Why is it important to trust each other?

 

We lose more by having the habit of not trusting until we have a reason than by choosing to trust first before a reason not to trust any more shows up.

Choosing the latter, yes, would lead to unpleasant consequences when those you trust for no reason disappoints. But at least, it would leave the doors to the heart on both ends open, until the heart finds someone trustworthy enough to keep.

On the contrary, choosing not trust at all until you have a reason to trust is sure going to make you suspicious of everyone you meet at the first time. 

The suspicion could also, lay the foundation to stereotype those who don’t fit into the culture of those you call, “mind”.

Suspicion and stereotyping have caused a lot of people to lose opportunities to make great friends and find great team mates to complete them and help them realize their dreams. 

It’s not easy for people with difficult-to-trust attitude to change and move in the opposite direction. Making the transition takes time.

This period of transition would have been saved and great relationships built if one had a trusting attitude. 

“Nothing is worth more than laughter.- Frida Kahlo.

“Nothing is worth more than laughter. It is strength to laugh and to abandon oneself, to be light.”– Frida Kahlo.

Laughter is the best medicine some claim. Is this true?

Does laughter improve your health?

Yes it does. Humor is the strength that lightens the burdens we all carry. How does laughter give us this strength?

It helps us to release anger, gives us the ability to forgive quickly and the reward is, the reduction of pains that in turn, protects us from the destructiveness of stress.

It’s almost practically impossible to go through the daily grind of life without facing life’s problems. At every turn and twist, we meet problems in our careers and relationships. These problems affect both our emotional and physical health.

Most of us, forget to use the strength that laughter offers us to overcome these problems, grow our careers, strengthen relationships and improve our health. 

Experts claim a good hearty laugh relieves physical tension and stress and leaves the muscles relaxed for up to 45 minutes after.

How does laughter do this?

Experts say that laughter increase infection-fighting antibodies and improve hormones which erect resistant walls against disease invasion. 

Laughter does more. Laughter opens the door and releases endorphins, the body’s natural feel-good chemicals, which relieve pain temporarily and improve the total sense of well-being. 

So, laughter improves your mental health and it improves your relationships with others. It improves your mood and makes your attractive to others. If laughter eases tension, gives you joy, makes you feel good and attracts great people to you, why don’t you learn to laugh more?

Laugh more and be filled with the illuminating ability to light up your path and the path of others. Problems will never end, as long as you are alive, but laughter can give you the strength to laugh at your problems and have a great happy life.

Going through rough times or having rough times? What is the difference?

Have you just experienced a loss of a loved one, a loss of a job or a loss of something so valuable to you and almost irreplaceable?  

Yes.

Then you should be going through a rough time right.

If the loss of a job is putting you through a financial hardship or, to an insufficient knowledge or skill is making it difficult for you to do something or accomplish a task, then you're having a rough time.

If you're going through a rough time, understand that it's part of life. And it's an opportunity for you to become stronger and better by taking the positives and discarding the negatives.

This is a fact because it's in tough times that people discover their full potential.

Leonardo Bonucci captures this beautifully,  "It is exactly in tough times when we discover our full potential, it allows our mind and body to push ourselves beyond our limits."

And never forget that,

"Tough times never last, but tough people do." - Robert H. Schuller.

So, no matter how tough the storms you are going through or facing are, keep holding onto the belief that they will pass and leave you better.

Afterall,

Storms make trees take deeper roots. - Dolly Parton

Life is just a tire swing” – Jimmy Buffett

 

Life is a tire swing,

while you are here,

expect to be down this moment,

backward the next, just hang in there,

because the tire is going to swing you up

and bring you back down.

No point is fixed, no destination is owned,

while the foolish traveller lives for tomorrow,

the wise traveller makes the best of every moment.

Don’t wait, the time will never be just right. Napoleon Hill.

 

Don't wait, 

tomorrow may be too late.

Set forth now,

now is always the right time and,

Now is just the best time and where you are is the best place, to dance with that idea.

There's no better way to know if it would work than putting it into action.

If it works, celebrate.

If it doesn't , learn some valuable lessons and try again;

Those who take quantum leaps first master  baby steps.

And baby steps lead to a well-balanced life.

What is a well-balanced person? How can you become a well-balanced person?

A well-balance person is not enslaved by emotional problems.

Good and bad things happen to them as they happen to everyone else.

When they receive good things from life, they enjoy them without being carried away by the ephemerality of their values.

When life gives them the raw deal, they accept it as one of life’s mysteries which don’t subtract from the real substance of life.

And what’s life real substance?

Life’s real substance is rooted in the knowledge that happiness is within and its value can’t be decreased or increased by nothing else, except by you, the owner of your self.    

Thomas Merton captured happiness perfectly when he said,

"Happiness is not a matter of intensity but of balance and order and rhythm and harmony."

What is optimizing product mix?

 People set up businesses to make profits. 

Often, profits are outcomes of judicious allocations of scarce resources to competing products and services.

It’s not always easy to make profits when a business has competing products, screaming for scarce resources. A business in such a situation has to use a reliable formula to ensure survival, continuity and growth. The most reliable formula is the one that helps the business to take appropriate optimal product mix decision.

What is optimal product mix decision?

Optimal product mix decision is following the process that helps a business to identify the appropriate product mix that maximizes total contributions to the business by the available limited resources.

The application of optimal product mix approach is determined by the nature of the constraints (scarce resources).

What are the basic constraints?

They are basically two:

1. Single constraint and,

2. Multiple constraints.

(A) A single constraint or a key limiting factor situation arises when, a resource is limited is the midst of other factors are adequately available and, are maximally contributing to the profitability of the product mix.

When this happens, the contribution margin per key limiting factor approach is used.

And the following steps are taken to reach the optimal product mix decision;

1. The appropriate identification of the key limiting factor among other factors by comparing the budgeted resources and units to available resources and units,

2. The calculation of cost per unit, contribution per unit and savings made by producing each product,

3. The division of the contribution or savings per unit by the key limiting factor per unit,

4. Ranking the results of the division in (3) above in descending order,

5. Diving the budgeted sales by corresponding selling prices to identify the maximum units required by each product line,

6. Identification of management priorities before,

7. Preparing an allocation template, allocating identified key factor among competing product lines and identifying the optimal product mix.  

(B) Multiple constraints situation arises where the supply of two or more resources of a business is limited. The linear programming technique is often applied to remedy this situation.

 The appropriate approach to use in a multiple constraints situation is to find out the factors that make it difficult to meet maximum demand.

