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 ...
- 12.7k
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 ...
- 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 ...
- 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 ...
- 136k
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 ...
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 ...
7
votes
Have plenty of cash flow but bad credit
Set up a meeting with the bank that handles your business checking account. Go there in person and bring your business statements: profit and loss, balance sheet, and a spreadsheet showing your ...
- 24k
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.
- 22.9k
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 $...
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)...
- 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 ...
- 3,143
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 $...
- 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 ...
- 75.7k
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 ...
- 130k
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 ...
- 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 ...
- 26.5k
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. ...
- 76.1k
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 ...
- 42k
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 ...
- 49k
4
votes
Have plenty of cash flow but bad credit
A) The Credit Rating Agencies only look at the month-end totals that are on your credit card, as this is all they ever get from the issuing bank. So a higher usage frequency as described would not ...
- 37.6k
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 ...
- 69.1k
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 ...
- 130k
3
votes
Have plenty of cash flow but bad credit
Sign up with credit karma. It will give you two scores for free and will show you credit cards you have a good chance in being approved for. Plus it will evaluate your score showing you the 6 items ...
- 1,782
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 ...
- 32.7k
3
votes
Calculating the Free Cash Flow (FCF)
First, don't use Yahoo's mangling of the XBRL data to do financial analysis. Get it from the horse's mouth:
http://www.sec.gov/edgar/searchedgar/companysearch.html
Search for Facebook, select the ...
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 ...
- 29.4k
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/...
- 75.7k
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 ...
- 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 ...
- 130k
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 ...
- 75.7k
Only top scored, non community-wiki answers of a minimum length are eligible