Asset finance is a general term that is used in the financial world to encapsulate different types of finance packages. Some finance types include hire purchases, lease purchases, finance leases and operating leases, all of which should be understood on a basic level, especially if you are a business owner needing to buy equipment for your company.
Hire Purchase Asset Finance
Hire purchases are the most commonly referred to form of asset purchases and allow a business owner to take out a contract, pay a percentage of the deposit and then a monthly "hire fee" to use the item. Once the full purchase price - plus interest - has been fully repaid, the business owner can choose to buy the item at a predetermined fee, or return the item to the lender.
Lease Purchases in Asset Finance
Lease purchases are extremely similar to hire purchase, with the difference between these two types of asset finance being you make multiple repayments as a deposit rather than the upfront percentage that you would for a hire purchase. The remaining balance of the asset - plus interest - is then paid in a number of instalments which are defined by the contract.
A Financial Lease
In a financial lease, the asset is owned by the finance company. The finance company then rents the asset to you for a stated amount of time. At any time, the finance company can write down the allowances and let you use them as well.
With a financial lease, you are not able to sell the asset as it does not belong to you. Nonetheless, the finance company can allow you to sell the asset on their behalf in which you will be entitled to a share of the proceeds from the sale of the asset. Your share can be negotiated to as high as 99 per cent of the sale proceeds.
Using an Operating Lease
An operating lease is extremely similar to the financial lease so you should compare these two different finance assets to see which one is more desirable for your needs. The difference between these two is that with an operating lease during the primary period, you are not paying for nearly all of the hire charges and capital costs as you would with the finance lease. Operating leases hardly ever have a second rental period.
Discuss your asset finance options with your accountant, financial advisor or banking expert. By doing so, you will be able to ask specific questions relating to your circumstances and fully understand how each type of asset finance will impact you and your business.
assignment help
Friday, September 3, 2010
Wednesday, September 1, 2010
Time Versus Money
What if I told you that someone anonymously deposits 86,400 cents in your bank account every single day? This amounts to RM864 of free cash every single day without working. It is your to spend however you wish but with a condition. You have to use it or you will lose it. Any amount still in the account at midnight each night will miraculously vanish into thin air. Here is my question: how would you spend that money?
I'm sure you are now thinking really hard how you would spend that money. What would you buy? How much you will spend? When should you spend it? Where can you spend it? I'm sure you will take it very seriously but why? Simple. Because that's a pretty good amount of money and you will not want to waste any by the end of the day.
Now I have some good news and bad news. The bad news is no one will be depositing any extra money in your bank account. However the good news is whether you are male or female, rich or poor, young or old, you are given 86,400 seconds to spend, invest or waste. But most people don't look at it as anything valuable.
The Fortune Teller
I'm not any fortune teller but I can predict one's financial future. If you tell me just two things: how you manage your Time and how you manage your Money, I can predict your financial future.
If you are one who use your time to continuously increase your wealth intelligence by attending the right seminars, reading the right books, allocating time to manage your cashflow the right way, the chances of you being rich is very likely.
However, if you spend your precious time doing other meaningless things, it's a waste of time. Also, if you spend money on things that are harmful or detrimental; be it for your physical or mental; that is a waste of money. For example, if you know that smoking is harmful to you and your loved ones, yet you spend RM10 every day on cigarette, that is an obvious waste of money.
The Pareto Principle
Vilfredo Pareto was an Italian economist who made a discovery about 100 years ago. He observed that 20% of the Italian people owned 80% of their country's accumulated wealth. He suggested that principle is at work that applies to money, people and time. Some people call it the 80/20 principle. This principle teaches us that when you practice the right priorities, 20% of the effort gets you 80% of your desired results.
20% of your habit contributes to 80% of your wealth
Think about it, if you drink coffee every morning and that costs you RM2 every single day. Just by bringing coffee from home and stop buying them outside, you will potentially save RM60 a month which equivalent to RM720 per year. Imagine saving RM720 per year and investing it at 10% interest rate per year for 30 years, you will potentially have extra RM118, 435.70 for your retirement.
20% of the people owns 80% of the money in the world
If 100% of the people have the same 86, 400 seconds every single day, what sets the 20% apart from the 80%? It is obvious that they have the same strategy of managing 86, 400 seconds every single day. Therefore start increasing your wealth intelligence by focusing your time and energy to learn the success blueprints of the 20%.
Value Your Time
To realise the value of one year, ask a student who failed his final exam.
To realise the value of one month, ask a mother who just gave birth to a premature baby.
To realise the value of one week, ask the editor of a weekly newspaper.
To realise the value of one day, ask the laborer who has 10 kids to feed.
To realise the value of one hour, ask a long distance relationship couple who is about to meet.
To realise the value of one minute, ask the person who just missed his flight.
To realise the value of one second, ask the victim who survived a car accident.
To realise the value of one milli-second, ask the runner who has just won the Olympic Gold Medal.
