Tag: cash flow
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Cash flow: Keep your eye on it
Most of us are not aware of the cash flow pattern around us. Like a worker who takes his usual way to work, he can drive and talk on the phone (if he does not get caught) and buy something on the road, all at the same time. The reason he can pull this stunt…
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Much ado about a Royal Baby
The press had worked itself into frenzy the past couple of weeks over the expected and eventual arrival of Prince William’s son, Prince George. The entrance to St Mary’s Hospital at Paddington turned to a media circus and reporters around the world and people from all walks of life joined the vigil for the much…
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You Can Turn Your Desire for a Better Life to an Asset
Desiring better things is an expression of the basic human desire for growth. We all want better things. The main challenge is that we often look for a short cut to get it to satisfy our urge for instant gratification. This often leads us to fall into the trap of consuming our seed and expecting…
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About Assets and Liabilities 2
These definitions are within the context of cash flow. A good investor invests for both income and capital gain. When you are getting income from the asset, you will not be under pressure to sell, and if you decide to sell, you can hold back if the market is down, as you do not really…
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About Assets and Liabilities
The reason folks acquire liabilities thinking they are assets arises from financial illiteracy. Conventionally, an asset is something you own that has value. This shows up on the asset column of your balance sheet. For the financially literate, what makes an item an asset or liability depends on the cash flow pattern. In corporate mergers…
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Image Affluence: All that Glitters is not Gold
From the previous post – You can be Millionaire and Broke, we can see that having a high net worth does not necessarily translate to being cash rich. You can be asset-rich and cash poor, and may be forced to dispose of your assets at below-market prices when you negotiate from a position of weakness…
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You can be Millionaire and Broke
Your net worth is not a true indicator of your financial situation. You can be rich and broke a millionaire but shake out your pockets to make some basic purchases like fueling your car or money from groceries. If you have not been in that position, it may sound like a fable. You see, your…
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What is Your Net Worth?
Another aspect of your financial fitness test is knowing your net worth. Most people have no clue what the number is. They do not know how much they own or how much they owe. They carry a fuzzy number in their head, based on assumptions not related to reality. If you have serious financial goals,…
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How to Calculate Your Net Worth
Bankers just love high-net-worth individuals (HNIs), especially in Nigeria. They are considered a good risk. They come well-loaded and have access to credit facilities mere mortals will give an arm and leg to have access to. Marketers from banks besiege them to come and open accounts with them, and oftentimes, some requirements are waived. High-net-worth…
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Do You Have A Savings Account?
We all have savings accounts, or we think we do. We have an account that is not a checking account, where we deposit the money we put aside as savings. So far so good. The snag is, what is the account balance? For most, it is close to the minimum balance. Many have gone dormant.…