After the identification of maximum sales demand for a business’s products, earning abilities of all limiting factors should be ranked (based on their contributions- the excess of selling price per unit over variable cost per unit) and the contribution that meets the sales demand unit is the maximizing.

In a situation where a business’s limiting factor on sales or production is not a scarce resource, the business would have to make available more than the level determined by contribution per unit of limiting factor ranking. 

The optimal product mix must however, recognize minimum production requirements.

A business may have a situation of non- scarce resource limiting factor when it has to do all it could to maintain goodwill (incidentally a crucial intangible asset), maintain market share of some of its products and meet contractual agreements.

If you carry joy in your heart, you can heal any moment. - Carlos Santana.

 

Life happens to everyone

and sometimes bring along

good things and make us glad

at other times, it gifts us bad things and make us sad.

We really have control over few things in this world,

the control over one is really enough,

and it's the choice

we have to make at every moment between sadness and joy.

"Use the pain we’re feeling and...

“...turn it into power.” - Rico (Blue Beetle).

The reality is, we are in tough times,

we’re drowning in our tears and having pains for breakfast,

But the truth is, this is the right time for you and I,

to wipe our tears and turn the pain into power;

this we can achieve by realizing that we’re the only heroes we have,

and if we can’t find the power to save ourselves, no one can.

***

“USE THE PAIN WE’RE FEELING AND TURN IT INTO POWER.” – ROCIO (Blue Beetle).

“You drown not by falling into the river, ...

...but by staying submerged in it.”

So it’s not not fatal when you fall, 

But when you stay down you’re crushed;

We’re crushed by self defeats,

not by unfavorable conditions 

which are normal and systemic,

But by refusing to look up when we fall;

The sun, the moon and the stars are still up in the sky,

They need no one’s permission to shine the light

On the path of the one that has chosen to see what lies in the morning after,

 the coldest night is over.

***

"You drown not by falling into the river, but by staying submerged in it." - Ovi  Mahajan (Extraction).

5 things government should subsidize.

People submit themselves to government becàuse they believe that government has the resources to make life comfortable in ways most individuals can’t. 

Government everywhere knows this or should know this fact. 

In places, where the legitimacy and acceptability are obtained by popular means, people who seek public offices promise to make life easier for the masses by lowering costs of essential goods and services.

One of the popular ways people-centric government keeps this promise is by subsidizing the costs of  filling basic needs. 

The costs of filling the following basic needs are often subsidized by governments that empathize with the sufferings of their people are:

1. Education,

2. Food,

3. Quality health care,

4. Decent housing and,

5. Energy.

People friendly governments subsidize costs of satisfying these needs because they understand that;

1. When the most people have access to quality education, they would in return use their acquired skills to support governments efforts to strengthen the economy and develop the society for everyone.

2. Without food, people will starve. A society populated by hungry people breeds violent crimes. The costs of, in the least, controlling violent crimes are more than the costs of preventing them.

3. Health is wealth. A healthy person is a happy person. A responsible government would always prioritize the enlargement of accessibility to quality health care for its people.

4. People need decent places to call homes. 

5. Easy accessibility to quality and cheap sources of energy would boost industrialization efforts by both public and private sectors. 

Such efforts would produce more jobs for the people,  increase the availability of quality products at cheap prices, increase the gross domestic  product, increase the per capita income of the people and produce a robust economy. 

At least, the cost of food and energy should be subsidized by governments. 

Kristalina Georgieva, IMF boss agrees;

"Governments need to subsidise the cost of food and energy for the poorest members of society."

3 Big Questions To Ask About Life.

 

Life presents to us all, numerous questions. 

But it reveals its meaning to only those  who seek answers to only few questions.

The meaning of life is found in the answers to:

1. Who am I,

2. Why am I here and ,

3. How do I fulfil the reason I am here.

Searching for answers to more, would easily make  you unhappy and unfulfilled in life.

Your success is all that matters.

 

When you make attempts to take a big leap,

You should expect to be pushed and kicked

by those who seem to love and support you,

and give you hope with their nice words 

but their actions give you every reason,

to seek to be isolated from humanity.

No. Rather choose the isolation

that protects your exclusive position,

to love who you are 

and also, all those that come into your life,

it doesn't matter, 

that many among those who smile back when say hi,

are those who don't want you to win,

what matters is, you succeed 

and when you do, you become the star

that no darkness can stand on its path.

What is the best happiness quote?

Motivation in your pocket.

 For me, it is Ralph Waldo Emerson quote,

"For every minute you are angry you lose sixty seconds of happiness."

     Pause! What do we get by being angry? 

Does anger on its own change bad situations and make them good? No!

Then if it doesn't , why do we sacrifice moments of happiness for an investment in anger that returns only negative?

It doesn't make sense, does it? 

But it makes sense to go slowly, so that you don't miss life's beautiful moments, which are often sandwitched between the beginning  and endless ending of the rat race to make ends meet.

It's this endless rat race that generates competitions among us and competitions create moments of disappointment, frustration and anger.

And anger, robs us of happiness when we submit to it. 

The good news is, you have the power to always choose happiness over anger. 

The power comes when you make up your mind to intentionally seek out people and things, that fill you with laughter and keep you happy. 

We will fund your legal bill - Elon Musk.

Have you been unfairly treated by  your boss for posting or liking something on Twitter (X) and you want to sue them by don't have the fund? Go ahead, twitter is ready to pick your legal bill.

Elon Musk says in a recent tweet;

If you were unfairly treated by your employer due to posting or liking something on this platform, we will fund your legal bill. No limit. Please let us know

How to stop hurting after being cheated on.

 

The gods. The beginning.

When you love truly, you invest your whole heart into it. 

No one that invests their heart into loving someone, willingly chooses to share the love-of-their life with another person. 

But loving someone with your whole heart and being completely faithful to a relationship, are never enough to stop a partner bent on being unfaithful. 

An unfaithful partner will always hurt a faithful partner. And a faithful partner is always going to feel cheated, betrayed, incomplete and not worthy enough.

It’s natural to feel bad when your faithfulness to someone is rewarded with unfaithfulness. It’s also natural to decide not to love any more with your whole heart after you’ve been cheated by a philandering  partner. 

But understand this, there’s always someone else , some where who would love you with their whole heart and would be faithful to only you.

To meet that someone, you should find the mental strength to walk away from an unrepentant cheat. 

  

It's not going to be easy but when you make up your mind to help yourself, you're going to find the courage to reach out to family and great friends, who would be more than glad to help.

Is Short Term Thinking A Common Crypto currency Investments Mistake?

Shelby M.C. Davis says, “Invest for the long haul. Don’t get too greedy and don’t get too scared.” 

