If you want to become educated on business matters, then one of the things that you should know is the financial statement of companies. You need to know how to read numbers because numbers don’t lie. Financial statements are the health check up of businesses. Just like humans, businesses can be subject of certain “diseases” that you should know before it’s too late. Here are some of the financial ratios that you should know to examine the health of a business. This

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Earlier, I made a post based on the things that I’ve learned from Kiyosaki’s teachings on the three basic business entities: Sole Proprietorship, Partnership, and Corporation. Kiyosaki says that most people earn money, pay taxes through withholding, and spend what little is left over. The rich do it differently. They earn money, spend it, and then pay taxes. The government gets less that way, and it’s legal. Employees of corporations: Earn       →     pay

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Passion is where your heart is. It is where your interests and skills thrive. When you have a passion for things, you tend to do better at those. Finding your passion is the key to success in all your endeavors.   If we compare Rich Dad vs. Poor Dad, Poor Dad’s slogans are the words of fear; Rich Dad’s slogans are the words of passion. While fear reflects disappointment and passivity, passion reflects confidence and energy. What builds wealth isn’t fear, but passion. Sometimes it is

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In one of my old posts, I gave some steps that you should take in your journey to financial freedom. Having financial freedom gives us the liberty of doing the the things that we enjoy without having to think too much on where to get the next meal that we would feed to our families. You may be familiar with Kiyosaki’s Cash Flow Quadrant where he divided people depending on where their income flows. It is the famous ESBI which stands for E-Employee, S-Self Employed, B-Big Business

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Ok, we tackled about the first two business entities already: Sole Proprietorship and Partnership. Like most of all of you know, the third business entity is Corporation. A third and very different choice of business form is the corporation. Unlike the sole proprietorship and the partnership, the corporation is an entity completely separate from you, the person incorporating it. Your company is now an “Inc,”, an Incorporated and with that designation comes some additional paperwork and

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Yesterday, we tackled about sole proprietorship as one of the three main types of business entities. As Kiyosaki said, sole proprietorship is not the kind of business entity that he can recommend because as a business owner, you would be “solely” responsible and liable to your business and there’s a risk of putting your personal assets in danger if the business fails. Today, we would tackle the next business entity and that is partnership. Like a sole proprietorship, a

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Let’s now review the three common business entities: Sole Proprietorship, Partnership and Corporation. In the US, there is one additional entity called LLC or Limited Liability Companies but since this is not applicable here in Philippines, let’s skip that for the moment. Let’s go first with the most common - Sole Proprietorship. “Sole”, as the word implies means “one” - you are the only sole owner of your business and you don’t have anyone to

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