used the rest toward their debt. The sale of the home allowed the Kellys to erase their $65,000 in credit card, student loan and medical debt in just 15 months; without that, it would have taken them significantly longer.

“I used to look for the next shiny thing that would make me happy,” Kelly says. Now, he says, he looks to bigger goals — like getting to travel with his family — for this happiness. “It’s been a transformation,” he says. There’s “a lightness, a freedom.”

A key point is the Kelly’s didn’t just cut their expenses, they also looked to increase their income also. If you cut your expenses too far back, it’s like sawing your arm until there’s nothing left. Don’t just cut back, expand your income also. There’s good debt and there’s bad debt. Consumer debt is bad debt, because in the end, it is going to take money from your pocket if you don’t pay the balances off. Sometimes you have to lay down your life in order to take up a new life, and because the Kelly’s sacrificed a life, they began to experience a more fulfilled life. “Committed and persistent work pays off; get-rich-quick schemes are ripoffs.” Proverbs28:20 MSG‬‬

http://www.fool.com/investing/general/2016/05/14/17-dividend-investing-tips-that-could-earn-you-tho.aspx

The power of investing in dividend-paying companies is underappreciated by many people. That’s a shame, because it means that their portfolios may not be performing as well as they could, and they may end up amassing less wealth than they could. Here are 17 tips provided by the author: you can start with very little, only invest money you won’t need for 5 to 10 years, save aggressively and invest regularly to build wealth, look at the dividend yield, not the dividend amount, favor big yields over smaller ones –in general, be wary of huge yields, seek strong dividend growth, check the payout ratio, understand effective yields, remember there’s a real company behind each dividend, be sure you understand the companies you invest in, seek high quality companies, invest in companies when they’re attractively priced, know what tax hit to expect, invest for the long term, there’s no shame in just sticking with index funds, keep learning. You want to look for dividend reinvestment plans (Drips) or direct investing plans that are offered by many companies and allows you to buy shares and fractions of share of stocks at very small amounts such as $25 to $50. I personally use a tool called Sharebuilder that allows me to invest in multiple stocks and gain little pieces of the stock. Doing this action will get you started in building a portfolio. Don’t use money that you’re saving for major purchases such as a down payment on a home. Use money that you are willing to lose if the market takes a downward plunge. Set a number in mind you are willing to invest and consistently invest and that amount will compound if you position yourself in the proper fund or group of stocks. If one company has a quarterly dividend payment of $0.60 and another’s is $1.00, don’t make the mistake of thinking the $1.00 dividend is better. Focus on the dividend yield instead, which is the current annual dividend amount divided by the current stock price. The $0.60 dividend might be yielding 2.4%, vs. just 0.9% for the $1.00 dividend. It all depends on the stock price. (This math is also why dividend yields jump when a stock price falls, and vice versa.) It is important to focus on a company’s yield and payout, because this information will determine if it’s worth investing in. Most dividends you’ll receive from shares of stock will enjoy a relatively low tax rate. It’s currently 0% for low-income folks in the 10% or 15% tax brackets, and 15% for most of us. Those in the highest tax bracket will face a 20% rate. If you hold your dividend-paying stocks in a traditional IRA or 401(k), you’ll only be taxed when you withdraw funds from the account, but you’ll face ordinary income tax rates on that income, which could be 25% or 28% for many of us. Of course, if you hold your dividend payers in a Roth IRA, you will likely pay no taxes at all! The key thing is to create a portfolio that you can use to invest for the long term, build a portfolio with index funds, and always be learning. In my opinion, before you invest, you must have a budget. You must know how much is really coming in, how much is going out, and what your bottom line number is. There’s a four step process I consistently use over and over which has enabled me to invest. You can reach me at the contact me section to learn more.

http://www.investopedia.com/articles/insights/051716/why-angry-birds-had-change-its-business-model-spe.asp

