Subscribe to Aridni A Czech Woman’s Lessons on Money & Freedom from Communism

Can you measure your life beyond your net worth? I’ll be the first to admit that a lot of my transactions revolve around a mental note of how much wealth I want. But what’s the point of more money in your life?

I spent the last week in a hospice in Germany where my husband’s grandmother taught me some great life lessons in her final moments.

1. What’s the point of money if it doesn’t grant you more opportunity and experiences?
My husband’s grandma grew up in Czechoslovakia under communism, which you probably know was a world of black market survival. People who had things to offer like food and medical care were in high demand. You could skip a few bread lines and police punishments if you had something to bribe with. In communism, money meant higher survival. It also meant a chance to escape to the west. Use the resources you are given to create a better life for yourself and others. Don’t steal from the poor; enrich lives.

2. Don’t work for money; let it work for you. Have a reason for wanting money besides just wanting money. After establishing themselves in the west, my husband’s grandparents started with nothing and worked hard to establish a good life. Use money to spoil your guests with the best ice cream, get a good education, own a computer capable of meeting your needs, and travel the world… and not just in five-start, English-speaking countries, for goodness sake!

3. Don’t let anyone else tell you what to do with your money.

Have you ever noticed how many “friends” people who win the lottery have all of a sudden? Everyone has an idea of where your money should go. Some people have your best interest in mind. Most people, of course, have themselves in mind. If you’re working hard with integrity, you have the right to spend your money as you see fit. You have to be smart about your spending and investing, of course. Yet something tells me that if you have worked your way to wealth, you’re going to be smart. Nonetheless…

4. Treat yourself when you’ve earned it, and save and save when you haven’t.
At first, you might think of Dairy Queen treats and French fries. Don’t forget the computers, cell phones, cars, and other fancy upgrades that you “need” and “want”. The media floods us with expectations. How many advertisements tell you that you deserve their product? They don’t even know you! They can’t say what you deserve and what you don’t. Resist the easy ability to dive into debt. It’s hard; you’ve got to try, though. Make smart choices. Live a good life.

Subscribe to Aridni 9 Wealth Secrets You Need to Know

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.

This article written by Katie on 30th April 2007

Subscribe to Aridni What’s your cut of the Retained Earnings?

The Retained Earnings Statement is the easiest accounting statement in the world to prepare and understand. It simply shows the amount of money that the company has at the end of the current time period (Usually Per Month, Quarter, or Year) after you adjust it for the income/loss and dividends payed during the period.

So the formula is simply

Retained Earnings at beginning of period
+ Net Income (as determined from your Income Statement)
- Dividends Paid
= Retained Earnings at end of period

And that’s all there is to it, a little addition and a little subtraction. If there is a net loss instead of positive gains with net income, then the number is simply subtracted. That case would look like the following.

Retained Earnings at beginning of period
- Net Loss
- Dividends Paid
= Retained Earnings at end of period

And of course, here is Aridni’s RE statment for December in the year 3000 using the (currently!) ficticious currency ‘Planet Aridni Dollars’

Aridni
Retained Earnings Statement
For the month ending December 31, 3000
(In Gazillions of Planet Aridni Dollars)
Retained Earnings, December 1 $25,000
Add: Net Income $5,000
Subtotal $30,000
Less: Dividends $3,000
Retained Earnings, Dec 31 $27,000

These statements can be useful to investors looking to find stocks with a history of high paying dividends. So if you are interested in setting up a Dividend Reinvestment Plan (commonly called a DRIP) then this should be something you might want to check out on you prospective companies before buying.

This article written by Todd on 19th February 2007

Subscribe to Aridni Financial Statements a Succesful Business Needs to Know

As you develop your business, the need for financial information and tracking will grow.
Where is your money coming from?
Where is your money going?
What areas are the most profitable, and what are losing the most money?

A sole proprietor or partnership needs to take this into consideration in order to make sure they are being as effective as possible. Corporations and other businesses need to be aware of their situation at all times as well.

This is where accounting comes along. The basic financial statements that you should be aware of are:

  • Balance Sheet - This Statement shows the breakdown of what your business owns (The Assets) and what it owes (The Liabilities) for a specific point in time.
  • Income Statement - This Statement will show how your business performed over a period of time. Your revenues and expenses for the time are displayed here.
  • (Continue reading this article…)

This article written by Todd on 31st January 2007

Subscribe to Aridni Would you like to go to court alone? Or team up with zealots?

What would you do if somebody slipped and fell at your business? I’m hoping that you would simply be able to send a letter to your insurance agent and they would take care of it. That’s what liability insurance does, pays damages to people without regard to fault.

The problem is that law is vague, and justice is expensive. The solution right now is liability insurance. It’s pretty crazy to run a business without a CGL policy. (Commercial General Liability)

It will provide you with three lines of defense in case of an accident.

  1. Medical Payments Coverage – Pays injured customer’s medical bills without regard to fault
  2. Supplementary Payment – If you go to court, the insurance company chooses and pays the defense team.
  3. Damages Payment - The insurance agent will pay damages to the injured party. This includes both judgments and cases that are settled out of court.

One good thing about your insurance company is that they are going to find and hire a really good legal team, because they are also responsible for the damages. Being as they are the ones who are paying the bills on it, it’s also there decision if they want to settle out of court.

This article written by Todd on 23rd January 2007

Subscribe to Aridni Seeking Goals and Reaching Objectives - THIS YEAR

Last night, the musician screamed into his microphone, “45 seconds until the new year. Have you made your resolution?”

Did you spend any time reflecting on ways that you wanted to be better this year? Given 45 seconds, I didn’t come up with a foolproof improvement plan. Lucky for me, I have a database of favorite Aridni articles that I often look to for inspiration:

What does it really take to make money? This article guides you in defining and reaching your financial desires

Is it better to let your dreams die or do a poor job? Todd’s had an idea for about a year… but he lacks skill. What does he do? What do you do?

No longer the bride today I celebrated my one-year anniversary this summer and found a finance partner to boot for - I discovered a 5-step plan to seeking goals and reaching objectives.

Are you climbing to the top when there is no top? Before you can get somewhere tomorrow, you have to think of where you are today. Examine the corporate ladder at your office.

Make your success move from the polls to the ballot Women are starting new businesses twice as fast as men. Three success secrets revealed–

One month to impress Define your image in one month, step by step.

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The Art of Deception - By Kevin Mitnick

Kevin Mitnick, is the worlds ‘Most Dangerous Hacker’ who can launch nuclear missiles by whistling into a phone. Although he is good at what he did, Mitnick now educates about social engineering and what your company can do to avoid becoming a mark.

How to capture the imagination of your audience — Starbucks book review

I picked up the book to learn about fast-growing startups and found myself picking up a few tips on the best roast and coolest coffee house colors from the Starbucks point of view. So what did I learn (besides the perfect foam spread)?