Money Management Tips in Online Gambling

September 27, 2021

People can now play online while remaining in their comfort bubble and engaging with other players. Due to this, https://ecasinos.ph/ have gained popularity all over the world. However, it makes no difference whether you play online or in person; the results cannot be predicted in either case.

Most of the time, you’re probably crossing your fingers that you’ll get lucky and win the game. However, if you believe you are spending too much money rather than gaining, it is time to work on your money management skills.

It is difficult to plan your money responsibly, especially as a beginner. In this article, we will discuss some fantastic tips for managing your money while gambling online. If you would like to learn more about the casino industry, check out what author Demetris Jast has to say.

Top Tips to Manage Money While Gambling Online

1. Bankroll management

Many casino gambling addicts employ a specific money management strategy. This tends to reflect the unique nature of casino games these days, and specifically slots. Due to the obvious nature of the games, appropriate bankroll management is much more than necessary when playing slots.

Simply put, bankroll management involves the practice of keeping track of your investments in an online casino account. This is why creating and adhering to a budget is critical.

2. Stick to a budget plan

It is strongly advised that you never begin gambling with more money than you can afford to lose. This is the very first rule you’ll learn, and it’s also the most important. Every session will not be a positive experience. That is a hard truth, so don’t put capital at risk that you simply can not afford.

Pullbacks happen, no matter how many years your lengthiest and most productive baccarat winning session has been or even how many blackjacks and winning books you’ve read, and if you will not have a bankroll that can manage these economic losses and downswings, you’ll simply lose your money. Thus, you need to stick to a budget.

3. Detach from emotions

Be hard on yourself when it comes to digital losses as well as how much you’re willing to lose during your next casino session, and don’t let your emotional responses overpower your wit.

Do not get emotional while playing online casino games. If you reach your session’s maximum loss, simply give it a break and put down the phone. It’s tempting to try to play a few more hands, but you know how often that doesn’t work.

As a result, setting a stop-loss limit in the first place is extremely beneficial. In this way, you will protect both yourself and your money. It is better to be wise and think rationally rather than act on uncontrollable urges because, at the final moment of the day, you are responsible for your actions. It is totally unavoidable to learn these Money Management Tips in Online Gambling and these will surely help you in long run.

4. Withdraw your winnings

The money you’re left with is pure profit and comes from the house. This means that your personal funds are no longer at risk. Continue doing it every time you add extra to your initial stake, and after you have doubled your original investment again using the house’s money.

You can call yourself a winning gambler if your previous failures do not significantly outweigh these minor victories. Keeping your bankroll at the sum you initially invested also indicates that you are on the path to smarter and more governed gambling.

Conclusion

In conclusion, if you take the recommendations given here, you will learn how to successfully handle your bankroll and set oneself apart from the degenerate and spontaneous gamblers. Keep an eye out for these red flags and recollect what you’ve learned today; you’ll be much better in the long run.

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How To Follow Up After An Interview: A Complete Guide

September 27, 2021

So you’ve made it through your job interview- that means that the hard part is over, you’ve done all you can and now you just need to wait, right?

Not quite, there’s still one thing left to do before you can sit back on your haunches – write a follow-up email.

Your follow-up email is a great opportunity to stand out from the crowd and leave a positive impression with the interviewer, and could be considered an important step in the application process.

This can be tricky to do professionally, so here’s our guide on how to write a follow-up email that will show you in a great light.

Should you follow-up after an interview?

First of all, you might be wondering whether hiring managers like to receive follow ups, as some job seekers consider them unnecessary.

In April last year, the executive managing editor of Business Insider Jessica Liebman created a Twitter storm when she wrote an article saying she would not hire anyone who didn’t send a thank-you note after their interview.

The comments were full of hiring managers expressing agreement, and many chiming in to disagree, saying a thank-you note is nice but shouldn’t be compulsory.

So what can we learn from this mini debate? Essentially, you’re better off sending a follow-up email after an interview to be on the safe side.

And with reports suggesting that 57% of candidates don’t send a follow-up thank you after their interview, doing so could put you ahead of your peers and push your name to the forefront of the bunch.

How should you follow-up after an interview – by phone or email?

Secondly, you’re probably wondering what medium to choose for your interview follow-up.

If you’re one of the rare people who prefer to pick up the phone rather than send an email, hold up a second.

Research has shown that employers prefer to be contacted by email rather than phone.

Even if your recruiter contacts you only by calling you, err on the side of caution and email first – a phone call demands attention when the hiring manager may be busy, whereas they can reply to an email in their own time.

When should you follow up after an interview?

So when should you send a follow-up email? Ideally on the day of the interview, but no later than 24 hours after.

Emailing after this time frame might make you look a bit unorganised and suggests you’ll be slow when responding to emails at work.

How to structure a follow-up email after an interview

Here’s how to structure your follow-up email:Address the hiring manager by name. Obviously ‘to whom it may concern’ is not appropriate when you have met the people in question.

If you were interviewed by several people, send an individual email to each and make each one unique.
Start by thanking them for their time.
Reinforce your interest in the company and position.
Refer to things discussed during the interview. Relate your experience and skills back to the job.
You have a chance here to add any significant information you may have forgotten during the interview.
Close off with pleasantries.

Your email should be brief and to the point – a couple of concise paragraphs.

Make the subject line Thank you – [Your name] [Position interviewed for], or a variation on this format e.g. [Position] – [Your name] Thank you

Sending a follow-up email after a phone interview

A follow-up email after a phone interview will be the same as one for a normal interview, unless it was a screening call – i.e. a recruiter or employer reached out to you.

As it’s them who initially showed interest in you, you’ll need to put them at ease by showing your mutual interest.

If they gauge you to have the same experience as another candidate except the other candidate seems much more genuinely keen and interested, you could lose out.

The format of your follow-up email should be largely the same as above except:

Thank them for their time
Reemphasise your interest in the role
Attach a resume and a cover letter

Writing a follow-up email after no response

Many employers will end an interview by letting you know when you can expect to hear back from them with a decision.

It’s not uncommon for this deadline to come and pass without word- there’s lots of moving parts involved in completing interviews and making decisions.

But equally you might be being ‘ghosted’ by the interviewers, where they don’t let you know when you’ve been unsuccessful.

This is why you need to follow-up if you’re still receiving radio silence.

Although the idea of sending a follow-up email might sound a bit like pestering them, if you follow-up in a polite but professional way, it won’t sound like you’re criticising them for dragging their feet.

You should wait until after the deadline has passed to follow up, and then wait another two working days. The only reason you would contact before the deadline is if you’ve received another job offer.

In this case, you should let them know you’re received another job offer but would be happy to turn it down if you’ve been successful securing the job in question.

If the interviewer didn’t give you an expected decision date then as a general rule of thumb you should wait 10 to 14 business days before following up on an interview with no response.

When writing this follow up email, don’t assume that because you haven’t heard back that you’ve been unsuccessful.

Follow this structure:

– Address the interviewer(s)

– Polite pleasantries

– Express that you’re still very interested in the company/position

– Give a gentle prod asking if there’s any information on their end e.g. ‘I just wanted to see if any progress has been made in terms of a decision?’ or ‘I’m looking forward to hearing any updates if possible’

– Thank them

How to follow up after an interview: A summary

Essentially, it’s better to err on the side of caution and write a good interview follow-up email, to give yourself the best chance at securing the job.

Not sending a follow-up email could put you at a disadvantage behind candidates who have done so.

If you’re looking to increase the number of interviews (and follow-up emails you have to send!) in the pipeline, PurpleCV can create you a bespoke CV to give your CV the best chance at securing an interview.

This article was originally published on PurpleCV.

