Your Financial Story - Does it Serve You?

Our reality is based on our beliefs. This is true for our personal finances, too. The state of our financial affairs is a direct effect of a cause that preceded it, namely, the thoughts we held. Thoughts held for a length of time and with intensity become beliefs and there is a crystalization that occurs, creating a physical reality based on those beliefs. This is a rather simplification of how thought becomes reality.

When we realize how good we are at creating beliefs unconsciously, we start to understand how we can undo crystalized beliefs that no longer serve us and replace them with beliefs that do serve our greater purpose. If life is not working out for you, if you're not getting the results you desire, take time to question what beliefs you hold. What do you believe? What do you CHOOSE to believe? What stories are you holding onto and are they serving your purpose?

Janey was a mother of three and believed she had to stay in an unhealthy relationship. Her belief was not based on any moral obligation, but one simply of financial need. She stayed because of the fear that if she became a single mom of three, she would be poor. She was not supporting herself financially now and could not see any way of supporting herself outside of the relationship. She stayed out of fear and put her own soul needs on the back burner. This is a costly mistake many women make.

She had a sociology student friend tell her that women with kids suffer greatly after divorce. Statistically speaking, men fare better financially post-divorce. Whether this is true or not to you reading right now, is not in question. What is important is in the effect this belief had on Janey and the choices she made in her life. After all, she respected this friend's wisdom. She unconsciously chose to believe this statistic as truth. She held this story. For a long, long time.

But it IS true, you say? Is it? Is it absolutely true that women suffer financially post-divorce? Is it possible that not ALL women suffer financially? If the possibility exists that some women who are single moms do fine financially following a relationship breakdown, why wouldn't it be possible for Janey to be one of those statistics?

We have to ask ourselves what we believe about the world and then determine if holding that belief is serving us. Is the belief allowing you to move closer to your goal in life? Closer to our natural spiritual state of abundance, peace and beauty? In Janey's case, to continue to believe the story of "single moms are poor", it didn't serve her at all.

If we choose to believe that universal story - and it's also just a story - that "anything is possible", why do we continue to hold onto other stories that hold us back from our fulfillment?

If you're feeling stuck in your finances, chances are pretty good there is some story stuck in your belief system that is keeping you there. Our beliefs direct our lives. Beliefs are nothing more than thoughts that have been activated repetitively so as to become crystalized in us. For the most part, we do this unconsciously. When we become aware of our ability to influence our reality based on the thoughts we think, a new reality is born.

It's a process and a new way of thinking for those of us coming to understand finances from a spiritual standpoint. There is no wrong way to travel this journey. Janey found out the courageous way that single moms do not have to live in poverty. She left the unhealthy relationship. She did experience poverty - because that is what she believed at the time. Through this period of hardship, she realized she needed to drastically change her beliefs if she was going to rock this life of hers, and she did. She questioned her beliefs and determined if they were serving her purpose. If they didn't, she chose to think differently. Those thoughts eventually crystalized into beliefs that served her and she was free.

Premium Credit Cards Explained

If you have worked hard to improve your credit score, earn a good salary and fly or otherwise travel or even dine out a lot then a Premium Credit Card would be worth your while enquiring into.

So what makes premium credit cards different from a regular card? Well for starters there is usually fairly tough criteria to meet before you can apply. As mentioned your credit score or rating needs to be at the top of the scale and you need to be earning a salary above what is usually considered to be the "normal".

The annual fees for a premium credit card can be exceedingly high, in some cases as much as one thousand dollars! Now before you scoff at such outrageous figures let's take a look at what you get in return. While these perks are not universally applicable across all cards, each card and it's provider is different, there will be a number of cards that feature one or more of these benefits on the one card.

The first thing to consider is that they usually have no preset spending limit and some offer credit lines of up to two hundred and fifty thousand dollars! The next thing to consider is that the travel rewards associated with the card will go far beyond the usual frequent flyer points. Receiving a complimentary same class airline ticket for a companion is not unusual, as is a personal travel counselor to handle all of your travel arrangements and needs.

And consider these perks also, access to private, semi-private and high-end public gold courses around the world, extra perks and upgrades at hotels and the frequent flyer rewards are of course a lot bigger and better than what a regular credit card rewards program will offer.

These are just a small sample of the benefits of owning a premium credit card. Obviously they are more geared to people that travel a lot and enjoy being pampered and looked after well but it must always be kept in mind that in effect you are paying for these privileges. The ideal card is one that offers rewards and perks that far outweigh the extra costs associated with the card.

