Hillary Finance Secret

Archive for the ‘Financial Statement Formulas’ Category

Credit rating is the formula which is used by the loan lenders. First this system was introduced by Fair Isaac Credit Organization (FICO) in 1950s. Then this was followed by other companies. A FICO is the system of calculating the approximate risk of an individual to the lender. Generally, the rating ranges from 300 to 900 points. A rating of 300 is treated as high risk holders where as the score around 900 is considered to be the excellent. The FICO rating calculated in numerals is based on certain factors like payment history (30%), credit limit available, balance due (35%), period of possession of the credit card (15%), new credits and types of credit (10%). Based on these factors credit score is rated and a record of credit score is formed in order to calculate or access the credibility of each individual’s payment.Some of the credit ratings are: • Above 700 – Excellent. Lenders will have no issues on sanctioning a loan where the score is above 700. • Between 680 and 699 – This will come under the category “Good”. Where the lenders will have no problem in lending you loan since only one point is there between good and excellent credit.

 Between 620 and 679 – This is the “Okay” category. Since your score is near to 679, it is better. If it falls near 620 your credibility is considered being “average”. Here you may have to endow with additional income statements or professional references and documentation on confirmation of the job. • Between 580 and 619 – It is still not in the “Bad” category list yet, but you are on its verge. Read the rest of this entry »

Examining the spectrum of wildlife painters throughout the world today, it is hard to know what may be the most lucrative investment. Most customers buy their artwork primarily for the pleasure of looking at it on the wall, but of course it is always good to have the knowledge that a certain painting has held it’s value, or even better, the painting has become more valuable.

The general formula is, that just a very few artists will make it to the dizzy heights of worldwide acknowledgement. Even though a lot of artists are professional and paint exquisite pieces of art, they will generally go unrecognized or have only a brief taste of recognition. Less than one percent of artists will see their art rise in value over the years, and it is crucial when investing considerable sums of money primarily for the purpose of commercial investment that the best descisions are made.

Such artists are far and few between and it is important not to be influenced by an over enthusiastic gallery that wishes to promote a particular artist’s work, or alternatively, not to be persuaded that because a shop does not or is not able to purchase such work, that it is of no demand compared to the paintings being exhibited in the shop. Usually the reason is that a lot of galleries are tied into contracts with publishers, who want only their paintings to be shown, whether the artists are recognized or obscure. Also it is because the paintings and signed prints by internationally recognized painters are in great demand that it is often difficult to obtain original paintings because of rarity and the high prices. Read the rest of this entry »

We are quite sure that many business owners and financial managers, and to some degree even sophisticated financial analysts have never heard of Edward Altman. Altman was a pioneer in financial research into trouble firms. He was a New York professor/scholar.Obviously this took a lot of what we could call ‘ back testing ‘ – that is to say going back in a companies history to determine why they failed and what were the financial characteristics of that failure. A lot of his work revolves around the in depth analysis of 33 firms that went bankrupt eventually.

Altman wrote volumes on companies in distress and bankrupt companies, and is most known for his contribution of a short formula called ‘THE Z-SCORE ‘. Read the rest of this entry »

Bling Lingo made simple

Today…again…I was scratching my head over an accounting mess, for which the owner had paid a bookkeeper many dollars over many years. How did it happen? If you don’t know the basics, you are a sitting duck, my friend. You know, accountants do it on purpose. They use weird words to make you think that they are smarter than you are. To keep you in the dark. Or, the less nasty ones just don’t know better.

Good accountants and bookkeepers want you to learn the lingo. They want to help you make the bling, baby! So, read and learn. Keep this glossary handy as you work with your professional money managers. Use it to begin your journey to financial literacy!

Bling Lingo – Glossary of common Accounting Terms…

ACCOUNTING EQUATION: The Balance Sheet is based on the basic accounting equation. That is:

Assets = Equities.

Equity of the company can be held by someone other than the owner. That is called a liability. Because we usually have some liabilities, the accounting equation is usually written…

Assets = Liabilities + Owner’s Equity.

ACCOUNTS: Business activities cause increases and decreases in your assets, liabilities and equity. Your accounting system records these activities in accounts. A number of accounts are needed to summarize the increases and decreases in each asset, liability and owner’s equity account on the Balance Sheet and of each revenue and expense that appears on the Income Statement. You can have a few accounts or hundreds, depending on the kind of detailed information you need to run your business. Read the rest of this entry »

The Law of Attraction (what you think about is what manifests itself in your life) is something that can be made to work for you if you go at it proactively. It is, ultimately, a mindset as much as it is a personal revelation, and it’s about self actualization of goals and dreams. There is a simple, multi-step process that can be followed to let the Law of Attraction make positive changes in your life.