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Reconciling the Reconciliation Bill: A Preview

September 27, 2021

By Dr. Jack Rasmus

This past week maneuvers within the Democratic party intensified over the content and magnitude of the two pending fiscal stimulus bills–the Infrastructure Bill (with $550B of net new spending) and the Reconciliation Bill ( with initial $3.5T ‘human infrastructure & climate change’ spending). While the maneuvering appears as a deep difference of views between progressives in the US House and Senate demanding both bills pass simultaneously and Democrat Senators, Manchin and Senema in that body blocking both bills in current form, the actual conflict is really between the corporate wing of the Democratic party (in both the Senate and House) vs. the wing that sees passage of both bills in current form as necessary to ensure a sustained economic recovery in 2022–and thus the Democrats retaining majorities in the House and Senate in the November 2022 midterm elections.

Manchin-Senema in the Senate and Cuellar and his ten associates in the House are really the point persons for the corporate wing. The differences and split within the Democratic party are not about individual Senators or Representatives; it’s about the corporate forces that dominate and control the majority of that party (as they have since 1990) and those same corporate interests intent on ensuring the two spending bills are not so large that taxes will have to be significantly raised in order to pay for them. More specifically, ensuring that the Trump $4.5T tax cuts of 2017 are not rolled back.

Those corporate interests in the Democratic party have already prevailed in rolling back the Infrastructure bill to a level of only $550B in new spending (from its original $2.3T) to ensure paying for the $550B is not done by raising any taxes on corporations, investors and wealthiest Americans. They already succeeded. Now the same fight is underway to prevent the Reconciliation bill requiring tax hikes on the same capital incomes. To ensure no tax hikes for that bill, spending will have to be significantly cut or delayed, or perhaps both.

In other words, the split in the party and fight is not just over stimulus spending; it’s over taxes and rolling back the Trump tax cuts. The corporate wing of the Democratic Party is as opposed to the tax hikes as are the Republican party & McConnell. To borrow a phrase from the 1990s: “it’s the tax cuts, stupid!”.

That made the Infrastructure bill palatable to the corporate wing in the party since paying for it could now be done by ‘smoke & mirrors’ financing that involved no tax hikes.

The next step in the corporate wing’s anti-tax hike offensive will occur in the US House early next week. Pelosi had promised weeks ago not to break out the two bills for separate votes, but vote on both at the same time. That was the promise made to the party’s progressive forces months back, in order to get Sanders and progressives in the Senate and the progressive caucus in the House to go along and remove trillions of dollars in spending on human infrastructure measures from the original Infrastructure bill and reduce that bill from $2.3T to only $550B in new spending on traditional infrastructure only.

That made the Infrastructure bill palatable to the corporate wing in the party since paying for it could now be done by ‘smoke & mirrors’ financing that involved no tax hikes. The corporate wing wants separate votes now on the two bills, the remaining Infrastructure bill first. Passing the watered down Infrastructure bill first would leave the $3.5T Reconciliation bill with weakened support and unable to pass–for certain in the Senate and maybe even in the House as well. Human infrastructure spending on Medicare, Education, Elderly-Child care, and climate change mitigation and prevention–and the tax hikes to pay for it–would be dead in the water.

The progressive caucus in the House and the Sanders-Warren faction in the Senate are demanding, however, that Pelosi honor her earlier pledge to vote on both bills at the same time. But will she? If she renegs on that promise and the House votes up both bills, the corporate wing in the Senate–represented by Manchin-Senema–will never vote for budget reconciliation (50 + 1 vote) to pass either of the two bills. The Senate likely will then vote on the Infrastructure bill and let the $3.5T Reconciliation bill die. That will put Pelosi and the House progressives behind the eight ball, as they say: refuse to vote for the Senate passed Infrastructure bill or take the heat in elections for refusing to pass anything. One can guess what the pragmatists will then do, including Pelosi.

So what are the possible scenarios in the House this coming week?

One will be for Pelosi to vote on both bills as promised. While possible, it is the least likely to happen, however.

A second is to reduce the $3.5T spending total dramatically. The progressive caucus won’t go along with that, however.

How then to ‘reconcile the reconciliation bill’?

A more likely compromise outcome may be to backload most of the $3.5T (or a reduced amount). That is, make the Reconciliation bill spending take effect over a ten or even fifteen year period, with most of the spending occurring five to ten years into the 10-15 year bill. So maybe spend $1.5T over the first five to 7 years (Manchin’s signal he might accept) and the rest not taking effect until 2027 or after. In turn, make the proposed tax hikes to pay for it to take effect in the latter years as well.

That way Pelosi can placate the progressive caucus and the Democrats can still say they passed a big ‘human infrastructure’ Reconciliation bill. Backloading might then satisfy Manchin, Cuellar, Senema, and the party’s corporate wing. They can say they ‘won’, since the spending and taxing is only on paper. Republicans and McConnell will later cut the backload spending and delete the tax hikes once they take over again. That scenario could satisfy the Democrats’ corporate wing.

Republicans and McConnell will later cut the backload spending and delete the tax hikes once they take over again. That scenario could satisfy the Democrats’ corporate wing.

Another scenario may be for Pelosi not to hold a simultaneous dual vote because her progressive caucus won’t support a breaking out of the votes and will vote against the Infrastructure bill if held separate. In this case, Pelosi and the Democrats will then revert to the tried and true Democrat party ‘fall back’ message saying they’ll return to the vote on both bills after the 2022 midterms. That means everyone should vote for more Democrats in 2022 in order to pass both bills in 2023. But that’s a high risk strategy, since it will clearly appear that Biden and the Democrats can’t deliver on their election promises–especially if the US economic recovery is not robust by fall of 2022 due to lack of fiscal stimulus in fall of 2021, which is very likely since the current summer 2021 rebound of the economy already appears to be slowing.

So summing up: the three scenarios in the House are: Pelosi votes both bills up same time and they both pass; Pelosi renegs and holds separate votes and progressives vote down both bills; Pelosi and progressives agree on a ‘smoke & mirrors’ compromise and backload most of Reconciliation bill spending and taxing.

The first scenario almost ensures Manchin-Senema will never compromise and vote for Senate budget reconciliation on either bills. The second means Biden and Democrats are ‘toast’ in 2022 midterms. Something like the third may therefore be the most likely outcome.

Whatever the scenario, it was already decided by party leaders last week when Biden called Shumer and Pelosi into his office, reportedly in a closed door meeting that no one else attended. Biden thereafter called in separately a group of progressives and then a group of ‘moderates’ (i.e. what the mainstream media calls the corporate wing). Reportedly both Shumer and Pelosi came out of the meeting smiling and upbeat. What did they agree to with Biden? Not even Democrat members in the House or Senate know, since Pelosi-Shumer aren’t even telling them.

It all should become clearer this coming week. But one thing is certain: the final $3.5T Reconciliation bill with its spending on human infrastructure and climate change will be either significantly reduced or backloaded into out years so that the spending & tax measures can be safely deleted.

The Democrat corporate wing is as adamantly opposed to the spending–and the tax hikes it would require–as are McConnell and his Republicans. Thousands of corporate lobbyists have invaded Washington D.C. in recent months, with the single purpose of demanding the Democrats don’t touch the Trump tax cuts. They have already convinced both Republicans and the Democrat’s corporate wing not to raise their taxes. So watch for ‘smoke & mirrors’ financing in a final, much reduced spending Reconciliation bill–just as the same was previously engineered with the Infrastructure bill.

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About the Author

Dr. Jack Rasmus is the author of the 2020 published book, ‘The Scourge of Neoliberalism: US Economic Policy from Reagan to Trump’, Clarity Press. His website is http://kyklosproductions.com, twitter handle @drjackrasmus, and he blogs athttp://jackrasmus.com. He hosts the Alternative Visions radio show every Friday at 2pm eastern time.

Best DeFi Wallets to Use in 2021

September 27, 2021

In recent times, DeFi has been making a lot of news. DeFi introduced a completely new financial product and simplifying financial services. But to get started with DeFi, one of the most important things you will need is a DeFi wallet. So the question is, what are some of the best DeFi wallets available out there?

Wallets are extremely important for participating in the DeFi ecosystem. As it offers a number of features, usability, and security. You have to use DeFi wallets to store your assets securely.

As it offers a number of features, usability, and security. You have to use DeFi wallets to store your assets securely.

