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A rather disturbing feeling hit me today (and it wasn?t yesterday?s Chocolate Mud Cake that my daughter fed me ? remind me to tell her that the cake should be made out of chocolate!)

No, my disturbing feeling emanated from a conversation I had with a business acquaintance of a family friend (some Aunt?s former lover?s first cousin, twice removed, who now runs a small sporting store ? well you get the picture anyway).

Trevor (real name hidden to protect his stupidity) was in some financial distress as he had to pay GST to the Australian Government but had spent it all and was now trying to work out a repayment programme with the Australian Taxation Office.

?How did you spend it all?? I asked.

?Well, you know, the house renovations were costing more than I expected and I needed some quick cash, so I drew it out of the company. You know how it is? he replied.

?No, I don?t? I responded, ?but surely you knew this would leave you in a pickle. Didn?t your cashflow forecasts show you this was coming-up??

?Well, I did prepare those things but I don?t really look at them? he replied.

A number of suitable responses filled my mind at that stage but I contented myself with telling him he should try to repay the money as soon as possible to the ATO and get out of their bad books.

It constantly amazes me that some business people ignore the basic fundamentals of running a business. What?s more infuriating in this case is that Trevor had run his business for 12 years and had a constant turnover, so he should have known what were the critical ?cashpoints? of his business.

?Cashpoints?? I hear you say, ?What are they??

?Cashpoints? are what I call those times of the year where your cash requirements are abnormal or extraordinary.

To give you an idea of what I mean, I have listed below the most common types of outgoings that people seem to forget about when planning for cash needs or would like to forget about.

1. Net GST payments (Remember, this is not your money, it is the government?s);

2. Quarterly PAYG/IAS payments (This is payment of your income tax obligations);

3. Depreciable equipment Read more…

There is a lot of money to be made as a day trader, but it’s not as simple as filling out online surveys, being a mystery shopper, or blogging your way to success. You can be a day trader from home but generally it is considered much more involved than many of the other businesses that people choose to do from home. Day trading can earn you a lot of money in a short amount of time, or if you don’t know what you are doing it can cost you a lot of money in a short amount of time. It’s easy to get over excited when you first get into day trading and over invest and simply not play by the rules of the game. The rule of the game, that is what sets day trading apart from a lot of other businesses you can do from home, is there are things that you should and shouldn’t do if you want a shot at being successful.

The Fun of Day Trading
Many consider day trading the fun part of investing, because there is no need to wait for long periods of time to see your investments grow. While it can be fun to invest in day trading it’s important not to allocate more than 3-5% of your equity corpus for the purposes of day trading. This is a safe amount to stick with because if it is all lost it won’t ruin you financially. Many people get carried away and will take as much as 25% off their equity corpus for day trading and then they lose it all. Twenty five percent of your equity corpus is a lot of time with the same investment, waiting patiently for them to pay off, so you will want to hold back a bit where day trading is concerned.

Day Trading Tools
Many get into day trading and think with all of the technological support they couldn’t possibly lose money. It’s easy to think this with 24 hour access to the stocks via stock market tickers, stock market websites and such. These tools do make day trading easier because you can always be looking for your next big deal, but it doesn’t make it any safer. Remember that day trading is still quite risky and you have to treat it accordingly. Use these tools to your advantage, but it’s important that you realize that they don’t make the Read more…

It is crucial as an individual who is striving for financial freedom to be able to recognize the different type of expenses in our lives.
It is a proven theory that it is easier to cut your expense than trying to earn more income.
In order to maximize profits, a manager will try to minimize expenses before trying to gain more revenue.
And we can learn from that. By recognizing our expenses and ways to handle them, we will be able to create more revenue in our lives.
This article will help you to do that.

According to Rockefeller diagram, the following ten expenses are the different types of expenses that exist in our lives. Be aware that certain individuals might have more expenses in their lives. In order for us to achieve financial freedom, always bear in mind that our main goal is to minimize our expenses.

Kindly spend some time reading through the different type of expenses. (Remember them if you have to)

1. Giving
2. Self
3. Taxes
4. Shelter
5. Household
6. Auto
7. Fun