Philippians 4:19 says, “And my God will meet all your needs according to the riches of his glory in Christ Jesus.” Based on this verse, here are five key accounting principles related to financial success explained simply:

1. God as a Provider (God’s Provision): God promises to meet all our needs, not necessarily our wants. This can be compared to a balanced budget in accounting—ensuring that income meets essential expenses without overspending. Trust that your financial needs will be provided for.
   
2. Stewardship (Managing What You Have): Financial success requires good management of the resources you’ve been given. In accounting, this means tracking income, expenses, and assets. Being a good steward means making wise decisions, saving, and avoiding unnecessary debt.
   
3. Budgeting (Planning for the Future): Just as businesses create budgets to forecast and control finances, individuals should plan their spending to ensure they live within their means. This shows responsibility, and it reflects faith that God will provide, but you also need to manage what you have wisely.
   
4. Investing in the Right Things (Wise Investments): Just like how companies invest in assets that will bring returns, individuals should invest in areas that align with their values and long-term goals. This could be savings, education, or starting a business, which can generate future growth.
   
5. Gratitude and Contentment (Living with Thankfulness): Financial success isn’t just about accumulating wealth. It’s about being content with what you have and being grateful for it. In accounting terms, this could be seen as recognizing your net worth, but instead of focusing only on growth, appreciating the financial stability you’ve achieved.
   

These principles remind us that financial success comes from good management, wise decision-making, and trust in God’s provision.

Accounting principles serve as the foundation for accurate financial reporting and responsible financial management. These principles guide the preparation, presentation, and interpretation of financial statements, ensuring transparency, integrity, and reliability in financial reporting. Interestingly, many of these accounting principles align closely with biblical values, reflecting timeless truths about honesty, stewardship, and ethical conduct.

1. Accuracy and Truthfulness: The principle of accuracy in accounting emphasizes the importance of presenting financial information truthfully and without bias. This principle resonates with biblical teachings on honesty and integrity. Proverbs 11:1 states, “The Lord detests dishonest scales, but accurate weights find favor with him.” Just as accurate weights and measures are pleasing to God, accurate financial reporting reflects a commitment to honesty and truthfulness.
2. Transparency and Disclosure: Transparency is a fundamental principle of accounting that requires companies to provide clear and comprehensive information about their financial position and performance. This principle aligns with biblical values of openness and accountability. Ephesians 5:13 encourages believers to “have nothing to do with the fruitless deeds of darkness, but rather expose them.” Transparent financial reporting allows stakeholders to make informed decisions and promotes trust and confidence in financial markets.
3. Conservatism and Prudence: The principle of conservatism in accounting advises caution in financial reporting, erring on the side of understating rather than overstating assets and income. This principle reflects biblical wisdom on prudence and careful stewardship. Proverbs 27:12 admonishes, “The prudent see danger and take refuge, but the simple keep going and pay the penalty.” Just as the prudent person exercises caution in the face of danger, conservative accounting practices mitigate the risk of overestimating financial performance and assets.
4. Stewardship and Accountability: Accounting principles underscore the importance of stewardship and accountability in managing financial resources. This resonates with biblical teachings on stewardship, emphasizing faithful management of resources entrusted to us by God. Matthew 25:21 conveys this message: “His master replied, ‘Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things.'” Accounting practices that promote transparency, accountability, and responsible stewardship honor God’s ownership of all things.
5. Consistency and Comparability: Consistency and comparability are essential principles in accounting, ensuring that financial information is presented in a uniform manner over time and across different entities. These principles facilitate meaningful analysis and decision-making. This aligns with biblical values of fairness and impartiality. Proverbs 20:10 states, “Differing weights and differing measures— the Lord detests them both.” Consistent and comparable financial reporting promotes fairness and integrity in financial transactions.

In summary, accounting principles not only provide a framework for accurate financial reporting but also reflect core biblical values such as honesty, transparency, stewardship, and fairness. By aligning financial practices with these timeless truths, individuals and organizations can uphold ethical standards and demonstrate integrity in their financial management.