And Warren Buffett believes, “The stock market is a device to transfer money from the impatient to the patient.”

So? Do these investments gurus’ pieces of advice suggest that long term crypto currency investments are better than investing in crypto for the short term?

You would find your answer after considering the following factors;

1. The size of your net worth..

2. Your personal investment goals

3. Risk tolerance.

1. The size of your net worth. 

Someone in a weaker financial situation would more likely want to invest in crypto for the short term as opposed to a higher net worth individual.

You wouldn’t want to tie down your money in a long term investment in crypto currencies when you have many needs and wants competing for fewer funds in your possession, would you?

 Building your financial fortune quickly would certainly be one of your personal investment goals. 

2. What are your personal investment goals? 

 Your investment goals are a product of your  present financial situation.

A long term investment in crypto would be one of your investment goals when you’re in a stronger financial situation.

After assessing your net worth and investment goals , you may want to assess your risk tolerance before deciding on either short or long term investment in crypto.

3. What is risk tolerance? This is your ability and preparedness to absorb a decline in the value of your investments. It varies from person to person.

Disclaimer: Financial information published here is only for informational purpose and not an investment advice.

How lonely are you?

 

"No matter what they tell you, it's not because they enjoy solitude. It's because they have tried to blend into the world before, and people continue to disappoint them." - Jodi Picoult.

The gods. The beginning. 

How lonely are you? 

Very lonely? 

Oh well...now you have concluded that no one cares about you?

May be you're right. 

But...have you not realized that most don't truly care about others except...

When they need something from others. 

Self-centered human beings, that's who we truly are.

So wouldn't you rather be alone than be in the company of those who don't truly care about you?

Wouldn't you be better off alone than be with those who continue to disappoint you?

I think you would be. 

So next time you feel lonely, look within you and find a great a company in the one who would never disappoint you.

And who's that? It's the real you.

How Can I Survive With No Friends?

.

Motivation In Your Pocket

By finding something you're most passionate about and doing it every second and energy you have.

Make your passion the love of your life and your best friend and, you wouldn't need friends around you to survive.

Anyways, who told you, 

"You need friends to survive?"

The person forgot to remind you that your best friend today could be your worst enemy tomorrow. 

Human beings are more likely to choose personal interest and sacrifice friendship when both conflict.

No one has absolute control over another human being and who  they  choose to sacrifice in order to satify their personal interests. But with your passion, it's different.

You can make the choice to be in control of how you develop your passion and how you use it to get what you want. And the best part is, your passion is that best friend that would never betray you.

You Need Motivation.

  

Motivation In Your Pocket.

When you have no shoulder to lean on and you conclude that you are alone,

look within you and pull out the motivativation in your pocket;

In your pocket, you will always find the strength to carry on, beyond the limits of your imagination. 

This strength is the power of positive belief. 

Positive belief will always see you through the darkest valley, carry you over the tallest mountain and keep you company until you reach your goal.

So, keep on believing that your tomorrow will always be better than your today and, always do all you can today,  to live to see a better tomorrow.

Your positive belief is the motivation in your pocket 

***

Download your free copy of the book, "Motivation In Your Pocket" here. 

- The gods - The beginning

 

Saiz walked in a hurry in the dark. He glanced over his shoulder for the umpteenth time, to check if there was any suspicious movement behind him. It wasn't out of fear but out of habit. 

"I am a master of the night."  He reminded himself.

"It should be about 2:30a.m now." He thought to himself. 

He remembered checking the clock on his mobile phone when he was leaving the house. The time was 1:45 a m. Since then, he hadn't checked. On his way, he didn't dare or he would've revealed his position to the patroling local police. 

"I shouldn't check now." He thought, "I've to approach the prayer mountain as discreetly as possible. Pastor Peterson wouldn't want his spiritual focus to be distracted." He reasoned.

He was happy for the opportunity. He had waited for five months to be invited by the pastor to the prayer mountain. 

"Only five months..many ." He said under his breathe. 

He had met many in the church who had waited fruitlessly for years to be invited for special prayers with the pastor on the prayer mountain.

"I am a lucky man." He whispered to himself and smiled in the dark.

He increased his pace along the foot path, he didn't want to be late for the appointment with Pastor Peterson. His mind went back to the discussion he had with the pastor two days earlier.

"My son, I've a rule not to see new converts, converts less than two years, on my prayer mountain but I'm going to break that rule for you."

"Thank you daddy." Saiz said.

"I hope you're ready to make the best of this opportunity because you young ones are never serious about the things of God." The Pastor expressed his concerns. 

Saiz said, "Sir you've told me that my time has come, I will not allow anything to stop me." He meant what he just said from the bottom of his heart 

The pastor gave him a serious look and said, "Okay then. The time is 2:45a.m. You wouldn't see me if you come a second after that. Is that understood?"

"Yes Daddy." Saiz answered.

"You can leave now my son." The pastor dismissed him.

The prayer mountain was a mud house on a cleared land at the center of a cluster of trees. The mud house was the prayer house  The silhouette of the prayer house came into his view. His heart began to pound faster. He wanted to run the remainder of the distance but decided against it. 

"No need for that." I'm not late." He assured himself and maintained his pace.

Then he stopped abruptly, he was few meters from the prayer house. He stood motionless for few seconds, he could swear he heard a conversation.

He heard it again,...he couldn't hear it clearly from where he stood. "Maybe the pastor is praying..." He thought. "But...there's someone else there with him..I can swear." He said under his breath.

He tiptoed towards the prayer house. "I'm not taking chances, I don't want all these busybodies in the church asking questions and gossiping later about my business." He told himself.

As he got closer, the sound from inside the prayer house became clearer. It was a conversation between the pastor and a woman. 

He crawled on all fours to the window, then lifted himself up and placed his ear on a crack in the window.

"Daddy, I'm tired." A female voice said.. Saiz could recognize the voice instantly but he couldn't immediately attach it to the name of anyone he knew.

"Come on! I'm just getting started." Pastor Peterson said in a pleading tone.

""Daddy, we will continue tomorrow." The woman pleaded.

"Look woman, tomorrow is the last night for the special prayer session..."

"I know Daddy..."

"Thank God, you know. Don't you want a child any more?" The Pastor asked.

"Daddy, I'm desperate for a child. My marriage depends on my having a child quickly for my husband."

The pastor sighed and said, ""I know woman.This is the sixth night." 

He paused for few seconds and continued, "You know I'm a very busy man." He reminded.

"I know Daddy." The woman confirmed.

"If I wouldn't have the chance to come out tomorrow night, I would send brother Radoe..."

