Discounted Cash Flow Modelling to Achieve Personal Financial Goals

A discounted cash flow or DCF model is a style of calculation linking streams of future money flows to lump sum amounts. Discounted cash flow models have a range of business-related applications, and are used extensively by economists, accountants, actuaries, engineers, business valuators, finance professionals, and others.

For example, a company may wish to finance a project if (and only if) the Internal Rate of Return exceeds 10% per year. The anticipated development costs for the project may be large for the initial year. On the other hand, significant revenues are anticipated for Year 2 onward. The company directors rely on a DCF model to help determine whether or not the project's Internal Rate of Return exceed their 10% threshold.

Discounted cash flow models also have important applications in everyday life that are often overlooked. For example, consider auto dealers who advertise low finance rates to prospective clients. From a car buyer's perspective, low finance rates are understood to be good, since they mean lower monthly payments. By using a DCF model, a buyer can determine the monetary value on the low finance rate offer.

Everyday use of a Discounted Cash Flow model would include (but would not be restricted to) the following:

  • Mortgage Refinancing: For homeowners with a fixed-rate mortgage, refinancing often debts paying a penalty. A DCF model can be used to calculate whether the interest savings exceeded the penalty cost
  • First-Time Home Ownership: First time home ownership involves many new costs, and can be intimidating to many of us. A DCF model can help by comparing long term home ownership costs against rental costs
  • Lease or Own Vehicle: A DCF model can help car shoppers in their decision whether to buy or lease a vehicle

Examples of these and other everyday applications can be viewed at the author's website.

Through the above (and other) practical applications, Discounted Cash Flow models can assist all of us in achieving our personal financial goals.

How to Set Up a Family Game Night

Family Game nights allow you to bond with your family and just have a fun time. Here is how you can go about setting one up.

1. Find a time when everyone will be available

Were all busy, the first thing you need to do is to plan it in advanced. Ask other people when they will be available and make it a date to look forward too. Put a reminder on the refrigerator so everyone knows when it is.

2. Find Some Games to play

You can’t have a family game night without games, so try to find some games somewhere; you may only need a deck of cards. You could also ask around and see if anyone knows of a fun game that you guys could play.

3. Decide what snacks you will have

People like to munch on things. Putting out a few cut up vegetables, or some chips can be a great idea. You might even want to replace dinner with snacks at family game night, just to mix things up a little.

4. Decide if it will be in the family

You have to decide if it will only be in the family, so only people in your family will be there, or not. I like the fact of inviting other people. You can invite other people and see if your kids want to invite other people the more the merrier.

This also is a great way to meet who your kids are hanging out with.

5. Have Fun

Family game night is all about everyone having fun and making good memories. So remember to go in it with a positive attitude and be happy. Remember if you aren’t having fun it can rub off and make it so no one is having fun either.

Wealthy Affiliate – Affiliate Marketing University

I have been a member of wealthy affiliate for what seems like forever now. Before wealthy affiliate the only income I made online was from MLMs or money game deals, which was far less than a living. I got tired of paying just for the opportunity to make money quit all everything I was doing and find a better way.

The first thing I purchased was the rich jerk. It was OK for someone completely new to affiliate marketing. Information overload, but I kept learning more about affiliate marketing industry after buying it.

Which lead me to my second eBook purchase affiliate project x. Great eBook in my opinion. Its whats really got me rolling. I made some money and lost more following some of the strategies. But the fact that I made some commission is what really got me pumped up about this industry.

I signed up for the course and landed on a landing page promoting a video tour for wealthy affiliate. I decided WA was exactly what I’ve been looking for and signed up after reading the sales page.

When I joined up I followed the 8 week course and hung around in the forums, in my opinion the best part of wealthy affiliate.

With the information I learned, I decided to tempt fate and venture back in to PPC where I lost tons of money before. My first few campaigns were a learning experience, but through the help of founders Kyle, Carson and members at the forum I obtained first profitable ppc campaign. Don’t remember the exact ROI, but I was making $50 to $100 dollars a day off a $10 to $30 spend daily spend.

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My Master’s Degree – How Should I Talk And Write About It?

There are many circumstances in which foreign student have to talk about their intentions to study for advanced degrees. Statements of purpose written to accompany applications for university admission are the most obvious case, but the same situation comes up in interviews with recruiters, IELTS Speaking Tasks, and verbal interactions of all kinds with the officials at the universities you will be attending.

Unfortunately, it’s the time many foreign students say things that sound the least “English.” As a result, these unavoidable statements can often suggest that your command of English is weak. Even though all the native English speakers who regularly hear foreign students make these statements have long gotten used to hearing them spoken incorrectly, the mistake always registers with them at some level, however unconsciously.

To make the best impression on university administrators and IELTS examiners, use the right language to talk about your degree and your academic sentences.

The following are the most common mistakes:

“I’m going to learn a master’s degree.”

“I’m going to study a master’s degree.”

“I plan to learn a master degree.”

Don’t make these unnecessary but common mistakes. All that is necessary for you not to make them is to understand clearly what the appropriate words are and mean.

- A “master’s degree” is a noun. When written, it always has an apostrophe, that is, “master’s degree,” not “masters degree” or, worse, “master degree.”

- A master’s degree is not, however, a field of study. We don’t study a master’s degree, we study a field in which we earn (or, more colloquially, “get”) a maser’s degree. Therefore, in English, we say that we plan “to earn a master’s degree in marketing [or the name of some other field].”

- The degree is what we get as a result of studying, not what we study. So, when we talk about studying, we normally say, “I plan to study economics [or some other field].” It’s not incorrect to say, “I plan to learn marketing,” but “I plan to study marketing” is more normal, idiomatic English.

- The certificate that confirms that we have successfully completed a course of study and earned an advanced degree (not necessarily a master’s degree) is called a “diploma.” You can say, “I plan to earn a diploma in marketing,” or, if you have completed the degree, “I have a diploma in economics.” But if you do, realize that a native English speaker will not necessarily understand which graduate degree you have earned.

- The most appropriate verbs to use with “master’s degree,” prior to receiving the degree, are “study for,” “earn,” or “pursue.” So, you should say, “I plan to study for a master’s degree in communications,” or “I plan to earn a master’s degree in marketing,” or “I plan to pursue a master’s degree in engineering.”

This may seem like a minor matter in terms of language. However, making the most common mistakes can lead a university official or IELTS examiner to think less of your English language skills or, in the worst case, your intelligence.

So, practice writing and saying these simple but important sentences correctly.

Incorrect: I’m going to study a master degree.

Correct: I’m going to study for a master’s degree.

Incorrect: I will study a master’s degree of marketing.

Correct: I will study for a master’s degree in marketing.

Incorrect: I will learn a masters degree in economics.

Correct: I plan to earn a master’s degree in economics.