Return On Equity – Mother of Ratio

Return On Equity (ROE) examines how the capital fund for the business’s asset and how the asset generates return based on your capital. If each $ of asset only generate each $ of earnings, it means the company is just merely cover its cost of capital. This indicate that the company at competitive disadvantages or…

How to spot good investments

It is a common misunderstanding that investments have to be difficult, with complex finance theories and bombastic sounding financial words. In fact, it is a known fact that all these “gimmickry” are intentionally done to make retail investors think that investing is difficult, and it is better to rely on “financial planners” and “fund managers”. Nothing…

The magic of compounding

Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously-accumulated interest. Let’s play around with…

Are you Cheap or Frugal?

There’s a fine line between being frugal and being cheap. Frugal people understand that paying more doesn’t necessarily mean better value. People who are cheap wouldn’t pay more regardless of the value. Those whose all of his or her belongings were purchased at garage sales, are probably cheap. Here’s how to save money, but avoid…

How to Invest

Make informed decision Proper research should be done about the company/stock before money is placed in it. Very often, this is not the case with most retail investors. The average investor (or rather gambler) just invest based on gut feeling alone. A company/stock should be analysed from both quantitative and qualitative aspects. This may involve…

Layman’s Guide to achieving financial freedom – Part 3.3: Money is not Real Money

Hello again everyone! Today I will be a writing part 3 of my 10-part discussion on the topic on Achieving Personal Financial Freedom, titled: Money is no longer Real money. As this is a very long post, I will be splitting the post to 3 parts for easier reading. This will be part 3 of the post. The…

Layman’s Guide to achieving financial freedom – Part 3.2: Money is not Real Money

Hello again everyone! Today I will be a writing part 3 of my 10-part discussion on the topic on Achieving Personal Financial Freedom, titled: Money is no longer Real money. As this is a very long post, I will be splitting the post to 3 parts for easier reading. This will be part 2 of the post. The…

Layman’s Guide to achieving financial freedom – Part 3.1: Money is not Real Money

Hello again everyone! Today I will be a writing part 3 of my 10-part discussion on the topic on Achieving Personal Financial Freedom, titled: Money is no longer Real money. As this is a very long post, I will be splitting the post to 3 parts for easier reading. This will be part 1 of the post.…