Initiation Phase: Believe in yourself and believe in your dreams

Your dreams are important to a successful and happy life. One of the most difficult things for people to accept is that the most important part of your professional and personal life is taking a firm grip on your dreams and working towards them, and the first step in making your dreams happen is using the law of attraction to put them in the present tense, and break down what’s needed to achieve them. This isn’t some polyanna-ish Dr. Feelgood nostrum; you will still have to make the hard decisions about getting the most out of your dreams, and you’ll want to do what project planners have been doing since the Pharaohs built the pyramids, which is visualize the end state of your goal and work backwards, marking out what steps need to occur when to make them happen. However, you need to understand that the most important opinion about yourself is yours. Self confidence becomes a self-fulfilling prophecy, and ultimately, the law of attraction is about self actualizing your dreams and self image into actual, concrete results. Ultimately, it’s what you believe about yourself that will make or break you, and one of the keys is learning to unlearn lessons that have been imprinted on you at a younger age; the ones that say you’re lazy, that it takes someone with special abilities to achieve their dreams and so forth. Throw those out with the other rubbish, and do a brutal, honest self-assessment. Don’t wall paper over your flaws. Be aware of them, and put plans in action to cover for them with other resources. Don’t make “Someday I’ll change that habit” statements. Say “I have this habit, and I need to find a way in the present here and now to keep it from sabotaging my dreams.” Effective leaders aren’t perfect; they’re aware of their flaws and allocate assets to cover for them.

Once you know yourself, write down your goals, in the present tense, and read them aloud. Purchase an audio or attraction law MP3 download, not a book (very important) because beliefs are developed by what you hear. Listen to that audio as often as you can, preferably one about the law of attraction or a motivational audio. It works particularly well when you’re waking up or going to sleep, when your mind is the most suggestible. Read the rest of this entry »

Been thinking about being your own boss lately? Feel like giving that ‘great high school plan’ a try? Starting a small business comes with its perks but demands an equal amount of your patience. The finances especially, could get the better of you, if you are unprepared. But take heart, we have just the thing for you: a crash course in small business financial planning! We’ll take you through all that you need to do before you start your own small business.

Ask yourself: Don’t overestimate and ask all the hard questions. How much can you pool in and how much will you need to borrow? Is your business cyclical or seasonal? Does it seem risky? Trust us, the banks will want to know. Your loan eligibility will depend on the answers.

Check personal finances: Prepare a worksheet of assets and liabilities. On the asset side, record details like cash at hand, savings, investments in stocks, bonds and real estate, life insurance policies, vehicles owned and other liquid assets you can think of. On the other, record your credit card debts, auto loans, real estate loans, insurance payments, taxes and other liabilities. The difference between the two will give you your net worth. This will come in handy while requesting a loan. Read the rest of this entry »

The study seeks to provide a critique of the theoretical framework of economic governance as it relates to the financial sector in Zimbabwe and identify institutions in the financial sector and explain their roles. It also seeks to unpack the concepts related to the banking or the financial sector, with specific emphasis on the role of central banking from a policy and developmental perspective. Outline of the economic history of the development of the financial sector in Zimbabwe and the regulatory framework governing the financial sector will also be given. To capture the community’s view and experience of the financial sector within the period 2003 to 2009, recording of community voices has been done, with main emphasis on the views around the  inclusion or exclusion, popular notions of monetary policy and banking, and impact (perceived or real) of these on people’s social conditions. Finally the study seeks to equip the poor and grassroots communities and the working classes, to engage meaningfully in discussions on the role of monetary institutions as part of an ongoing engagement on economic and public policy advocacy. Read the rest of this entry »

Investing in property is one of the best options if one is looking at a secure cash flow over a period of time. It enables one to safeguard capital while ensuring it grows overtime. However a lot of background effort needs to be done before making a property investment decision. The deal as with any other investment transaction is fraught with risks and uncertainty.

In any investment the long term goals are important. Before getting into the technicalities of property investment it is important to define the goals and expectations. One could be making the investment for purely financial returns, or to back some other venture or as part of an investment cycle for tax purpose.

A financial viewpoint

The financial terms and the associated numerical data provide a better picture of any property investment. However it happens that the rates and percentages calculated are relevant for certain investors only. Below is a list of the most common terms that are used in the property investment domain along with a brief explanation and method of calculation. Read the rest of this entry »

inancial and commercial real estate always go through cycles of boom and bust. The delicate part is that no one can predict the exact timing. Commercial real estate financial modeling is done primarily via spreadsheets. These can be built from scratch or acquired from a trustworthy software dealer or consulting firm that focuses in real estate. When building or buying a good commercial real estate spreadsheet, there are essential items to focus on. Read the rest of this entry »

One question almost every investor asks at some point is whether it is possible to achieve above market returns by selecting a diversified group of stocks according to some formula, rather than having to evaluate each stock from every angle. There are obvious advantages to such a formulaic approach. For the individual, the amount of time and effort spent caring for his investments would be reduced, leaving more time for him to spend on more enjoyable and fulfilling tasks. For the institution, large sums of money could be deployed without having to rely upon the investing acumen of a single talented stock picker. Many of the proposed systems also offer the advantage of matching the inflow of investable funds with investment opportunities. An investor who follows no formula, and evaluates each stock from every angle, may often find himself holding cash. Historically, this has been a problem for some excellent stock pickers. So, there are real advantages to favoring a formulaic approach to investing if such an approach would yield returns similar to the returns a complete stock by stock analysis would yield. Read the rest of this entry »