Audiences catapulted the first movie from the Angry Birds franchise to first place in 37 markets worldwide. According to reports, the movie grossed $43 million from 74 international markets. The markets together comprise 63% of total market for the movie. The top three markets for the movie were Russia, United Kingdom, and Germany, with revenues of $5.7 million, $3 million, and $2.9 million respectively. Currently Rovio Entertainment, the company that made Angry Birds, is hoping that the movie will be a success. Rovio has started a new strategy of diversifying its revenue base. Rovio has been experiencing declining revenues over the past few years and that’s due to its current mobile games revenue model. Nowadays, a majority of mobile games are free-to-play and game studios make money off in-app purchases made by players and an assortment of other sources such as advertising and licensing deals. When it was launched in 2009, Angry Birds was a pay-to-play game. Rovio is hoping that its various licensing and merchandising deals will help bring the studio back to profitability. For example, Disney (DIS) recorded $6 billion in Marvel retail merchandising sales. The studio’s revenue sources ranged from cars to Indian sandalwood incense sticks. Similarly, Spider man is recorded to have earned $1.3 billion in 2014. Rovio’s willingness to change its revenue model is a clear example of how quickly our world is changing. If you think about the telephone, it used to be a device for person to place, now with technology it is not just person to person, but it’s also a way to connect a person’s life to the whole world. Technology will continue to grow and change, and the people who see the abundance that this life has to offer will prosper with the proper attitude and perspective. Your job will take care of your living expenses, but your free time is yours to be a blessing to others. Information is the current currency of this age, so be willing to adapt to change. “If you think you know it all, you’re a fool for sure; real survivors learn wisdom from others.” Proverbs 28:26 MSG‬‬

If you need agreement in prayer, or if you’re in need of a financial checkup you can reach me in the contact me section.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, ” GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG

May 17, 2016

https://www.entrepreneur.com/article/275462

In this moment, my entrepreneurial mind is alive and flourishing. Moving, thinking and sparring, just like the fighters. Fighting is not a single-person sport, although it may appear to be to onlookers. And neither is being an entrepreneur. Fighters have coaches and teams they train with. Fighters go to gyms operated by gym owners. Fighters have family and friends’ support. There are judges, opponents, gamblers and crowds. The author argues that there are six components that make Muay Thai kickboxing similar to the soul of an entrepreneur: training, the crowd, a team, a coach, the fight, and the fighter.
Every waking moment is an opportunity to get better at what you do. Crowds can motivate and push fighters further. Crowds are similar to an entrepreneur’s audience, users or customers. Positive messages, comments, emails and calls can provide the same motivation from happy and inspired audiences and customers. An entrepreneur is only as good as the weakest person on his or her team. Recruit accordingly. Having the right mix of mentors can help an entrepreneur navigate pit falls and teach them how to improve their respective art. In my mind, the fight represents the daily struggle we face as entrepreneurs: the uncertainty and the volatility. Both successful fighters and entrepreneurs have huge visions, overcome extreme obstacles on the relentless pursuit to victory and risk it all on the gamble to chase their dreams. Neither would trade anything for it. Each of the author’s observations integrate pieces that make up an entrepreneur’s psyche. I look at it in this way: Don’t say can’t, ask how can I? When you get stuck on the how, then ask yourself why? Why are you doing this task? At Church of the Highlands, the church’s backbone is small groups, and the core idea of small groups is we’re better together. In order for an entrepreneur to truly get better, he or she must not be an island, but rather surround himself with people who will help him reach higher heights.

http://www.forbes.com/sites/vanessamcgrady/2016/05/16/rachelfox/?linkId=24545640#43beb39d36c7

Rachel Fox was doing pretty well financially for an 8-year-old. She’d been making good money with a recurring role on Desperate Housewives as Kayla Huntington. She thought she was set for life and wouldn’t ever have to worry about money again. Then reality hit.

“As the years went by, I saw how as an actor work can fluctuate quite a bit. Some years you work a ton, some years you don’t work at all. I quickly realized this sense of security I had may not have been as secure as I thought,” she said.

Now at the age of 19, she’s been a successful day trader since 15 and has launched a blog that advocates financial literacy to teens: “Fox on Stocks.”

“There is a basic set of skills that everyone needs to understand as they become financially independent, like budgeting and understanding credit scores. They’re two topics that are very deeply connected, but unless you had basic financial knowledge, you wouldn’t know that,” she says. “The only thing that can give people real security is actually having a financial know-how, and an ability to be in control of your money.”

