(Post 41/week 30)Zero dollar project updates:carousell,Bitcoin Faucets,Short Link,Online survey and Adsense update

Updates for last two week of zero dollar project

1.Carousell
2.Bitcoin faucets
3.Short link
4.Online survey
5.Adsense update

1.Carousell

My carousell:carousell.com/eric996

Total earnings for carousell last week:$4.50+$3(meetup)=$7.50

2.Bitcoin faucets

Current coinpot holding

Bitcoin core:5041 Satoshi
Bitcoin cash: 5302 bch
Dogecoin: 53.57 doge
Litecoin:  0.00147400 ltc
Dashcoin: 0.00041580 dash

3.Short link

Last two week

Currentlyy

Total earning for short link last two week:$4.2983-$3.8508 = $0.4475

For more information on how's I use both short link on my blog and YouTube, read here

4.Online survey

Current online survey on my list...(Bold mean that these survey websites have been verified for payout)

4.1 Toluna
4.2.surveyon
4.3 YouGov
4.4 mobrog
4.5 ipanelonline
4.6 viewfruit
4.7 mysurvey
4.8 millleu(App on google play store)

Survey that payout last two week:Toluna($20.00),surveyon($2.00,$2.00),viewfruit($5.00)

The total payout for last week survey:$20.00+$2.00+$2.00+$5.00=$29.00

5.Adsense

Last week earning for Adsense:$2.32

Total earnings for last two week zero dollar project:$7.50+$0.4475+$29.00+$2.32=$39.26

That's all for the updates this week for my zero dollar project! stay tuned to my investment project updates for this week!

(Post 40/week 30)Tip for thought:Learning investing/trading together part 1(Why invest in stocks?)

Learning for investing/trading is a huge step in making that extra step to make your money work harder for you, as the saying goes"Learning is a lifelong process"

But there are so many books out there on investing, which book should I start with first to learn?

 And of course, the first book should be none other than this book...

Presenting...

My first stock guidebook by SGX!!(No puns intended!)

This is a very useful book that gives a summary of the investment products that are available, without further ado, let's jump straight to the first part of the book

Why invest in share?

• We need to put aside some saving
• Deposit interest rate(yes,your bank saving acc) is less than 0.5% per year
• Inflation ranges from 2-6%
• Hence, we have to generate higher returns in other ways
• Shares are a common investment choice for five reasons

Reason 1: Capital Growth(share increase in value over time)

1. When we buy shares in a company, we are effectively buying a piece of the business. Over time, as the business expands, its revenues and profit growth, bringing up the value of our ownership in the business, which could cause the share prices to rise over time increasing our capital growth
2. Capital Gains: Profit made from selling shares at a price higher than when we bought them
3. Capital loss: Loss incurred when we sell shares at a price lower than when we bought them

Reason 2: Dividend Yield(Shares can pay us revenue when we hold them

1. When companies make a profit...
2. They can choose to reinvest those profits back into the business
3. Hold onto it for future opportunities
4. Distribute it to their shareowners a payout
5. If we want to receive passive income(or a revenue stream from our investment), we look for companies that constantly pay a dividend
6. Dividend payout is, semi-annually(Once every 6 months) or Quarterly(Once every 3 months) or Annually(Once every 12 months)

Reason 3: Diversification(Shares let us invest in different types of companies with a small amount of money)

1. 800 companies are listed on the Singapore exchange, featuring the different business that serves a different market with different growth cycles.
2. Investing in each company only requires a minimum of 100 shares
3. This means you can spread your risk so that you do not have a large amount of money tied to a single company

• Tip: Another way to diversify your investment is to invest in Exchange Traded Fund(ETF).
• These are funds (or portfolios of stock) that are brought and sold through the Singapore Exchange. 
• For example, the Straits times index(STI)ETF is a fund made up of the 30 largest, most actively traded companies that are listed on Singapore exchange.
• These are well known, stable, blue-chip companies like DBS bank, SIA, Keppel Corp, Comfortdelgro, Singtel,capitaland and other familiar names. 
• With a single investment into the STI ETF, we can own shares in 30 top companies! (I am currently vested in STI ETF via DBS Vickers and POSB regular saving plan)

Reason 4: Liquidity(We can buy and sell shares quickly and easily when we want)

1. Another advantage of investing in shares is that we only need to buy or sell a minimum of 100 shares, and can do so quite quickly through brokers online trading services or by calling our representatives. Unlike investment in property and fixed deposits, we do not need to sell or exit the entire investment(just the amount that we want to convert to cash).
2. This is great when we want to hold assets that have higher returns than deposits and yet can be converted to cash in any amount when we want.