"No Daddy..the woman interrupted quickly. I want you to finish the work. You're my spiritual father, no one else should know about this.  Yoou're the only I trust to keep quiet about the whole of this "

The pastor sighed. The woman continued in a measured tone, "I don't want a man coming in the future to blackmail me. I don't anyone to come in future and do anything to destroy my marriage. I know you will never do that Pastor."

"God forbid! The Pastor exclaimed. That would destroy my reputation as a spiritual father and general overseer. I would lose the respect of my members and I would also lose my prestigious position in the body. "

"Thank you Daddy. " Said the woman.

There was silence for few seconds. Then the pastor asked  "Shall we?"

The woman hesitated for a moment then said, "Okay."

Saiz could recognize the voice now. It was Madam Sarai Bambi, the wife of Mr. Bambi, one of the financial pillars of the church.

Saiz was disappointed. He lowered himself and crawled away from the pastor, Mrs. Bambi and her moaning sounds.

After crawling a good distance away from the prayer house, he got up and began to walk back towards the road. He was mad at the pastor and at the church. 

"I now believe the story about the pastor and the two teenage girls, aged 12 and 14." Saiz told himself as he made his way towards the road.

Helena and Gloria were in the choir and in the prayer band. They were living with their single mother, a jobless poor woman who spent virtually everyday in the church 

The two girls spent most of their days in the church too. They were not in school as other children their age. They had no one to pay the necessary fees for them. The pastor paid the rent and occasionally, gave their mother little money, barely enough for feeding. So, the two girls and their mother spent everyday in the church, cleaning it and praying endlessly for a miracle that never came. They were always in the church, it didn't matter whether there was an activity or not.

One day,, the church members woke to learn that the woman had left the church with her children. It was strange. 

Saiz heard but didn't the rumour that flew around in the church after the woman and her children left.

He doubted that the Pastor Peterson he knew as the oracle of God, was making out with the woman as the rumour  said. That wasn't all to the rumour,  some people said that the woman left the church when she learnt that the pastor raped her little girls. Saiz didn't believe any of the stories.

He believed the version the pastor told the congregation on the Sunday after the woman's departure. He told the church that the woman with her children had a habit stealing from him and the church. 

He said, "I did everything I could to get her to stop the bad habit. I placed her on weekly stipend, paid her house rent, and paid the children's school fees."

"What else should I've done?" He asked the attentive assembly.

He didn't get any answer, he wasn't expecting any, so he continued, "Last Friday, I caught her and her children in the church, stealing from the tithe box..." He voice rising an octate with every word. "Can you imagine, stealing from the Lord?"

When members heard this, they began to murmur and argue among themselves. The pastor raised his hand and the church was silent. "I had to tell her to go and never to return. And.." The pastor paused and stared down at the congregation from the elevated pulpit..."I'll lay a curse on any of you that talks to that woman and her children again." 

Members were scared.. Saiz had believed the pastor then but not any more now. 

He screamed out in anger in the dark, "He's nothing but a liar, a dirty womanizer, a pedophile and an unapologetic rapist " 

He was almost at the road. "No more church for me. I'll see Macho this morning for the job. I've to take care of my poor mother and my pregnant wife. The brotherhood may turn out to be better than the church."

When Saiz got back to the little house he shared with his pregnant wife and his mother, he sat down outside on the veranda. He didn't want o disturb the two women.

His mind was made up. "The brotherhood is going to know my true worth.

Read the complete stoy at:

The gods. The beginning.

Which primary effective spending habits guarantee personal budget discipline?

First, why is personal budget discipline necessary? 

It's necessary because without it, you're going spend more than you earn and end up living the rest of your life in debt.

Spending one's entire life in debt doesn't produce growth. Personal finance growth is founded on having substantial savings, which could form a significant portion of initial investment capital. 

Investments drive personal growth. 

So to grow financially, personal budget discipline is necessary. However personal budget discipline can't be obtained in the absence of effective spending habits.

What are the effective spending habits that guarantee personal budget discipline?

1. Having the habit of preparing a personal budget regualrly.

Having a personal budget is the starting point and the driver of effective spending habits. A personal budget is a financial plan that clearly defines your expected revenue and expected expenses.

For a personal budget to be effective, it must be realistic. That is, you should be certain about sources of anticipated revenue. The regular the sources, the higher the certainty 

2. Having the habit of distinguishing between needs and wants.

Your personal budget should separate spendings between on needs and on wants, with needs taking the larger percentage. 

Your needs are, simply put, those things you can't do without. These are food, shelter, clothing and health needs. You may wish to add eudcation to the list of needs 

Your wants are those things you desire but which you can do without, aomething like entertainment. 

After separating the two and making provisions in your budget for them, remember to set aside a percentage of your regular earnings as savings.

3.  Having the habits of drawing up a shopping list.

 And sticking to it.

Stick to your shopping list, everytime you go shopping . This habit would condition you to stay within your personal budget. 

It does more. The habit of sticking to a shopping list stops impulse buying.

Buying on impulse increases the chances of wasting money to buy stuff you don't need. When you make conscious efforts to grow your personal finance, you force yourself to stop wasting money and start saving it.

4. Reconcile every emergency spending.

Sometimes, the need to spend on an emergency may arise. When such a spending is made, it makes financial sense to reconcile it by sacrificing an item or some items of equivalent value in your personal budget.

An item or items sacrificed shouldn't be of immediate need. And the satisfaction of sacrificed items should only be postponed and not eliminated completely. That is, go for a virement instead of a cancellation.

At the end, having the habit of sticking to personal budget saves money for you.

What is that one thing that guarantees business survival which every startup must know and do?

 

There's no one magic wand. Business survival and success depend on managing a combination of factors successfully. 

Pause! This combination must be driven by a clearly thought out selling point matched by a singularity of focus.

This selling point, a summary of  the primary reason customers should choose you to do business with instead of competition, is the driver of business survival and success 

After you have clearly defined your selling point, shift your focus to situate it with needs and expectations of your target market, investors, suppliers and the public.  While at it, don't forget to be flexible and adaptable to changes.

Don't also forget that the customer is king. Therefore, customer satisfaction should be regarded as a very important consideration for the sake of business survival and success. 

Another point to keep in mind is that business success takes time. At the early stages of the business, expect expenses to exceed revenue. But with time, a great team and excellent financial managment, your business should break even and go on to make steady profits.

Excellent financial management can be summarized as;

1. Effective budgeting,

2. Efffective source and application of funds management,

3. Effective accounts receivable, cash flow and inventory management strategies.

Now know that no matter how good you're at managing your business, you would still face challenges. But none would be insurmountable.

