Saturday, March 15, 2014

Budget Deficit Defined - Financial Blueprint

A Budget Deficit is the result of a government putting out or spending more money than it pulled in or made.

Wednesday, March 12, 2014

What the Heck is Cash Flow?!

Cash flow is cash that streams into and out of a person's or company's account over a period of time.
 There are various reasons for this cash flow such as wages, salary, sales, loans, revenue, and expenses. If you subtract your cash outflow from your cash inflow you will get your Net Cash Flow, which could either be negative or positive. For example, If you have more money coming into your account than going out, you have a positive Net Cash Flow. However, if more money is leaving your account than coming in you have a negative Net Cash Flow. Net Cash Flow is also considered to be a sign of a person's or a company's financial health.

Do You Have What it Takes to be an Entrepreneur???

An entrepreneur is someone who establishes and manages an enterprise or business, often taking on all financial risks.
Entrepreneurs are innovative and energetic individuals. They are moderate to high risk takers that show initiative and accepts the risk of failure. Leadership, management ability, and team-building are considered to be essential qualities of an entrepreneur.

Learn How to Buy More Investments Using O.P.M. (Other Peoples Money)

In finance, the term Leverage means to use credit or borrowed funds to buy an investment or a business .
 An investor or company will often use leverage to buy an investment or asset anticipating the ROI (return on investment) to be greater than the loan and interest owed. This could lead them to gain a greater profit than they would have gained if leverage was not used. Many financial experts believe that investors and corporations should avoid leveraging, because during an economic or business downturn investors or corporations with leverage assets and investments will often fall into financial distress. This is because they are unable to pay back the loan and interest owed. Yet many financial experts believe leveraging is a necessary evil because it allows investors and corporations to make large amounts of profits with a small initial investment.

Simple Interest Defined - Financial Blueprint

Simple Interest is interest paid on the principal, or original investment, alone. (the opposite of Compound Interest)

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Liability Defined (finance) - Financial Blueprint

A Liability is a debt, financial obligation, or item that loses value or creates an expense while owned, and often a loss is made when its sold.

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Leverage (finance) Defined - Financial Blueprint

In finance, the term Leverage means to use credit or borrowed funds to buy an investment or a business .