Question: How Can I Manage Cash Flow?

Whether it's for business or personal applications, cash flow management is an important skill to develop. You always need to have an eye on cash flow. Here are some tools for cash flow management:

1. timing of inflows and outflows
2. use of credit
3. consolidation of payments
4. cash interest accounts

I will discuss the techniques and items in four parts.

Question: Who Supports Health Insurance Reform?

What does your average supporter of health insurance reform look like? Well it could be just about anyone. It's me, the author of this blog for one. It could also be single parents, traditional married couples, students, retired people and more. It ranges from California surfers to a Oklahoma City attorney. The point here is that its not one type of person, Democrat or Republican -- its about people who are scared about rising health care costs and the fear of being turned down one day for a "preexisting condition". How about you? Are you worried about the state of health insurance in America?

Question: How Can I Manage Cash Flow (Credit)?

- timing of inflows and outflows
- use of credit
- consolidation of payments
- cash interest accounts

The use of credit is very important. The point of having a line of credit is to be able to manage your cash flow. Think about it, most credit cards have a 30 day billing cycle. If you pay the balance in full when the bill comes, you do not pay any interest. Even if you made a $10,000 charge on the first day of the billing cycle (assuming you have enough credit), you won't have to actually pay for that expense for 30 or 45 days until the bill is due. This is really an interest free loan. If you had that $10,000 ready to spend, but instead were able to keep it 30 days longer while waiting for the credit card bill to arrive, you could earn about $37 in interest (assuming 4.5% annual rate -- available at ING Direct ). Another use of credit is to smooth out unexpected monthly shortfalls in cash. Businesses use this all the time. If, in any given month, cash flow goes negative, they draw on open lines of credit to make up for the shortfall.

Question: What Are The Benefits of Exercise?

Exercise has countless benefits when it comes to your health, both mental and physical. Exercise when done properly increases your health and functional performance and can help slow the progress of aging. Exercise is a natural testosterone booster and can increase other hormones within the body. Not to be outdone in a mental sense, exercise can improve your spirit and mental well-being. This is not just apocryphal -- its medically proven to show that your mood is improved with physical exertion. If you are not currently physically fit, check with your doctor ASAP and get your life back in order.

Question: How Can I Manage Cash Flow (Consolidation)?

- timing of inflows and outflows
- use of credit
- consolidation of payments
- cash interest accounts

Consolidation of cash outflows is a great way to manage your cash much easier. An obvious example is using a credit card to pay for all your budgeted expenses (when possible). This way you get one bill every month for which you have to make one payment and take care of multiple transactions. You get an itemized record of expenses and get to take advantage of the interest free loan (e.g. between 10 and 44 days) using a credit line affords. Just make sure you stay within your budget. Otherwise credit cards will become the a source of financial trouble instead of financial assistance.

Question: Are Cheap H&B Products as Good as Expensive Ones?

Are cheap health and beauty products as good as cheap one? In general the answer is yes. The most important things when it comes to personal hygiene is to use the right products. You want cleansers which will not irritate or dry your skin. You want moisturizers which are non-greasy or clog pores. And you want acne solutions products which are gentle yet effective. Its not a matter of cost but of sticking to these basic principles which will keep your skin health and good looking. You don't have to pay and arm and a leg to have a nice face.

Question: How Can I Manage Cash Flow (Interest)?

- timing of inflows and outflows
- use of credit
- consolidation of payments
- cash interest accounts

Once you figure out how much excess cash you have from your monthly cash budget, you can direct the excess cash into an interest bearing account. As I noted earlier, just using credit intelligently can allow you to keep more cash in interest bearing accounts longer. With the excess cash flow from your regular budget, transfer the funds to a savings account. Depending on your budgeting skills and the regularity of your cash flows (i.e. how often do unexpected expenses occur?), you can position cash into several accounts which differ in interest rate and accessibility. For example, your bank where your checking account is located will offer you a savings account. The interest rate will tend to be lower than you can get elsewhere but you will be able to transfer cash to and from the savings account very quickly (within business 24 hours). This means the cash is available whenever you need it. You can find a higher yielding account by searching nationwide for a bank (even an online bank like ING Direct), but the speed at which you can transfer money in and out is slower (2-3 business days perhaps). With this information you can divide up your cash as you need to taking into consideration the interest rate and the speed of access (usually these are reciprocal).

