Finance Book

The life changing book that has been a personal finance best seller for over a decade written by author Robert T. Kiyosaki. This little book has changed the lives of many people and their perspective on money, who are in misery, not knowing how to make ends meet due to lack of financial education. The contents of this book, tells the story of a young man, who is the author himself, being brought up by his natural father the conventional way of getting a job, saving every penny, working hard and climbing the corporate ladder. At the same time, he also had a “second father” who taught him a different way to view things and how to start from scratch and build his business into an empire.

I am sure many of us can relate to the story on the part where we were being brought up the conventional way to become workers. As much as we don’t wish it to be that way, ironically, the education system plays a very big part in educating our fathers and their fathers to be trained into workers instead of educating them and inspire them to become business owners. Ignorance of other available choices, we are trapped in a eternal cycle of working for money, saving up and spending on wasting assets that constantly drains our finances and loses value over time. Welcome to the rat race! Unless we learn and educate ourselves on personal finance, we will be unknowingly stuck with only one way of thinking, and passing that knowledge on to the next generation. Talk about vicious cycle!

The main point of this book is to educate yourself on personal finance, which is to learn how to become financially independent by making money work hard for you and not you working hard to earn every single penny. It teaches you that you do not have to be a slave to money and to turn the situation to your advantage. There is no need for you to work for another person if you do not want to, in order to fulfill what you want in life. You are in control of your situation and you no longer need to take orders from anyone. You decide how much work you need. You are your own boss!

This book has certainly made a huge impact on my life, why not read it and see if it will change yours as well? Make that difference now.

By: Ben Ang

Are your personal finances in order? Are you saving money and allowing your investments to grow or are you paying heavy interest the wrong way on credit card debt? It matters, and even if you are in your twenties or thirties it still matters. Why? Because the sooner you start planning for your non-working years the more worry-free your retirement years will treat you.

It is for this reason perhaps that I’d like to recommend a very good book to you. It is two decades old now, but it is one of the books I read that helped me retire early (age 39). If you will follow this book and perhaps do a little reading of similar current books, as some of the laws have changed, then together this learning experience will allow you to retire early and carefree too. The book is: “Retire Worry Free – Financial Strategies for Tomorrow’s Independence” by Michael E. Leonetti; Longman Financial Services Publishing; division of Longman Financial Services Institute, Inc, 1989.

Mr. Leonetti, has a financial services and financial planning background and his common sense approach is a breath of fresh air compared to the hype that so many personal financial “How to” books present their information. This book is broken into 2-parts; Part I asks the reader simple questions and then allows them to compare notes as to where they are now and where they need to be. Questions such as:

Do you have a retirement plan? Do you know why you had better?

As well as; How to pick goals, and chart your direction towards retirement and which choices are prudent and why? Thus allowing the reader to create a lifestyle for your later years.

In Part II, Leonetti, associated the reader with key points of contention such as; Understanding risks and How to take financial inventory; how to do Estate Planning and the very basics of Investing. Also are tips on how to live on a budget, within your means, and the art of stretching your money. Please consider this book and the wisdom within.

By: Lance Winslow

No matter what industry you are in, how big or small your company is it’s your responsibility to keep accurate accounting records. Accounting and bookkeeping can be a confusing and tedious task for small business owners. Most small business owners are focused on growing their business by driving revenue and building relationships with their customers. Keeping accurate records can save you in an IRS audit, as well as lowering your tax liability. Inaccurate records may cost you hundreds or thousands of dollars when filing your tax return.

There are two different types of accounting methods; the accrual method and the cash method. The method you choose will be based upon your business structure, sales volume, and whether or not you sell on credit. The cash method is the most basic method of accounting and most commonly used amongst small businesses. Under the cash method, income and expense are not recognized until they actually occur.

Example: You sell a product to your customer on September 25, but you don’t receive payment until October 3. Under the cash method of accounting that revenue would be recognized in October. Under the accrual method of accounting the revenue would be recognized in September.

Small businesses with annual revenues less than $5 million a year are free to choose either method of accounting. The cash method provides a more accurate picture of your current cash position, but may be misleading in terms of long-term profitability.

The accounting method you choose will have a significant impact on your taxes. Under the cash method of accounting you may incur an expense at the end of December 2008, but you don’t pay it until January 2009. In this case you will not be able to deduct the expense in 2008, but would have to wait until you file your 2009 tax return.

The network marketing industry is constantly growing and catching the eye of the IRS. In order to protect yourself, your assets and your business you must keep accurate accounting records. Without accurate records the IRS could seize your business or even your personal assets (depending on what type of entity you have).

I will be doing a special series dedicated to accounting for small businesses, with a focus on internet marketing companies, in the coming weeks.

By: Eric McNulty