Another good reason to hold your crypto on your own wallet rather than an exchange is that you will automatically participate in the pulsechain airdrop and all your ERC20’s will be doubled on the Pulsechain Network.

Anyway, let’s just go ahead and check the top DeFi wallets available out there:

1. CoinStats

CoinStats is one of the best DeFi wallets in the industry. It has many features and capabilities that make trading crypto and accessing various DeFi platforms easier and more efficient for users. Here is all you need to know about CoinStats:

CoinStats is an excellent crypto portfolio tracker and DeFi wallet for crypto investors looking to manage both cryptocurrency and DeFi investments in a single space. CoinStats supports a large percentage of available DeFi apps, is Ethereum compliant wallets and subsequently supports various ERC-20 tokens and other ERC-721 NFT tokens.

In addition, there’s support exchange platforms such as Binance, Bitbuy, ByBit, Bitso, BitStamp, Bitpanda pro, and Bitcoin Mercado, among many others. CoinStats also supports several Blockchain networks including DeFi, EVMblockchains like Ethereum, Ethereum Classic, Arbitrum, CELO, Moon River, Boba, Polygon (Matic), and Non-EVM Blockchain networks like Bitcoin, Litecoin, NEO, Cardano, Cosmos, Solana, Avalanche Chain, Doge, and Stellar among many others.

CoinStats’ DeFi wallet is useful for more than just storing crypto portfolios; it’s non-custodial, meaning that it’s only accessible with a password or seed phrase. This added security layer makes it a highly efficient DeFi wallet.

Additionally, the platform also allows users to earn up to 20% Annual Percentage Yield on their DeFi assets and cryptocurrencies.

CoinStats also provides tools for portfolio analysis to help users ascertain the overall performance of their portfolio such as the Net Worth and PnL. Market analysis and insight tools are also available on CoinStats to keep users updated on all market trends. The type of insights and news made available to users are specifically tailored to the user’s trading needs. It also makes calculating your taxes and generating tax reports easier as it is an inbuilt feature.

2. MetaMask

At first, there is the MetaMask. This one is a wallet and a browser. Using the app, you will easily buy, spend, spend, and exchange your digital assets.

The wallet allows you to make payments anywhere, log into websites securely to trade assets, lend, borrow, play games, publish content, buy rare digital art, and more.

Along with that, MetaMask also provides access to web3 applications using popular browsers like Google Chrome.

Also, the wallet simplifies ethereum transactions. You can send or receive transactions with a few clicks only or use QR codes.

Moreover, you can also use the wallet to store ETH, ERC20 tokens, ERC721 tokens. Even, it is linked with two exchanges from which you will be able to buy cryptocurrency. Plus, users will be able to select Coinbase to purchase Ether and ShapeShift to buy Ether or ERC-20 tokens.

Furthermore, MetaMask is available for a wide range of devices. For instance, it has support for three browsers, including Google Chrome, Brave, and Firefox. Plus, you will find an app for Android and iOS devices.

3. Coinbase Wallet

Next, there is the Coinbase wallet. This is also one of the best DeFi wallets available out there. But the app is not only dedicated to your DeFi assets.

But you can use the wallet to store all your crypto and NFTs in one place. Also, it allows you to trade more than 500 assets on DEXes and earn interest on your holdings. Also, it doesn’t require you have a coinbase account.

The wallet supports 500+ tokens, including BTC, ETH, USDT, UNI, LINK< LTC, and more. As well as you will be able to buy, sell and store your NFTs in a single gallery.

Also, you will be able to get started with decentralized exchanges, DeFi protocols, collectibles, and crypto apps.

You can get Coinbase wallet for Chrome browser or download the app on your Android or iOS devices.

4. Eidoo

Eidoo is a multicurrency crypto wallet that helps you to manage your assets in a better way. It offers you access to hundreds of tokens and a built-in DeFi exchange. So you can easily buy, store, trade, manage and sell digital assets.

With this single wallet, you will be able to hold your ERC-20 tokens. Also, there is no need for you to manage them across multiple locations.

Plus, it allows you to store BTC and other tokens on any of your devices. Also, it allows you to access all your digital assets across multiple devices.

Even, it also features a built-in decentralized exchange for the most effective atomic swaps. The wallet also makes it easy to manage multiple accounts straight from the Eidoo app. So in case if you need separate wallet addresses, you can easily get them.

You can also participate or launch token sales that are 100% compliant with local regulations. Also, it gives you the chance to back unique projects.

Plus, you can explore the entire DeFi ecosystem and easily manage your entire portfolio. Also, you can interest in your digital assets.

What’s more? Eidoo wallet is available for multiple devices such as OSX, Windows, and Linux. Plus, you will find Android and iOS apps.

5. Argent

Next, there is the Argent. It is also one of the best DeFi wallets available out there. The wallet is extremely easy to use and lets you store Ethereum and DeFi securely. Along with that, you will be able to exchange, earn interest and invest in digital assets with just a few clicks.

The best part of this wallet is that it has multisig security and no seed phrase. So the wallet allows you to lock and unlock and recover without a seed phrase easily.

Plus, the wallet gives you one tap access to DeFi and Ethereum, Compound, Uniswap, Lido, Yearn, Aave, WalletConnect, and more.

Also, you will be able to exchange at the best price from decentralized exchanges like Uniswap, Balancer, Curve, and other ones.

What’s more? The wallet makes it pretty easy for you to display, send and securely store high value NFTs. Also, you can buy crypto with a bank transfer or using your debit card.

6. MyEtherWallet

Up next, I have MEW or MyEtherWallet. This one is free to use and offers you a client side interface that lets you interact with the Ethereum blockchain. However, it is only available for Android and iOS devices.

Furthermore, this is also an open-source project that allows you to generate wallets, interact with smart contracts, and so much more.

The wallet has partnered with Bity, kyber Network, Changelly, and Simplex to allow you swap fiat to crypto, ETH and BTC, and ERC-20.

Moreover, you will also be able to buy crypto with a few taps using your bank account, hold and send Ether and tokens, send and receive ERC-20 tokens.

Also, you will get to enjoy features like Ethereum 2.0 staking, Connect to MEW web via myetherwallet.com. After connecting to the web, you can convert your crypto back to fiat, swap and trade, register ENS names, interact with DApps and so on.

Final Words

So those were some of the best DeFi wallets that you can check out. Each of the wallets has its own set of features. So go ahead and check them out thoroughly and see which one meets your requirements. Also, for additional questions, do drop a comment below.

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5 Ways to Save Money on Car Expenses

September 27, 2021

Owning a car comes with the responsibility of taking good care of it, which means added expenditures. As with all aspects of your personal finance, car expenses do not have to be draining when you can manage them better. Here are five ways to save money on car expenses.

1. Shop around for cheap insurance

A major expense of owning a car is insurance, as this is a mandatory legal requirement. Regardless of the car you own, it counts to wisely shop for an affordable insurance policy that best suits your needs. The proper way to go about this is to receive multiple quotes and terms of policies from different companies before making your choice. Sites like https://www.cheapestcarinsuranceflorida.com/ make this easier as they provide you with a list of the most affordable car insurance companies. You may also consider an AAA approved auto repair center to ensure the best quality service for your car.

2. Reconsider that extended car warranty

An extended car warranty is a gamble that might or might not pay off. As such, you need to carefully consider whether you can keep paying for those premiums after the manufacturer’s warranty has expired. If you are short on cash, it is highly recommended that you skip extended warranties as they will drain your finances while offering little long-term value.

3. Do not skip your maintenance schedule

Whether you bought a used vehicle or a new one, the smartest choice you can ever make as a car owner is to keep up with your maintenance schedule. Prevention is always better than costly repairs that would have been avoided by simple tune-ups and simple services such as:

Air filter changes
Changing the oil and ensuring all other fluids such as transmission fluid, coolant, and power steering fluids are at appropriate levels is crucial for maintaining optimal engine performance and preventing issues. If you’re wondering, “is antifreeze and coolant the same thing?” you can find more information about the differences in a post at JennyChem.
Brake pad and shocks replacement
Examining your car belts and hoses

4. Rotate your tires and keep them properly inflated

One of the oldest tricks in the books for proper car maintenance is regularly rotating your tires and keeping them well balanced. This will help your car drive smoothly and reduce your expenses as you will not have to replace your tires often. Proper tire inflation will also save you lots of costs as underinflated tires will drive up your gas mileage and cause your tires to wear out quickly.