Sure there will be people that can easily justify having a Premium Credit Card and they more than likely can't or don't want to do without the added benefits that come with owning such a card but if you can't see yourself actively taking advantage of these added bonuses you need to think twice. This card may end up costing you more than you get back!

What is the World Bank, and Why is it Important to the Price of Gold?

The World Bank is a central source of monetary and technical assistance to developing countries all around the world. Their duty is to fight poverty with ardour and professionalism for permanent results, and to help people help themselves and their environment by providing wherewithal, sharing information, building capacity, and forging partnerships in the public and private regions. It came into recognized existence on 27th December, 1945, following international endorsement of the Bretton Woods agreement, which came into existence from the United Nations Monetary and Financial Conference.

World bank endows low-interest loans, interest-free credits and grants to developing countries for a wide range of functions, which include investments in education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource administration.

World Bank has five departments, where each department is allocated a specific mission. First agency is of International Bank for Reconstruction and Development (IBRD) and second agency is of International Development Association (IDA). Their activities are persistent on developing countries, in fields such as human development, agriculture and rural development, environmental protection, infrastructure and governance.

The IBRD and IDA grant loans at privileged rates to member countries, as well as grants to the poor countries. Loans or grants for precise projects are often linked to wider strategy changes in the sector or the economy. For example, a loan to perk up coastal environmental management may be linked to expansion of new environmental institutions at national and local levels and the execution of new regulations to limit pollution.

International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) are the other two agencies whose chief focus is on investment in the private sector and they also offer insurance, whereas the fifth agency, International Centre for Settlement of Investment Disputes (ICSID), works to steadfastness the disputes between its member countries and provides support whenever needed.

World Bank also plays a major role in setting the price of gold because it is considered as a major unit of trade. The value of currency depends on gold as it measures the changes in interest rates of one currency with another. Besides, countries and banks also purchase gold and set its prices in order to make its reserves brawny. If prices of gold are set too high in a country, that country will face a high rate of poverty; hence, World Bank maintains a stable rate of gold in order to avoid the severe problems caused by poverty.

World Bank is a renowned institution, which provides its services to more than 180 member countries. Its five agencies focus on eliminating poverty, and their aim is to raise the living standards of under developing countries. Besides, World Bank maintains gold prices in order to avoid high rates of poverty in developing countries.

The World Bank provides both loans and grants. Even the loans are at a concession as they are given to countries that have no access to international capital markets. Furthermore, the loans, both to poor and middle-income countries, are at below market-value interest rates.

5 Steps to Gaining Financial Knowledge

Here are some steps you can follow to gain financial knowledge:

One - Hiring People

When hiring people to work for you, consider candidates who
are more knowledgeable in their position than you are. Don't be
intimidated by their ability to perform their job better than you
could. This type of employee is an asset to his or her boss, not
a threat. Pay the employee well to ensure loyalty and reap the
benefits of another's knowledge. You won't have to worry about
whether or not a person is able to competently perform the job.
This frees up your time, so you can concentrate on the aspects of
your money-making ventures. Still, watch out for "double
standards" in any information you obtain. Remember that it's
better to reconfirm information than recover from poor business
decisions.

Two - Profit

Profit can be made from changes. Modified business practices,
especially those that involve bargains, can increase revenue. For
example, when a supermarket announces a sale, the first reaction
most people have is to stock up on essential items, buying more
and saving more at the same time. Another example is landscaping
and painting a home before selling to improve the curb appeal and
raise the property value.

When we analyze this reaction, however, it seems peculiar that
the opposite happens during stock market price crashes. People
tend to shy away from discounted transactions on Wall Street but
not the supermarket. Why is this? Consider the opposite as
well. On the other hand, when prices in a supermarket go up,
shopping slows down. But when stock market prices go up, people
start buying. This seems to go against logic.

Three - Asset and Liability

Know the difference between an asset and a liability, and
you'll be on your way to financial knowledge. Whether something
is an asset or a liability depends entirely upon the view of its
owner. One person's asset is another person's liability - and
vice verse. Here's a rule of thumb: Assets earn interest.
Liabilities don't.

Four - Business Methods

Consider unconventional ways of doing business. Too often we
stick to what has worked in the past. We say: "This is the way
we do it here" or "We don't do that here." But the conventional
way of conducting business might be most effective. Innovation
could end up saving you time and money. Money saved is money
made.

Five - High Emotions

High emotions, especially fear, can block your path to
financial knowledge. Don't let your financial ability submit to
your emotions. Part of the learning process includes managing
your emotions. Similarly, financial decisions made without proper
financial training can be disastrous.

