Financial decisions are something that we studied in this class. There are companies that have to decide many things about finances. They have to decide if they want long-term financing or short-term financing. They must go through a decision process. Many factors, including interest rates and terms of the loans can affect decisions. Many companies have financial forecasting to help make financial decisions. “Corporations would like many financing alternatives in order to minimize their cost of funds at any point” (Block, Danielsen, & Hirt, 2011,p. 169). Financing and money are a major thing that is referenced many times throughout the Bible. The book of Proverbs 22:7 tells us, “The rich rules over the poor, and the borrower is the slave of the lender” (Proverbs 22:7, ESV). The Bible teaches us that if you borrow, you are subject to the lender and any terms they may have. The Bible teaches us that money is not what is important in our lives. The book of Romans 13:8 tells us, “Owe no one anything, except to love each other, for the one who loves another has fulfilled the law” (Romans 13:8, ESV). That being said, it is very hard to have a business and have enough funds to be able to operate without ever having to borrow funds. You have to make sure that there is enough cash flow and not get into too much debt to be a successful business. Businesses have to make many financial decisions. Every person out there has to make many financial decisions within their lives. We should all follow God’s word as much as possible. Personally, if we do this then we will not let money or finances be the main focus in our lives. Time Value of Money The Economist website describe time value of money as, “The idea that a dollar toda... ... middle of paper ... ...ng to receive the credit already owed to them. They also should not overly stock their business with items that are not selling quickly. In conclusion, no matter what part of business we might venture into, as Christians, we must keep up the faith and continue to follow the word of God. God should be our guide in every financial decision, as we are His stewards (1 Corinthians 4:1). As previously mentioned, in the Parable of the Talents, we should not let our money sit and be stagnant, but rather invest that which God has given to us. And finally, as aspiring business men and women, we should be diligent in monitoring not just our current asset accounts, but also our liabilities and financial statements. However, we must be quick to remember 1 John 2:15 (NKJV), “ Do not love the world or the things of the world. If anyone loves the world, the Father is not in him.”
We are all God’s stewards of time and money. Time and money are gifts from God, and they are also gifts from your ministry for your ministry so it is imperative that it is spent wisely (Fagerstrom 255). The things that guide your personal finances will more than likely be the things that guide your ministry finances (Fagerstrom 230). It is important to be a giver and not a taker. Having a spirit of hoarding resources and money are the people/ministries that you often see struggling.
Conversion to modern worth: Lawrence H. Officer and Samuel H. Williamson. « Purchasing Power of Money in the United States from 1774 to 2010 » MeasuringWorth. 2011.
The Bible does not say that money is bad. However, what it does say is
Time value of money (TVM) is a monetary concept that is very important to all parts of the financial world. This concept basically says that $100 today is worth more than $100 a year from now (or anytime in the future). Also, an individual should earn some value of compensation for not spending their money. This compensation is essentially called the interest that will be earned on the initial cash. What about when an individual opts to receive money in the future rather than today? That can lead to problems. This is because they are taking a gamble by loaning money- since there is almost always risk in loaning money. A couple of these risks include inflation and default risk. Default risk means that the person who borrowed the money does not repay the money to the person that loaned it. Inflation means that the general prices of products will rise. How does all this work? In theory the person that gets the $100 today could invest it, even at a very low annual percentage rate (APR), and still come out ahead. If they invest it at 2% APR, they would have $102 at the end of one year. Th...
A traditional analysis gives a mistakenly high value to dollars in the future, money in the future is given the same value as money today; but in reality, money in the fu...
It has been a long time since the first time I heard the passage in my business classes. Of course like many other student with business degree, money was my reason to pick the major. But with the time I learned that I was doing everything for the wrong reasons. When I first read 1 timothy 6:6-10 on my own, I though that making money was wrong. But I learned that as long as we do it for the right reasons as helping others or giving a percentage of what we make to our church. Money is not what is driving us to an evil world but the “love” for that money. What we do with the money we make, and how we earn that money. Christians should be content with the home, clothing, and food they have in life. People who love money are selfish and always ask for more but are never happy. Desire for money will cause people to find themselves in misery in this life, and it will cause them to get lost from the faith in Jesus Christ and end up in eternal destruction in hell.