Which dividend stocks will continue to grow over the next 5 years?

 

Businesses associated with constantly rising share prices and a corresponding constantly rising dividend payouts are  attractive to dividend stock investors.

This is because, investors are confident that these businesses have managements that set and achieve progressively increasing total sales revenue and declining total costs. 

The result, progressively rising profits for appropriation as retained profits, dividend payouts and reinvestment for growth and expansion purposes.

Now, which dividend stocks will continue to grow over the next 5 years?

No one can accurately predict future share prices. Share prices are influenced by speculators' often irrational decisions. 

However, as an investor, you can make near accurate predictions by picking and investing in a portfolio of at least, 15 financially strong and stable high dividend paying businesses. Such businesses can be selected from the "New York Stock Exchange’s 106 Best High Dividend Stocks - Analyzed and Scored” reference book. This book was released in December, 2022.

From this book, the following dividend stocks would, all things being equal, continue to grow over the next five years;

1. Delek Logistics Partners LP (DKL)

2. Chevron Corporation (CVX)

3. Canadian Natural Resources (CNQ)

4. CTO Realty Growth (CTO)

5. Chenier Energy Partners LP (CQP)

How does price earnings (P/E) ratio affect the dividend policy of a business?

 

Every business set up for the purpose of making profit is primarily interested in reaching and maintaining a high level of performance where revenue exceeds expenses.  It measures its performance in terms of of the price of its shares, dividends and number of issued shares.

A business's dividend policy including the stability of the policy, is tied to the business's earned profits, cash flows, prospects of growth and the preferences of shareholders or investors.

Shareholders or investors considering investment options would assess dividend policies and results of shareholder or investor ratios (especially the price earnings ratio) of available businesses before making an investment decision..

The dividend policy indicates the proportion of earned profits a business is willing to pay out and the regularity at which dividends are paid out. 

Now note, when a company is not making stable profits, their shares will not yield regular dividends. 

What is the price earnings (P/E) ratio?

The price earnings ratio is an investor or stock market ratio that compares the market price of the shares to the earnings per share. This is calculated thus;

Market price/earnings per share.

Earnings per share (EPS) shows the proportion of a business's profit attributable (after deducting tax, minority interest and preference dividends but before considering extra ordinary items) to each common stock (or share) or attributable to issued number of common stock ranking for dividend. 

What is a good price earnings (P/E) ration?

There's no fixed rule for determining a good price earnings ratio. Generally, the lower the P/E ratio, the better. Why is it better? Because as the P/E ratio falls,  the dividend payout ratio is also lowered.

A lower dividend payout ratio is an indication that a business can pay regular dividends as it would have more retained profits to expand and grow. Dividend investors like a lower payout ratio.

The dividend payout ratio is calculated thus;

 Annual dividend per share/ earnings per share (EPS)

Organizational structure analysis Vs Financial analysis; Which is a better investment decision tool?

 

It's common for an investor to do the financial analysis of the company they want to invest in. It's uncommon for an investor to do the organizational structure analysis. The latter is usually done by management for the purpose of internal decisions.

The organizational structure of a company defines its business approach. The way a company approaches its business operations has a significant impact on its performance. Its performance is the primary determinant of either profitability or non-profitability.

The profitability of a company is known by carrying out the financial analysis of its performance within its industry over a range of financial years. 

Profitability and its consistency form the primary concern of an investor. It is the consistency in profitability that guarantees regular payment of dividends, interest on debt and return of principal.

The foregoing indicates that both organizational structure and financial analyses of investment options could improve investment decisions reached.

By studying the organizational structures of the companies they're interested in, an investor can compare these structures, assess weaknesses and identify strengths to better understand the performance behind the figures in the financial reports.

It is important or understand that the organizational structure of company defines its levels of control. For instance, an organization with a hierachical structure gives managers high levels of control over what employees do and how they work. An employee in this kind of organization reports  to a manager who in turn is responsible for outcomes 

Why should an investor be interested in levels of control managers have over employees?

An investor that is interested in investing in a stable business environment should prioritize a company with the hierarchical organizational structure. This structure gives managers high levels of control to demand that employees either produce accepted levels of performance or get disciplined.

On the other hand, an investor looking to invest in a rapidly changing business environment should consider a company with the matrix organizational structure. The matrix has lower levels of control.

Why is financial literacy important to good personal finance management?

 

Do you have a plan for your future? The answer is most likely a quick YES!

Does that plan include a financial plan (a budget to control your spending, saving and dictate your invesments)? The answer more likely a NO! 

Many make plans for the future without including a financial plan in them. Why do they ignore this all important map and means to get to their goals? It's most probably because they don't have a financial literacy. 

What is financial literacy?

Financial literacy is the acquisition of at least,  a basic financial knowledge that helps you to know how to fill your needs, spend responsibly and still set aside (save) a portion of your income for the future. 

Why is it important to save a portion of your income? So that you can have a significant portion of capital that may be required to invest, grow and secure a lifetime financial stability

Also for the sake of the protection of your investments (and your entire personal finance) against future risks and unertainties , financial literacy is very very important.

The possession of quality financial literacy therefore, improves personal financial decisions about budgeting (the primary importance), savings, investments, insurance and the building of a reliable nest egg (retirement savings). 

It's worthy to note that;

 

"An investment in knowledge pays the best interest." — Benjamin Franklin.

An investment in financial knowledge pays the best interest that is large enough to guarantee financial freedom and stability in the present and in the future.

What are personal financial activities? They are explained below;

1. Budgeting - 

The simplest definition of a budget is “telling your money where to go.” – Tsh Oxenreider.

Budgeting is the process of preparing a detailed short term personal financial plan that is expressed in monetary terms.

The process of budgeting yields a financial plan ( an estimate/a budget) of expected revenue and expected expenses for a given period, usually one financial year.

A good personal financial budget should make the effective control of control of spending possible. It should also encourage savings and  the development of a sound investment habit.

2. Spending -

A sound financial knowledge gives you the power to keep your spending within budget, on filling absolutely necessary needs and avoiding unnecessary spending. Unnecessary spending creates indebtedness and discourages savings.

3. Savings - 

Revenue for a specific period - Expenses for the same period = Savings for that period.

As mentioned in (2) above, a good personal financial knowledge should help you weed out unnecessary spending and save a substantial amount within a specific period.

Why is it important to have savings?

4. Investment -

Investment is one of the primary reasons to have a substantial amount of savings at a given time.

This is because as Muhtar Kent correctly observes, "Without investment there will not be growth, and without growth there will not be employment." 