In the realm of investment, the allure of financial markets and asset classes often takes center stage. Yet, amidst the clamor of stocks, bonds, and real estate, there exists a potent yet often overlooked avenue for true wealth creation: investing in yourself and your own business.

The Power of Self-Investment:

Investing in your own abilities is a transformative act of self-empowerment. Whether through education, skill development, or personal growth initiatives, allocating resources towards enhancing your knowledge and capabilities yields dividends that far surpass monetary returns.

Unlocking Potential:

By investing in yourself, you unlock the doors to untapped potential and limitless possibilities. Whether you’re honing your expertise in a particular field, mastering a new skill, or nurturing your creative talents, each investment in yourself lays the foundation for future success and fulfillment.

Building Your Business:

Similarly, investing in your own business is a testament to belief in your vision and entrepreneurial spirit. Whether you’re launching a startup, scaling your existing venture, or pursuing innovative ventures, directing resources towards your business endeavors is a strategic investment in your future prosperity.

True Investment Unleashed:

In the grand tapestry of investment, the most profound returns often stem from investments in oneself and one’s entrepreneurial ventures. While financial markets may fluctuate and asset values may rise and fall, the value of personal growth and business success endures as a beacon of true investment unleashed.

Conclusion:

As you navigate the complex landscape of investment, remember that the most valuable asset you possess is yourself and your capacity to innovate, adapt, and thrive. By investing in your own abilities and business, you embark on a journey of self-discovery, growth, and prosperity that transcends the confines of traditional financial markets. Embrace the power of self-investment and unleash the true potential that lies within.

The asymmetric payoff, with its promise of significant gains relative to the initial investment, can be an alluring prospect for adventurous investors seeking high-risk, high-reward opportunities. However, behind the allure lies a landscape rife with potential pitfalls and risks. Let’s explore some examples of the risks associated with asymmetric payoff:

1. Cryptocurrency Volatility:

• Cryptocurrencies, like Bitcoin and Ethereum, have captured the imagination of investors with their potential for asymmetric payoff. However, the volatile nature of these digital assets means that investors can experience dramatic price swings in a short period. For example, Bitcoin’s price surged to nearly $65,000 in April 2021 before plummeting by more than 50% in subsequent months.

2. Penny Stock Speculation:

• Penny stocks, often trading at low prices and with small market capitalizations, are another arena where asymmetric payoff can be pursued. However, these stocks are highly speculative and can be susceptible to manipulation and pump-and-dump schemes. Investors may experience substantial losses if the underlying companies fail to deliver on their promises or meet expectations.

3. Biotech Breakthroughs:

• Investing in biotechnology companies on the verge of a breakthrough drug discovery offers the potential for asymmetric payoff. However, the biotech sector is fraught with risks, including regulatory hurdles, clinical trial failures, and patent expirations. Investors may see their investments plummet if promising treatments fail to materialize or face unexpected setbacks.

4. Startup Investments:

• Investing in early-stage startups can provide an opportunity for asymmetric payoff if the company experiences exponential growth or is acquired at a substantial premium. However, startups are inherently risky, with high failure rates and uncertain revenue prospects. Investors may lose their entire investment if the startup fails to gain traction or secure additional funding.

5. Options Trading:

• Options contracts offer the potential for asymmetric payoff, allowing investors to leverage their capital and amplify returns. However, options trading is complex and can lead to significant losses if not executed prudently. The asymmetrical nature of options means that investors can lose their entire investment if the underlying asset doesn’t move in the anticipated direction within the specified timeframe.

Conclusion: Asymmetric payoff presents tantalizing opportunities for investors to achieve substantial gains with relatively modest investments. However, it’s essential to approach these ventures with caution and awareness of the inherent risks involved. By understanding the examples of asymmetric payoff risks and implementing robust risk management strategies, investors can navigate the speculative landscape with greater confidence and resilience.

