42 votes
Accepted

Is there any financial benefit to being paid bi-weekly over monthly?

Especially for people just starting out, without much reserve, the biggest concern is the rhythm of their expenses and income. If you're paid every two weeks, but your rent, car loan, and other "big ...
Kate Gregory's user avatar
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15 votes

Is there any financial benefit to being paid bi-weekly over monthly?

I feel that getting money sooner than later is always advantageous. If I offered you the choice between getting: $100 ninety days from now or $100 a week from today or $50 today and $50 a week from ...
mattliu's user avatar
  • 280
9 votes

Take money out of paycheck into income producing asset(s)

You should contribute as much as you can to get the full company match. That is a 100% return on your investment and you're not going to beat that - it is literally free money. Once you've done ...
FrankRizzo's user avatar
  • 1,201
9 votes

Do I have to put 20% down on a condo so that I don't have to live in it for 1 year before renting it out to tenants?

This is how it works in my experience regarding getting a mortgage: Owner occupied. If you put less than 20% down you have to get PMI. Rental. You are required to put 20% down. Not all lenders will ...
mhoran_psprep's user avatar
8 votes
Accepted

Why are goodwill impairments on the statement of cash-flows of GE?

The section "Cash Flows - operating activities" starts with "Net earnings" which includes both cash and non-cash items. The non-cash items have to be adjusted with the opposite sign used in the income ...
Shannon Severance's user avatar
7 votes

Is there any financial benefit to being paid bi-weekly over monthly?

Many people, especially with lower income/skill/education, have poor money management skills to the point where they will not be able to ration their money for a full month. If the payment schedule is ...
David says Reinstate Monica's user avatar
6 votes

Is there any financial benefit to being paid bi-weekly over monthly?

Bi-weekly salaries often assume a 364-day year, and pay you 1/26 of your annual salary every two weeks. So you actually gain an extra week's salary every five or six years.
Mike Scott's user avatar
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5 votes

Is there any financial benefit to being paid bi-weekly over monthly?

Say one makes $60k/yr. The net gain is that half these funds are received about 2 weeks prior. To keep the math simple, let's assume a 12% return per year on the funds during this time. $30K * 12% is $...
JTP - Apologise to Monica's user avatar
5 votes

Is there any financial benefit to being paid bi-weekly over monthly?

Two comments on your calculations: I worked for many years at a community college (Ontario, Canada) where I received an annual salary for the contract period Sept 1, Year N, to August 31, Year (N + 1)...
DJohnM's user avatar
  • 4,294
5 votes

Is there any financial benefit to being paid bi-weekly over monthly?

The big difference is that you get your money earlier at the start. Suppose you start on a random day with payday on the last day of the month (monthly), or on every 2nd wednesday (biweekly), and it ...
Yakk's user avatar
  • 3,233
5 votes

Why are goodwill impairments on the statement of cash-flows of GE?

Goodwill is essentially the additional intangible value of an acquired asset. At some point GE bought something for $100 when the book value was only $90, as a result (to balance the accounting) a $...
quid's user avatar
  • 49k
5 votes

Investments that provide cash flow

Despite your wariness of stocks, take a look at preferred stocks. Investment grade issues currently offer about a 6% return. Like all securities, they are not risk free but if you pay attention to ...
Bob Baerker's user avatar
  • 76.4k
5 votes

Fastest way to pay off debt

Since three of your options involve risk, there's no way to know which would be "fastest". While they all have average returns greater than the interest on your mortgage, they can swing wildly from ...
D Stanley's user avatar
  • 135k
5 votes

To what extent do funds used to purchase stock transfer to the company who's shares are being purchased?

When you buy shares on the open market the person or entity that you purchase the shares from gets the proceeds. Generally that is NOT the company itself and they get nothing from the transaction ...
jwh20's user avatar
  • 3,468
5 votes

To what extent do funds used to purchase stock transfer to the company who's shares are being purchased?

When an institution buys existing shares in the market, the company gets no money. Divestment does hurt a company if we assume that other institutions aren't going to perfectly replace whatever demand ...
Justin Cave's user avatar
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5 votes
Accepted

Can I switch my car lease to prepaid?

