I’m sure you have come across this Ferrari joke before. Do read it again and have a good laugh. This joke is all about cutting expenses and investing the money to purchase some valuable item in the future. The typical, standard boring guideline anyone from the finance industry will talk about. On face value, the […]
Don’t Fall for One-Year Investment Return
Say you come across a person or an article indicating a particular investment has made a 10% return in the past year. Let’s try to be a bit more dramatic and say 40% return. I bet this will catch anybody’s attention. Our mind goes “This is a sure win. Everyone is investing in it and […]
I’m Stupid When I’m Desperate
When you are desperate, you think and act stupidly. This was my story a few years ago. I was in a bad position financially. I didn’t know how to earn more, I didn’t know how to limit my expenses. I’m only left with a constant worry about my financial state. Every thought I had was […]
Risk, can we get serious now and talk about it?
In my previous post, I shared a simple investment strategy. Personally, I prefer calling it Risk Management, the reason being an investment is all about the risk an investor willing to take to earn the desired return. The one problem I have noticed among investors, they spend most of their time talking about return and […]
All About The Standby, Standby, Standby
In this post, I will discuss the importance of “standby cash”. A simple but very important concept in the investment field. Before that, some observations from my previous post Discount Rate is not Markup Rate (Part 2). All four investors invested in the same stock, Company ABC. However, the rate of return for each investor […]
Discount Rate is not Markup Rate (Part 2)
In my previous blog post, I shared the below two points:– Differences between discount and markup rate – Markup rate is always higher than the discount rate How can we apply this knowledge in investing? Well, the goal of any investment is to earn a return or profit at a future date. It simply means […]
Discount Rate is not Markup Rate. Why?
Discount rate is not markup rate. To understand the difference between both rates, try answering the below two questions without thinking much about it. 1. What is the discount rate from RM6 to RM3?2. What is the markup rate from RM3 to RM6? I have asked these questions to my close friends and the majority […]
Percentages vs Absolute?
When it comes to money, think in percentages, not in absolute terms. PoyoDuit Last year, during my “Taman” resident annual meeting, the management proposed to increase the monthly fee from RM100 to RM120. The reason given was due to an increase in security fee charges. Several residents agree with the price hike while a minority […]
Which Comes First, Savings or Investment?
If your mindset is saving, you will always work for someone and save. Rich people do not focus on saving, they invest. Friend of mine Above quote is from a friend after reading my previous blog post on “How Much to Save?”. Personally, I agree with the statement, but I have a few objections on […]
Want vs Need?
I need water to quench my thirst. It differs from I want a lemonade to quench my thirst. Nearly everyone wishes to be a millionaire. What does being a millionaire mean to you? Is it about having a million Ringgit to spend on the things you ever “want”? (Noticed I used the word “want” and […]