“Healthy money” generally refers to the concept of managing one’s finances in a way that promotes overall well-being. It involves making sound financial decisions, budgeting wisely, and investing in a manner that supports long-term financial health. Here are some key aspects related to “healthy money”:

• Financial Literacy: Understanding basic financial concepts, such as budgeting, saving, investing, and managing debt, is crucial for making informed decisions.
• Budgeting: Creating and sticking to a budget helps ensure that you allocate your money wisely, prioritize essential expenses, and save for future goals.
• Emergency Fund: Having an emergency fund can provide a financial safety net, covering unexpected expenses and helping to avoid high-interest debt.
• Saving for Goals: Setting and working towards financial goals, such as buying a home, education, or retirement, is an essential part of maintaining financial health.
• Investing: Investing money wisely can help it grow over time. Diversifying investments and understanding risk tolerance are key factors in building a robust investment portfolio.
• Debt Management: Responsible management of debt, including credit card debt and loans, is crucial for maintaining a healthy financial situation.
• Insurance: Having appropriate insurance coverage, including health, life, and property insurance, is important to protect against unexpected events that could have a financial impact.
• Financial Planning: Developing a comprehensive financial plan that takes into account short-term and long-term goals can guide your financial decisions and help you stay on track.
• Mindful Spending: Being conscious of your spending habits and making intentional choices can contribute to overall financial wellness.

It’s important to note that individual circumstances vary, and what constitutes “healthy money” can differ from person to person. Seeking advice from financial professionals or using reputable financial resources can provide personalized guidance based on specific situations.

If you want results.

You must step up!

Haven’t started a business yet or haven’t picked a niche yet?

Choose a niche you would enjoy working in.

This doesn’t have to be a long or difficult process.

And now we start building…

Even if you don’t feel ready yet… Build it.

And remember…

It takes courage to jump into the unknown and start building before you even feel ready.

No one truly understands how to build a business when they make the decision to build it.

Transitioning from consumer to producer is challenging. It’s scary to share your creations with the world. It takes courage.

Will people judge me?

Will it work?

The intersection of excitement and fear that is business.

Courage to take a step forward at the same time as determination.

Even if the beginning has nothing to do with the current business

But the first step was all I could take the second step.

This was the seed I had to plant to grow trust with the client that would eventually become a business.

And when you plant a seed, you never know if it will actually work.

There is a lot of trust in the process you need.

Freedom is not free.

Well… It’s been a loooooong time no see.

The pandemic has made me crave just one word. freedom.

The opposite of freedom is a pandemic.

Eeeew.

That’s the worst.

Freedom is also the real key in money life.

Even money has viruses. You can get infected with the deadly money virus.

Many people think they’re building businesses to get rich.

I tell you that’s the wrong goal.

This is where the infection begins.

Freedom of time and location is the real key.

Being in 100% control.

The root of business is courage.

It’s easy to spend time doing something you don’t like and do some crappy work there.

But that path doesn’t lead you to freedom.

Not true freedom.

Freedom takes courage.

• Don’t trust your resolve.

• Don’t leave the account behind.

• Don’t keep a memory on. Memo on.

In the investment world, risk means uncertainty, and refers to the possibility that you will lose your investment or that an investment will yield less than its anticipated return. That uncertainty about the outcome of an investment means that investment risk also refers to the way the price of an investment fluctuates or changes in value from time to time–its price volatility. The more the fluctuation–in frequency and in amount–the higher the volatility. Generally, the higher the volatility, the greater the uncertainty about the outcome of your investment, and the greater the potential risk involved.

There are three factors that are key to understanding risk: (1) the risk-return tradeoff, (2) the investment planning time horizon, and (3) the different types of risks that exist. You should have a solid understanding of each of these issues in order to select investments that maximize potential returns within your acceptable risk levels. Here is a brief discussion of each.

(1) Risk-return tradeoff

As risk increases, the potential for return increases. This is known as the risk-return tradeoff. Historically, investments with greater risk have tended to provide higher returns, though past results are no guarantee of future returns. The more aggressive you are as an investor, the more risk you take, and the greater chance you may have to earn a potentially higher return (assuming any return is earned at all). Conversely, the more conservative you are as an investor, the less risk you take, and the less potential you have to earn a high return (though you’re also less likely to lose your investment).

