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.

5 Deadly Financial Mistakes You Should Avoid Now To Keep Out Of Debt Later!

Every year more families are going to the brink of financial ruin because they never properly considered their financial future. For some, it's just to stressful or emotionally uncomfortable to think about and important financial decisions get put off indefinitely. For many, they do not know and were never taught some basic financial planning tips to keep them out of debt in the future. Here are five financial mistakes you should avoid now to keep your financial future bright:

5 Financial Mistakes To Avoid:

1. Buying on credit: Today's interest rates are fairly low, but this does not mean you should buy excessively on credit! Carrying a large balance on credit cards month to month is a recipe for disaster. Finance charges alone can slowly eat you up. Buying a car on credit ties up even more of your future earnings for debt repayment.

Just a few decades ago buying so much on credit was unheard of. Children were taught early on what a huge mistake this was. We all need to relearn this lesson and eliminate buying on credit to keep ourselves out of debt

2. Making financial decision based on emotion: When you are going through great stress or emotional turmoil you are most vulnerable to making disastrous financial financial decisions. It is when you are feeling some king of pressure that you are most likely to make silly decisions that get you into trouble later. Do not make a big money decision when you are emotionally vulnerable.

3. Not adequately insuring against catastrophic risk: Every year families are financially devastated because they are not protected against disaster. Loss of home and assets to fire and flood are very common events that a surprising number of people do not protect against with insurance. You should also protect against disaster common to your area. Earthquakes and tornadoes for example. Just as important is some kind of life insurance to protect your loved ones in case of death.

4. Falling for the slick salesmen pitch: They say a sucker is born every minute. And you can be sure there is a slick salesmen waiting to take advantage of every one of them! You should never enter into any financial decision based on salesmen pressure tactics or one-time offers. Great deals that can not wait for you to think on it or obtain a second opinion are often financial disasters waiting to happen.

5. Not planning out your financial future: For many people it is so much easier to put off the tough financial planning right now and get to it someday in the future. Well we know how that story goes. Years into the future many families are neck deep in debt with no relief in sight. And it could of all been avoided with some sensible planning. Talk to a financial planner today so you can be debt free tomorrow!

There you have it. Five important financial mistakes to avoid so you can be both debt and worry free in your future. No matter where you are at right now financially, it's not to late to get started. Make an appointment with a financial planner today and get your financial future properly planned out. It's one of the most important things you can do for your family and for yourself.

Fashion Jewelry – The Peridot Birthstone

Birthstones have gained its popularity in the 70s. Although it has waned in the 90s, it has made its comeback into the 21st century along with other jewelry and fashion accessories. Birthstones are not only fashion statements but personal statements as well. People love the idea of ​​wearing the stone designated to their birth month.

The Peridot birthstone is no exception. It is the birthstones of those people born on the month of August. It is a sparkling golden green in color and does not change in color. This gemstone is ideal for women born on August and who also happens to have clear green eyes. It brings out the green in their eyes. Because of its clear, sparkling green color, the Peridot is also very refreshing to look at. It has a calming effect as one gazes into the multi-dimensionally-cut Peridot green color. The Peridot gemstone is even called the "evening emerald" in some jewelry circles.

The Peridot has come a long way in history of fashion jewelry and fashion accessories. In ancient Egypt, the Peridots were often used along with other sterling materials as adornment for queens and pharaoh's headdresses. In the Medieval Period, the Peridot gemstone had been also used, along with some of the semi-precious and precious stones, to adorn, and beautify churches, and sacred church relics such as crucifixes, chalices used in mass, altars, etc.

The Peridot gemstone is ideal for fashion jewelry or fashion accessories such as necklaces, bracelets, earrings, and anklets. Peridots look best with gold, copper and bronze settings, giving it a rustic look. Most especially, Peridots are excellent with silver and white gold settings. This lighter pairing creates a dainty piece of fashion jewelry that can be used in day or night events.

As fashion jewelry and fashion accessories need not be expensive, this light green semi-precious stone can definitely serve the purpose of adornment for the August birthday celebrant without draining the pockets unnecessarily.

Simferopol, the Capital of Crimea – Simferopol City Guide

Simferopol is known as the capital and biggest city of Crimea. Every year millions of tourists go through this city to the Crimean resorts, such as Yalta, Sevastopol and Evpatoria. Today Crimea belongs to Ukraine and is its most southern region. After the collapse of the USSR in 1991, former Soviet Republics declared their independence, new countries emerged and Ukraine was one of them.

Simferopol is a pretty old, ancient city. Different civilizations occupied the area where the city is now situated over centuries. Finally, the city of Simferopol was founded by Russians in 1885. In old Greek Simferopol means a city of common good, or city-collector. The city was involved in many wars and battles during its long history. During the Second World War the Crimean region was tormented by the Nazi Germany. They took occupation of the city and used it as a strong base to withstand many attacks. Really, the history of this city is so rich! There is a number of historical attractions and artifacts which makes Simferopol a popular tourist destination for many tourists visiting it every year.

At present the total population of Simferopol is reported to be around four hundred thousand people. Administratively, the city is divided into 3 divisions. Due to its central location on the Crimean peninsula, it is a convenient place for many industries and facilities. Food and engineering industries are the two key ones that were developed in the city years ago, in the Soviet time. However more business is being established here today and the economics of the city keeps growing.

Simferopol has always been a cultural and educational center of the Crimea region. There are several Universities and many more colleges in the city. It is not surprising that Simferopol is called a student city sometimes. This city is also known with its famous theaters, such as the Crimean Academic Russian Drama Theater, Simferopol Puppet Theater and Crimean Ukrainian Music Theater. The city’s main public transport system consists of trolleys and buses that run throughout the city and connect the central area with suburbs. The Simferopol International Airport in the only one in Crimea. Different Ukrainian and international airlines have daily flights to Simferopol from Kiev, Moscow, Istanbul, and in summertime Simferopol is also connected with Germany, Israel, Armenia, Latvia, Uzbekistan and other countries. The majority of tourists get to Simferopol by train through. This transportation remains the most popular one in Ukraine due to affordable prices and a decent level of comfort the trains provide.

Since Simferopol is the capital of the Autonomous Republic of Crimea, the city is responsible for the administrative duties related to the special administrative status of Crimea within Ukraine. The Parliament of Crimea as well as the Cabinet of Ministers and other administrative institutions of the Crimean Republic are situated in Simferopol. Although Crimea has the status of a republic, the Crimean Parliament is subordinate to the Supreme Parliament of Ukraine which is situated in Kiev, the capital city of Ukraine.

Today Simferopol is a political, administrative, educational and cultural center of Crimea and of the whole Southern region of Ukraine as well as a popular tourist destination.