Financial health awareness. The focus is on discussing key principles.
(These are just thought provoking opinions and can not be treated as advise)
Aug 18, 2022 • 5 tweets • 1 min read
Young pple need to know this:
1. Saving money is a necessity
▪Wealth is measured by what you retain from every income you earn.
▪A high savings rate ensures that you have enough to cover emergencies, enough capital for your business or big deposit for your home loan.
2. Learn how to use debt wisely
▪ Debt is the main reason why many pple are poor.
▪ Any debt not linked to an asset that keeps value or generate income is bad.
▪Using short term debt to finance a long term project is a disaster and the opposite is also true.
Aug 9, 2021 • 10 tweets • 2 min read
Do you know their differences?
1. Saving vs Investing 2. Investing vs Trading 3. Index Funds vs ETFs 4. Mutual Funds vs Unit Trusts vs Unit Investment Trusts
Both involve setting aside money for future needs.
Investing is buying an asset to benefit from its income generation or growth in value.
Examples of assets are bonds, stocks, cash, property etc
However, savings are limited to cash investment only.
Feb 4, 2021 • 8 tweets • 2 min read
How do you get to know a company before buying its stock?
I will go through few important points in the following thread. You are welcome to add more points I left behind.
1. Historical performances
This involves checking price trends, volatility of the price, historical dividend yields, dividend payout ratios, debt to equity ratios, Earnings per share, PE ratios etc
This can be obtained from financial statements or the likes of Yahoo Finance.