(2) Investment planning time horizon

The length of time you plan to stay invested in a particular vehicle is referred to as your investment planning time horizon. Generally speaking, the longer your time horizon, the more you may be able to afford to invest more aggressively, in higher-risk investments. This is because the longer you can remain invested, the more time you’ll have to ride out fluctuations in the hope of getting a greater reward in the future.

(3) Different types of risks that exist

Finally, many types of risk can affect an investment. Each investment is subject to all of the general risks associated with that type of investment. Risk also arises from factors and circumstances specific to a particular company, industry, or class of investments.

Note: All investing involves risk, including the potential loss of principal, and there is no assurance that any investment strategy will be successful.

IMPORTANT DISCLOSURES
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

“All persons live together in harmony and with equal opportunities. It is an ideal which I hope to live for and to achieve. But if needs be, it is an ideal for which I am prepared to die.”

Nelson Mandela

“I would like to die on Mars. Just not on impact.”

Elon Musk

They are the same South African, but have different roots and different fruits. Not the land but the people. Now recruiting slaves for a colony on Mars. The price is bitcoin.

How do you feel about taking risks?

Take this short quiz:

1. Do you put on the car brake when the traffic light turns yellow, or do you step on the gas? If you put on the brake, give yourself one point. If you step on the gas, give yourself three points.
2. Do you fill the gas tank when the needle reaches halfway, or do you run a few miles on empty? If you fill the tank halfway, give yourself one point. If you run on empty, give yourself three points.
3. Do you take the long way because it’s the way you know, or will you take a shortcut you’ve never taken before? If you take the long way, give yourself one point. If you’ll take the shortcut, give yourself three points.
4. Do you take the train long distances, or do you prefer to fly? If you take the train, give yourself one point. If you fly, give yourself three points.

Now, add up your points. The maximum score is 12 points, and the minimum is 4. Most people will fall somewhere in between. Your score reflects your attitude toward risk and indicates your ability to accept or tolerate risk. Those of you with a higher score can accept a relatively great amount of risk and are referred to as risk tolerant. On the other end of the spectrum, those of you who scored low can accept very little risk and are referred to as risk averse. Many people fall in between the two ends of the spectrum.

Note: This quiz is not scientifically based–it’s being used only to illustrate a point. Quantifying risk tolerance is not an exact science. 

IMPORTANT DISCLOSURES
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Before you can participate in the complex risk-management process, you need to have a general understanding of the concept of risk itself. In very broad terms, risk is the possibility of harm, injury, loss, danger, or destruction. Most risks come from someone or yourself. Risk can be further subdivided into two basic types: speculative risk and pure risk. Speculative risk has the potential for either gain or loss, much like the financial risks you assume when you put your money into certain investments. Pure risk, on the other hand, has no potential for gain; it can only result in loss or no loss. Most of the risks to which you are exposed in your life are pure risks. An example would be the risk of an accident each time you drive your car. The worst possible outcome is that you will be involved in an accident, while the best-case scenario is simply that you will have an uneventful, accident-free trip.

All pure risks exist because of various dangers known as perils. Perils are the actual, direct causes of loss and include death, disability, illness, fire, theft, and accident, among other things. In contrast, hazards are acts or conditions that could increase either the severity of a loss or the chances of a loss happening in the first place. A simple example will illustrate the distinction between a risk and a hazard:

Ex) Say you leave a cigarette burning in your living room. It falls to the floor, the rug catches fire, and your house (along with all the property in it) goes up in flames. Fire was the peril that directly caused the loss in this case, while the unattended cigarette was the hazard that increased the likelihood of a fire occurring

IMPORTANT DISCLOSURES
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Strong financial foundation

Before you begin investing, you need to secure a strong financial foundation. Be sure these basic steps have been taken:

• Create a “rainy day” reserve: Set aside enough cash to get you through an unexpected period of illness or unemployment–two months’ worth of living expenses is generally recommended. Put the cash in a relatively stable and liquid investment that can earn money but still lets you access the funds easily.
• Pay off your debts: It makes more sense to pay off high-interest-rate debt (e.g., credit card debt) than to put money into investments that involve an uncertain return.
• Get insured: Having adequate insurance is your best protection against financial loss, so review your home, auto, health, disability, life, and other policies, and increase your coverage, if needed.
• Tax-deferred retirement plan: Putting money in these accounts defers income taxes, leaving you more money to put toward your financial goals. Take full advantage of them if they are available to you

