Finance Spirit

Archive for June, 2009

Managing your credit card can be tiresome for some. With the growing fame of small medium business cards and the ever changing interest rates, it is imperative to learn the steps in effective management of your cards.

A small business credit card is like most financial instruments – responsible use of credit can help your business – misuse of your business credit makes you personally liable in most cases and has the potential to destroy your business and dreams. Use these small business credit card tips to effectively manage your credit.

You need to limit card hopping. Signing up for multiple cards to take advantage of deals can have a negative impact on your credit rating and make managing your cards more difficult. It will also help you increase your credit points.

Learn to use grace. The majority of small business credit cards offer a 21-day grace period before you have to make payment on your purchases. Improve your cash flow using a credit card instead of checks.

Pay Online. One can save time and extra costs by paying your small medium business credit card online versus paying by teller at your local branch or mailing in your payment. This will save you time and energy in going out of your way in paying for your monthly bills.

We all dream of the day when we can be in our house sitting on a sofa sipping nice tea along with an assortment of cookies and in the meantime you know that every minute there is money rolling into your bank account . Talk of good times and if wishes were horses then everybody would ride them.

Yes, in theory the above can be true but there are two ways to do that , the first one to start a company, make it profitable, sell a a majority share to somebody else then reap the fruits of your labor through that minority holding in that company. The other way is less labor and you can get started with as little as $1000. Start investing in a company you like on the stock market,once you own the shares you become the part owner of the company even through the part ownership may be only .002% of the company. But hey, you are still an owner and as you learn the stock market basics, take some risks, reap some rewards you can play bigger and become an owner of a bigger part of the company.

Let us get the initial understanding of what is a stock? I will take an example of a company called XYZ, newly formed and into the business of selling shirts. This company XYZ will need money to buy machinery, raw material, pay for employees salary etc and the money will come in the form of loans, money from friends and family and also you sell some part of the company to other persons or companies. How do you part with ownership of the company is that you create shares or parts of the company for say $10 each . Let us say you create 100 shares of the company , that means the total share capital of the company is $1000. Now ideally to maintain a majority shareholding XYZ company can sell 49 shares and still be a mahority shareholder.