Her top tips for saving/budgeting for teens are: Build a budget and live within it, Savings is key, Get killer credit right out of high school, Contribute to a 401K or some kind of investment account in your early 20s. One of the financial mistakes she regretted was letting a credit card balance get too high, and having to pay down the balance on her own. If you’re an adult reading this post, then you can relate to how much interest and credit cards can eat into your normal standard of living. The rich rules over the poor, and the borrower is servant to the lender. Proverbs 22:7 NKJV This verse is an important truth to remember. Why be slave to a bank, or credit card company when you can charge yourself interest? Go to the contact me page if you’re interested in learning more. Rachel Fox closes the interview to the author saying: I don’t think people look at financial education as boring anymore, it’s becoming a necessity and we know that.

http://www.investopedia.com/articles/optioninvestor/07/swaps.asp

A swap is an agreement between two parties to exchange sequences of cash flows for a set period of time. Usually, at the time the contract is initiated, at least one of these series of cash flows is determined by a random or uncertain variable, such as an interest rate, foreign exchange rate, equity price or commodity price. Conceptually, one may view a swap as either a portfolio of forward contracts, or as a long position in one bond coupled with a short position in another bond. This article will discuss the two most common and most basic types of swaps: the plain vanilla interest rate and currency swaps.

I was first introduced to swaps while conducting a financial analysis on a larger corporation. Being familiar with different types of tools that companies use to increase their cash flow will help you have more options to improve your business, but it will also increase your financial knowledge. If your financial advisor or the person who runs the finances of your business uses a word you don’t understand, ask them to explain it in a way you can understand and if you still don’t understand then use the internet, library, or other sources. The plain vanilla interest rate swap involves two companies that agree to pay a set rate of interest on a notional principal on specific dates for a period of time. The notional principal amount, in an interest rate swap, is the predetermined dollar amounts on which the exchanged interest payments are based. The notional principal never changes hands in the transaction, which is why it is considered notional, or theoretical. Neither party pays or receives the notional principal amount at any time; only interest rate payments change hands. In interest rate swaps companies will often use LIBOR (London Interbank Offer Rate). For the sake of keeping this section short, please refer to the article to see the example of a plain vanilla interest rate swap. In a plain vanilla foreign currency swap, two different currencies are used in place of interest rates allowing the companies to take advantage of the changes in currency value. The motivations for using swap contracts fall into two basic categories: commercial needs and comparative advantage. The four basic ways to exit a swap agreement are: buy out the counterparty, enter an offsetting swap, sell the swap to someone else, use a swaption. This tool is a way for a company to receive a level of financing that may not normally be possible, it helps create a comparative advantage, and it is a tool that needs deep research before being used.

http://www.bankrate.com/finance/consumer-index/how-to-increase-credit-limit.aspx

Nearly 8 in 10 U.S. credit card holders who have asked for a higher credit limit have been approved, the latest Bankrate Money Pulse survey found. But few people take advantage of this potentially easy way to raise their credit score.

Just 28% of cardholders have ever asked.

Believe it or not, you can actually increase your credit score by simply picking up your phone or going online and asking to increase your credit limit.
It might seem counterintuitive, but asking your credit card company to allow you to borrow more could actually make your future borrowing less expensive. If you increase the amount of available credit you have, but don’t add to any balance you carry, you’ll lower your credit utilization rate — how much debt you carry versus how much credit has been extended to you. This rate accounts for 30% of the popular FICO score. When you ask to increase your limit you may be required to provide updated annual income and expenses, and based off of your answer your limit will be increased. However, if you’re asked why you need the increase, be honest and say you’re hitting your credit limit and considering other credit companies as an option. Another helpful way to increase your limit is to simply continue to pay off your balance. The credit card company is monitoring your usage and if the company sees that you are responsible in your usage and paying off the balance then it could increase your limit to entice more spending and card usage. Here’s some key points:

  • Cardholders 30 and older were much more likely to be granted a higher limit (81%) than the youngest survey respondents age 18 to 29 (46%).
  • 84% of cardholders with an annual household income of at least $30,000 were approved for the higher limit versus 60% with an income below $30,000.
  • An increased limit can also hurt your credit, especially if you start using that extra credit and carry larger balances. But you could also suffer a temporary credit ding just by asking for an increased credit line if the card issuer checks your credit report

There are two questions that ultimately a credit card company will seek to answer: Can the person repay? Will the person repay? Credit scores are ways to monitor human behavior. For you as an individual I recommend a budget. A budget will help you monitor your day in and day out life. A credit card should be used as a means to bridge a time gap between when you get paid and when you pay your bills. A simple increase in limit and score is possible by asking. You have not, because you do not ask.

