Once upon a midnight dreary as I pondered weak and weary
Over many a quaint and curious volume of accounting lore,
Seeking gimmicks (without scruple) to squeeze through
Some new tax loophole,
Suddenly I heard a knock upon my door,
Only this, and nothing more.

Then I felt a queasy tingling and I heard the cash a-jingling
As a fearsome banker entered whom I’d often seen before.
His face was money-green and in his eyes there could be seen
Dollar-signs that seemed to glitter as he reckoned up the score.
“Cash flow,” the banker said, and nothing more.

I had always thought it fine to show a jet black bottom line.
But the banker sounded a resounding, “No.
Your receivables are high, mounting upward toward the sky;
Write-offs loom.  What matters is cash flow.”
He repeated, “Watch cash flow.”

Then I tried to tell the story of our lovely inventory
Which, though large, is full of most delightful stuff.
But the banker saw its growth, and with a might oath
He waved his arms and shouted, “Stop!  Enough!
Pay the interest, and don’t give me any guff!”

Next I looked for noncash items which could add ad infinitum
To replace the ever-outward flow of cash,
But to keep my statement black I’d held depreciation back,
And my banker said that I’d done something rash.
He quivered, and his teeth began to gnash.

When I asked him for a loan, he responded, with a groan,
That the interest rate would be just prime plus eight,
And to guarantee my purity he’d insist on some security—
All my assets plus the scalp upon my pate.
Only this, a standard rate.

Though my bottom line is black, I am flat upon my back,
My cash flows out and customers pay slow.
The growth of my receivables is almost unbelievable:
The result is certain—unremitting woe!
And I hear the banker utter an ominous low mutter,
“Watch cash flow.”
Herbert S. Bailey, Jr.

Source:  Reprinted from the January 13, 1975, issue of Publishers Weekly, Published by R. R. Bowker, a Xerox company.  Copyright 1975 by the Xerox Corporation.

The credit card industry has been booming over the past few decades. Why not? They offer a service that many love to utilize. American’s have utilized it to a tune of about 70 Billion dollars at last check. But, what a deal. Buy now, pay later. No money, no problem. Well, I guess that depends on how you look at it. Or, perhaps from which side of the fence that you stand on. From the credit card companies side of the fence, it is awesome. From the consumer’s side, it can be a little frightening. Don’t get me wrong, credit cards can be a great thing. They are the future. I see a day when cash will not be utilized at all, where all transactions are made on plastic. And although the bottom line is that credit card companies will always have the upper hand, that does not mean that credit cards cannot be a successful financial enterprise for the consumer, as well.

Knowledge is the key to success. The more you know about your credit cards, credit scores and how to play the game, the better your odds of success. Here are 6 things credit card companies would rather you didn’t know.

1. 1. Some credit cards come with a Universal Default Clause. This is where it becomes vitally important that you read the small print. This clause simply states, that if you are late on your payment, your interest rate can automatically rise as high as 30%. Here is the kicker. Even if you are late on another credit card, not even with the same company, with this clause, they can still raise your interest rate. Do not use cards with this clause. If you can, transfer your credit to a card that does not have a Universal Default Clause.
2. 2. Do not be lead to believe that all you have to do is make your minimum monthly payment. This will normally only cover 1% or 2% of your balance. With interest and fee’s, a $1000 debt could literally take years to pay off. It is always better to pay off your balance monthly, or do so as close as you can.
3. 3. Proven fact. Those who purchase with credit cards, buy more. Consumers tend to double their purchases when using a credit card. Think about it. If you go to the mall with cash, you will be more reluctant to use it all up. But with a credit card, no problem, it won’t cost you a penny today. Treat your credit card like cash.
4. 4. Do not max out your credit card. Ever. Always try to spend no more that 50% of your credit limit. Whenever you cross that 50% margin, you credit score can go up. Creditors frown on maxed out credit cards.
5. 5. Do not be fooled by all the credit card rewards programs. You will pay for them in one way or another. Avoid these, or do not bank your choice of a credit card on them. You will be better off in the end.
6. 6. If you are not happy with your credit card, you can call your credit card company and seek a better deal. If you feel your interest is to high, give them a call. If you think the fee’s are to high, or your payments are to steep, give them a call. It is in their best interests to deal with you, or risk losing you to a card that offers you more.

