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In the beautiful Castilian language we usually translate a few terms in English a little in our own way. Against prognosis, in the case of EBITDA and despite the difficulty to read it that implies the excess of consonants, we have remained with the acronym in English. That’s how we are.

The EBITDA is the profit of a company obtained before subtracting the financial expenses, answering the initials to the English Earnings Before Interest, Taxes, Depreciation, and Amortization. And what are those financial expenses that are not deducted for calculation? Well, three:

  • Amortization and depreciation
  • Debt interest
  • Taxes

Do you find it messy? Do not worry, we have prepared an explanation for dummies.

Imagine the day of your wedding. All the guests have given you a gift and you have a lot of money, – we are rich, honey -, you could tell your partner, but the reality is very different. That money is not your benefit, hence you have to subtract all expenses until, in the end, with everything paid, you have a little left to go on vacation.

How is it calculated and differences between EBIT and EBITDA

To explain how to calculate the EBITDA we will first remove a couple of letters until we have EBIT. The EBIT ( Earning Before Interest and Taxes ) is the gross profit or operating income , that is, the profit before deducting taxes and interest . This is the formula:

EBIT = Sales – Costs – Operating expenses

To calculate the EBITDA, we must add to the EBIT the expenses and provisions of the company corresponding to depreciation and amortization. The formula would look like this:

EBITDA = EBIT + depreciation expenses + amortization expenses

What we have left is the pure result of the company, a figure that indicates its productive force but, eye, does not take into account the financial costs involved in that ability to generate income. Therefore, the EBITDA, by itself, does not say anything about the true financial situation of the company .

– Well, that indicator is useless, right? -, you will be thinking. Relax, there is more.

What is EBITDA for?

The first question that arises once you understand what it is, is always the same, what is it used for in EBITDA? Here are some ideas:

  • Excludes randomness in the provisioning : the criteria may be different in each company , which vitiates the comparison between them.
  • Cancel the impact of taxes on the results : in different countries or sectors tax burdens are different.

In summary, the EBITDA allows to objectively analyze the productive capacity of a company and compare companies that operate under different circumstances and environments . Saving distances, it is an opportunity to compare pears with apples. Do you start to see the utility?

How is it interpreted?

The most important fact that you have to take into account when assessing whether an EBITDA is positive or negative, in terms of quality, not numerical, is that it does not consider the interest on the debt .

This means that if a company contracts a huge liability to finance its growth, it will sell more and the EBITDA will be very high; However, this does not have to translate into a positive final result. This means that the EBITDA does not reflect the financial reality of a company , so it is common to use it in comparison with other indicators.

Have we shed some light on this important financial indicator? Do you have any questions to solve?

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More and more houses are sold in Spain . The economic improvement of many families and the fall in the prices of the sector has led to a significant increase in the demand for real estate . If you are thinking of asking for a mortgage with which to buy the house of your dreams, in this article we are going to put you homework.

Before going to the bank to ask for a mortgage you must make sure that you are clear about where you are getting. To get it you have to ask yourself the following questions.

Have you asked yourself these questions before asking for a mortgage?

  1. What amount can I afford to pay?

We would all like to have a villa with pool and gardens on a plot of 500 square meters. Money is the only thing that separates us from that dream. Therefore, the first question you have to ask yourself before asking for a mortgage is: what amount can I afford to pay without shocks and without risking the future sustainability of my personal finances?

A lot of attention here because to answer this question some people only pay attention to the monthly payment they have to pay . As a consequence, they make the mistake of extending the repayment of the debt until 30 or 40 years so that the monthly receipt is “affordable”.

The problem is that the longer the period of repayment of the mortgage, the greater will be the interest to be paid. It can happen, for example, that you end up paying 200,000 euros for a house that only cost 100,000.

Our advice is that at most you mortgage at 20 years and that the monthly amount to be paid does not exceed a quarter of the household’s monthly income . Bear in mind also that the Euribor is in negative at this time and that in the medium term will end up rising and making the quota more expensive. We see it in the next point.

  1. What kind of interest is better?

Currently you can contract your mortgage with three types of interest: fixed (the same throughout the life of the mortgage), variable (depending on the Euribor) or mixed (fixed interest only for a few years and variable later). Is there any better than another? It depends.

If you want to be sure of knowing how much you will pay for your mortgage every month for the next 20 years without worrying about how the market will evolve, the best option is the fixed rate . The “but” of this interest rate is that it is higher than the current variable rate.

If on the other hand you plan to amortize a lot of mortgage during the first years of the same, without a doubt the variable rate is the most suitable for you. In this case, remember that the forecast is for the Euribor to rise in the coming years. When this happens, your mortgage fee will also rise.

  1. What are the additional costs?

It is essential to calculate well what will be the additional costs to the purchase of our home , which can be classified into three types:

  • Amount not financed by the bank . Most banks only finance 80% of the appraised value of a home. This means that you will have to save to advance the remaining 20%. Also keep in mind that the appraisals are usually made downwards, so it can happen that the house costs 120,000 euros and the bank values it at only 100,000. In this case you will need to have a saving of 40,000 euros.
  • Mortgage expenses . There are a number of expenses related to the mortgage that you will have to face. For example, notary and registry. If you buy a second-hand home (and therefore have to pay the Tax Documented Legal Acts), these expenses will range between 10 and 12% of the amount of the mortgage.
  • Value Added Tax . As a good taxpayer, do not forget the VAT. If you buy a new home, you must add 10% to the purchase price. In the case of a protected home, VAT is only 4%.