If you agreement in prayer, or if you’re in need of a financial checkup you can reach me in the contact me section.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, ” GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG

May 10, 2016

http://www.investopedia.com/financial-edge/1212/ways-to-destroy-your-net-worth.aspx

Net worth is no trivial matter, as it is ultimately the only meaningful measure of personal wealth. There are many good ways to build individual net worth, including earning more, saving more and improving the return on savings and investments, but it’s equally important to play a good defense. There are five ways to destroy your net worth: uncontrolled spending, bad debt, no savings/retirement plan, open-ended risk, and failure to maximize peak earnings. You build your net worth by making more than you spend, and you may have to build that net worth over time. Because building net worth takes time, it is why the 4th step of the Process is so important. Manage how much you spend and retain the rest. Disciplined budgets are usually a good preventative measure for uncontrolled spending, as most people are loathe to actually budget for items that they know they really do not need. There are different types of debt. There’s good debt and there’s bad debt. Accumulating even moderate amounts of credit card debt can quickly grow out of control due to the very high interest rates that debt carries. Likewise, taking on debt to buy a car (a depreciating asset that also demands maintenance and operational spending) is not a good financial move. It’s important to understand that even debt is neutral. Having a financial education is important in understanding the difference between both. While keeping spending lower than earnings is critical to accumulating savings, it is likewise very important to have a savings and retirement plan. Spending less can increase your savings, but also finding ways to create another stream of income can also help in accumulating savings. You should put mechanisms in place that will help you set aside your surplus out of your sight and mind or you will run the risk of spending it.
“The wise store up choice food and olive oil, but fools gulp theirs down.” Proverbs 21:20 NIV. Not maintaining adequate insurance is an excellent example of an open-ended risk. While young people may believe that they have many years of good health ahead of them, a torn knee ligament or car accident can lead to huge medical bills and serious financial difficulties. One of the prime causes of personal bankruptcy in the United States is medical costs, and going without health insurance represents a sizable risk to a person’s net worth. I recommend that if you don’t have adequate insurance coverage then find an independent insurance agent as soon as possible and get a quote. Even if you do have coverage, I recommend you get a check-up. When a tragic life event happens you want to be prepared. For most people with college educations, the peak earnings period runs from their early 40s into their mid-50s (peak years for those without college degrees tend to start, and end, earlier in life). As such, it is important to maximize that earnings opportunity. Unless you hit the lottery, you’re an entertainer, or a professional athlete, you’re going to have to put time and work into your career in order to maximize your earnings. Job hopping can hurt your ability to exploit the peak earnings years, because a person runs the risk of not gaining an adequate level of experience and it could damage a person’s ultimate net worth. In other words, don’t stay in a career path you hate, but be willing to honor the principle of seed, time, and harvest. The time aspect is the most frustrating but also the most rewarding part of hard work.

http://www.bankrate.com/finance/loans/what-lenders-look-for-in-personal-loan-borrower.aspx

Whether you apply for a personal loan at a bank, credit union or a financial-technology firm, there’s much about the process that’s similar from one lender to another. There are three basic things that lenders will ask: proof of income, ability to repay, and what do you plan to use the money for. A review by the credit bureau TransUnion of 54 million unsecured personal loans issued between 2010 and 2014 found 2 big differences among lenders:

  • Banks are more picky about who they lend to.
  • Banks, on average, issue bigger loans.

Credit unions, meanwhile, issued 53% of their personal loans to non-prime customers, while finance companies made 77% of their loans to customers with low credit scores. A number of marketplace lenders cater to below-prime customers. San Francisco-based LendUp, for instance, will issue loans to borrowers with a credit score as low as 450. As a result of the stronger higher credit score criteria, banks are willing to make larger loans to borrowers. The average bank loan was $6,050, while credit unions and finance companies lent significantly smaller sums. I believe you should have a line of credit or a loan when you don’t need it, because when you do it may be too late. Something you should consider is turning your savings account into a personal line of credit. Why let the bank, credit union, private lender, credit card company, or federal government charge you interest, when you can charge yourself interest and become the bank. For more information on this technique contact me in the contact me section.

