Financial Literacy Appreciation for Depreciation and Time Value of Money

by como ·

In today’s society, instant gratification and the desire to buy everything brand-new seems to be a typical behavior among most consumers. However, many consumers may decide to reevaluate their spending habits and proposed purchases if they better understood how quickly the book value of various items depreciated. Cars (vehicles), jewelry, books (especially text books), electronics, cds, dvds, power tools, and furniture all represent commodities with book values that depreciate at an exponentially fast rate. All of the aforementioned items could be bought at full price, but buying a used item could save consumers a considerable amount of money as well as still allow them to benefit from the useable life of the item. Ideally, enhancing financial literacy regarding depreciation would help individuals to reduce personal debt by reinforcing the disproportion between the quality of an item and what it cost. Nevertheless, having a working understanding of the various depreciation methods would definitely assist consumers to make conscious decisions when making purchases.

Depreciation is defined as the expenses associated with spreading-out or allocating the cost of an asset over its useful life by accounting for physical wear and tear, decay, and obsolescence. In order to measure depreciation several factors must be determined which include, the cost of the asset, the estimated useful life, and the estimated residual value. Typically, the cost to purchase an asset is a known amount by the purchasing entity, but the estimated useful life and the estimated residual value need to be determined. The estimated useful life of the asset represents the length of service that is expected from using the asset, which can be indicated in years, units of output, miles, and other measures. Next, the estimated residual value (which is also commonly referred to as the scrap value or salvage value) is expected to be the cash value of an asset at the end of its useful life or when the asset is sold or discarded. Typically, the estimated residual value will be determined by the owner of the property or another reliable source (i.e. Kelley-Blue Book). Straight line (SL) depreciation represents the simplest and most-often-applied depreciation method, in which an equal amount of depreciation is assigned to each year (or period) of asset use. For the most part, depreciation on goods purchased by consumers can be calculated through the SL depreciation method. In essence, SL depreciation per year = Cost-Residual Value/ Useful life in years. With this method, the depreciable cost can be determined by deducting the estimated residual value from the asset’s original cost. Consumers should also keep in mind that depreciation decreases the value of the asset, because the amount of depreciation continues to accumulate each year. Also, the valued equity of the asset decreases as a result to the depreciation expense. Thus, as the asset is used during operations, the accumulated depreciation increases while the book value of the asset decreases. In SL depreciation, the asset depreciates until the book value equals salvage value. When the estimated useful life is achieved, the asset is considered to be fully depreciated. For example, if an individual purchases a sports car for $55,000, with an estimated useful life of 10 years and an estimated salvage value of $8,000. The SL depreciation for the sports car would be determined by using the SL depreciation equation of (Cost-Residual Value/ Useful life in years) which equates to ($55,000-$8,000/10 years). In essence, the sports car would depreciate by $ 4, 700 per year.

In addition, many consumers that can’t afford to buy brand new big ticket items, often satisfy their wants and needs through participating in rent to own agreements with companies like Rent- A-Center and Aaron’s. Most consumers that make agreements with rent to own businesses often don’t fully understand the ins and outs of their contract. Typically, these rent to own business organizations earn revenue through marking up the retail price of items and by charging high interest rates, which are most likely compounded daily. In the end, the consumer that shops at rent to own stores sometimes end up paying twice as much as the item is worth and in many cases once the customer finally owns the item, it most likely has depreciated to its salvage value.

Comments Off on Financial Literacy Appreciation for Depreciation and Time Value of MoneyFiled under: Financial | Tags:

Long Term Home Loan Advantages That You Should Not Ignore

by como ·

If you have eventually figured out your dream house, you have come to the next important stage of realizing that dream house. You have to make a decision whether to go for a long term home loan or a short term home loan. Before making a decision given that you can also afford to avail of the latter loan term, you may like to look at the main advantages of a long term loan.

Availing of a long term home means paying a lower monthly amortisation. More often, the maturity period for a long term loan can be 25 or 30 years. A long term loan in a way provides you a sense of security since there is much lesser pressure in tightening your budget. Definitely, the trade off is that you must shoulder the load of paying a higher interest rate. The accumulated interest payment for the whole loan duration is significantly higher compared to a short loan term.

You must not solely look at the total amount that you expect to cash out. Note that if you can take a short term home loan but you opt for a long term loan, you possess usable savings which you can invest on high yielding investment endeavors. This makes sense if you earn more from your investment than the savings you generate from paying the lower interest of a short term home loan. Your sense of entrepreneurship then must come into play to allow your funds to grow significantly.

Comments Off on Long Term Home Loan Advantages That You Should Not IgnoreFiled under: Loan |

Types Of Employment Pass In Singapore

by como ·

If you are planning to put up a business in Singapore or just live and work there, it is important to consider some legal factors to make your stay a legit one.There are many choices for what should be the employment pass you need to get for you and your family.