Question: What is Q10?

What is Q10? Well Q10 is short for Coenzyme Q10 is an oil-soluble substance is present in your cell's mitochondria. Q10 has been thought of a sort of fountain of youth potentially for skin care. You probably have seen it advertised as a wrinkle serum or beauty aid. But actually Q10 could prove far more useful! It has been medically linked to helping people with Heart failure, help fighting Migraine headaches, a potential treatment for some sorts of Cancers, and even a potential lifesaver for people with Cardiac arrest. That is one pretty amazing list of potential benefits so I wouldn't be surprised if we heard more about this substance in the future.

Question: What in the World is Sealand?

What in the World is Sealand? Well here's a crazy tale if I ever heard one before. Sealand (or, formally, the Principality of Sealand) is a man-made "island" off the cost of the UK that the owner claims is its own sovereign nation. It even has its own coat of arms and flag (shown below).

The "Ruler", Paddy Roy Bates, has lived there with his family since 1967. They have their own currency and their own stamps! Even though no nation recognizes the sovereignty of this nation, it has been put on the market for transfer (sale) as of 2007. Any bidders?

Question: What is G&C?

G&C is an acronym for Glucosamine and Chondroitin, two substances usually taken in combination with each other as a joint health supplement. Glucosamine and Chondroitin (Chondroitin Sulfate to be exact) have long been thought of an effective natural treatment for joint pain. But does it work? The jury is still out on this one -- no medical paper has proven the combo to work, but anecdotal evidence continues to make this combo a very popular supplement for older people and those predisposed to joint pain.

Question: What Determines Share Price? Part 2

(read Part 1 here)
In the case where the next investor is willing to pay the same amount for the shareholder rights as the current shareholder, then upon sale of the stock the first shareholder has earned a return on investment equal to the sum of all dividends. If the next investor is only willing to pay less for the stock than the current shareholder did and the current shareholder agrees to that lower price, then upon sale of the stock the first shareholder has earned a return on investment equal to the sum of all dividends minus the loss in value of invested capital. Conversely, the current shareholder can earn a return on investment greater than the sum of the dividends if the new investor agrees to pay a higher price for the stock than the current shareholder initally paid. This condition is what fundamentally makes investing in stocks riskier than investing in insured financial instruments.

In the case where the company does not pay dividends to the shareholders of common stock, then the value of each share is quite subjective. The risk is significantly higher because the method to evaluate price per share is not based on a realized shareholder right. All that exists is the promise that if one day the company decides to pay dividends the shareholders will receive them.

Question: Do I Need Sun Protection in Winter?

Yes, believe it or not, you can damage your skin during the winter too. Its not about getting a sunburn -- UV radiation from the sun can affect your skin all times during the year. Try to use a moisturizer or day cream with SPF 8 or 15. This is not a lot of protection compared to summer sun block, but the low SPF will protect your skin from UV radiation. It will also help keep your skin hydrated in the cold winter wind.

Question: What Determines Share Price? Part 1

Let's think about this from a fresh point of view...

When an investor purchases a stock, an amount of money (the stock price) is invested. If this is done in the secondary market (i.e. post IPO), then the money is not invested in the company but in the right to receive shareholder benefits. These benefits are strictly defined by the company that issued the shared and typically are denoted in the class rating of the share. Common stock class of shares usually mean the holder receive on vote per share and are entitled to any dividends paid by the company. Any further benefits of that investment is not guaranteed.


What fundamentally determines the price per share of that stock is the price willing to be paid for the aforementioned shareholder rights. Examined as a purely financial investment (i.e. ignoring the limited ownership benefits like voting), those shareholder rights can be defined as the sum of all future dividend payments. If the value of that sum increases by means of an increased annual dividend announcement by the company then the value of the shareholder rights increases.