So, when you invest, you create opportunities for yourself and for others to grow and be employed.

A good investment is an asset that generates positive returns. These returns could form a significant equity contribution to a small-to-medium scale business startup capital, which would create jobs.

5. Insurance -

Life is full of risks and uncertainties. Tomorrow is promised to no one. 

There are no guarantees that uncertainties would not arise  tomorrow to destroy today's certain source of survival. 

This is a reality of life and this reality makes it necessary to protect (insure) your personal finance.

This protection may be in the form of taking out relevant insurance policies but you must know the relevant insurance policies to go for. 

How would you know the insurance policies needful and relevant to you, your family and your business? This is where the acquisition of a sound financial knowledge is useful. You need a financial knowledge to guide you to experts.

Other forms of protection against possible loss of financial stability in future are investment in less volatile assets like real estate and building a sufficient nestegg.

6.  Nest egg - 

Often  many self-employed business owners don't see the need to save a substantial amount of money for retirement. A nest egg could be used to take care of unexpected emergencies.

The above benefits of having a substantial retirement savings are a product of financial literacy.

Marketable securities meaning and examples.

What are marketable securities as a short term investment option?

First, what are marketable securities?

Many businesses prefer to invest most of their liquid resources in marketable resources instead of keeping them in idle cash.

Businesses prefer holding a greater portion of their liquid resources in this form, because marketable securities can be easily and quickly bought or sold (they are highly liquid, that is, easily converted into cash) at quoted market prices daily, on securities exchanges.    

Marketable securities consist basically of bonds and common stock of publicly owned companies. Investments in marketable securities yield returns in the form of interest and dividends. 

When marketable securities are bought, how is the purchase price calculated?

ABC Company makes a short term investment by buying 10,000 shares of the common stock of XYC Company at $0.35 per share. ABC also pays a brokerage commission of $500. The purchase price is $4,000 (10,000 x $0.35 + $500).

What happens when marketable securities are sold?

Either of two things happens when marketable securities are sold. The sales of a short term investment in marketable securities can either produce a gain or result in a loss.

A gain is produced when the sales price is more than the cost. For an example,  if ABC Company sells the entire 10,000 shares  of its XYC company for $0.50 per share and paid a brokerage commission of $500, the gain is $500 (10,000 x $0.50 - $500) - $4,000).

A sale at $0.40 plus a brokerage commission of $500 will result in a loss of $500.

A gain on sale of marketable securities by ABC Company could result in an increase in its market value. A loss on the other hand, could result in decrease in its market value.

Businesses classify their marketable securities on the basis of the length of time they decide to hold the securities. So, marketable securities may be classified as any of;

 

1. available for sale (APS) securities,

2. held-to-maturity (HTM) securities and,

3. trading securities.

1. Available-for-Sale (AFS) Securities.

Businesses hold available-for sale securities in both equity and debt for a while but can sell them as they often have a ready market price available. Most businesses classify their securities as AFS.

2. Held-to-Maturity Securities:

Held-to-maturity (HTM) securities are purchased and held until maturity. 

Held-to-maturity investments are commonly made in the form of bonds. Bonds have fixed maturity date and predetermined payment dates. Also, investors usually purchase bonds with the intent of holding them until they mature.

3. Trading securities

Trading marketable securities are bought and held for sale in the short term. The purpose for holding them is to make a profit from quick trade as opposed to holding them until maturity.  

What Is Personal Income Statement ?

What to know about inflation.

 

What Is Inflation?

Inflation reduces the purchasing power of money (purchasing power, the quantity of goods bought by an amount of money).

 Inflation reduces the purchasing power of money in a growing economy by triggering rising prices of consumer goods and services.

`A slow and steady rising of prices caused by an inflation rate of at about 2% is okay. But when the rate rises faster, sometimes to double digits, then it can have a negative impact on personal financial management.

For instance, as a consumer, you would be time consuming to compare and determine best prices to get goods and services at a given moment.

How is inflation measured?

Inflation is measured by using the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCI) tools. 

The Consumer Price Index tracks prices for individual goods and services which households are buying. 

The Personal Consumption Expenditures, PCE, tracks changes in prices of consumer goods and services which businesses are selling.

The CPI reports a higher inflation rate than PCE but the PCE is considered the more reliable indicator.

What are the types of inflation?

The three main types of inflation are the demand-pull inflation, the cost-push inflation,    and the built-in-inflation.

The demand-pull-inflation is an economic situation where the demand for goods and services drive up their prices. Consumer demand pulls up prices when quantity supplied falls below quantity demanded. 

The cost-push-inflation occurs at the peak of demand-pull-inflation. It is an economic situation where increase in costs of raw materials is transferred to final consumers through increase in retail prices. 

The built-in-inflation occurs as a result of increase in wages or salaries and increase in prices of consumer goods and services. The consequence of demand-pull-inflation and cost-push-inflation, which is, increase in prices, affect all consumers including workers. To continue to afford basic goods and services, these workers are going to ask for a pay raise. When this request is granted, a built-in-inflation occurs.  

As a consumer, what should you do during inflation?

Have a good budget and stick to it. Your budget should include provisions for timely settlement of debts and investments in commodities, gold, silver, equities and real estate.

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What is the difference between break-even analysis and payback period in terms of cashflow?

 First, what is cash flow>

Cash flow is defined as an increase or decrease in an amount of cash.

And what is cash?

Cash is defined as ‘cash held  in hand’ and any deposits repayable on demand with banks and any other qualifying financial institution, less overdrafts from a bank and any qualifying institution, repayable on demand. 

What then is the difference between break- even analysis and payback period on the basis of cash flow?

The term break-even analysis as commonly used, does not capture the true meaning of the interrelationships it explores. Break-even analysis is not only concerned with the level of activity which produces the break-even point (where neither profit nor loss is produced). It is more concerned with how costs and profits behave at other levels. This is why the alternative term. Cost-volume-profit (c-v-p) is often used. 

Break-even analysis or c-v-p analysis is relied upon for short term planning and decision making. It uses principles of marginal costing to explore relationships that exist among costs, small changes in output levels, revenue and profit.

The application of break-even analysis depends on some basic assumptions. Some of them include;

There will be no uncertainty,

All costs can be accurately resolved into fixed and variable costs,

Fixed costs will remain constant and variable costs will vary proportionately with activity,

Volume is the only factor that affects costs and revenues

No stock level changes or that stocks are valued at marginal cost only and,

That break-even analysis relates to a single product or constant sales mix.

How can break-even (c-v-p) be analyzed by formula?