IMPORTANT DISCLOSURES
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

With the Coronavirus storm, a level of change in scope and depth that we have never experienced before is just before our eyes. In particular, it realizes us that the waves of change driven by the Fourth Industrial Revolution, such as the convergence of technology in individuals, businesses, and public sectors, changes in industrial structure and job topography, and newly required job capabilities, are real. Unpredictable changes pose a risk of uncertainty to individuals, businesses and the public sector, while also raising the need for “Change Management”. Amid the prolonged low-growth trend, the sense of crisis seems greater than ever, as vitality is declining due to a serious low birth rate and aging population, and the challenge spirit and entrepreneurship are also declining. Those who are ready for rapid change can be an opportunity for a new leap forward. Those who are prepared are good at managing change. Those who have developed their capacity to respond to change are firmly separated from old practices. They change themselves boldly, and in the process, they settle the change management process into their own culture. In the Coronavirus Flood and the Fourth Industrial Revolution, the beginning of surfing the huge wave of change is with change management.

IMPORTANT DISCLOSURES These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable but we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice. Prepared by Money and Story Copyright 2021

Factors to consider when buying an existing business

In addition to all of the factors to consider when starting your own business, there are other considerations when buying an existing business–is it a stock purchase or are you buying company assets? How is the business being valued? In addition to finding a business and arranging for the purchase and financing, you may also be reconsidering the form of business entity. Just because you bought the assets of a sole proprietorship doesn’t mean you can’t change the entity to some form of corporation.

Factors to consider when buying a franchise

If you are considering buying a franchise, there are important additional considerations. In exchange for assistance from the business granting you the franchise, you are obligated to pay certain fees and accept a certain level of control from the franchisor.

IMPORTANT DISCLOSURES These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable but we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice. Prepared by Money and Story Copyright 2021

To try to fight inflation

When people say, “I’m not an investor,” it’s often because they worry about the potential for market losses. It’s true that investing involves risk as well as reward, and investing is no guarantee that you’ll beat inflation or even come out ahead. However, there’s also another type of loss to be aware of: the loss of purchasing power over time. During periods of inflation, each dollar you’ve saved will buy less and less as time goes on.

To take advantage of compound interest

Anyone who has a savings account understands the basics of compounding: The funds in your savings account earn interest, and that interest is added to your account balance. The next time interest is calculated, it’s based on the increased value of your account. In effect, you earn interest on your interest. Many people, however, don’t fully appreciate the impact that compounded earnings can have, especially over a long period of time.

Compounding interest

Let’s say you invest $5,000 a year for 30 years (see illustration). After 30 years you will have invested a total of $150,000. Yet, assuming your funds grow at exactly 6% each year, after 30 years you will have over $395,000, because of compounding.

Note:  This is a hypothetical example and is not intended to reflect the actual performance of any specific investment. Taxes and investment fees and expenses are not reflected. If they were, the results would be lower. Actual results will vary. Rates of return will vary over time, particularly for long-term investments.

Compounding has a “snowball” effect. The more money that is added to the account, the greater its benefit. Also, the more frequently interest is compounded–for example, monthly instead of annually–the more quickly your savings build. The sooner you start saving or investing, the more time and potential your investments have for growth. In effect, compounding helps you provide for your financial future by doing some of the work for you.

IMPORTANT DISCLOSURES
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Before starting a business or taking over an existing one, you need to make some initial plans. You may have already decided on the type of business you want: your own restaurant, retail store, service or manufacturing plant. You need to choose a suitable location. Can I work from home or do I need a separate facility? You need to assess your financial needs, plan your daily activities, and plan for contingencies that may be included in your business plan. Planning a business usually requires the help of several professionals, such as a lawyer or accountant. The success or failure of your business may depend on your initial plan, but how do you plan and what do you plan for?

IMPORTANT DISCLOSURES These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable but we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice. Prepared by Money and Story Copyright 2021