I'm sure you are now thinking really hard how you would spend that money. What would you buy? How much you will spend? When should you spend it? Where can you spend it? I'm sure you will take it very seriously but why? Simple. Because that's a pretty good amount of money and you will not want to waste any by the end of the day.
Now I have some good news and bad news. The bad news is no one will be depositing any extra money in your bank account. However the good news is whether you are male or female, rich or poor, young or old, you are given 86,400 seconds to spend, invest or waste. But most people don't look at it as anything valuable.
The Fortune Teller
I'm not any fortune teller but I can predict one's financial future. If you tell me just two things: how you manage your Time and how you manage your Money, I can predict your financial future.
If you are one who use your time to continuously increase your wealth intelligence by attending the right seminars, reading the right books, allocating time to manage your cashflow the right way, the chances of you being rich is very likely.
However, if you spend your precious time doing other meaningless things, it's a waste of time. Also, if you spend money on things that are harmful or detrimental; be it for your physical or mental; that is a waste of money. For example, if you know that smoking is harmful to you and your loved ones, yet you spend RM10 every day on cigarette, that is an obvious waste of money.The Pareto Principle
Vilfredo Pareto was an Italian economist who made a discovery about 100 years ago. He observed that 20% of the Italian people owned 80% of their country's accumulated wealth. He suggested that principle is at work that applies to money, people and time. Some people call it the 80/20 principle. This principle teaches us that when you practice the right priorities, 20% of the effort gets you 80% of your desired results.
20% of your habit contributes to 80% of your wealth
Think about it, if you drink coffee every morning and that costs you RM2 every single day. Just by bringing coffee from home and stop buying them outside, you will potentially save RM60 a month which equivalent to RM720 per year. Imagine saving RM720 per year and investing it at 10% interest rate per year for 30 years, you will potentially have extra RM118, 435.70 for your retirement.
20% of the people owns 80% of the money in the world
If 100% of the people have the same 86, 400 seconds every single day, what sets the 20% apart from the 80%? It is obvious that they have the same strategy of managing 86, 400 seconds every single day. Therefore start increasing your wealth intelligence by focusing your time and energy to learn the success blueprints of the 20%.
Value Your Time
To realise the value of one year, ask a student who failed his final exam.
To realise the value of one month, ask a mother who just gave birth to a premature baby.
To realise the value of one week, ask the editor of a weekly newspaper.
To realise the value of one day, ask the laborer who has 10 kids to feed.
To realise the value of one hour, ask a long distance relationship couple who is about to meet.
To realise the value of one minute, ask the person who just missed his flight.
To realise the value of one second, ask the victim who survived a car accident.
To realise the value of one milli-second, ask the runner who has just won the Olympic Gold Medal.
Taking Steps Toward Your Financial Security
In order to achieve financial independence, passive income is the key. Passive income refers to recurring cash flow derived from income producing assets. Whereas active income is income derived from salary, or net operating earnings if you are self-employed.
There are 5 stage of financial security, these are listed in order of least to most secure:
Stage 1: Financial Strife
This stage is characterised by living from pay cheque to pay cheque, having difficulty paying off credit card or personal loans, and having minimal or no personal savings. Here passive income is negligible, and active income is equal to, or less than, your total expenses. This is the stage you do not want to be in, avoid it at all costs, or get out of it as soon as you can.
Stage 2: Financial safety
This is the stage where your personal savings are enough to last you six to 12 months in the event of unemployment from any cause. This is the minimal safety net that everyone should have available in their bank account. Once you have reached this, any surplus cash may be used to achieve the next stage.
Stage 3: Financial independence
You have achieved financial independence when your annual passive income is adequate to cover your regular expenses per annum. Your investment is starting to pay off, and more cash flow from your active income will be available to purchase additional income producing assets, compounding your cash flow. You are well on your way to the next stage.
Stage 4: Financial liberty
Here your passive income is equal to, or greater than, your active income. If you have reached this stage pat yourself on the back, because having to continue in your current employment is a matter of choice, not a must. You are well on your way towards becoming a self-made millionaire.
href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjoCOZOzV-pkaFJ81uoPoboeg1Cw4pHIDsp0YvXzyYvFGxFSaNwg9xaDmQ60AUhtq5lV7WRGES0RRTX-xjJIG1vy8ib7chIRVYQJu65LpLnW1WTLvN6ie-G2CLZYPPxV0NojAsFrEjM0ps/s1600/ff.jpg">
Stage 5: The Fast-track
You are able to afford all your dreams with your passive income, irrespective of whether you are working in a job or not.
Obviously these stages work in a continuum, and how much passive income a person needs in order to achieve each financial stage varies depending on individual circumstances.
There are 5 stage of financial security, these are listed in order of least to most secure:
Stage 1: Financial Strife
This stage is characterised by living from pay cheque to pay cheque, having difficulty paying off credit card or personal loans, and having minimal or no personal savings. Here passive income is negligible, and active income is equal to, or less than, your total expenses. This is the stage you do not want to be in, avoid it at all costs, or get out of it as soon as you can.