Since your tires play a critical role in the proper running of your vehicle, make it a habit to check your tire pressure every morning. Strive to keep your tires as new as possible as this will improve your traction, reducing the risks of car accidents.

5. Drive wisely

Finally, you must never undermine how your driving habits affect your car expenses. Avoid aggressive driving, overspeeding, breaking hard, and tailgating, as these habits will only cause your tires and breaks to wear out while increasing the risks of accidents. Your driving record also determines the insurance premiums you pay, and as a high-risk driver, you will pay much more than a car owner with a clean record.

Endnote

Car ownership does not have to translate to overspending each month when you could save a lot by using these tips to reduce your expenses.

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The Pros and Cons of Becoming a Landlord

September 27, 2021

By Matt Casadona

Being a landlord is a great way to make money, but it isn’t always easy. Depending on how many renters and properties you have, it can quickly get complicated. Most days, you will be managing the property and dealing with tenant requests, while others, you’ll be dealing with unruly tenants and evictions. If you can’t decide whether becoming a landlord is a good idea for you, check out these pros and cons.

Pros of Becoming a Landlord

Income

One of the most significant reasons people become landlords is to earn money. Landlords get a lump sum every single month from their tenants, which can allow you to repay your mortgage without worrying about taking on a 9 to 5 job. If you own the property you rent, you can have even greater gains.

Tax Deductions

Almost exciting as the increase in monthly income are the tax deductions landlords receive. All rental income is taxable, but there are some deductions you can take on your taxes to reduce your burden, including:

Repainting
Building repairs
Insurance
Accounting processes
Cleaning
Professional services
Depreciation

Equity

In many cases, real estate appreciates, which means it increases in value over time. Depending on where the rental property is owned, landlords might be able to benefit from the appreciation of the property while earning extra income.

If a rental property’s income exceeds its expenses and cost of financing, then the tenants’ monthly rent payments will pay the mortgage and lower the principal balance every month, allowing landlords to build equity without paying the mortgage themselves.

Security

Renting out a property provides landlords with an ongoing monthly income that can be used to fund retirement or build their savings. Not only that, but landlords can also choose to live in the property to save money as long as it doesn’t mean breaking any contracts with tenants.

Not only does being a landlord offer you security in terms of housing, but you can expect monthly income that will allow you to pay off debts and earn a living.

Flexibility

Being a landlord is similar to owning your own business. When you own a property and rent it out, you make all of the decisions regarding costs, contracts, and terms. You can also decide to sell your property and when.

Cons of Becoming a Landlord

Taxes

While you will receive some deductions and tax breaks, you’ll still have to pay taxes on your income and deal with filing your returns annually and quarterly.

Long-term

Investing in property means you can’t think about the short-term and will need to consider how the investment will impact you in the long term. If you decide to stop being a landlord, it will take time to sell the property and release your assets. If you sell the property too soon, you could be losing money overall.

Expenses

Not all landlord expenses are deductible, so landlords have to prepare for expenses, such as:

Tax on income
Certificates
Repairs and maintenance
Employee costs

Emergencies

One of the most significant cons of being a landlord is you’ll have to deal with all of the emergencies your tenants have, which can become overwhelming if you’re the landlord of an apartment complex. Any household emergencies you have to deal with yourself can also impact your tenants, and you’re responsible for repairs.

Legal Issues

As a landlord, you’ll need to learn about the latest property law in your state that can affect you. You can also learn about legal obligations when it comes to late payments, deposits, and evictions. While learning about the law can seem daunting, it’s worth it to know what you need to do if anything turns sour with tenants so you can protect yourself and your finances. For example, you’ll need to know how to draft an eviction notice for your tenant if you ever need to ask them to vacate the premises without evicting them.

Time

Being a landlord is time-consuming. Along with managing contracts, performing maintenance, hiring the right people, and dealing with disputes, you’ll also need to remain in communication with your tenants to let them know news about the community and any changes you make to the policies. Here are just a few things you’ll need to take time for as a landlord:

Advertising
Tenant screening
Communication
Executing leases
Filing evictions

Some rental properties don’t require as much work as others, but owning multiple units will result in more time that needs to be spent. The good news is that landlords can outsource some tasks to a property management company to save time. Some properties could have a lawn and yard, that you need to take care of. Others might just be an apartment on the 12th floor of a building and requires much less maintenance and time.

Long Term Investment

Being a long-term investment can be a pro for some and a con for others. Rental properties are long-term investments. The Longer you hold the property, the more benefits you’ll see, but it does mean your money is tied up in the property for a while.

Vacancies

When a property is rented, then it’s usually smooth sailing except for handling requests and repairs. However, when a property is vacant, the landlord must pay the property’s expenses and financing costs, which means they could be losing money. If a property is vacant for too long, it can quickly become a financial burden.

You should have a plan for filling vacancies as quickly as possible, including advertising the vacancy and getting the word out about the benefits of living in your property.

Final Thoughts

Becoming a landlord is not ideal for everyone. Consider these pros and cons before you decide to rent a property. Make sure you understand your investment goals and can handle all of the problems that may arise. This investment takes more work than other opportunities and can quickly become time-consuming. Only you can decide if becoming a landlord is the right investment for you and your investment portfolio.

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About the Author

Matt Casadona has a Bachelor of Science in Business Administration, with a concentration in Marketing and a minor in Psychology. Matt is passionate about marketing and business strategy and enjoys San Diego life, traveling, and music.

Crypto Policy Needs A Rethink – Bans and Crackdowns Are Not The Answer

September 26, 2021

By Dr. Sean Stein Smith

This article examines some of the current trends around regulatory and policy outlook as it connects to cryptoassets. Specifically, this piece outlines and describes why, despite being a predictable result of regulatory catch-up amid a desire to reign in some unethical actors, crypto crackdowns and bans are not the answer. Additionally, several key policy questions are included to form the basis for better and more robust policy conversations
moving forward.

Based on recent headlines, both in the United States and in other jurisdictions, there has seemingly been a shift in the how policymakers view cryptoassets and blockchain technology more broadly. Stated simply, the policy outlooks has seemingly shifted from relegating these sectors to the backburner to actively cracking down on these sectors and the market participants involved therein. Cryptoasset bans in major economies such as China, increased regulatory crackdowns in the United States, and a simmering sentiment that stablecoins post a systemic threat to global financial stability all point in the same direction. After ignoring or not understanding how blockchain and cryptoassets intersect with the rest of the global economy policymakers and regulators are moving aggressively to corral the fast developing space.

Such an approach will invariably lead to policy errors, unforeseen consequences, and a chilling effect on the innovative thinking that has driven such creativity and development in the sector at large.

This is not to say that cryptoassets should be left unregulated, and any opinions stating that this is the current case are incorrect in any event – there is certainly a place for responsible and well-informed regulation in the cryptoasset sector. Every business industry requires reasonable regulation and frameworks to protect both the consumers of these products as well as the market actors themselves.

Recent developments in the United States, however, indicate that this does not seem to be the case. The United States Senate recently (August 2021) approved the long-awaited infrastructure bill, totaling over $1 trillion in expenditures, but buried in the over 2,700-page document was a clause related to crypto. Distilling the technical language the primary requirement and impact of said requirement would be that any organization or individual involved in the processing, validating, or approving of crypto transactions for consideration would need to fulfill the same tax reporting and compliance obligations as a full-fledged crypto exchange such as Coinbase, Binance, or Kraken.

Cracking down, banning, or imposing onerous regulations on the blockchain and cryptoasset would simply lead to these ideas, individuals, and creators relocating to other jurisdictions.

