Your Household Is A Business

FINANCIAL STATEMENTS: refer to the Balance Sheet and the income Statement. The balance Sheet is a report that shows the financial condition of the company. The income Statement (also called the profit and Loss statement or the ‘P&L’) is the profit performance summary.

  1. The business Plan clarifies the financial needs of the business and causes you to prepare a projected balance sheet, income statement and most important of all, a cash flow examples, the most important start up financial statement and the only predictor of success that I know.

Understand the payment patterns in your industry. If it is standard for customers to pay 60 days after receiving an invoice, it is unlikely that you will be able to convince your customers to pay upfront.

Now if you ask your brother what stock to buy and your brother happens to be Warren Buffett, well then, I think it’s safe to say you will make a good investment, but how many of us can claim Warren Buffett as our brother?

When you see a trend that is restricting a positive cash flow, then you need to have tools at hand to correct the problem, fast. When developing a plan to infuse cash into the business, make sure you line up the sources for the appropriate use. For instance, short term cash problems can be handled with credit cards or a line of credit. Longer cash flow needs might be financed through long term secured loans or a capital loan.

Flipping houses isn’t an easy job. The process of managing the rehab itself will require excellent organization & people skills. It is also very important that you learn how to estimate repair costs as quickly as possible.

There are three main repayment plans for most student loans: graduated, extended, and income-based repayment. Each of these plans offers different features that will cater to different needs. If you believe your salary is going to increase rapidly then a graduated plan may be best for you. If you are not able to make the recommended payments, an extended or income-based plan may be best. Learn about the different options available to you and choose the one that puts you in the best financial position going forward.