Money Archives

The 3 Best Investment Strategies for Financial Stability

What are the three best investment strategies that the top investors use? How can these strategies help you achieve financial independence? In Money: Master the Game, Tony Robbins asserts that investing is the smartest way to get rich. By using what he learned from his relationships with billionaires Ray Dalio, Warren Buffet, and Carl Icahn, Robbins summarized his investing advice into three main strategies: making a plan, creating steady gains while minimizing losses, and finding a fiduciary financial advisor. Continue reading to learn the most important principles of investing, according to Robbins.

Does Foreign Aid Work? An Economist’s View

Does foreign aid work, or does it make situations worse? How can foreign aid be tailored to each country’s unique situation? British economist Paul Collier, the author of The Bottom Billion, argues that foreign aid can be helpful if it’s tailored to each country rather than applied in a one-size-fits-all manner. Here’s how countries can change their approach and make foreign aid work.

Latency Times: 3 Factors That Affect Electronic Delays

What are latency times? What are the three factors that contribute to network latency? According to Michael Lewis in his book Flash Boys, “latency time” refers to the amount of time it takes to electronically send data from one destination to another. Latency can be used by high-frequency traders to receive stock order prices faster than everyone else, which gives them an unfair advantage. Let’s learn how HF traders lower their latency times in three ways: using co-location, creating better code, and using fiber-optic cables.

Latency Arbitrage: A Manipulative Stock Trading Tactic

What is latency arbitrage? How is it used against slower trading investors in the stock market? According to Michael Lewis, the author of Flash Boys, latency arbitrage is one of the many tactics that high-frequency traders (HF) use to get an unfair advantage over average traders in the market. By using different latency speeds, HF traders can buy a stock and then sell it for a much higher price in a matter of seconds. Let’s look at why Lewis believes latency arbitrage is a problem in stock trading, and why others disagree with him.

The Principles of Management Accounting Are Outdated

What is management accounting? What are the three principles of management accounting? According to Mike Michalowicz, the author of Profit First, traditional management accounting has three basic principles. These principles have been used for years, and Michalowicz believes they are outdated. Here’s an overview of traditional management accounting principles, according to Michalowicz.

Why Traditional Accounting Methods Don’t Work

Are you still using traditional accounting methods in your business? Why don’t these methods lead to long-term success? According to Mike Michalowicz, the author of Profit First, the traditional methods of business accounting don’t work in the long term. He says that the logic of traditional accounting clashes with the natural ways people think and make decisions. Here are the four reasons why traditional accounting doesn’t work.

How to Assess the Financial Health of a Company

Is your business financially healthy? How can you assess the financial health of a company? In his book Profit First, business makeover specialist Mike Michalowicz explains how to assess the financial health of your company using the allocation percentage equation. He also provides a table of what a healthy business should look like in terms of allocation percentages for businesses of various sizes. Here’s how to assess your company’s financial health, according to Michalowicz.

The Profit First Method: The Key Tenets Explained

What is the Profit First method? Why does entrepreneur Mike Michalowicz believe the traditional accounting method doesn’t work? In his book Profit First, Michalowicz asserts that traditional business accounting methods don’t align with the way people think. That’s why he put together a new method that will help business owners reach long-term success. Keep reading to learn about the four main tenets of the Profit First method as well as how they work in harmony with the natural ways people think and make decisions.

How to Evaluate Your Product’s Profitability Potential

Do you have a business idea in mind but aren’t sure whether it has profitability potential? What are some things you should consider before putting your idea in motion? When you come up with a product idea, you might be tempted to jump right into development, without carefully considering whether and how profitable the venture will be. It’s important to resist that temptation and take some time into putting your assumptions to the test. Here are some things to consider before you jump into development.

The 7 Bank Accounts Your Business Should Have

Why should you have 7 bank accounts for your business? What should each account be designated to? Mike Michalowicz, author, entrepreneur, and business makeover specialist, says that every business owner should have 7 bank accounts. He asserts that having your money organized into several designated accounts works better than having spreadsheets or financial software. Here’s how each of your bank accounts should be used.