Your credit card is a source of interest-free loan. But, this will work, if and only if you think of your credit card as a tool for personal cash flow management –rather than additional cash in your wallet.
It often happens that a purchase has to be made before your expected cash has become available. If you know that your cash will come in before the bill from the credit card falls due, make the purchase with your credit card –but pay off the whole purchase when your cash comes in and save yourself the interest cost. …read more

I’ve always maintained that accounting is also for business. It’s concepts, relationships among accounts, system of balances are applicable in almost anything in life.
Accounting Solver presents a Balance Sheet for Living:

Keeping up with the Joneses is a great contributor to Stress. It pushes you into Conspicuous Consumption (e.g., a gas-guzzler luxury car instead of a cost-efficient model, designer clothes, etc) –which increases your Bills & Obligations and makes for great Stress.
The Joneses probably have more than $10,000 in unpaid credit card bills for which they are paying as much as 30% in interest & penalties, live in a …read more

I’ve always maintained that accounting is also for business. It’s concepts, relationships among accounts, system of balances are applicable in almost anything in life.
Accounting Solver presents a Balance Sheet for Living:

Just like Cash in a business Balance Sheet, Health in the Balance Sheet for Living is much affected by Liabilities. And, the most important item in the Liabilities side of the Balance Sheet for Living is Stress.

Keeping up with the Joneses is a great contributor to Stress. It pushes you into Conspicuous Consumption (e.g., a gas-guzzler luxury car instead of a cost-efficient model, designer clothes, etc) …read more

I’ve always maintained that accounting is also for business. It’s concepts, relationships among accounts, system of balances are applicable in almost anything in life.
Accounting Solver presents a Balance Sheet for Living:
Just like Cash in a business Balance Sheet, Health in the Balance Sheet for Living is much affected by Liabilities. Among the Liabilities in a business Balance Sheet, the major items would be Notes Payable and Accounts Payable. In a Balance Sheet for Living, the major item would be Stress (on the job or from relationships).
Just like Notes Payable and Accounts Payable, Stress cannot be avoided; but they …read more

I’ve always maintained that accounting is also for business. It’s concepts, relationships among accounts, system of balances are applicable in almost anything in life.
Accounting Solver presents a Balance Sheet for Living:

Health is like cash which you spend on what you have to do and/or want to do. The healthier you are, the more time you can have for family & friends, for yourself, for work; the more you can enjoy nature (i.e., smell the roses); the better you can earn prestige or a good reputation.
The healthier you are, the more productive you can be in building up …read more

I’ve always maintained that accounting is also for business. It’s concepts, relationships among accounts, system of balances are applicable in almost anything in life.
Accounting Solver presents a Balance Sheet for Living:

As in any Balance Sheet for business, Equity is what you start out with or put into the business and which constitute your Assets. Following the basic accounting equation: Assets – Liabilities = Equity, after you deduct your Liabilities from your Assets, what is left is what you get out of the business or what you actually own.
It’s the same case in life (or your Balance Sheet …read more

I’ve always said that accounting is also for business. In other words, accounting is mostly common sense and is applicable (is being applied and should be applied) to almost anything we do –balancing work & leisure, measuring risks against rewards (in investments as in any endeavor), counting politicians’ promises against what they’ve actually accomplished, taking stock of what you have against what you want, weighing the advantages of eating out against having a home-cooked dinner, etc, etc.
As you run the rat race, have you wondered whether you’re just working to pay bills or enjoying a life beyond …read more

Whenever you use your credit card for a purchase or any expense payable through a credit card, the issuing bank or credit card company is betting that you will not pay your whole balance within the free 30-day grace period and they will earn revenues from your account. By paying the whole balance before the 30-day interest free period, YOU WIN THE BET.
The greatest income of issuing banks and credit card companies come from the interests and penalties they charge for outstanding amounts at the end of the 30-day period.
So, bet on a sure thing. Pay your whole credit …read more

Working Capital funds the cost of the labor & materials that go into the goods you sell (or the services you render) and what you use to pay for salaries, rent, office supplies, etc (i.e., your operating expenses).
After you are convinced that you have a marketable product or service and there is an accessible market sufficient to meet your profit objectives, you have to determine how much money you need to put up for the business. Oftentimes, the focus is on the fixed assets; e.g., office improvement, production & office equipment, furniture, etc. Not enough attention is paid …read more

After you have determined that you have a marketable product or service and there is an accessible market sufficient to meet your profit objectives, you want to know how much money you need to put up for the business. Oftentimes, the focus is on the fixed assets; e.g., office improvement, production & office equipment, furniture, etc. Not enough attention is paid to the Working Capital, i.e., what you need to actually operate.
If you do not put up enough money for Working Capital, you will be forced to incur debt or inordinately prolong accounts payable so that you get …read more