The best way to become a smart money manager is to have some smart money beliefs. Unfortunately most of us have more negative money and finance beliefs than we have positive ones.

So how do you stop negative beliefs from holding you back?

Some people feel they’re simply hopeless with money and that they have an inability to earn large sums. Others have a ‘poor me’ attitude and complain that everyone else has money except them. Does either sound familiar to you?

How aboutmoney slipping through your fingers or the fact that you really don’t deserve to have money? Maybe you feel that money is dirty, that being rich and being a decent person can’t be one and the same.

Do you dread bill paying? Feel like you’ll never be in control of your money? Or fear that the money you do have will run out?

If so, you’re not alone. Many people share the same exact feelings.

Once you’ve identified all your negative beliefs, write them down. The next step is to let go of each negative belief one at a time. This is done by replacing your negativity with a smart money belief. Cross each negative belief off your list as soon as you come up with a more positive affirmation.

Here are some smart money beliefs to get you started:

*I have the ability to earn an abundance of money.

*I can be rich and good at the same time.

*I deserve to have the financial life I desire.

*I can manage my money, be generous and still have lots left over.

There’s often value in understanding what’s at the root of your beliefs. For instance, if money was tight growing up and your parent’s stressed over paying the bills than you may have a poverty mentality. Having the feeling that you’ll never have enough is completely understandable.

But in order for you to change your money and finance beliefs you have to convince yourself that there WILL be enough money. Repeat to yourself out loud, “I will always have the money I need and there will always be enough to go around.”

If and when an old belief resurfaces be firm in your resolve to be positive. Come up with a smart money belief to replace the old one and repeat the new phrase out loud until any negativity is buried once and for all.

Our beliefs are what propel us forward, keep us at a standstill or pull us down. When we see our world and our role in it in a positive light, we open the door to great things.

In other words, the first step to being rich is feeling rich.

Sherrie Le Masurier is a lifestyle columnist who writes extensively on personal finance issues. To learn more about how positive thoughts can create abundance visit her blog http://www.positivemoney.blogspot.com - Copyright.

Tags: money, money and finance, smart moneymoney, money and finance, smart money

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Some Financial Analysts argue that using cash flow will provide a more accurate picture in determining the fair value of a common stock. What gives? They reason that investors should follow where the cash is. Cash flow will track the flow of cash in and out and this is the reason business exists; to get cash.

Things are not that simple, however. Just as net income, cash flow can be easily manipulated. Cash flow here refers to cash flow from operations found on the statement of cash flow published regularly by publicly traded companies.

Let’s take a look at the statement of cash flow for one publicly traded company, Amazon.com (AMZN) and decipher its components. We will use the statement of cash flow for the year ending on 31 december 2004. Here is the source from Yahoo! Finance: http://finance.yahoo.com/q/cf?s=AMZN&annual

The top part is net income, which is self-explanatory. This is what a company earns during a period of time. For the time period earns $ 588 M. To get into the cash flow figure, we need to add depreciation expense, subtract any increase in accounts receivable and inventory and add any increase in short term liability such as accounts payable. Sometimes, there will be some adjustments made to the net income which will increase or decrease cash flow depending on the charge.

Now here is how companies can manipulate cash flow. This will in effect temporarily give an impression that cash flow has improved markedly.

Temporarily Delaying Payment. This will increase Accounts Payable which in turn will improve cash flow. While only good companies can demand its suppliers to delay payments, all the debt eventually needs to be paid.

Demanding faster payments from customers. While an efficient collection is needed for a firm’s survival, giving less credit to customers will result in them balking away. In the short term, cash flow will improve due to improved collection. In the long run, customers will go to competitors who can offer better credit.

Keeping a tight supply of inventory. While bloated inventory is wasteful, there is a certain level of inventory that is needed to keep a business running. Short-minded management will try to manipulate cash flow by keeping a short supply of inventory. When you run a retail business, certain inventory is needed. It is not similar to a built-to-order company like Dell Inc. (DELL).

These three items vary from quarter to quarter and year to year. When determining fair value, it is best to ignore these fluctuations and focus on operational earnings generated by the company.

Another misleading cue from cash flow is that it adds up depreciation as the amount of cash generated from operations. While depreciation expense is a non-cash transaction, it is a necessary cost of doing business. For example a company bought a computer and depreciate it for five years. For the next five years, the company incur a non-cash charge, which is the reason why we add depreciation expense to our cash flow. However, we need that computer for our operational purpose. Unless we stop spending in our capital expenditure, adding depreciation expense to our cash flow does not make sense. Sure, you enjoy the benefit now. But five years from now, you need to spend money on a new computer, which is a cash outflow.

As with other investing tools, cash flow from operations cannot be used independently of other ratios. Each and every financial ratio has its strengths and weaknesses. I believe that cash flow does not reflect the true earning power of a company because of short-term fluctuations of the balance sheet and the addition of depreciation expense into a firm’s cash flow.

Come get your free investing idea by regularly visiting our commentary section at http://www.noviceinvesting.com

Tags: Annual Report, Balance Sheet, cash flow, finance, investing, Portfolio, stockAnnual Report, Balance Sheet, cash flow, finance, investing, Portfolio, stock

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As a car cannot be started without fuel, in the same manner any business cannot be carried without sufficient funds. Money acts as petrol to any business. Having just an idea is like a car without petrol. Which implies only an idea is not sufficient to start a new business. To come up with brilliant business ideas is not enough. One needs to steady source of financial support so as to implement those ideas.

One can put your thoughts to action with the help of business startup loans. These loans give your business plan the first push just as an infant learns to take baby steps. The lenders design business startup loans in such a way that it suits the needs of person willing to start a new venture. Once secured, you can utilize them in whichever way you want. Be it a construction of office, buying space or machinery, paying employees, business start up loans can be opted for multiple purposes.

The best part about business start-up loans is that both homeowners and tenant have access to it. For the convenience of the business persons, lenders provide the loan in secured and unsecured options. Secured against collateral, the former option provides you with various benefits, such as low interest rate, longer repayment period, large loan amount and flexible terms and conditions. Business startup loans can be also procured in the unsecured form but they usually carry a higher rate of interest.

Before deciding upon a lender, it is advisable to do a comparative analysis and choose the one the offers the best business startup loan. Moreover, the online facility makes our life even simpler. Whether at home or at work, you can apply for it 24/7

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in business administration and is currently assisting Adverse-Credit-Business-Loans as a finance specialist.

For more information please visit at: http://www.adverse-credit-business-loans.co.uk

Tags: business finance loan, Business start up loans, secured business loan, unsecured business loanbusiness finance loan, Business start up loans, secured business loan, unsecured business loan

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