Archive

Is Modern Economy going backwards?

It is quite enlightening after reading Graeme Maxton interview with Personal Money regarding his third book titled The End of Progress: How Modern Economics Has Failed Us. A summary of his thoughts below. Men’s greed led to mass over-consumption in

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Warren Buffet Invests Like A Girl…

I am not demeaning the value investing guru of all time here. It is the actual title of a book by Motley Fool. Here’s the excerpt from the review at Goodreads.Warren Buffett and all of the women of the world have

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The Cause & Effect of Business Cycle

Coming from a non-financial background, it took me a while to put together all the pieces of what I knew. This should be the simplest flowchart to explain the business cycle if you are not an investment banker. Let me

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Personal Inflation Rate

This is perhaps a more important measure for comparing if your income increment matches your desired lifestyle. Example, it really does not help if the overall reported annual inflation rate is 3 percent but you choose to obtain hire purchase

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Malaysia Government Bond Rating benchmark

Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.So what’s the deal on those ratings on government debt? By now, we all know that

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The End of the Engineer by Tom Gillis

A very inspiring article. I personally felt the sentiment as an engineer. If we do not continue to evolve ourselves from our “boxed-in” engineering perspective, we will be ‘obsoleted’.   I’m an engineer who grew up in a family of

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Investment Diversification

The concept of diversification in investment can mean in terms of asset class or sectors. To simplify things, let’s take local mutual fund as an example. Funds classified as “Mixed Asset” or “Balanced” type are essentially diversification in terms of

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Anticipating the price of goods in “n” years

The time value of money formula is one of the financial foundation in personal finance. Approximate this by calculating the Future Value, FV using financial calculator or excel.  Say, GSC  movie ticket at RM 10.00. Ignoring personal inflation rate, we take

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Malaysia Consumer Price Index

So you always read about the inflation rate reported in the news, such as here. How those numbers are computed anyway? Every month, the Department of Statistics will actually publish the Consumer Price Index or CPI to reflect the changes of

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What is bond?

What is bond, really? How does bond work? Bond is a fixed income securities. If issued by private sector, it is known as corporate bond whereas government bond is also known as Malaysia Government Securities (MGS). Bond is considered a

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Inflation adjusted salary increment

Is our salary keeping up with inflation rate? Say, if your annual salary increment is 10 percent, and inflation rate is at 4 percent, then the ‘effective salary increment’ is actually calculated as such: [(1 + percentage increment) / (1

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Cost Push vs Demand Pull Inflation

Inflation – there are 2 types, cost-push and demand-pull. Let me explain. Inflation is inherent to any financial concepts and money issues around us. I can assure you that you and me have definitely encountered the effects of inflation on

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Rate of Return – the Right Way to Determine

Rate of return – what is it? Rate of return is also known as the average annualized return or geometric mean of return, a potentially confusing term in the mathematics of personal finance. Compared to simple arithmetic mean, geometric mean

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The problem with fresh grads

PETALING JAYA: Poor attitude -including asking for too much money – is the chief reason why employers shy away from hiring fresh graduates. Another common complaint is that many graduates are poor in English. A survey by online recruitment agency

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