The sum of these additional costs will also influence when determining if the house you want to buy is viable or not.

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Working from home , without schedules or toxic bosses , is the dream of many people. The possibility of earning a living in front of a computer, or at least earning extra income , is available to everyone. Internet offers endless options to get it. Would you like to know which ones? We tell you seven proven ways to earn money from home.

Making money from home is possible: work from the couch

1º. Membership.

It is the fashionable method that more and more Internet users put into practice. It consists of creating a website, call it A, from which to recommend products or services from another website , for example, B, through an affiliate link. When a purchase is made in B and the cookie indicates that the user is “recommended” by A, then B pays A a commission.

Affiliation is currently very strong in Amazon , in websites where WordPress themes are sold and in the segment of hosting providers, although it is increasingly present in more sectors.

2º. Editor.

If you are good at writing, you can make a living writing articles and web content for other people. To be successful it is essential that you have a blog of your own to show how good you are and that it serves as a hook to convince your potential customers. If you are new to this, you can offer your services on platforms such as Publisuites .

3º. Social networks.

With social networks you can earn money from home in two ways: as a community manager , that is, managing the social networks of your customers ; or with your own social networks, posting tweets or Facebook or Instagram messages that some company entrusts to you. As is logical, the more followers you have, the more impact your messages will have and the more you will charge for them. SocialPubli is a company that is dedicated to this and with which you can take your first steps.

4th Online marketing

If your thing is inbound marketing or online marketing, you can earn money from home by offering your services to companies that need it . More and more businesses are betting on advertising with Facebook Ads or AdWords and more and more SEO or email marketing campaigns are being demanded. The online marketing sector is in a boiling phase.

5th Sale of infoproducts.

This method to earn money from home is a little more complicated. It consists of creating a digital product, which we call infoproduct , and sell it. It can be an ebook, a video or online course or a simple web template. The most famous bloggers earn a lot of money selling their infoproducts . However, for someone who is starting out it will be much more complicated because nobody knows him or values his work.

6th. Tutorials.

Another quite simple way to get extra income (although there is also someone who lives from it) is giving private lessons. You can set it up for yourself, create your personal website and go out to look for clients , or sign up for a platform already consecrated from which to offer, as “Your private lessons” , one of the best known.

7th Translator.

No matter how much enthusiasm and technology Google Translate gives you, a good human-flesh-and-blood translator will take everything else away. If languages are your thing you can offer your content translator services online . In websites like Fiverr they are the ones with the most demand.

What do you think of these seven possibilities to earn money from home? Do you think you can stand out in some?

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On the internet there is a lot of theory about what are passive and semi-passive income and why they are so interesting. What is not usually said is that there is a great work behind each one of them. Money does not fall from the sky and if they tell you otherwise, they lie . For this reason, today we will analyze in Vivus 5 passive and semi-passive businesses that, with sufficient dedication, will allow you to generate extra income in the medium and long term.

How to make money online with passive businesses

  1. Niche websites

It consists of creating a web page on a very specific topic, positioning it on Google with SEO and sending readers to a vendor’s website (for example, Amazon). The objective is that someone who looks for information about the product X end up reading your blog and buying on Amazon from the affiliate link that you have provided. When this happens, you earn a commission.

From a technical point of view, it is not difficult to create a niche web. That Google places it on the first page of searches does require more knowledge of SEO. However, the main attraction of these websites is that once created, they work without your intervention. Google sends you readers and you send them to the seller. The income from this type of passive business can be quite stable, but depends on Google not modifying its algorithm and keep you well ranked.

  1. Social trading

If you have a little money saved you can put it to work for you thanks to social trading . No, you do not need to be a Josef Ajram to invest your money with this method. Simply copy other investors who know more than you and whose results are public . It is the simplest way to generate totally passive income, but you need a small initial capital to start.

  1. Publish books or ebooks.

You can publish books as an independent author, without the need for editorials that support you. Nowadays it is very easy to publish an ebook and even a book in paper format thanks to Amazon that makes your task much easier . The great advantage offered by this formula is that once the book is published, you do not have to do anything else. If anything, write another.

  1. Sell online courses

If you are very good at something and you think you are capable of transmitting your knowledge to other people, you can create an infoproduct . We refer to a digital product or online course in text or video format. For example, a course on graphic design or on aquatic photography. You can sell it through your own web page or in a consecrated training platform, like Udemy or Tutellus .

  1. Videos on YouTube.

If you have a lot of art in front of the camera, Youtube offers you the possibility of obtaining passive income . The problem is that you have to be very original and know how to find your audience , since the platform is saturated with videos of all kinds. It is not easy to make money on YouTube, but if you get your videos to like and become viral, the income will be one hundred percent passive.

As we can see, thanks to a previous effort, these five methods will allow you to obtain passive or semi-passive income. There are only two requirements to achieve it: be very good at what you do and have time to do it . If you meet both premises, the results will come sooner or later.