http://www.marketwatch.com/video/a-bartender-explains-liquid-assets/4AD0E892-FBFE-4FD9-AD69-CDCA093F1DC9.html

Enjoy this video explanation of liquid assets. When you have liquid assets. Getting what you need is easy. Cash is the ultimate liquid assets.
Liquid assets are cash, a checking account, stocks, bonds, and mutual funds.
Basically If you sell something for cash quickly and it doesn’t lose value when sell it, that is a liquid asset. Illiquid assets are assets that are hard to find buyers for. An easy example is trying to sell your house when no one is willing to buy at the price you’re trying to sell it for. Liquidity is very important in your finances. Think of liquidity as the blood of your finances. “… for the blood is the life…” (Deuteronomy 12:23 NKJV). I believe you should be liquid enough to be able to move on an opportunity to be generous without it hurting your day to day living. The best way to reach that level of generosity is to have a budget in place, little to no bad debt, and multiple streams of income.

http://www.investopedia.com/articles/entrepreneurship-small-business/050416/why-small-businesses-fail-grow.asp

Running a small business requires superior problem-solving and an ability to look at the bigger picture. Aside from ensuring that your business turns a profit on a regular basis, you also need to be concerned with your own financial health over the long term. That includes having a strategy in place for building wealth, so you can enjoy a comfortable retirement once the time comes to hand over the reins of your business to someone else. There are four obstacles that can hinder you from creating wealth: too much business debt, an inefficient tax strategy, lack of diversification, and external risks. Debt can be used to help start a business if you don’t have the initial start-up capital saved up or investors. Debt can be used to remedy the time gap in between accounts payable and accounts receivable. At some point you may need a working capital line of credit, and in my opinion that is the best use for debt, however if a substantial part of your business’ revenue is going toward repaying its debts, that leaves less income to devote to growth. It also leaves you, as the business owner, less money to funnel into a solo 401(k), SEP IRA or similar qualified retirement plan to ensure your own future. Business is personal. A person doesn’t go into business to sell an object just to sell an object. There is a personal reason or plan for a person being in business. The purpose may be for a greater good, but often times that business will one day allow the person to retire. As an employee it’s important to remember this truth. If you’re not taking advantage of every available tax break, you may be shortchanging your wealth without even realizing it. There are a number of tax credits and deductions that you can claim on your business or personal tax return. To qualify as tax deductible, an expense must be deemed both ordinary and necessary. This means the expense must be something that’s commonly associated with the type of business you own and directly connected to its operation. When you don’t take the time to maximize every possible tax advantage, the result is an overly large tax payment. Hiring an accountant to manage your filing may increase your business expenses slightly, but it can also help to minimize your tax liability. In terms of building wealth, the long-term benefit can easily outweigh the cost.

Being a business owner requires a certain amount of juggling, and you simply may not have time to pay as much attention to your investments as you’d like. The size of your assets affects your overall financial standing, including how banks see you, especially if you’re a sole proprietor. Investing in mutual funds or exchange-traded funds (ETFs) eliminates the hassle of trying to put together a well-rounded portfolio, but it can be problematic if the funds you’re purchasing hold the same underlying securities. Business owners can also run into issues if they’re not rebalancing periodically. This is vital to ensure that you’re maintaining the right asset allocation, based on your investment goals and risk tolerance. If you don’t rebalance regularly, you could end up with a portfolio that’s either too aggressive or too conservative. As a business owner, you have to understand that are other types of asset classes. Each asset class requires a higher level of financial education, work, and faith. It’s risky to rely too heavily on one asset class, and to dive into an asset class thinking that the same rules apply. Also it’s important to attempt to prepare for unforeseen risks that may occur. Choosing the appropriate business structure is an important step in minimizing liability, but you should also be proactive in reviewing your business and personal insurance coverage to ensure that you’re protected against every possibility.
A successful small business can put you on the right path toward building wealth, but you can stumble if you’re not thinking ahead. Keeping your eyes open for these and other challenges that may pop up along the way is the best defense when your wealth-building plans are threatened. In this article, I quoted the author more than usual, and it’s because I agree with her points. The bottom line is that your small business will fail to grow because of the factors above, but what it is really fundamental is that your business like your personal life has a vision. Where there is no vision, the people perish….” (Proverbs 29:18 KJV)