Break-even point (in units) = fixed costs/contribution per unit   (contribution = selling price – marginal cost),

Break-even point ($ sales) = fixed costs/contribution per unit x sales price/unit.

What is payback?

Payback as an investment appraisal technique, is defined as the time required for the cash inflows from a capital investment project to equal the cash outflows.

Payback is a method used to reduce risks and uncertainties associated with a project. The usual decision rule is to accept the project with the shortest payback period.

In applying a payback time limit, either a project in addition to paying back within a certain time limit should show a positive net present value (NPV) from its net cash flows. Or a project is expected to pay back in discounted cash flows within a certain time period.

Payback is the most popular project appraisal technique because it is simple to calculate and understand. It other advantages include;

 it favors quick return projects and thus, minimizes time related risks and,

Its objectivity (it uses project cash flows instead of accounting profits).

However, payback analysis is not a measure of the overall worth of a project.

House rich (asset rich), cash poor? What should you do?

House (asset) rich, cash poor is a product of you putting most of your wealth (equity) in real estate that's difficult to convert into cash. 

Investing in real estate is a good financial decision but it may constitute a problem if you don't have sufficient liquid cash in the pocket and bank to maintain your lifestyle and, pay short term debts as they mature.

Being house rich, cash poor is an uncomfortable position where the struggle to hold onto real estate would cause you to keep on postponing, enjoying the benefits of being a homeowner.

To solve this problem, you striking a balance between your real estate asset and your liquid assets (top among them is cash) is necessary. This stability would translate into having sufficient funds in your savings or checking accounts to settle current liabilities as they fall due.

Apart from cash, other highly liquid assets are stocks and bonds, but it's more complicated to convert them into cash.

How do interest rate fluctuations affect your money?

 

Why should you be bothered about nterest rates?

"Interest rates are to asset prices what gravity is to the apple. When there are low interest rates, there is a very low gravitational pull on asset prices." - Warren Buffett.

Prices of assets, cost of borrowing and rewards for savings are tied to the rise, fall and stability of interest rates.

Interest rate for borrowing (cost of borrowing) is the percentage of the loan amount. The higher this percentage is, the more the interest to be paid back in addition to the principal..

At lower interest rates, borrowing to buy big assets is more attractive than borrowing to aave. 

At lower savings rate, a percentage of savings paid into a savings account is less than at higher savings rate. So, it makes more sense to borrow to spend and buy assets rather than borrow to save and be rewarded with low interests.

At lower interest rates, spenders pay less interest and have more money to increase their spendings on consumer goods. This leads to increase in the production of goods and to the creation of more job opportunities.

Higher interest rates are going to force you, the consumer, to reduce your spending as you're going to have less money to spend. Why would you have less money to spend?

It's obvious that a higher interest rates, banks would give more stringent conditions to prospective borrowers. The result of tough requirements would produce few with the capacity to meet them. Therefore, fewer loans are going to be given

What are the most important career break reasons?

 

These reasons are, to have the time to learn the true meaning of life and enjoy its beautiful gifts, found in abundance outside the work environment.

Have you forgotten that life's pleasant and exciting surprises, are presented to travellers?

Surprises and nature's strange things told and found in books seem fictitious until they're lived and experienced. So, go ahead, take a career break and find out what life is all about.

Another reason is, so that life will not leave you behind. Life leaves behind the redundant. 

It's an ever changing dynamic world out there. Acquiring a new set of skills keeps you ahead of the game. A new set of skills can hardly be acquired without taking a career break.

"Work is a rubber ball." Gary Keller observed and continued, "If you drop it, it will bounce back. The other four balls- family, health, friends, integrity- are made of glass."

Your family is a glass ball, if you drop it, it could be irrovocably  shattered.  Sometimes to achieve a balanced life, you may need take a career break to spend quality  time with a disintegrating family and strengthen the bond.

You would also need to occasionally spend quality time with true friends to  prove their importance to you. Finding the time to be with friends could be a huge sacrifice that are greatly appreciated.

What about your health? The journey of life takes everyone to the crossroads, where it's unavoidable to take a career break from the stress of work to take care of one's mental health. Most people ignore the need to take a break and continue to work until they break down and become useless to themselves and their loved ones. 

****

Work is a rubber ball. If you drop it, it will bounce back. The other four balls-- family, health, friends, integrity-- are made of glass. If you drop one of these, it will be irrevocably scuffed, nicked, perhaps even shattered. - Gary Keller

What are dividend growth stocks? Which are the best today?

"Returns matter a lot. It's our capital." — Abigail Johnson

The accumulation of wealth from investments in stocks is determined by the long run rate of return on investments.

Many investors find companies that pay regular and increasing dividends attractive. 

Investors believe that a company with a history of strong dividend growth are on the path of long term profitability and that, part of their profits, would consistently be appropriated to grow their dividend.

However, what is the primary input of the stock valuation method, investors in dividend growth stocks use to determine the best stocks to invest in? It's the dividend growth rate.

What is the dividend growth rate? 

The dividend growth rate is the percentage rate of growth that a company's stock's dividend experineces within a given period of time. It's calculated annually.

Examples of companies with dividend growth stocks for the month of February, 2023. - fool.com

What Is Project Cost Management?

?

Thorough project management knowledge, skills and techniques are necessary for the successful execution of a project from iniatiation to closing. 

One of the tools for a successful  project execution is an effective project cost management.knowledge.

Project Cost Management includes necessary techniques or processes for the completion of projects within approved budget.

These processes are estimation of costs, determination of budget and control of costs.

1. Estimation of costs -

The establishment of monetary resources required to successfully complete a project is crucial.

Some of the techniques used to estimate costs include 

a. parametric estimating - the parametric cost estimates are calculated by using the relationship between historical data and other variables such as cost, budget and duration.

b. reserve analysis - cost estimates sometimes include reserve analysis- this analysis is relevant to cost estimates that contain cost uncertainty. 

The uncertainty is accounted for by including contingency reserves or allowances in cost estimates.

Contingency reserves are often required as part of funding requirements.

c. analogous estimating - this techilnique uses values obtained from scope, measures of scale, budget and duration. The technique relies on historical costs of similar projects done in the past, to make estimates for a current project.

There are other tools such as expert judgement and the bottom up estimating 

2. Determination of Budget.

Budget determination  is a process that aggregates cost estimates of activities to establish an approved baseline. 

The established baseline would include authorized budgets (standards for assessing project cost performance) and exclude reserves made by management.

Some of the tools used to determine project budgets are expert judgement and budget reserve analysis.

a. Expert judgement is made on the basis of expertise in industry, knowledge of the project area and relevant experience.

b. Budget reserve analysis is used to establish both managment and contingency  reserves for a project. 

