Author: SG Young Investment

How MAS conducts its monetary policy in Singapore?

Introduction Central banks around the world use monetary policy to gear the domestic economy into a certain direction. Monetary policy helps a country to combat inflationary pressures and also increase growth in the economy. Monetary policy is therefore defined as the action of a central bank, that determines the rate and growth of the money supply which in turn affects the interest rates. Many countries in the world, including United States and China, adopt an interest rate policy where central banks increase or decrease interest rates or change the amount of minimum bank reserve requirement rate. However, in the...

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Is investing in unit trust a good idea?

Many people say they invest their money. When i ask most of them, they would say they have investments in bank products, unit trust or investment linked policies. When i probe further and ask why did they invest in it, they would say because my financial advisor recommended it to me. Or they would say that guy in the bank asked me to buy it saying the returns are higher. What is a common sales pitch from insurance agents? You would be familiar with this phrase: “Why put your money in the bank when you can earn a higher...

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Singapore Millionaires park their cars in their living rooms

This is an amazing video of how Singapore Millionaires can park their cars in their living room. The condominium is right at the heart of orchard which is called Hamilton Scotts. Well, you may not be able to afford one apartment even if you have 1 Million dollars. Last checked the price of one single apartment at 2756 sqft is 9 Million dollars. WOW!! Will you live like this if you’re a...

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Understanding Financial Statements (Part 2) – The Balance Sheet

The balance sheet records the companies assets, liabilities and equity. Assets is what the company owns and liabilities are what it owes. Equity represents the value of money that shareholders have invested in the company and it is calculated by taking Assets minus Liabilities. The balance sheet is important in our analysis of a company as it reflects the financial position of a company. The levels of debt and the amount of cash the company has can be seen in the balance sheet. Let’s go through the various entries in the balance sheet one by one. The Balance SheetYou...

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My blogging experience and interview with successful bloggers

Saw this video on Youtube of an interview by channel news asia with successful bloggers. One of them is from Singapore called Wendy, who owns the popular blog xiaxue.blogspot.sg, and the other is from Australia. The co-founder of nuffnang was also on the interview. Before i show you the video, maybe i should talk about my blogging experience so far. I started my blog in 2011 to write on a new passion i found which was on finance and investing. I had no prior experience in blogging and did not know how to link my blog with other blogs...

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Rags to Riches

This is an interesting documentary titled “IT figures” shown on channel news asia that decodes Singapore’s journey from rags to riches. In the video, it discusses things like why are the rich getting richer and the poor getting poorer? Singapore is wealthy but why don’t we see it distributed to majority of the people? Economic concepts like GDP, wage sharing, Gini Coefficient are also discussed in a simple and illustrative way. I feel they had done a very good job to explain these concepts in a easy to understand way. Most people would be able to understand it. Watch...

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Singapore girl, 17, confesses to selling body for cash to party

This news really caught my attention and i’m sad that our society has become like that. Young people are willing to do anything to get the money they want. This young girl sells her body for cash to buy alcohol and the things she want. Has our society become one which focus on material things only?  Recently, there has been court cases of men who were being charged because they had underage commercial sex with a minor. Most of the time the girl is a willing party. They just want the money.  For this particular news, the reporter posed...

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How to get rich? – The dreamer’s way

Many people want to be rich. However, it is only a dream for many people. What is a dreamers’ way of getting rich? 1) Buy 4D/Toto and hope to strike it rich.  Remember the 8 million chinese new year ang bao draw? Didn’t you hear your friends or colleagues say if they strike it then they can resign from the company and don’t need to work anymore? Maybe you can be lucky and strike it rich. Is it just a dream or will it turn into reality? 2) Speculate in penny stocks and hope it goes up 10 fold...

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Understanding financial statements (Part 1) – The income statement

To be an investor, you have to know how to read financial statements. I would say that this is a skill that every investor must know. In fact, Warren Buffet said that the greatest skill a young person can learn during his or her school days is the skill of accounting. In an annual report, you will basically find 3 financial statements. 1) The Income Statement2) The Balance Sheet3) The Cash Flow Statement I will go through all 3 statements in detail as simple as I can. For this post, we shall use the company Singtel’s financial statement as...

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Money or happiness? Which would you choose?

If you have only one choice, would you choose to have money or happiness? I believe you would agree that this is a hard choice to make. Many of you would think why can’t i choose both? I want to have both money and happiness. Won’t having more money make me happy? This is not entirely true. Let me illustrate. Think about the first job you had. The first pay of $1800 as a diploma graduate made you excited. Finally you have a decent pay and more money to buy the things that you want without having to rely...

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5 ways how young people can save more money

Living in the current generation encompasses many temptations. The temptation to keep up with trends, the need for active social life and the ego and pride to not lose out. Some people describe the current generation Y and Z as 月光族. If we divide the words up, 月 means month. 光 indicates nothingness or emptiness. 族 means the generation. All together, the three words is used to describe people who are living paycheck to paycheck. Their expenses equal or exceed their monthly income. They have nothing left over at the end of the month. Living as a young person in...

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The dangers of over leveraging on debt

This post is inspired by comments from my previous post on Recession Heroes Ep 5 – Resilience during tough times. Too many people have too much debts causing problems for them and their families when they lose their jobs. Housing debts are one of the major debts among young people in our current generation now. When buying a house, remember to plan ahead and do not over commit. A general guideline is not to use more than 30-35% of your monthly income to pay for housing loans. However, different people have different circumstances. You will know your situation yourself. Plan...

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Recession Heroes Ep 5 – Resilience during tough times

This episode made me very inspired. I really admire the person who was featured in this story. At an old age of 59, he still doesn’t give up. He worked for a bank for 16 years and was retrenched because the bank was not doing well. Wanted to find a similar job but other banks did not want to hire him because of his age and his expected salary was too high. The companies would rather hire someone younger who can except lower pay. This made me think that one day i would become old also and i may...

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Dryships – My first 100% return on investment

I have blogged that I divested partially my shares in dryships to reduce risk on August 7 2013. Got back all my capital plus some profit. Just one month later, the share price has gone up by another 70%. Currently, the price is officially double of the price which I initially bought at 1.52. Technically speaking, the return is about 50% since I divested some one month ago. No doubt I’m happy about it as its still quite a substantial return. I initially bought it last year November 2012. Investing period is less than 1 year. Why has it...

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A Singapore movie: Ilo Ilo 爸媽不在家

I have just watched a Singapore film by the name of Ilo Ilo 爸媽不在家 this week. This movie shows how a family live their lives right in the heart of the financial crisis in 1997.  The film was awarded the Camera d’Or award, thus becoming the first Singaporean feature film to win an award at the Cannes Film Festival. Overall, good story and brings back memories for those who lived through the Asian Financial Crisis period. I was about the same age as the kid in the movie during that period. Watch the trailer below: Like my Facebook page to receive...

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