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.

The Art Of Flattery – Using Flattery To Become More Attractive

Many people completely hate the word "flattery" and to even say there is an art to this makes them shudder with total disgust.

In a culture where everything is either right or wrong with very little room for the "grays" in between, I can understand why the word "flattery" rubs people the wrong way. I can also understand why many are sickened to the stomach because flattery is often associated with compromising one's values ​​and integrity.

But is flattery always a bad thing? And does flattery always have to be insincere? Does flattery make you more attractive and should you use the art of flattery on the men / women you find attractive?

Personally I find that mild flattery does often move things along more pleasantly than outright candidness. While excessive insincere praises intended to put the other person into the position of owed something to the flatterer is cheap and cheesy (and often reveals emotionally "needy" personality out for approval), a little flattery does help to quickly warm up first meetings or bridge relationship gaps.

For example starting off your conversation with a statement like "You look gorgeous" is certainly better than starting with "You forgot to put on your make-up today". By offering positive reinforcement, you are not only making the person feel good about herself but you are taking the small extra effort to actually show the person that you care about how she feels. She may come back with "I do not have my make-up on" to which you can respond with "You still look good". But when you say "I could not even tell you did not have make-up on" or "You look like you have make-up on", you've crossed over to the excess insincere praise.

In terms of bridging relationship gaps, a little flattery goes a long, long way. Say you are the "hottest" woman in your workplace or even at a party, taking the time to shake hands with the office boy or cleaner, or saying "hi" to the "geeky-looking" guy standing all by himself not only makes their day (they will be talking about it for days) but moves them away from feeling like a "nobody" in the eyes of society to "somebody" to those present (and to himself). Just by a simple gesture you show the person that you care about how they feel. Did I mention you'll be ever so "hotter!"

Having said that, I do not advocate using flattery to manipulate another's self-doubt or use their feelings of inferiority against them. Using flattery for personal gain has its own "come back to bite your ass" consequences. You can not get round using flattery to always get what you want without starting to feel empty, phony, lonely and depressed. You can never genuinely and deeply connect with others if you are manipulating their feelings.

Also keep in mind that flattery works for about 95 percent of people. Recognizing situations where flattery is appropriate is the secret of the art of flattery!

Birthday Gag Gifts

A gag gift for a birthday is way cooler than an ordinary, useable gift. Give the following gag gifts to your loved ones, and see how the person will love you more.

For the always late officemate, give him a backwards clock. Written in reverse, this clock will definitely drive your officemate nuts in no time.

For your conceited teenage sister, give her the laughing mirror. This is the mirror that will laugh every time someone grabs hold of it and looks into it. Your sister would definitely love you more when she gets laughed at by the laughing mirror!

Give fake cat poop to your obsessive-compulsive friend. Scatter it all over her bedroom floor, or, better yet, on her mattress to make her birthday complete.

For your love-sick aunt, give her the art of kissing book. So when she reads it, she gets to crave someone to do the kissing with. For additional fun, include the barf-scent breath freshener so she can enjoy her kissing moments even more!

Your long-haired rocker friend describes the bald head wig. This way, he can have the feeling of having a shaved head for a little while. Or maybe he can even pretend to be a hard-core punk!

The exploding lighter coupled with the exploding cigarette pack is perfect for your buddies who incessantly smoke every time you are together. Nothing will make their day better and your day more hilarious than playing this great prank on them!

If you want your loved ones to love you even more, make sure you give them meaningful gifts that will stick in their memories for the longest time. For that to happen, gag gifts are your best choice.

Introduction to Teaching English in Japan

Would you like the chance to spend some time in Japan but feel turned off by whistle-stop package tourist trips? If so, teaching English may be the answer. There is no better way to get to know a country than by living and working there. By teaching English you become a part of Japanese society, rather than just an observer looking in.

Teaching English is big business in Japan. Despite the collapse of the so-called bubble economy Japan remains one of the richest and most sophisticated nations on the planet, and this status is largely due to its success in overseas trade and investment. Thus, to get ahead in Japanese society, proficiency in English is a significant advantage. Add to that the fact that being able to speak English is simply considered cool and the huge demand for English teachers becomes clear.

Don’t Japanese people learn English at school?

Yes they do. Usually for 6 years or more. The problem is that, unlike most of the school curriculum, English isn’t taught particularly well. Japanese schools tend to follow traditional teaching methods in which the teacher stands at the front and lectures the class. Students are expected to absorb rather than question. The method produces excellent results for subjects like history and mathematics, but not for communicative, participative skills like language. School English education is likely to consist of lots of reading and writing, lots of grammar practice, but very little – if any – spoken communication.

Do I need to speak Japanese?

Not at all. Of course, if you can pick up a little nihongo (Japanese) it will make your daily life easier, but it won’t help one bit as a teacher. The reason is that the most effective way of teaching language is to use only the target language. Thus the only language used in English lessons is English.

How do I start?

Well, you could simply buy a ticket to Japan and start looking for work. Unfortunately, without a work permit, that strategy is illegal. Unless you have a Japanese spouse you need to find a job that will sponsor you for a visa. It is possible to travel to Japan as a tourist and approach a few of the numerous schools advertising for teachers asking if they are prepared to sponsor your visa application.

It helps to undergo some TEFL (Teaching English as a Foreign Language) training before looking for work. Not only will this give you some basic teaching skills and confidence, but it also shows potential employers you are serious about teaching and not just a backpacker looking for some financial re-fuelling.

TEFL courses are advertised in most English speaking countries. The more useful ones are provided by working English schools and offer face-to-face teaching practice with real learners.

Accommodation

If you are employed by the JET program or one of the big English school companies they will more than likely arrange accommodation for you. You are of course free to find your own housing if you so wish.

Living in school-found accommodation has the advantage of an English speaking contact to sort out repairs or other problems. The disadvantage is that it’s difficult to quit a job that may not be for you while living in their accommodation. I have also heard of at least one school that charges its teachers a significant premium over market rental rates for use of its accommodation – so beware!

There are several English speaking accommodation agencies advertising in the free English language press, and these generally provide decent accommodation, but at a price.

An alternative favored by many single English teachers are the so-called “gaijin houses” (literally foreigner’s house). These are basically hostels that rent out basic, but adequately comfortable, rooms mainly to non-Japanese clientele. Usually bathroom, kitchen and sometimes communal sitting room are shared. Gaijin house advertisements are to be found in the free English language press.