“Would you like that whip or no whip? Non-fat or soy? Tall, grande, or venti?” Your answer should depend on the size of your metabolism and your wallet, but if that was the way most Americans shopped, our country would be a lot less obese and not nearly as deep in debt.

For those of us in the latte generation, these questions have become an integral part of our culture… and a gradual source of strain on the pocketbook, so gradual that many of us don’t realize where all our money has gone until we see “Starbucks” listed multiple times on our monthly statement. $3.25 for a coffee may not seem like much, but when you multiply that by a couple beverages a day and add that up over the course of a week and a month, our Starbucks expenditures become substantial. The same goes for any temptation’getting your nails done, buying music or books, seeing movies… You know where you tend to rather be a sucker.

By introducing the Starbucks Card, the company hoped to make it easier for people to get that Frappachino without feeling like they were going over budget… and have they ever succeeded. After all, the money is already on the card, so why not spend it and spend it, right? It acts like a debit card, so you never have to worry about overspending. And when you run out, it’s so easy to hand over your credit card and load another $20. Did I mention that you can “save more money” by getting a Starbucks credit card which can serve as both a universal VISA and as a debit card at Starbucks? Now you can earn Duetto dollars with every purchase outside Starbucks and use that money towards your next latte. It’s all about customer service, right? As they say on their website: “A coffee break on a Card: A Starbucks Card is the easiest way for you – or someone you know – to enjoy Starbucks. How can we help you today?”

So you want to still enjoy your coffee or other little self-indulgence, but not hand your entire paycheck over to a Fortune 500 company? No problem. I take a different view on how to use what I like to call the “latte card.” Just follow these easy steps that work for me:

As long as you use your Starbucks card to your advantage and not the company’s, you will have a fatter wallet and a slimmer waistline! My own Starbucks spending has decreased maybe two-fold. I keep thinking, “Mmm, I only have ‘x’ dollars on this card. Maybe I’ll hold off this time.” And I keep passing up Starbucks!

I messed up this week.

It’s like I wasn’t hungry last week so I decided not to buy any groceries for this week either. Of course, now I’m starving. I’m angry that the cupboard is empty, and now I’m kicking myself. Why didn’t I think ahead last week? Why didn’t I buy anything to eat?

We make these dumb mistakes all the time. Instead of thinking about tomorrow, we neglect it. For example, every week that you put off investing $20,000 at 5%, you miss a gain of $84. (How long does it take you to earn $84 at work? Probably less than the time it would have taken to invest that money.)

The most ironic part of procrastination is the loss – inflation means you’re actually losing that money.

How many groceries could you buy with that?

If you and I want to play with the big dogs, we have to be thinking like them. They’re the people that are always a buck ahead, a step in the lead, and forever laughing at our lags… unless we change. In whatever financial avenue you’re hoping to strike it rich in, I’m making some adjustments in my strategy that you might want to consider, too.

1. Get networking – ‘someone’s always going to know something before you. In my case, my husband is always hungry before I am, and he reminds me. Buddy up. And if you have to pay them a little to invest your money and sell your property, I still think it’s worth it.

2. Get your paperwork together – ‘if you want a stock, have money ready to invest ASAP. If you’re buying a huge investment, establish pre-approval with a bank before the deal pops up. Update your income statements, cash flow statements, balance sheet, checkbook… you want to be ready to go by knowing what you have and showing others what you have, too.

3. Get persistent – don’t let one slip slow you. Yeah. I’m frustrated with myself. But pouting isn’t the solution. Better strategizing is.

4. Get ready to drop everything NOW! – Good deals disappear in minutes. You’ve seen how the stock market fluctuates throughout the day. Other markets do the same. Waiting until the time works for you doesn’t work when you want a deal…tomorrow…next week…

Some people obsessed with Cramer on “Mad Money” dump all of their money into each stock he recommends that day. The stock price shoots up because everyone has the same strategy. These people don’t make money, of course. They’re buying groceries after their stomaches grumbled.

Meanwhile, the prompt grocery shoppers who bought Kramer’s suggestions before Kramer suggested them are getting good and fat. They’re stuffing their faces and smirking at every starving stock shopper.

Wouldn’t you prefer to pick out your own dinner tonight?

The Retained Earnings Statement is the easiest accounting statement in the world to prepare and understand. It simply shows the amount of money that the company has at the end of the current time period (Usually Per Month, Quarter, or Year) after you adjust it for the income/loss and dividends payed during the period.

So the formula is simply

Retained Earnings at beginning of period
+ Net Income (as determined from your Income Statement)
- Dividends Paid
= Retained Earnings at end of period

And that’s all there is to it, a little addition and a little subtraction. If there is a net loss instead of positive gains with net income, then the number is simply subtracted. That case would look like the following.

Retained Earnings at beginning of period
- Net Loss
- Dividends Paid
= Retained Earnings at end of period

And of course, here is Aridni’s RE statment for December in the year 3000 using the (currently!) ficticious currency ‘Planet Aridni Dollars’

These statements can be useful to investors looking to find stocks with a history of high paying dividends. So if you are interested in setting up a Dividend Reinvestment Plan (commonly called a DRIP) then this should be something you might want to check out on you prospective companies before buying.

Make A Strong Income Statement

Author: Todd - Achieving Goals,Business Building,Managing Finances

In a previous article I have talked about setting up a balance sheet for your company. Now I would like to cover the next type of statement you will run into during your time in business. This form is none other than the Income Statement.

The income statement has a simple and straightforward purpose, to report the success or failure of the company’s operations for a period of time. The net income (or loss) is determined by deducting expenses from revenues.

Outside of the company itself, there are two groups interested in a company’s income statement. Investors are interested in the past income because it can give information about possible future income which may affect the stock price. The second group of interested people would be creditors; they certainly don’t want to lend money if there is no way that the company can pay it back.

Here is an example using the fictitious currency ‘Planet Aridni Dollars.’

It is important to notice that any amounts received from issuing stock are not revenues, and any amounts paid out as dividends are not expenses. Neither one of those are reported on this statement.

After your income statement is complete, you are ready to go on to your retained earnings statement next, which will show the amounts and causes of changes in a companies working capital.