The rule of 72 is a simple tool to calculate how long it takes to double your money. Your money will double in value if the product of multiplying the interest rate by time equals 72. The formula is Interest x Time = 72. So given a 10% annual investment rate it will take 7.2 […]
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For individuals, your labor alone will never make you rich. Working harder and longer may create a small boost in income, but you will never become truly rich this way. To become truly rich requires that you control consumption and invest your excess capital to make your money work for you. The same is true
Business Investing 101 Read More »
Often a company will spend months or even years developing a new product. The labor and material used to develop a new product or offering is considered Research and Development (R&D). R&D is often considered an expense to the company. Expenses are deducted from Revenue in the year they are incurred and help to reduce the
Should you Amortize or Expense your R&D? Read More »
Operating Leverage is just one part of your Economic Model. Simply put, operating leverage is the relationship between fixed costs and variable costs.
Understanding Operating Leverage Read More »
When Robert Kiyosaki of “Rich Dad Poor Dad” fame said, “It is not how much money you make but how much you get to keep,” he was talking about TAXES. As a business owner, you get to claim business expenses that employees do not. For example, if you use a cell phone to make yourself
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