The author indicates great qualities in regards to economics and wealth. He talks about how the bible states individuals should have qualities of a strong work ethic, and other entrepreneurial characteristics such as initiative and perseverance. He also highlights as the main elements of a biblical approach to economics are: 1. The materials in the world are good for man because GOD created it, but the love for it leads to sin. 2. GOD owns the world’s economic resources and humans are stewards of the resources. 3. The wealth creation process is connected to the dominion GOD gave us and the fact that we are made in his image. 4. You should work as you work for GOD, because you and your work are ordained by the Lord. 5. If you work you are responsible for taking care of yourself and your family. 6. The working community is
The entrepeneur must always be prepared for the unexpected, such as illness. To ensure that you can take time off work for sickness if necessary, you need to get your finances in order. Personal financial planning is just as important as business financial planning. In this section we will concentrate on your personal finances.
"Money has a time value associated with it and therefore a dollar received today is worth more than a dollar to be received in the future" (Block, Hirt, 2005). The time value of money may be based on the concept that one would prefer to receive a fixed payment today rather than the same fixed payment at a future date. This paper discusses some of the key components of time value of money and identifies the application of time value of money in various businesses.
Although, financial statements are created by accountants it is imperative for CFOs to review such declarations to confirm funds are being used advantageously. Consequently, CFOs must stay current with their accounting and financial knowledge to interpret such reports and adapt to the ever changing competitive environment. The data within the reports assist the CFO with the planning and managing of budgets, projects, and purchases. Witzel 2010 stated, a CFO could control waste “by analyzing potential new projects and eliminating those that were not worthwhile” (p. 27). Although, it is impossible to have a flawless sales forecast due to the uncertainty of the economy, CFOs should still examine the prediction of future sales. The forecast helps the CFO to determine the assets and financing needed to support those sales. The intent is to examine the relationship between investing and financing at the different level of sales. Khiyara 2015 stated, “visibility into the sales cycle is paramount and the consequences of poor analytics and visibility can be monumental” (p. 5). Khiyara 2015 also stated, “revenue management is critical to the growth and success of the company and it is critical for CFOs to be included in the sales cycle” (p. 5). Thus, if a CFO stops pursuing continuous education the organization will suffer from inadequate and/or obsolete knowledge. Moreover,
A personal financial plan is essentially important for any person and their loved ones to minimize future hardships and difficult financial situations. Short and long-term financial freedom and stability is something an individual wants to have through to the end of his or her life. Financially planning for one’s retirement years is vital so a person does not sustain major unhappiness or unnecessary pain in what is supposed to be the reward for working so hard in their younger years.
Risks are essence of life. In the beginning, they are our instinct. Risks are the essence of life. In the beginning, they are our instinct. We learn to crawl despite the bruises on our knees and elbows. We learn to walk despite the many falls we endure. But as we get older and gain a greater consciousness of the world around us, somewhere along the way we are presented with failure. At that point, we begin to fear the pain of failure and try to eliminate most risks from our life. However, where would we be without our sense of exploration, our willingness to and to try new things despite the pitfalls that await us? The saying goes, “No pain, no gain.” That attitude is characteristic of all great thinkers and innovators in our society.
INTRODUCTION: People misquote, “money is the root of all evil”; however, 1 Timothy 6:10 states, “the love of money that is the root of all kinds of evil.” The world has fallen into the belief that simply having and loving money will be the cure-all. This belief has sent our country into a downward spiral of indebtedness and greed. My dream is to help those who can’t help themselves; those who were once blinded by this belief, but now have clearer vision and want to get back on the right track. My ultimate goal is to become a budget coach for businesses and families, guiding and teaching them how to manage their money instead of their money managing them. While money management skills are needed everywhere, I would prefer to stay local. There
The first advantage of interest income is interest income is more sustainable and high quality of earning to a bank from loan, share financing, hire purchase and others. The interest from a loan is a fixed interest agreed to charge by a bank to the borrower with a certain period of time. If the borrower is responsible, the repayment will be made in a due date with the actual amount. The hirer, the person who has option to buy goods in accordance is required to pay the monthly installment to the bank under the hire purchase agreement. This kind of payment is sustainable as the hirer has already signed the agreement with the bank. The goods will be obtained by bank if the hirer
Saving money is difficult, but it does not have to be. Once you get started, it gradually gets easier to save more money. Before long, you can use your savings to achieve your financial goals. By practicing good saving techniques, you can accrue more money during your lifetime.