Author Archives: Andrew

Budgets are set before a financial year begins and are not adjusted after they are approved. Forecasts track what you know as the financial year unfolds. Budgets allow management to control costs from the bottom up. It is critical for a business to maintain control of the budget to enable management to form a viewContinue reading “What’s the difference between budgeting and forecasting?”

In short, most people don’t like debt but see it as a necessity, for example mortgages, car loans etc. The truth is that if you hold debt for personal consumption then it’s going to take money out of your pocket and should be considered bad. If on the other hand you have an asset (forContinue reading “Is having debt good or bad? What’s good debt vs what’s bad debt?”

Net present value Internal rate of return Discount rates

ROIC = Earnings Before Interest / Invested Capital Earnings Before Interest = Net Income (including tax expense) + interest expense Invested Capital = Equity + Debt – Cash

Real Estate markets fluctuate just like any other market. The difference with Real Estate compared to the Stock Market is that you don’t get a daily price always beeming to you via an online portal and generally speaking the transaction fees with real estate are huge when considered a short term investment. The main lessonsContinue reading “What return can I expect from Residential Real Estate?”

The age old question everyone asks. Essentially how much do we need to either; Live financially free Live a good retirement and leave your kids a nest egg Live a good retirement without worrying too much about leaving any money to anyone It all starts with INCOME! That is, what income would you like perContinue reading “How much do I need to retire?”