You may want to read over this page and see that most times, the dealership will choose the option that is most profitable for them. Leasing, is after all, the most expensive way to drive a car. ...
Pete B.'s user avatar
  • 76.5k
5 votes

Why is the "cash flow statement" a thing? (It seems it can be deduced from the balance sheet and income statement anyway?)

Since you mention "my business", I assume you are looking at this as a small business owner, rather than an investor reviewing financial statements of public companies. In that case, it is ...
Grade 'Eh' Bacon's user avatar
4 votes

How to manage paying expenses when moving to a weekly pay schedule and with a pay increase?

This is really just a matter of planning. It's good that you don't want the train to go off the rails but really you just need to budget your fixed expenses. I do this by having two checking ...
quid's user avatar
  • 49k
4 votes
Accepted

I fear I may be laid off soon. How do ensure additional income?

You can certainly work food/package delivery or similar while still hunting a proper job to keep money flowing in. You could take on extra work now to supplement income if you were so motivated. If ...
Hart CO's user avatar
  • 70.5k
4 votes

If a company pays higher salary to employees, does that affect the Cash Flow of a company?

Yes, cash flow will be reduced, assuming at least some of that salary is in cash (i.e. not all stock or options), since it is a cash outflow with no corresponding cash inflow to offset it. But does ...
D Stanley's user avatar
  • 135k
3 votes

Confusion between revenue, earnings, investment and cash flow

I think you are asking mainly about the difference between earnings (net income) and cash flow. The basic point is that the value of a business is not just the balance in its checking account. The ...
nanoman's user avatar
  • 29.7k
3 votes
Accepted

Bi-weekly payments with dividends or other investments

Numerous stocks go ex-dividend every day of the week so you can craft any pay out schedule that amuses you. You can see past as well as future ex dates here: https://www.nasdaq.com/dividend-stocks/...
Bob Baerker's user avatar
  • 76.4k
3 votes

What are the pros and cons of buying in cash and remortgaging vs taking a mortgage right from the start?

If you mortgage after the fact you will usually pay an extra .25% higher on the interest rate because a "cash out" refinance is treated as riskier than a new home purchase mortgage. You might save ...
NL - Apologize to Monica's user avatar
3 votes

I fear I may be laid off soon. How do ensure additional income?

You mentioned you are "highly skilled". Do you think your employer agrees, and if so, do you feel they would be reluctant to let you go, except that maybe they cannot currently afford to ...
TTT's user avatar
  • 47.2k
3 votes

Cash flow and dividends

My question is what prevents companies to use all their extra money to collect bigger bonuses and then leave no money left over for the investors. Nothing prevents it, but corporate governance ...
D Stanley's user avatar
  • 135k
3 votes

Where did the money go in the recent GME short squeeze?

Let's try a very simplistic example involving only two market participants. Suppose I'm a a hedge fund and I sell 10,000 shares of GME short at $20 for an account credit of $200,000. You, a savvy ...
Bob Baerker's user avatar
  • 76.4k
3 votes

High dividends implied by high depreciation allowance?

It's an accounting thing. The expensive nuclear power stations have their capital value depreciated over time. The usual assumption is that some of the company's income will go to replace the assets, ...
richardb's user avatar
  • 1,940
3 votes

I've already filed my personal income taxes but didn't file my schedule E along with it

Am I screwed? You could be if you get audited before you have a chance to correct this. Especially if there's a lot of income involved (>$5K). You may also be missing out on deductions and ...
littleadv's user avatar
  • 174k
2 votes

How to manage paying expenses when moving to a weekly pay schedule and with a pay increase?

Unlike other responses, I am also not good with money. Actually, I understand personal finance well, but I'm not good at executing my financial life responsibly. Part is avoiding tough news, part is ...
Xalorous's user avatar
  • 2,855
2 votes

Why doesn't change in accounts receivable on balance sheet match cash flow statement?

QUICK ANSWER What @Mike Haskel wrote is generally correct that the indirect method for cash flow statement reporting, which most US companies use, can sometimes produce different results that don't ...
Catalyx's user avatar
  • 421

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