Such a compliance, reporting, and payment burden would render operating in the cryptoasset sector a non-started for smaller firms, discourage new capital providers from investing into new ventures, and potentially drive new investment into other jurisdictions. While the final language of this bill is still pending, the outlook for crypto investment, creativity, and development has turned decidedly chilly in recent months. That is a near-sighted and incomplete view of the situation; let’s take a look at why bans, crackdowns, and onerous regulations are not the solution policymakers are looking for.

Crypto attracts capital

It should be obvious at this point, but the blockchain and cryptoasset attracts and retains both financial capital and human capital to where it is encouraged and supported the most. Put simply, not every country or economic block in the world would be working on developing central bank digital currencies and other blockchain applications if the economic benefits were not obvious. The United States, home of the global reserve currency and the most liquid capital market in the world, has received significant benefit from the innovation and capital creation that has accompanied the crypto industry to date.

Cracking down, banning, or imposing onerous regulations on the blockchain and cryptoasset would simply lead to these ideas, individuals, and creators relocating to other jurisdictions. Crypto truly is a global industry, and making business difficult in one area will invariably lead to relocating to another, more hospitable location. Taxes, regulation, and policy decisions are not normally items that entrepreneurs are terribly interested in discussing, versus the business or industry itself, but these are critical factors toward creating a welcoming and friendly ecosystem for these organizations.

Crypto has already delivered

One common refrain among policymakers is that blockchain and crypto has been long on potential and short on delivery; this is an incomplete view of the ecosystem. Far from the early days of the sector, when engagement was limited to a relatively small group of expert users and coders, blockchain and cryptoassets are now easily available to any individual or institution. More specifically, bitcoin has been the best performing asset in the United States public markets since its introduction; it has truly democratized the wealth creation process that investing so often promises to deliver.

Setting aside the wealth creation aspect of crypto for the time being, blockchain is already being used by hundreds of major organizations the world over. For example, Forbes has published for several years an annual listing of organizations that have integrated blockchain into core operations with revenues totaling in the billions of USD. Benefits of increased blockchain and cryptoasset integration increased improved traceability of information, the ability to audit and confirm data in real time, lower fees and costs for payments, and better security over digital ecosystems at large.

Framed in that light, and supported by the reality that virtually every company of economic significance has invested in blockchain and crypto, the benefits of these technologies have clearly already manifested.

Good for national security

A common, and troubling, refrain that has recently gained steam in the ongoing debate around the growth of cryptoassets is that blockchain and crypto pose a threat to national security; the opposite is true. Acknowledging the improvements and upgrades that have been made to the international payment system over the last several decades the current payments infrastructure is still out of date when compared to the other technological tools and platforms that are available. Wires, ACHs, and other bank enabled transfers can take days to settle, carry with the hefty fees, and be time consuming to complete; blockchain and cryptoassets address these issues head-on.

Additionally, and from a U.S.-centric perspective, one of – if the largest – economic advantage that U.S. enjoys is the dollar’s status as the global reserve currency. This is privilege and not a right; other currencies have played this role before and there is no guarantee the dollar will always hold this role. In order to maintain this status, and like any other economic asset, the dollar will need to be upgraded and modernized for the 21^st and 22^nd centuries.

It might be tempting, especially from a policy making perspective, to treat the rapid growth and development of blockchain and cryptoassets as an existential threat to the status quo, but that is an incomplete and short-sighted perspective. Instead, cryptoassets should be viewed as a positive development and natural maturation of the online ecosystem and environment; digital and virtual payments have long been a mainstay of business and enterprise, and there is no reason to think that blockchain or cryptoassets will function any differently.

In order to maintain this status, and like any other economic asset, the dollar will need to be upgraded and modernized for the 21st and 22nd centuries.

What this means from a policy perspective is that a more nuanced and balanced approach should be taken with regards to how blockchain technology and cryptoasset instruments are viewed and integrated into the mainstream financial markets. Crypto based and enabled transactions have quantifiable benefits that have been recognized and acknowledged by some of the largest and most established financial institutions the globe over; it makes sense that nation-states will seek to adopt a similar approach.

In terms of what this means from a direct, or action-oriented approach, there are several steps that can be taken in terms of what policymakers can actually do in terms of seeking to adopt blockchain technology or cryptoasset financial instruments into everyday transactions. What follows below is not meant to be an exhaustive listing, but should rather serve as a means to continue the conversation around this fast growing and emerging area.

Which cryptoassets are to be accepted by merchants and individuals in the jurisdiction in question, i.e. not every cryptoasset will be accepted as equally by every institution in question.
How will these cryptoassets be held and stored in terms of asset management, or in other words how will organization store and maintain custody over cryptoassets?
Regarding cryptoassets, is there a policy in place around how said cryptoassets will be reported on the financial statements of the organization?
Does it make sense to, alongside the development of crypto standards and operating guidelines, simultaneously build out similar guidelines for smart contacts, the programs that enable blockchains to communicate with other technology systems?
Is it reasonable to assess which types of cryptoassets will work most appropriately in certain marketplaces or use cases, i.e., the development of crypto products and services will change the narrative around crypto adoption; how should this be assessed?

Blockchain and cryptoassets are a fundamentally positive technology and suite of tools that have both the potential to, and actually influencing are, influencing how business decisions across different economic sectors are conducted. As with any new technology or innovative way of doing things, there will invariably be hiccups, disruptions, and downturns that occur; that is a perfectly normal part of the business and technology cycle. Policymakers the world over are often in a position of playing catch up to new and innovative technology, and so it is important for industry actors to serve in a dual role as educators as well as market actors. Policy oversteps will happen from time to time, but that is no excuse to simply let these policy errors define the market moving forward. Crypto needs relation but it needs to be smart regulation; crackdowns and bans are neither smart nor conducive to the continued growth of this sector.

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About the Author

Dr. Sean Stein Smith is a professor at the City University of New York – Lehman College. He serves on the Advisory Board of the Wall Street Blockchain Alliance, where he chairs the Accounting Work Group. Sean sits on the Advisory Board of Gilded, a TechStars ’19 company and AICPA-CPA.com startup accelerator participant, and serves as a Strategic Advisor to the Central Bank Digital Currency Think Tank. He has a weekly column with Forbes, in the Crypto & Blockchain vertical. Sean is also the immediate past chairperson of the NJCPA’s Emerging Technologies Interest Group (#NJCPATech), where he hosts the NJCPA TechTalk Podcast, and is the President-Elect of the NYSSCPA Manhattan-Bronx Chapter. He is a Visiting Research Fellow at the American Institute for Economic Research, with a book due out in Q4 2021. Sean is a sought after speaker on the topic of crypto and blockchain, and is an award winning researcher.

Crypto-Mining and Regional Security in Abkhazia

September 26, 2021

By Michael E. Lambert

The mining of crypto-currencies requires a large amount of electricity to be carried out, making it a significant challenge with the overall electricity consumption to mine Bitcoin equivalent to the annual consumption of electricity in New Zealand and growing at the time of writing.

In consequence, while some governments are actively trying to ban crypto-mining and, to some extent, their use for daily use (e.g. Turkey and China), others, like El Salvador, are embracing blockchain technology and wish to substitute the national currency with Bitcoin. This strategy could be a game-changer in El Salvador, as if crypto-currencies become the main standard, it would guarantee a rapid increase in El Salvador’s national GDP and public spending associated to it, combined with improved security features associated to blockchain technology by contrast to currencies such as the US dollar.

On the European continent, another “almost” country, Abkhazia, which is considered a separatist by Western governments and a full-fledged country by Russia, has also moved towards a more flexible crypto-mining policy.

Like in El Salvador, the positive signs in favour of crypto-mining have already had an unexpected impact on Abkhazia’s foreign policy, with electricity shortages that have led to stronger ties with Moscow to ensure cooperation regarding power supply, and a rapid increase in the number of Abkhaz millionaires.

Taxes on crypto-currencies could increase the state budget allocated to renew infrastructure, with Sukhum airport in the spotlight.