If you have need agreement in prayer, or if you’re in need of a financial checkup you can reach me in the contact me section.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, ” GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG

http://www.investopedia.com/financial-edge/1212/ways-to-destroy-your-net-worth.aspx

Net worth is no trivial matter, as it is ultimately the only meaningful measure of personal wealth. There are many good ways to build individual net worth, including earning more, saving more and improving the return on savings and investments, but it’s equally important to play a good defense. There are five ways to destroy your net worth: uncontrolled spending, bad debt, no savings/retirement plan, open-ended risk, and failure to maximize peak earnings. You build your net worth by making more than you spend, and you may have to build that net worth over time. Because building net worth takes time, it is why the 4th step of the Process is so important. Manage how much you spend and retain the rest. Disciplined budgets are usually a good preventative measure for uncontrolled spending, as most people are loathe to actually budget for items that they know they really do not need. There are different types of debt. There’s good debt and there’s bad debt. Accumulating even moderate amounts of credit card debt can quickly grow out of control due to the very high interest rates that debt carries. Likewise, taking on debt to buy a car (a depreciating asset that also demands maintenance and operational spending) is not a good financial move. It’s important to understand that even debt is neutral. Having a financial education is important in understanding the difference between both. While keeping spending lower than earnings is critical to accumulating savings, it is likewise very important to have a savings and retirement plan. Spending less can increase your savings, but also finding ways to create another stream of income can also help in accumulating savings. You should put mechanisms in place that will help you set aside your surplus out of your sight and mind or you will run the risk of spending it.
“The wise store up choice food and olive oil, but fools gulp theirs down.” Proverbs 21:20 NIV. Not maintaining adequate insurance is an excellent example of an open-ended risk. While young people may believe that they have many years of good health ahead of them, a torn knee ligament or car accident can lead to huge medical bills and serious financial difficulties. One of the prime causes of personal bankruptcy in the United States is medical costs, and going without health insurance represents a sizable risk to a person’s net worth. I recommend that if you don’t have adequate insurance coverage then find an independent insurance agent as soon as possible and get a quote. Even if you do have coverage, I recommend you get a check-up. When a tragic life event happens you want to be prepared. For most people with college educations, the peak earnings period runs from their early 40s into their mid-50s (peak years for those without college degrees tend to start, and end, earlier in life). As such, it is important to maximize that earnings opportunity. Unless you hit the lottery, you’re an entertainer, or a professional athlete, you’re going to have to put time and work into your career in order to maximize your earnings. Job hopping can hurt your ability to exploit the peak earnings years, because a person runs the risk of not gaining an adequate level of experience and it could damage a person’s ultimate net worth. In other words, don’t stay in a career path you hate, but be willing to honor the principle of seed, time, and harvest. The time aspect is the most frustrating but also the most rewarding part of hard work.

http://www.bankrate.com/finance/loans/what-lenders-look-for-in-personal-loan-borrower.aspx

Whether you apply for a personal loan at a bank, credit union or a financial-technology firm, there’s much about the process that’s similar from one lender to another. There are three basic things that lenders will ask: proof of income, ability to repay, and what do you plan to use the money for. A review by the credit bureau TransUnion of 54 million unsecured personal loans issued between 2010 and 2014 found 2 big differences among lenders:

  • Banks are more picky about who they lend to.
  • Banks, on average, issue bigger loans.

Credit unions, meanwhile, issued 53% of their personal loans to non-prime customers, while finance companies made 77% of their loans to customers with low credit scores. A number of marketplace lenders cater to below-prime customers. San Francisco-based LendUp, for instance, will issue loans to borrowers with a credit score as low as 450. As a result of the stronger higher credit score criteria, banks are willing to make larger loans to borrowers. The average bank loan was $6,050, while credit unions and finance companies lent significantly smaller sums. I believe you should have a line of credit or a loan when you don’t need it, because when you do it may be too late. Something you should consider is turning your savings account into a personal line of credit. Why let the bank, credit union, private lender, credit card company, or federal government charge you interest, when you can charge yourself interest and become the bank. For more information on this technique contact me in the contact me section.

http://www.marketwatch.com/video/a-bartender-explains-liquid-assets/4AD0E892-FBFE-4FD9-AD69-CDCA093F1DC9.html

