Let's try this again

There ain't no cure for the summertime blues - that much is sure.

And the worldwide economy seems to support this theory, plodding along painfully slow like a Pittsburgh Pirate's baseball season.

The question I get most from students and friends is "when will it end?" Sadly, I don't know and I'm not sure anyone knows. Experts are currently feuding over another stimulus package, and I promised my wife and kids that I wouldn't get angry this summer so I won't touch that hot potato. Instead, I want to focus on the good things I see happening, despite unemployment at 9.5% (closer to 13% when you put part-time employment into the mix and assume they'd prefer to be full-time) and a California government writing I.O.U's while a Pennsylvania government can't do the one job they are elected to do - pass a budget.

I want to count the good things today, and there are many.

First and foremost is that there is finally productive conversations taking place at very high levels, unlike the previous six months of political maneuvering. I think that some (not all) of the politicians recognize that times are tough.

Gas prices are about $1.40 less this year than last year and we have already passed the traditional 'high mark' of July 4th. This bodes well to improve consumer sentiment in the coming months.

The stock market is flat, which beats the heck out of investments falling faster than a kid doing a cannonball at the local pool. Folks have finally seen the bleeding on their 401k's, IRA's and college savings accounts stop. In fact, they most likely saw the balances improve last quarter and they should be up about 10% year to date.

The herd is finally getting thinner as companies have begun to realize the impact of their cost cutting measures and the consumer is benefiting from the slimmer margins. I'm not suggesting we're spending more, but I am suggesting that we're at least spending the same and the feeling of doom and gloom is gone. There's light at the end of the tunnel.

Housing is near the bottom in most major markets, but not all. Here in Western PA, while the market is anything but robust, it is steady and homes are selling.

I am not about to call a bottom on a market, or a top for that matter. But I can observe, and right now, it seems to me that the worst is well behind us. And while we might not enjoy 6-8% growth for many years to come, I am going to suggest that a moderate 2-4% growth rate is not always a bad thing and beats the alternative of negative growth.

We're living within our means and that's a good thing. Banks are making loans to people who deserve them and those who pay their bills on time. How can that be bad?

Oh, and the best thing about July is that I go on vacation at the end of the month. I'm refreshed and ready to write, so please look for weekly updates. I also joined the Examiner.com staff as a freelance writer and will be tackling local business issues on a fairly regular basis. Add this site to your favorites please and leave some comments!

Finance 101

The first question I ask students each semester is "who wants to be here?"

No hand ever goes up. The next, obvious, question is "who has to be here?"

All hands go up.

Such is the life of a Finance teacher and number junkie. My goal is to teach every person I come into contact with in an appropriate setting about numbers. There is no need to be afraid of numbers.

In fact, as business people, it is our job to EMBRACE numbers. This is the language of our business, folks! Regardless of what marketing people tell you, or your lawyers tell you, or your advertising department tells you, the bottom line for your business is, well, the bottom line!

Please understand something, though. Finance is NOT Accounting! Accounting is a tiny segment within Finance, kind of like being a quarterback is part of a football team or cheese is a part of pizza.

So why do we run from numbers?

The answer is simple - numbers paint an accurate picture. All the time. Everytime.

Reality is a hard thing to comprehend when we have plans for big things. Reality gets in the way of our dreams and desire to grow, grow, grow!

It's the same reason we don't write down our Mission Statement, Vision Statement, Business Plan or even a daily plan!

When we see it in writing, it becomes real to us. It reminds us that there are things left to do on our list - things we haven't accomplished yet, rather than things we have accomplished so far.

As business people, we don't like to be reminded of our failures, and finance does just that on a daily basis through our balance sheet.

Each week, I am going to discuss a different element of finance and why it is so important to simly learn the language of finance, whether you are the President of a billion dollar company or a sole proprietor doing part-time work to supplement your "real" job. Once you learn the language of business (finance) you will make smarter business decisions based upon increasing cashflow rather than simply focusing upon what is in the bank account each day. The difference between the two is like night and day, yet few business owners really "get it."

My job is to make you "get it," and I will utilize many means to get you there.

I urge you to write me with questions, comments or opinions, as I am a lifelong student of the game of business and finance. No topic is too small or too big, and I am also simply asking you to pass this site on to two people that you think could benefit from this site. I can also answer personal finance questions, although I am not a licensed financial advisor. (I am, however, in the process of trying to pass my series 6, 63 and 7 - but it's merely for my own skill set and not for profit right now.)

The blog will be updated weekly, most likely every Monday morning to get you started.

Thanks!