If Abkhazia’s strategy succeeds in establishing a long-term crypto-strategy, the territory may be able to rely on a currency other than Russian ruble (Abkhazia is using the Russian rubble instead of its own currency) in a few years from now, thereby diminishing Moscow’s influence in the region. Furthermore, taxes on crypto-currencies could increase the state budget allocated to renew infrastructure, with Sukhum airport in the spotlight.

The new legalisation of blockchain per se raises concerns in the West (US-EU/NATO), as an increase in GDP implies additional spending on foreign diplomacy – which is mostly expected to result in increased recognition of Abkhazia – and military spending.

Abkhazia’s approach to crypto-currencies

In Abkhazia, the de facto Minister of Economy, Christina Ozgan, confirmed that the government is working on proposals to create the necessary conditions for mining crypto-currencies. This will include organising the supply of electricity from Russia and, in order to minimise the load on the electricity grid, providing locations to host crypto-currency mining equipment, taking into account the throughput and capacity of certain substations.

Nonetheless, the new stance on crypto-currencies remains ambiguous, as the local authorities wanted to ban mining in the first place, but it turned out that this would be difficult as it will require to investigate, arrest and prosecute residents carrying out such activities. Furthermore, it turned out that some of the largest crypto-currency miners are government officials who have the ability to set up a crypto-currency farm (mining in the crypto-currency world is done on “farms”), which usually means people with leverage in the Abkhaz society.

Some might argue that Abkhazia has not fully developed a strategy and that mining/selling crypto-currencies is more of a way to make some extra income than a genuine state policy. As such, the authorities could have taken a more sophisticated stance by leveraging Tether¹ instead of the Russian rubble to provide greater stability in the first place (Tether is pegged to the US dollar so prices remain more stable than the Russian rubble) or even developed their own national crypto-currency.

Similarly, no policy has been adopted by the government regarding state-owned crypto-currency farms. This is rather surprising as the Abkhazian authorities are the ones with the skills to develop and invest in such infrastructures on a large scale, thus enabling the storage of crypto-assets in the national reserve to ensure the payment of national debts to Moscow.

Albeit Abkhazia has an official currency (the Abkhazian apsar²), the residents use Russian rubles for daily payments. As such, it would have been feasible to switch from Russian rubbles and Abkhazian apsar to Bitcoin or another crypto using less energy, like Ethereum³, though Christina Ozgan did not suggested it.

How will Russia react?

The Abkhazian posture on crypto-currencies has not impacted Russian support for Abkhazia as of today. This si understandable because Moscow gave crypto-currencies such as Bitcoin national legal status in 2020, while prohibiting the use of digital assets for payments, claiming that only the Russian rouble could be considered a legal currency. Abkhazia is likely to follow the Russian approach in this regard.

Therefore, some might ask, how will Moscow react if the Abkhazian authorities follow El Salvador’s lead and switch from the Russian rouble to crypto-currency in the near future? This is not yet under consideration, but it could be, as crypto-currencies are more suitable for travel and cost-free money transfers, making it easier to restore links between the Abkhaz diaspora and the Abkhazians who remain in the motherland. Moreover, banks such as the British Revolut⁴ have enabled person-to-person crypto-transfers, which is another step forward in global adoption of digital assets for payments.

Crypto-mining is an opportunity not only for Abkhazia, but also for Russia, which could have a prosperous partner in its neighbourhood capable of purchasing more Russian products and military equipment.

Despite these signs, and given Abkhazia’s dependence on Russia for the import and export of all kinds of goods, including military equipment, it is reasonable to assume that the local authorities will continue to rely on Moscow’s assistance even if the Russian rubble disappears.

Furthermore, crypto-mining is an opportunity not only for Abkhazia, but also for Russia, which could have a prosperous partner in its neighbourhood capable of purchasing more Russian products and military equipment. In short, crypto-mining activities are welcome on both sides and should not impact Abkhaz-Russia relations but in the energy sector.

How the West and Georgia will react?

In a recent The National Interest article entitled “Bitcoin Is a Threat to National Security” (Ramon Marks and David Harvilicz, 2021), the authors mention the risk of high inflation of the US dollar due to investment in Bitcoin, considering crypto-currencies to be a threat to the worldwide economy.

This approach is rather conservative as it assumes physical currencies will continue to exist, even though they have no comparative advantage versus blockchain technology. The two authors argue that a country should be in charge of the national currency with central banks, which is surely relevant in states like the United States, but less so for others with high-inflation such as Venezuela, and even less to unrecognised or partially recognised states like Abkhazia and Transnistria.

Meanwhile, another article entitled “How decentralized finance will transform business financial services – especially for SMEs” (Rebecca Liao, 2021), published by the World Economic Forum, is more optimistic about how crypto-currencies will empower citizens and increase business capabilities. Ultimately, it seems that national currencies and crypto-currencies will have to co-exist until a more global consensus is reached between pro-cryptos and crypto-sceptics.

While the debate rages on in the West, the recent legalisation in Abkhazia has raised quiet but real concerns in Georgia, as a well-off Abkhazia would mean increased investment in national infrastructures and foreign diplomacy.

Overall, Abkhazia’s size and population (about 1/2 million) do not pose a military threat to Georgia, even with a massive spending on new military equipment, but the Abkhazian authorities might be tempted to spend more on foreign policy and thus on an active strategy for recognition of the territory, which would be detrimental to the Western policy of non-recognition.

Ultimately, a prosperous Abkhazia would have the means to advocate for greater recognition and to develop new partnerships or at least to renew the infrastructure that brings greater attention to the country, such as the railway and the international airport which is not welcoming tourists since the collapse of the USSR.

Despite the concerns, the West should not take a stance against crypto-currencies as its main ally in the South Caucasus, Georgia, is also among the world’s leading crypto-currency countries and has no legislative restrictions on trading and, to date, does not require a licence for such activity.

Furthermore, Georgia offers a high degree of tax certainty and an advantageous tax system for businesses involved in crypto-currencies, and it was estimated by the World Bank in 2018 that at least 200,000 people in Georgia are involved in crypto-currency mining.

`Individuals in Georgia are exempt from income tax on any profit received from the sale of crypto currency;
The sale of the crypto currency or its exchange for Lari or other currency is not subject to VAT (applies to transactions between legal entities and individuals);
The sale of computing power (hash) from Georgia abroad is not subject to VAT. In addition, individuals and legal entities retain the right to input VAT;
The sale of computing power (hash) within the territory of Georgia (between residents) is subject to VAT;
A hash purchase by a Georgian resident abroad is subject to VAT.

Unlike Abkhazia, the Georgia House of Representatives has even passed a bill that calls for state education officials to implement a study program based around financial literacy for high schoolers with cryptocurrencies on the curriculum list.

As such, Georgia and Abkhazia have been living apart for over three decades but seem to be on the same path when it comes to crypto-currencies, and miners on both sides will increased electricity consumption and pressure on infrastructure, as no plans for upgrading the internet and energy supply have been put on the table in both Abkhazia and Georgia.

In conclusion, unlike El Salvador, Abkhazia and Georgia do not have a long-term strategy, but it is certain that cryptocurrency mining will put a strain on infrastructure – internet and energy capabilities – and, although cryptocurrency mining is now legal, more domestic cyber capacity will be needed on both sides to control this new source of revenue and ensure that residents pay the related taxes.

The primary regional security concern as such is that Abkhazia could become even more dependent on Moscow due to the lack of electricity in the region, which would make Sukhum/i willing to accept more concessions due to the lack of Abkhazian domestic investment in the energy sector and internet-related infrastructure. This could also prompt Abkhazia to seek greater involvement of foreign partners to upgrade infrastructures, but so far no country other than Russia has shown interest in helping Abkhazia in this matter.

The upcoming months will provide us with more details when it comes to the strategy adopted by Sukhum/i and while Bitcoin could become the main currency, another option would be the adoption of the 2nd most famous, Ethereum, which is now more stable and with its update (Ethereum 2.0) requires at least ~99.95% less energy.