Stage 2: Financial safety
This is the stage where your personal savings are enough to last you six to 12 months in the event of unemployment from any cause. This is the minimal safety net that everyone should have available in their bank account. Once you have reached this, any surplus cash may be used to achieve the next stage.
Stage 3: Financial independence
You have achieved financial independence when your annual passive income is adequate to cover your regular expenses per annum. Your investment is starting to pay off, and more cash flow from your active income will be available to purchase additional income producing assets, compounding your cash flow. You are well on your way to the next stage.
Stage 4: Financial liberty
Here your passive income is equal to, or greater than, your active income. If you have reached this stage pat yourself on the back, because having to continue in your current employment is a matter of choice, not a must. You are well on your way towards becoming a self-made millionaire.
href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjoCOZOzV-pkaFJ81uoPoboeg1Cw4pHIDsp0YvXzyYvFGxFSaNwg9xaDmQ60AUhtq5lV7WRGES0RRTX-xjJIG1vy8ib7chIRVYQJu65LpLnW1WTLvN6ie-G2CLZYPPxV0NojAsFrEjM0ps/s1600/ff.jpg">
Stage 5: The Fast-track
You are able to afford all your dreams with your passive income, irrespective of whether you are working in a job or not.
Obviously these stages work in a continuum, and how much passive income a person needs in order to achieve each financial stage varies depending on individual circumstances.
Quick Cash Ideas - How to Generate Quick Cash
Extra cash Ideas
Wherever you are in life, there may perhaps come a period of time where you need to raise some cash immediately. In this article, we formulate some details regarding how to earn extra income. Easy doesn't mean that you will never need to do the job. There are still gonna be things that need to be done to ensure that you to complete your process.
Every day we are surrounded by the opportunity to make money. A few of these opportunities might be obvious to some yet others may not see them at all. One thing to do is to keep your eyes open and see what's going on around you. What are people buying? What exactly are people searching for on the internet? When you overhear conversations, what exactly are these people talking about in regards to their needs? All of this brings to opportunities that could be able to put easy money in your pocket.
Additionally, to paying attention to what's going on around you. When you have things that you can eliminate - sell them. There are many sites online where you can sell items. Using this option you can get an immediate cash flow at the point of sale. Also if you make items, thing about offering them online as well. Set up a PayPal account and as a sale is made, instantly you'll have money in your PayPal account.
This brings us to another way on how to generate quick cash. If you are not really digging eliminate things that you love, how about pawning them. This will give you a short term solution that allows you get your stuff back at a later date. Another thing that you could do, is when you have unwanted jewelry, you can get cash for that. Selling gold and silver is becoming ever so popular in these economic times.
Unless you require the money quickly, however you need it within a couple of weeks. Why not try getting started in completing surveys. There are a lot of companies on the internet that pay a small fee for filling out surveys. There are even companies that have a daily survey that you could generate money on. Now keep in mind that most of these businesses have a minimum payout. Being diligent in doing surveys daily, you can make a little fast money with this method that can be applied toward your goal.
Ultimately, start an online business. The price of going on the internet is relatively small, though the benefits are HUGE. After a little marketing, persistence, word of mouth, and determination, you can very well be on your way to not on earning money. You might even be able to quit your job and have the freedom that you have always dreamed of.
Wherever you are in life, there may perhaps come a period of time where you need to raise some cash immediately. In this article, we formulate some details regarding how to earn extra income. Easy doesn't mean that you will never need to do the job. There are still gonna be things that need to be done to ensure that you to complete your process.
Every day we are surrounded by the opportunity to make money. A few of these opportunities might be obvious to some yet others may not see them at all. One thing to do is to keep your eyes open and see what's going on around you. What are people buying? What exactly are people searching for on the internet? When you overhear conversations, what exactly are these people talking about in regards to their needs? All of this brings to opportunities that could be able to put easy money in your pocket.
Additionally, to paying attention to what's going on around you. When you have things that you can eliminate - sell them. There are many sites online where you can sell items. Using this option you can get an immediate cash flow at the point of sale. Also if you make items, thing about offering them online as well. Set up a PayPal account and as a sale is made, instantly you'll have money in your PayPal account.
This brings us to another way on how to generate quick cash. If you are not really digging eliminate things that you love, how about pawning them. This will give you a short term solution that allows you get your stuff back at a later date. Another thing that you could do, is when you have unwanted jewelry, you can get cash for that. Selling gold and silver is becoming ever so popular in these economic times.
Unless you require the money quickly, however you need it within a couple of weeks. Why not try getting started in completing surveys. There are a lot of companies on the internet that pay a small fee for filling out surveys. There are even companies that have a daily survey that you could generate money on. Now keep in mind that most of these businesses have a minimum payout. Being diligent in doing surveys daily, you can make a little fast money with this method that can be applied toward your goal.
Ultimately, start an online business. The price of going on the internet is relatively small, though the benefits are HUGE. After a little marketing, persistence, word of mouth, and determination, you can very well be on your way to not on earning money. You might even be able to quit your job and have the freedom that you have always dreamed of.
Subscribe to:
Posts (Atom)