Vitago

Right now people are spending thousands of dollars on gifts for other people. They are doing this because they believe it is the right thing to do.

Holiday shopping can make or break a business. The last few years I’ve watched the post-season wrap-up on the news. Who made profit? Who didn’t? Who’s filing for bankruptcy?

I’ve watched American institutions like Montgomery Wards close their doors after a poor holiday performance. My sister worked there while that happened. My brother had worked there years before. It was like losing part of the family.

And that’s when the economy was good.

Continue reading How does the economy really work? »

Friday, I covered the basics of the Income Statement. Today we’re going to look at the balance sheet. You may recall the balance sheet helps the viewer understand the status of the business by listing the types and amounts of assets, liabilities and equity. Another name for the balance sheet is the statement of financial position.

Assets put money in your pocket. Liabilities take money away. And equity is the money left after your debts are paid.

Continue reading The Balance Sheet »

I started covering some of the basic accounting terms on Tuesday. On Wednesday I covered why Rich Dad says accounting is important and that if you are financially illiterate you will be stuck where you are.

Today I want to start putting accounting into action! This is where the fun starts but I’m going to take things slow.

Continue reading The Income Statement »

If you are really interested in developing your financial intelligence Robert Kiyosaki’s Rich Dad, Poor Dad is a must read for you. Kiyosaki narrates his experiences growing up with an educated father who is poor while his best friend’s uneducated dad builds an empire. This book is the first of the Rich Dad series. All of these books are easy to read, personal and give great insight into why the rich get richer while the rest of us don’t.

If you want to be rich, you have to be financially literate

Being rich isn’t about how much money you make. It is about how much money you keep.

Continue reading The Rich Dad Guide to Wealth and Accounting »