With an annual dividend paid quarterly the return on investment, and subsequently annual interest rate earned, can be easily calculated. The return on the investment is the amount of dividends recieved divided by the amount invested (i.e. the price paid for the stock). While the price per share can be seen as the price willing to be paid for the rights to all future dividends, the success of the investment is affected if the capital invested deteriorates. This is where stocks differ from government bonds or FDIC insured certificates of deposit. Whereas in the latter the original capital invested is completely returned at a later date, the capital invested in a stock is subject completely to the next investors' willingness to pay.

No Healthcare Reform 2010

How will the Democrat's loss in Massachusetts senatorial election effect health care reform? I think it kills the entire subject. Sorry President Obama. Why did it end up like this? Well for one thing the whole discussion and debate went on for far too long. It took a dreadfully long amount of time and the delays in the Summer really hurt. Forget all about medical coverage from prescription medicine to the best treatment for adult acne, not to mention cancer treatment! This is absolutely crazy to think that a congress with a super majority in both the house and senate couldn't get a bill passed in 10 months, before the death of Ted Kennedy could have brought us here.

Question: What Are Libraries in Windows 7 Release?

In the new Windows 7, Libraries are like virtual folders. They group similar data in virtual collections -- this way the original files can be wherever they are on your computer but you will be able to find them together in your library. Its like it is ion the Internet -- you don't know where everything is but you know its there and that's good enough! Virtual folders are described in a .library-ms file that aggregates content from various locations. Searching in a library automatically groups all the data together!

Question: Should I Get a Gym Membership?

Well your choices are to join a gym or to get your own home exercise equipment. The gym will have lots of equipments from weights to ellipticals and will cost you from between $25 and $60 a month. The home gym is free but you will have to buy between $1000 and $5000 worth of equipment. So what's the better deal? Well if you have to buy $3000 worth of home equipment, then its equivalent to five years of $50 a month gym fees. To me, the gym membership is the better plan because it offers you access to tens of thousands of dollars in equipment and if you decide to quit even after a few years of fees, you've still spent less than if you had equipped your own modest home gym.

Question: What are Keyboard Shortcuts in the Windows 7?

Geeks love shortcuts -- especially those which you don't need a mouse to do. You just tap for finger son the keyboard and pull up magic. Its a throw back to the old DOS days. Here is a list of Windows 7 shortcuts:
Global keyboard shortcuts:

* Win+Space operates as a keyboard shortcut for Aero Peek.
* Win+Up and Win+Down are new shortcuts for Maximize and Restore/Minimize.
* Win+Shift+Up vertically maximizes the current window
* Win+Left and Win+Right snap the current window to the left or right half of the current display; successive key presses will move the window to other monitors in a multi-monitor configuration.
* Win+Shift+Left and Win+Shift+Right move the current window to the left or right display.
* Win+ + and Win+ − (minus sign) zoom the desktop in and out.
* Win+Home operates as a keyboard shortcut for Aero Shake.
* Win+P shows an "external display options" selector that gives the user the choice of showing the desktop on only the computer's screen, only the external display, with the same output on both (clone), or on both displays with independent desktops (extend).

2010 Vacation?

Did you take a vacation in 2009? No seriously, its a real question. You wouldn't believe how many people when asked this question would have to think twice and then reply No. Americans just aren't into taking vacations these days. Its one part overworking, and one part underpaying, that's got us here. Why not make 2010 different and actually plan for a real vacation. Whether it be to the Caribbean or just Outer Banks rentals in the good old US of A, it will be a time of actually getting away from it all and relaxing! No BlackBerries allowed.

Question: How Does Upward Feedback Work?

In business, upwards feedback is the process of allowing direct reports to give feedback to their manager. This is usually part of a 360 degree feedback session, where the individual gets feedback from their manager, their peers, and their direct reports. This process is usually facilitated by a third party to keep the session on track. The point is to give reporting employees a voice to their upper management.

The Strategic Default

Here's a term you will start hearing more about in 2010 -- the strategic home mortgage default. Its when a homeowner decides to stop paying on their mortgage even though they can still afford to pay it. Why would someone do this? Well if your home is worth $100k less than you paid for it (and owe on it), then walking away from it saves you that hundred thousand dollars instantly! No matter how much you upgrade your home from new kitchen counters to Baldwin hardware, you will not recover the $100k in underwater mortgage for a decade! Why not default? That's the idea millions of people will follow through on in 2010.