Contingency reserves as pointed earlier, are necessary because sometimes during project execution, some unplanned changes may become necessary. 

3. Cost control.

This is the process of monitoring a project, updating the budget when it's necessary and managing changes to baseline.

Some of the techniques used are forecasting, performance reviews, Earned Value Management and variance analysis and To-Complete Performance Index (TCPI).

5 Great Ways To Prepare For A Job Loss.

Recently, job cut has become a constant reality. The reason is, many economies are frequently in and out of depression.

Businesses would always do all they could to push total revenue above total costs. If sustained profitability is the oxygen of every successful business, cutting costs would always be applied to avoid suffocation.

Job cut is most busineeses'  primary cost cutting tool. What this means is, right now, someone has just lost a job or is about to lose a job for no fault of theirs. But...that wouldn't be the end of life.

There's life after a job loss. A weak economy could recover quickly, grow rapidly and give businesses opportunities to hire again. But one would have to be alive, sound and prepared when the next employment opportunity shows up.  

This post gives useful tips on how to prepare for a job loss and survive a layoff.

1. Invest in continuous learning.

Don't stop learning after you've secured your dream job. Having a dream job is not the same as having job security.

As we already know, some extraordinary event could occur and cause business giants to layoff their employees. So in reality, there's no true job security in paid employment.

But you can build an enduring job for yourself. You can start from the scratch and build it all the way up while you still keep your day job. There's a condition, you must learn new things every step of the way to make a success of it.

Investing in continuous learning also gives you an edge, In case, you lose your job and start job hunting. Possession of extra useful skills is going to place ahead of the competition for a good job.

2. Update your resume regularly.

As you acquire new skills, add them to your resume and update it. Never allow the lucrativeness and security that present job seems to offer, lull you into forgetting to regularly update your resume.

Don't also be too comfortable in your present job and forget to constantly be on the look out for better opportunities. 

3. Set up an emergency fund.

You should be able to continue to fill basic needs for the short period you may be out of work. 

No job, no more income, so where would the money to pay bills come from? From an emergency fund, assuming one was set up when in paid employment 

If you don't have one? Now may just be the right time to set up one. You can't tell what's going to happen next 

Experts advise that you should have in that fund, an amount that would be enough to cover your living expenses for a period  between 3 and 6 months. Aim to have an amount that should cover living expenses for a longer period.

Keep this fund in a place that's secure, quickly accessible and not in a long term time deposit account.

4. Build a worthy network.

When you're in a good job, don't remove yourself from the circle of valuable friends and professional colleagues. Keep them, make yourself useful to your network and continue to expand.

A good network is a lauchpad to greater things . Don't forget that there's no limit to the support a good friend could give in times of need. 

5. There's life after a job lose.

When you lose your job, sit down and take stock of your life. Don't panic! It's not the end of life!

There are always bigger and better things ahead. You can rise from the ashes of a job loss to live your dream llife, become a role model and a source of inspiration to thousands or even millions of people 

The proposed common currency, the "sur": What investors should expect.

 Argentina and Brazil are set to begin preparatory work to establish the second largest currency bloc in the world. The name suggested for the new currency is "sur". 

The "sur" when it officially becomes a medium of exchange in the two largest latin American economies, would facilitate comparisons of prices and other key investment decision parameters. 

What else should investors expect?

A look at lessons from "euro", the largest currency union would be helpful.

The euro eliminates currency risk within the eurozone. It facilitates and promotes cross border invesments by businesses. Businesses operating in both Argentina and Brazil would no longer face currency risks if and when sur becomes a daily currency in both countries.

Elimination of currency risks and facilitation of price comparison would enable cross border businesses in the two countries to lower costs and increase profits. How?

Businesses would have a range of best deals from suppliers to choose from. They would also use the ease of labor mobility to easily move their best hands between both countries. 

They would have the enabling environment to create packages that attract best hands from competitors within the currency union.

There's also enjoy benefits deriveable from the possibility of currency stability. One of them would be the lowering of interest rates and the increasing of the possibility of appropriate capital allocation between subsidiaries. 

However, during a period of depression in a partner currency, economic growth would slow down and unemployment would increase. When this happens, investors would become apprehensive about liquidity. 

A shrinking in the volume of cash in circulation would cause interest rates to rise. The common currency policy is unlikely to allow a partner country to unilaterally print more money, inject it to stimulate the economy and reverse an economic depression. Businesses would have to cut jobs and eventually, die if the situation persists.

Balancing the budget is like going to heaven. Everybody wants to do it, but nobody wants to do what you have to do to get there.– Phil Gramm.

Every budget is a test of your capability to balance your expenses and your income.

It's a tough test that many of us fail. The reason is simple, most of us are never prepared to live within our means.

Most of us when we have a little, we want to prove to those who don't really care about us that we have arrived 

and when we're sent packing from the heaven the people built for us, we go outside our means to buy mansions in the hottest part of hell in attempt to prove to the world that we are still in heaven.

Who really cares about where you're , what you have and how you are at any time of your life?

Maybe your loved ones, outside them you're alone.

So, if you want to balance your budget and achieve financial freedom,

you've to die to what people think of your lifestyle, how they live without fiscal discipline and live within your means.

Special Purpose Vehicle, SPV, Isn't Always Created To Commit Financial Fraud.

What's the primary job of every entrepreneur? Take profitable risks, do everything legitimate to at least preserve capital when profit can't be made.

This job wouldn't be done when a business survives the volatile early stage, breaks even, enjoys profitability for few years and then goes bankrupt as a result of venturing into risky ventures. The going concern concept would be defeated. 

So, what long term business survival options do some entrepreneurs pick to preserve their assets when they go into volatile ventures? One of them is the Special Purpose Vehicle (SPV) also known as Spechial Vehicle Entity (SPE).

A special purpose vehicle or special purpose entity is defined as a subsidiary created by a parent company for a special purpose.

The special purpose most often, is to isolate a parent company from financial risk by providing securitization of assets 

The above is made possible by the fact that SPV has Its legal status as a separate company. This status makes its obligations to secure its assets in the eventuality of the parent company going bankrupt possible. This is why SPV is sometimes called a bankruptcy-remote entity.

As a subsidiary with a legal entity status, a SPV has its own distinct balance sheet ( a picture of its assets, liabilities and capital) that's often off the balance sheet of the parent company. This is where investors have a problem with SPV, as it could be exploited to hide losses

However, some businesses create SPV for one purpose, to aecuritize debt and give investors the assurance of repayment. And not always to commit financial fraud