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About the Author

Michael E. Lambert, PhD is a political psychologist and social engineer working at the intersection of medicine (social psychology and psychopharmacology) and political science, expanding the topic of mathematical models of strategic interaction among decision-makers to ensure the effective implementation of Blue Ocean Strategy in international politics.

References

Gela Barshovi, Insight: Taxation of Cryptocurrency in Georgia, Bloomberg, (Dec. 16, 2019), https://news.bloombergtax.com/daily-tax-report-international/insight – taxation – of – cryptocurrency – in – georgia
Irina Lopatina, Georgia: Features of Taxation of Crypto Currency in Georgia in 2020, Mondaq, (April 06, 2020), https://www.mondaq.com/fin-tech/912924/features – of – taxation – of – crypto – currency – in – georgia – in – 2020
Ramon Marks, David Harvilicz (2021), Bitcoin Is a Threat to National Security. The National Interest (https://nationalinterest.org/feature/bitcoin-threat-national-security-183442)
Rebecca Liao (2021), How decentralized finance will transform business financial services – especially for SMEs. World Economic Forum (https://www.weforum.org/agenda/2021/07/decentralized-finance-transaction-banking-smes/)
S. Haber, W.S. Stornetta (1991), How to time-stamp a digital document. In Journal of Cryptology, vol 3, no
2, pages 99-111
Satoshi Nakamoto (2008), Bitcoin: A Peer-to-Peer Electronic Cash System. (https://bitcoin.org/bitcoin.pdf)
Vitalik Buterin (2013), Ethereum Whitepaper. (https://ethereum.org/en/whitepaper/)
W. Feller (1957). An introduction to probability theory and its applications.

Emphasizing Zakat and Waqf for Global Zero Hunger

September 26, 2021

By Randi Swandaru and Priyesta Rizkiningsih

The significant global temperature rise in the last decade has derailed the world zero hunger attainment. The increase in temperature within the area where the heat is close to a maximum tolerance stresses the crops and compromises agricultural productivity. Climate change also induces prolonged drought, massive rainfall, and planting calendar shifting around the globe. The temperature rise also accelerates pests and diseases dispersion which adds complexity to crops productivity and food supply¹.

The COVID-19 pandemic has further compounded the challenge to achieve the zero hunger target. The strict social distancing measure to reduce the spread of the virus has disrupted the global supply chain and put poorer countries at risk, especially net food importer countries. World Food Program (2020) estimates that 271.8 million people in 79 countries are severely food insecure and directly at risk due to the COVID-19 pandemic².

The COVID-19 pandemic has further compounded the challenge to achieve the zero hunger target.

Looking at the Global Hunger Index (GHI) 2020, most of the Organization of the Islamic Cooperation (OIC) countries’ conditions are unfavorable. Several countries in the African region, such as Nigeria, Sudan, Togo, Benin, and Burkina Faso, are in serious condition with the GHI score above 22 points, whereby the global average GHI score is 18.2 points. Chad even endures alarming conditions, with 44.7 points. In addition, several OIC member countries in Asia, such as Pakistan and Afghanistan, are in serious condition. Meanwhile, Indonesia and Malaysia are at a moderate level³.

The result of GHI 2020 depicts that the global zero hunger target most probably will not be achieved by 2030. It is also predicted that approximately 37 countries cannot even achieve a low hunger stage based on GHI measurement. Furthermore, achieving the zero hunger target obtains serious efforts as it requires hunger level reduction, food security, nutrition improvement, and sustainable agriculture⁴. Thus, dual solutions should be obtained for food access by improving nutrition and maintaining food availability for society.

One of the solutions to achieve the zero hunger target in Muslim populated countries is by utilizing alternative financing that is endogenously attached with Islamic tradition, such as zakat and waqf fund. Zakat can be utilized as an emergency fund to accommodate urgent needs, while the latter could be employed to develop more long-term programs, for instance, to build sustainable agriculture by using waqf assets. A combination of both zakat and waqf funds also could be implemented as an option for the solution.

Islamic Teaching on Food Security

Islam has a strong tradition and teaching related to food security. First, food is one of the benchmarks for whether someone can be categorized as poor or not. According to Al-Ghazali’s opinion, food and drink for a day are the benchmarks for a person’s ability to fulfill their basic needs. Hence, food becomes one of the important components in had kifayah, a basic living standard of a person’s or family’s needs. Had kifayah is used to measure people’s eligibility to receive zakat⁵.

Second, the practice of obligatory fasting during the Ramadhan educates Muslims to acknowledge underprivileged community conditions by experiencing their hunger during the day. Beyond suppressing appetite, Islam also asks Muslims to help those in hunger and poverty. Muslims will not get the reward from their fasting until they give zakat fitrah, which is mandatory for Muslims who live during Ramadhan. The practice of zakat fitrah that is paid using staple food, according to Syafi’i school, also reflects how Islamic teaching appreciates food security among the society.

Third, Islamic tradition forbids israf or exaggerate lifestyle. For instance, Islam encourages Muslims to start eating with the closest food from them and stop eating before they get full. This teaching essentially appreciates food availability and avoids food waste due to lavish consumption. In addition, Islam concerns about the sustainability of food security. Hence, Islamic values also teach not to cut down or burn trees carelessly, even in a state of war.

Fourth, the Prophet Muhammad (peace be upon Him) paid a lot of attention to community food security. One of the hadith on this topic states that “He is not a believer whose stomach is filled while his neighbor goes hungry.” In this example, there is symmetrical importance between one’s faith and the well-being of the neighborhood.

In another story, The Prophet Muhammad (peace be upon Him) always feeds an old blind guy who lives in one of the market corners in Madinah. This practice then was continued by Abu Bakar, one of his companions. However, the blind guy directly noticed that he was not the same feeders as before because the Prophet Muhammad (peace be upon Him) always helped him chew the food before giving it to him. Realizing this, Abu Bakar cried profusely. This story shows that we must recognize the recipient’s condition and treat the best way in our effort beyond merely food delivery.

Islam teaching requires the government leader to take full responsibility to make sure food is sufficient among the people.

Fifth, Islam teaching requires the government leader to take full responsibility to make sure food is sufficient among the people. The story of Khalifa Umar bin Khattab represents that value in Islamic teaching. One day Khalifah Umar went around the city, and he saw a hut with a burning stove and children crying. He came across to that hut and asked why the children were crying and what she cooked. The woman answered that the children are crying because they were hungry, and she was cooking water and stone as she did not have food and hoped the children would fall asleep while waiting for her cooks. Khalifah Umar immediately went to baitul maal (state treasury) and took the food for them. He also helped to cook and ensure that they no longer feel hungry.

Zakat and Waqf Practices for Zero Hunger

In recent years, many programs have been exercised to support global zero hunger by utilizing zakat fund. First, the food bank program by BAZNAS aims to provide food for the underprivileged community. During the lockdown amidst the COVID-19 surge, the food is distributed to vulnerable people using a food truck to maintain social distancing measures. The food bank also collaborates with hotel and restaurant associations to extend good quality food excess to be distributed to those in need. Therefore, the program can provide short-term food availability in society while reducing potential food waste.

Zakat also has been utilized to service a long-term food security program through sustainable agriculture and livestock program. The former is exercised by contributing capital assistance for farmers to operate their agriculture business. In addition, training and mentoring are provided to increase their capacity in practicing sustainable agriculture. This program is expected to fulfill the food needs at a local level by increasing agricultural productivity.

Meanwhile, the livestock empowerment program is aimed to increase community protein consumption and eradicate poverty in society. In this program, the breeders are emancipated by opening access to the best livestock seeds, technical training in livestock practices, and mentorship to expand the derivative livestock business. In the qurban season, the farmers enjoy a higher profit margin from livestock trading, and the community will benefit from the meat disbursed in the surrounding area. Nowadays, BAZNAS has established 16 livestock empowerment centers in Indonesia.