Know your card. Read the fine print. Never cancel a card, it hurts your score. Simply cut it in half and use another. Education is your best tool. Make your payments, be responsible, and you can enjoy your credit cards without a mountain of debt.

* * *

Debbie Dragon is a writer for CreditorWeb.com, where she writes about credit cards, credit card offers and general personal fnance.

Experts are saying that the dollar is only going to get weaker.

My husband, a German, threatened to move back to Germany when Bush was elected. Maybe we should have! Anyone else been watching the euro grow against the dollar? We were in Germany exactly one year ago when the exchange was $1.20 per euro. Now it’s $1.45.

Just think if we had all decided to work in Europe then transferred our dollars to the United States. Minus taxes, think of the effortless gain you’d create.

Maybe we should have moved to Germany. Maybe it’s not too late. Check out what these experts are saying on currencytrading.net

Do you need more help learning how to invest like Warren Buffet? Most people do, with the exception of perhaps only one. Of course that person is Warren Buffet himself!

I ran into this article from the Motley Fool a little while ago called “Buffett’s Words of Wisdom.” It gives out a bit of advice that Warren seems to follow, as well as tips and hints on becoming a better investor yourself.

“I am a better investor because I am a businessman and a better businessman because I am an investor.”

All in all it is a pretty good read, check it out.

Today’s guest writer is Houston Neal who works with City Light Financial. He has a few basic ideas for expanding with your investment properties and the financial basics of getting started.

HELOC For Investment Property

There has never been a better time to be a homeowner. From continued performance in the housing market to the availability of online mortgage resources, you now have the upper hand and are in a good position to cash in on the value of your home.

Many homeowners and investors have taken advantage of market performance by taking out a home equity loan to finance other property investments. Specifically, a HELOC or home equity line of credit, provides a way to ‘cash in’ on the value of your home and it allows you to borrow money against home equity.

So why not put your home equity to work? With a home equity line of credit you can use the capital from your home to begin earning returns from two properties instead of one.

Understanding Equity

An important consideration for any homeowner in the home equity loan process, is to understand how to build equity in your home. Equity is simply the difference between your remaining mortgage balance and the value of your property. So, as your property value increases and your mortgage balance is reduced, your home equity increases.

Equity is a significant source of net worth for many homeowners and it continues to provide new sources of revenue. Housing prices have appreciated over the past years and the national market has seen considerable growth. Certainly some states have witnessed greater gains than others and an extreme example is the ongoing increase in California property value. The state jumped 27.18 percent in home value during the third quarter of 2003 alone while the national housing market reported 12.97 percent growth over the same period. Overall, home prices are still up and homeowners have an opportunity to use equity for other investments.

HELOC vs Home Equity Loan

A home equity line of credit is very similar to a home equity loan and shouldn’t be confused for the latter. The main difference between a heloc vs home equity loan or mortgage refinancing is the way you are able to access the line of credit. A home equity loan or closed-end home equity loan differs in that the loan is typically set for a fixed amount of time and a specific amount. Mortgage refinancing is similar and gives you the equity in a single check. A HELOC, on the other hand, provides you with an open-ended line of credit or a revolving line of credit. Similar to a credit card, you are able to borrow an amount whenever you need to as long as that amount does not go over the credit limit. A home equity line of credit only requires you to pay back the amount you borrowed and is a practical and flexible type of mortgage loan.

Overall, a HELOC is a great resource to utilize for investment opportunities and other financial ventures. It helps you establish what you can afford first and provides the opportunity to manage your investment by reducing the line of credit. It can open new sources of revenue and allows you the flexibility you need for investing in property.

Last week, I stumbled upon an old paper with some scribbled notes in my childhood handwriting. In big bold letters, I had written, “WEALTH SECRETS” on the top of the page. I don’t know where I got these points, but they sure make sense. I’ve been thinking about these ideas ever since and wondering why I tucked them away for so long:

1. No one has money problems; we only have attitude problems.

2. Face your fears. After all, the best fishing holes hide in the places where the average fisherman feels afraid to go.

3. Watch where the crowd goes. Go in the opposite direction.

4. All opportunities are disguised as problems.

5. Until you know value, everything is worthless.

6. He who lives by the golden rule gets the gold, too.

7. Money is attracted to great ideas.

8. You are your wealth. The money that flows to you is just a by-product of your non-financial resources.

9. There is no failure, only feedback.