Enjoy this video explanation of liquid assets. When you have liquid assets. Getting what you need is easy. Cash is the ultimate liquid assets.
Liquid assets are cash, a checking account, stocks, bonds, and mutual funds.
Basically If you sell something for cash quickly and it doesn’t lose value when sell it, that is a liquid asset. Illiquid assets are assets that are hard to find buyers for. An easy example is trying to sell your house when no one is willing to buy at the price you’re trying to sell it for. Liquidity is very important in your finances. Think of liquidity as the blood of your finances. “… for the blood is the life…” (Deuteronomy 12:23 NKJV). I believe you should be liquid enough to be able to move on an opportunity to be generous without it hurting your day to day living. The best way to reach that level of generosity is to have a budget in place, little to no bad debt, and multiple streams of income.

http://www.investopedia.com/articles/entrepreneurship-small-business/050416/why-small-businesses-fail-grow.asp

Running a small business requires superior problem-solving and an ability to look at the bigger picture. Aside from ensuring that your business turns a profit on a regular basis, you also need to be concerned with your own financial health over the long term. That includes having a strategy in place for building wealth, so you can enjoy a comfortable retirement once the time comes to hand over the reins of your business to someone else. There are four obstacles that can hinder you from creating wealth: too much business debt, an inefficient tax strategy, lack of diversification, and external risks. Debt can be used to help start a business if you don’t have the initial start-up capital saved up or investors. Debt can be used to remedy the time gap in between accounts payable and accounts receivable. At some point you may need a working capital line of credit, and in my opinion that is the best use for debt, however if a substantial part of your business’ revenue is going toward repaying its debts, that leaves less income to devote to growth. It also leaves you, as the business owner, less money to funnel into a solo 401(k), SEP IRA or similar qualified retirement plan to ensure your own future. Business is personal. A person doesn’t go into business to sell an object just to sell an object. There is a personal reason or plan for a person being in business. The purpose may be for a greater good, but often times that business will one day allow the person to retire. As an employee it’s important to remember this truth. If you’re not taking advantage of every available tax break, you may be shortchanging your wealth without even realizing it. There are a number of tax credits and deductions that you can claim on your business or personal tax return. To qualify as tax deductible, an expense must be deemed both ordinary and necessary. This means the expense must be something that’s commonly associated with the type of business you own and directly connected to its operation. When you don’t take the time to maximize every possible tax advantage, the result is an overly large tax payment. Hiring an accountant to manage your filing may increase your business expenses slightly, but it can also help to minimize your tax liability. In terms of building wealth, the long-term benefit can easily outweigh the cost.

Being a business owner requires a certain amount of juggling, and you simply may not have time to pay as much attention to your investments as you’d like. The size of your assets affects your overall financial standing, including how banks see you, especially if you’re a sole proprietor. Investing in mutual funds or exchange-traded funds (ETFs) eliminates the hassle of trying to put together a well-rounded portfolio, but it can be problematic if the funds you’re purchasing hold the same underlying securities. Business owners can also run into issues if they’re not rebalancing periodically. This is vital to ensure that you’re maintaining the right asset allocation, based on your investment goals and risk tolerance. If you don’t rebalance regularly, you could end up with a portfolio that’s either too aggressive or too conservative. As a business owner, you have to understand that are other types of asset classes. Each asset class requires a higher level of financial education, work, and faith. It’s risky to rely too heavily on one asset class, and to dive into an asset class thinking that the same rules apply. Also it’s important to attempt to prepare for unforeseen risks that may occur. Choosing the appropriate business structure is an important step in minimizing liability, but you should also be proactive in reviewing your business and personal insurance coverage to ensure that you’re protected against every possibility.
A successful small business can put you on the right path toward building wealth, but you can stumble if you’re not thinking ahead. Keeping your eyes open for these and other challenges that may pop up along the way is the best defense when your wealth-building plans are threatened. In this article, I quoted the author more than usual, and it’s because I agree with her points. The bottom line is that your small business will fail to grow because of the factors above, but what it is really fundamental is that your business like your personal life has a vision. Where there is no vision, the people perish….” (Proverbs 29:18 KJV)

If you need agreement in prayer, or if you’re in need of a financial checkup you can reach me in the contact me section.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, ” GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG