tag:blogger.com,1999:blog-5250592099846123314.post8672394102971986929..comments2024-02-14T16:08:35.337+08:00Comments on Wealth Buch -- Journey towards Financial Freedom: My Maths Equation to Increasing Networth!JWhttp://www.blogger.com/profile/04633191740991225888noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5250592099846123314.post-10132244910838097192010-04-28T14:02:13.161+08:002010-04-28T14:02:13.161+08:00Hi LP,
thanks for the idea of a follow up post! :...Hi LP,<br /><br />thanks for the idea of a follow up post! :)JWhttps://www.blogger.com/profile/04633191740991225888noreply@blogger.comtag:blogger.com,1999:blog-5250592099846123314.post-23421005053975918382010-04-28T12:29:50.709+08:002010-04-28T12:29:50.709+08:00Hi mo²,
Well, based on this new version of the eq...Hi mo²,<br /><br />Well, based on this new version of the equation, there are some new factors to talk about:<br /><br />1. How the % of savings invested matters<br /><br />2. How earning a ROI of less than inflation rate is not gd enough for your networth <br /><br />3. How lowering your debts and not spending so much on depreciative assets can free up your networth that is available for investing. Lighten your balance sheet, so to speak.<br /><br />You're quite prompt - just commented and you came up with new version already :)la papillionhttps://www.blogger.com/profile/01372278083694506953noreply@blogger.comtag:blogger.com,1999:blog-5250592099846123314.post-12695909825212915392010-04-28T12:07:06.215+08:002010-04-28T12:07:06.215+08:00Hi LP,
you are right that it is not very robust. ...Hi LP,<br /><br />you are right that it is not very robust. It was a very simplified equation. Perhaps I should have mentioned that on hindsight.<br /><br />1) This is very right. My bad. Perhaps I should have used total returns, since banks give interests as well, no matter how small it is.<br /><br />2) Extremely true again. Thanks.<br /><br />3) I didn't make this clear in my post :(<br />I want to mean nett return on investments.<br /><br />4) You are very right about the gross gain part. Inflation wasn't on my mind in this equation. <br /><br />I shall edit the equation a bit. Thanks!JWhttps://www.blogger.com/profile/04633191740991225888noreply@blogger.comtag:blogger.com,1999:blog-5250592099846123314.post-24670754166340170142010-04-28T12:04:09.631+08:002010-04-28T12:04:09.631+08:00Hi CW8888,
that's true as well. Thanks for yo...Hi CW8888,<br /><br />that's true as well. Thanks for your feedback.JWhttps://www.blogger.com/profile/04633191740991225888noreply@blogger.comtag:blogger.com,1999:blog-5250592099846123314.post-65810136018692973962010-04-28T11:46:34.100+08:002010-04-28T11:46:34.100+08:00Hey mo²,
Just some thoughts on the robustness of ...Hey mo²,<br /><br />Just some thoughts on the robustness of your equation:<br /><br />1. What if the savings you did is not all put into investments? Unless you define your % savings as the amt saved purely for investment.<br /><br />2. Same thing for current networth - not all the networth that you had can be invested. Some cash cannot be touched, some are not even cash.<br /><br />3. Returns on investment for current networth and new portion of savings might not be the same too. Can be higher or lower.<br /><br />4. Lastly, I feel something is missing out - the effects of inflation. I tested the eq by assuming that we had zero returns on investment. It's zero, but inflation will erode that amt too. In other words, I mean if the ROI is less than inflation rate, the net gain is actually negative. Unless you define your gain in networth without regarding inflation i.e. gross gain.la papillionhttps://www.blogger.com/profile/01372278083694506953noreply@blogger.comtag:blogger.com,1999:blog-5250592099846123314.post-44757685811916006572010-04-28T11:15:05.117+08:002010-04-28T11:15:05.117+08:00For investment part, if get it seriously wrong wil...For investment part, if get it seriously wrong will destory wealthCreateWealth8888https://www.blogger.com/profile/04870750974362417154noreply@blogger.com