Money comes and goes, but -- unlike money - current financial
knowledge stays forever. If you want financial stability to stick
around too, consider consistently updating your financial
knowledge. If a person obtains a lot of cash without financial
ability, his or her money is as good as gone. Scenarios have
become cliché that depict athletes or celebrities who acquire
millions of dollars a year, only to lose it when their heydays
are over.

Don't feel limited by your formal education. Use it in
conjunction with your real-world financial education. That
begins when you decide to actively seek out ways to grow and
maintain your financial wealth.

The International Financial Reporting Standards

The International Financial Reporting standards (FASB) are a set of standards used to establish a uniform global accounting standards. FASB also assumes the role of working hand and hand with the International Accounting Standards Board (IASB) to converge International Financial Reporting Standards and generally Accepted Accounting Principles in the United States. Essentially the FASB is working to make the two sets of accounting standards increasingly similar in order for the standards to transfer across the world according to the Center for Audit Quality. The standards are then broken down into different Statement of Financial Accounting Standards (SFAS).

Statements of Financial Accounting Standards (SFAS) or considered formal documents issued that detail accounting standards and guidance on selected accounting policies set out by FASB. These Statements of financial accounting standard are issued, with expectations that all reporting companies listed on American stock exchanges will adhere to them. The standards are created to ensure a higher level of corporate transparency. New SFAS releases can have a huge affect on the bottom line of a business. An example of this can be seen when look at FAS123 which can increase a company's expenses by billions of dollars dramatically according to Investopedia. However the particular standard that I will be focusing on and analyzing is SFAS 151.

According to the Financial Accounting Standard Boards' (FASB) Website the SFAS 151 standard was implanted as a result of a broader effort by the FASB to improve the comparability of cross-border financial reporting. Through working with the IASB mentioned previously they identified opportunities to improve financial reporting by elimination certain narrow difference between the existing accounting standards. The accounting for inventory cost, In particular, abnormal amounts of idle facility that the FASB decided to address by issuing this particular statement. The statement itself single handedly eliminates chapter 4 as it is worded in ARB 43 a term that was not defined and whose' application could lead to unnecessary noncomparablility of financial reporting according to the Financial Accounting Standard Boards Website. This implementation of the Statement overall improved Financial Reporting by amending ARB 43, Chapter 4, to clarify the abnormal amounts of costs should be recognized as period costs. The amending language was to promote consistent application of those standards also according to the Financial Accounting Standard Boards Website.

An example of the SFAS151 being implemented could be found in the "Variances, Incentives, and SFAS 151" article found in the CPA journal written by Timothy B. Biggart and Thomas A. Carnes. The article opens by showing how SFAS 151 is a recent example of the global convergence of the world integrating its economies. It continues by stating how SFAS 151 has the potential to inject the production-level concerns into external reporting decisions despite the FASB providing much of the information companies need to consider applying the standard. SFAS 151 continues to be brought up with descriptions by the FASB as one example where two boards see an opportunity to improve standards by elimination certain narrow differences. However with the issues that the article was discussing with 'Abnormal' Inventory Costs in led to concerns of the SFAS 151 to provide explicit enough guidance as to the form of the current period's expenses. These concerns were then met by the SFAS 151 by realizing that its implementation could help illuminate the complexities of the issue at hand.

The article then mentioned SFAS 151 during discussing the Capacity of the integration of global standards. It stated how SFAS 151 considers normal capacity as a range, not as a single point. It describes normal capacity as a range of production levels expected to be achieved over multiple periods or seasons, and it adds that variation in production levels across periods is expected and determines the range of normal capacity. Once again it talks about SFAS 151 during the Capacity sections by pointing out how it requires to be recognized as current-period costs. Throughout the rest of the article it discusses the positives and the negatives of the implementation of SFAS 151 during talking about "Fixed Manufacturing Overhead Production Volume Variance," "Incentive Issues" and lastly the "Significance for Financial Statement Users" which may be the most important section of the article where it is mentioned. In this closing section in mentions how SFAS 151 is to ensure that financial statements provide information useful to investors and creditors in their decision-making which was also stated previously. It also stated that though they do not expect SFAS 151 to have a material effect it may result in some companies producing excess inventory and other increasing current period expenses.

Through the research I have determined the analyzed importance of Statements of Financial Accounting Standard 151 but of all the Statements of Financial Accounting Standards and also the International Financial Reporting standards as a whole. Through the analysis I he concluded that they have become a necessary due to the globalization area that the world is going into. I have realized how they will indirectly and directly affect my career as a possible CPA.