When it comes to employment pass in Singapore the two main consideration is the salary and education.Work experience so do your age and nationality will also be a consideration.

Provided that several people are certain of a minimum of ONE factor of their employment criteria, employment pass options will be presented around key individual criterion to expedite identification of the employment alternatives available to you. Given below are the key variables that may affect the corresponding work pass options.

Comments Off on Types Of Employment Pass In SingaporeFiled under: Employment | Tags: , , ,

Hedge Funds – How To Make The Right Investment Choices

by como ·

After the 2008 world economic crisis, finding the right investment vehicles seems much harder and trickier. Worldwide currency, which everyone believed in, has shown its face value and, overall people have lost their confidence in the popular investment means available on the global market. However, one of the post crisis positive effects is that individuals became more aware and cautious about the significance of managing their resources appropriately and securing their assets.

Although the present day market openings sets forth an apparently endless variety of choices, making the right investment is all about selecting that alternative apposite for your means, objectives and goals on short, medium and long term. Resorting to professionals is one of the best ways to drive your worth to the right target as long as you manage to find some trustworthy, skilled, and dependable experts.

In nowadays context, the hedge fund is fairly set at the higher end of the investment opportunities scale. Working as a private pool of capital, little known to the wide public, such funds rather address the sophisticated investor that can afford hefty net investments in the prospect of likewise gains. Unlike most types of funds, a hedge fund gathers capital from a fairly limited number of individuals and, naturally the investment amounts are significantly greater, being typically believed to range between one million and six million dollars. Nevertheless, there is no investment maximal threshold regulation in place.

Comments Off on Hedge Funds – How To Make The Right Investment ChoicesFiled under: Investment |

Different Functions of Field Service Management Software

by como ·

The software developed for field services management is an unbelievable invention of advanced technology. The services management software is designed to handle all kind of basic works engrossed throughout field services. From the origin to present world, software has come through several faces of development. As a result, almost all the field service managers around the world prefer it for managing their task accurately.

Nowadays, there are several vendors available, who offer required field service management software solutions for particular business. These solutions are fit for all kind of technological devices such as mobile phones and computers. The company that utilise such kind of software can manage its schedule and track of outside operations in an effective way. Moreover, the representatives of the company can get customer information, routes, schedules and information about regular supplies and parts with these. And the company manager can create outside resources and agents’ schedule, follow clients as well as employs’ history and ultimately manages the work order properly.

Additional function include repair centre, order management, trouble resolving, dispatching, route planning, partner management, customer appointment reminders, voice-generated and whole project management. The user can install it in his customer support systems as well as in a help desk, according to own comfort. Help desk installed software can resolve problems directly but unable to provide field-related functionality, and on the other side, customer support installation can manage scheduling and inventory management or may integrate to a complete system. Various field service management software also focus on entirely on one function.

Comments Off on Different Functions of Field Service Management SoftwareFiled under: Mangement | Tags: ,

What Is A Singapore Personalised Employment Pass

by como ·

You love Singapore. You want to work there. But what will you do if you are neither a Singapore citizen nor a resident of Singapore. Well, the answer is simple – you need a Personalised Employment Pass!
For foreigners who find Singapore an ideal place to visit, live in, find employment or even set up their own company, there are specific passes required before you can fully enjoy the benefits of being in the country. These passes are Personalised Employment Pass, Regular Employment Pass, EntrePass, Dependent’s Pass, and Long Term Visit Pass.

But if you only desire to find employment in Singapore, then you must apply for a Personalised Employment Pass.

A Personalised Employment Pass or PEP is a work visa granted to qualified foreigners who wish to find employment in Singapore but do not want to enter to an employment contract with a specific employer for a period of five (5) years.

Comments Off on What Is A Singapore Personalised Employment PassFiled under: Employment | Tags: , , ,

Configuration Management And Change Management Metrics You Can’t Miss

by como ·

In today’s complex and highly dynamic environment, succeeding in keeping your IT environment and business services running effectively with as little disruptions as possible is not an easy task. So if we do not measure where we are going then we are sure to get somewhere, but probably not where we would like to be. With so many possible metrics to follow, what are the top ones you should follow to succeed in your configuration management, change management, incident management, release management, problem management, availability management key process?

If we do not measure where we are going then we are sure to get somewhere, but probably not where we would like to be.

Below are the key metrics we’ve identified from the book Metrics for IT Service Management, that you can apply to guide your IT organization to success.

Comments Off on Configuration Management And Change Management Metrics You Can’t MissFiled under: Mangement | Tags: , , ,