In addition, the waqf fund could also be utilized to overcome zero hunger. One of the famous examples of waqf in agriculture is the waqf by Al-Rajhi, who gives his dates farm, which has more than 200 thousand dates trees, including 45 varieties of dates. The earning from this farm is utilized for charity and to build mosque all over the world. This waqf is also categorized as the biggest waqf globally⁶.

Despite various best practices that have been exercised, several things need to be emphasized to increase the impact of zakat and waqf on the global zero hunger target.

Moreover, according to Yunita (2020), cash waqf fund linked sukuk, which is categorized as green sukuk model, could be alternatives for financing the agricultural sector. The underlying assets for this sukuk are productive waqf. After the sukuk is issued, the fund will be distributed to farmers as their working capital⁷. Another alternative is the combination of waqf and zakat. Waqf assets can be used for productive activities, for instance, land for farming and using zakat funds for the operational activities to support the eligible zakat recipients. Hence, the collaboration can encourage sustainable agriculture practices.

Moving Forward

Despite various best practices that have been exercised, several things need to be emphasized to increase the impact of zakat and waqf on the global zero hunger target. One of the most important things is to increase the zakat and waqf collection in Muslim populated countries. It can be achieved by enhancing the regulatory framework, such as giving tax incentives for zakat payers or abolishing tax from waqf assets. However, this policy is difficult to be realized in some countries. Under that circumstance, zakat and waqf organizations must conduct effective marketing strategies to engage potential donors by showcasing the impact that they have made.

Moreover, it is essential to conduct technical capacity building related to agriculture, nutrition, and general management for zakat and waqf organization. This step can be done by collaborating with NGOs in climate and nutrition issues and UN organizations in this related area. That will allow knowledge transfer and experience to enhance zakat and waqf disbursement programs that align with zero hunger achievement.

Lastly, noticing the severity impact of climate change and the COVID-19 pandemic, it is imperative to create a collaboration platform among global zakat and waqf organizations to anticipate potential global scale crises. The current World Zakat Forum can take this role by enhancing policy and forming a solidarity fund, especially a food aid scheme within OIC countries, to achieve the global zero hunger target.

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About the Author

Randi Swandaru is a Graduate Academic Assistant at INCEIF, Malaysia. He earned his master’s degree in Islamic Finance and Management at Durham University in 2017. He was also awarded as Obama Foundation Leaders Asia Pacific 2019 and Young Southeast Asian Leaders Initiative Professional Fellows 2020.

Priyesta Rizkiningsih is an economic empowerment manager The National Board of Zakat, the Republic of Indonesia (BAZNAS). She is responsible for zakat distribution in BAZNAS Microfinance and BAZNAS Institute of Mustahik Economic Empowerment. She is an awardee of Australia-Indonesia Muslim Exchange Program 2021.

References

Phil. Trans. R. Soc. B (2010) 365, 2973–2989 doi:10.1098/rstb.2010.0158
Covid-19 Level 3 Emergency, External Situation Report #17 (2020) source: https://docs.wfp.org/api/documents/bb 06a3493e85496587739785 abfe5b28/download/?_ga=2.96580319.1153839138.1612105335-1762763524. 1612105335
Global Hunger Index (2020), source: https://www.globalhungerindex.org/pdf/en/2020.pdf
Goal 2: Zero Hunger, source: https://www.un.org/sustainabledevelopment/hunger/
Pusat Kajian Strategis BAZNAS (2018). Had Kifayah. Jakarta: Pusat Kajian Strategis BAZNAS
https://islamicvoice.com/islamic-science/worlds – largest – date – palm – garden /
Yunita, P., (2020). Cash Waqf Linked Sukuk (CWLS) Model: For Indonesia Sustainable Food Security. Al-Awqaf: Jurnal Wakaf dan Ekonomi Islam, 13(1), pp. 60-71.

Fixed Asset Turnover Ratio and its Importance in Business

September 24, 2021

Whether you’re purchasing equipment or stocking up on goods, every dollar you invest in your company should generate revenue or help you increase earnings. Asset utilization ratios may be pretty helpful in determining how well you are performing compared to your peers. Indeed, financial ratios and financial statement analysis are frequently used by lenders and investors. It enables them to conduct a valuation using just publicly available information supplied by the firm. One of the measures used to assess corporate performance is the fixed asset turnover ratio. It is instrumental in capital-intensive industries such as manufacturing.

While ratios alone cannot prove how efficiently a company uses its fixed assets, they may provide a comprehensive picture of a company’s performance and asset management when coupled with other research.

Definitions

Asset Turnover Ratio

This is a ratio used to calculate the value of sales generated in an organization for each unit of asset utilized. It is beneficial for identifying better ways of generating income from available assets as well as assessing a firm’s efficiency.

A high asset turnover ratio implies that the company’s assets are well employed, whereas a low asset turnover ratio means that the company’s assets are underutilized. It is used to assess the effectiveness of both short-term and long-term assets. Asset turnover presupposes that every asset is employed to generate income.

Fixed Assets Turnover Ratio

This is the company’s sales value in relation to its value of the fixed assets, which include plant, property, and equipment. It assesses a company’s capacity to employ fixed assets to generate revenue while also assessing its operational success. A lower fixed asset turnover indicates ineffective use of fixed assets in creating income, whereas a higher fixed asset turnover indicates effective use of fixed assets in income generation.

Summary of the Ratios

Asset turnover is a ratio that compares the total income earned in an organization for each unit of asset utilized. It is calculated by dividing net sales value by the average total assets of the company. On the other hand, fixed asset turnover refers to the sales value in proportion to the value of a company’s fixed assets. It’s calculated by dividing the net value of sales by the value of total fixed assets.

The Implication of Fixed Asset Turnover Ratios

Fixed Asset Turnover is a measure of efficiency. It indicates how well a firm uses its fixed assets to produce money, also known as return on assets. Using a manufacturing firm as an example, this ratio indicates how well the company uses every dollar invested in gear and equipment to create revenue.

This ratio is beneficial for lenders giving funds for new equipment or investors estimating future sales income and cash flow based on asset acquisitions. For example, if a manufacturing business is inefficient at producing income from one of its sites, lenders and investors will hesitate to finance a new facility’s growth.

Higher Vs. Lower Asset Turnover Ratio

When you compute this ratio, you’ll discover how many times your fixed asset value is generated in revenue each year. For example, if a company has $1 million in average fixed assets and $4.5 million in annual net sales, the fixed asset turnover ratio will be 4.5.

A low fixed asset turnover ratio indicates that a firm is inefficient in generating income from its assets. A high proportion, on the other side, indicates more efficiency. The Fixed Asset Turnover Ratio is a fantastic tool to compare one firm to another or an industry average. In reality, what constitutes a “good” or “poor” ratio varies greatly depending on the sector.

Each industry must be measured differently based on how it produces income. Some rely heavily on fixed assets such as PP&E, while others rely heavily on current assets such as cash, receivables, or inventories. The various efficiency ratios measure how the firm uses assets to produce revenue and change primarily by adjusting the denominator in the calculation to match the company’s asset base (fixed assets, current assets, working capital, etc.).

Tips for entrepreneurs who desire to employ asset turnover ratios in their firm are provided below.

Understand your benchmarks.

A healthy asset turnover is determined by the sort of environment in which you operate as well as the size of your organization. So you’ll need to figure out the asset turnover rate for a company your size in a similar sector.

Learn why your ratios are higher or lower than the industry average.

If your fixed asset turnover is significantly greater than the industry average, this does not necessarily imply that your capital productivity is better; this might be explained by old depreciated assets that break down often or require extensive manual intervention.

Similarly, suppose your fixed asset turnover is significantly lower than the industry average. In that case, it might be justified by a recent significant investment in new equipment that will give you increased revenues in the near future.

Examine other performance indicators.

In terms of capital productivity, asset turnover ratios are helpful. However, assessing labor productivity is just as essential.

Lastly

The fixed asset turnover ratio helps determine how well a firm utilizes its fixed assets to produce income without becoming capital heavy fundamentally. The more the ratio, the more efficient the system. However, to be more definite, one must evaluate the ratio’s trajectory over time or compare it to a standard for a particular sector.

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