• Do note that purchase of share/transaction is calculated by multiples of 100,e.g this means you can only purchase 1400 or 1500 share, no such thing as purchasing of 1468 shares (apply in sgx only)

Reason 5: Transparency(We can see the price of the shares we want to buy or sell)

1. As the shares and ETF are traded on the Singapore exchange, we can see the price of the shares as they are being brought and sold(this is known as the "market price").
2. We can decide if we want to transact at the market price or...
3. If we want to buy/sell at our desire price(although if our desired price is different from the market price, it may take longer to find a counterparty who agrees to transact at our price)

Final tip: While together these advantages apply to shares on Singapore exchange, not every share will offer all five advantages all the time, and certainly not at the same levels. When we invest in a company we are interested in, we should be familiar with what the company's business and what their returns, risk, and dividend are

part 2 here!

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(Post 39/week 29)Investment project updates:Moolahsense(My third campaign)

6.Moolahsense(My second campaign with Moolahsense)

Note*the company name will not be revealed just like the previous post as my money are still inside moolahsense, haha(this is not a sponsored post by the way)

Issuer summary

Date of listing: NOV 2017
Amount:$80,000
Tenor:6M
Repayment type: Equal installment

Quoting from the moolahsense website

• Equal installment:A promissory note by which an installment of the principal subscription amoung and/or interest accrued and due up to the date of payment shall be payable on such dates as set out in a repayment schedule specified in the promissory note, and on the maturity date, the principal subscription amount would have been paid in full

Repayment term: Monthly

• Repayment term: Will be paid monthly

Target interest rate:24 % P.A.

Quoting from Moolahsense website

• Target interest rate: The maximum rate the issuer is willing to provide the interest on the principal subscription amount which the issuer wished to obtain, as notified in writing by the issue to Moolahsese

Purpose: Working capital

Quote from valuepenguin:https://www.valuepenguin.sg/what-is-working-capital

• Working capital: It is a concept to describe a business ability to cover its short-term operating costs
• E.g For this campaign, I have funded $500 into it(which is the amount I actually funded, which is the minimum sum that moolahsense accept for the campaign at that time)
• As the target interest rate is 24%P.A, this means that at the end of the tenor, which is 6 month(12%) I will expect to receive $560
• 100%=$500
• 12%(Interest for 6 months)=$60
• 112%(The Principal + the interest for the two years=$1000+$60=$560
• Since the tenor is 6 months, each month I will receive $93.33(inclusive of interest) in payment/equal installment
• 1month=$500/6=$93.33

Summary company profile

• The issuer is a company incorporated in Singapore in 2006. The Issuer is in the building and construction industry and has around 10-20 employees. The Issuer specializes in the installation, servicing, and maintenance of fire prevention and protection systems as well as fireproofing materials. The Issuer is registered with the Building and Construction Authority of Singapore as a Registered Contractor for Fire Prevention & Protection Systems. 

Detail of purpose

• The Issuer seeks funding to provide working capital for existing and new contracts which have been awarded to the Issuer.

Financial statement

Will only reveal a part of the financial statement due to confidentiality. As I have mentioned a few weeks ago in my post, that I only mainly use this three ratio: current ratio, quick ratio and debt to equity ratio to decide in investing in a campaign, hence I will be showing its ratio below

The ratio is as follow(left side of the column is for the year 2016/right side of the column is for the year 2015)

Year 2016/Year 2015

(Current ratio 2016:1.41),(Current ratio 2015:3.53)

• A simple ratio of current asset divide by current liabilities
• Current liabilities are debt that needs to clear in the short term(in a year)
• If a company has a current ratio less then 1.0, do not invest in it
• If a company has a current ratio more then 2.0, May consider investing in it
• The higher the current ratio, the better
• For the current ratio of 2015:3.53, it is higher than the recommended range(>2.0)
• For the current ratio of 2016:1.41, it is higher than the recommended range(>2.0)

(Quick ratio 2016:1.41),(Quick ratio 2015:3.53)

• The quick ratio is almost similar to current ratio except that it is assumed that the company does not sell its inventories(e.g Toyota inventory is its car) or stock, it is still able to fulfill its debt
• If the company has a quick ratio of 0.75 and below, do not invest in it
• If the company has a quick ratio of 1.25 and above, May consider investing in it
• The higher the quick ratio the better
• For the quick ratio of 2015:3.53, it is higher than the recommended range(>1.25)
• For the quick ratio of 2016:1.41, it is higher than the recommended range(>1.25)

(Total liabilities/equity 2016:1.79),(Total liabilities/equity 2015:0.17)

• The debt ratio is calculated by total liabilities divided by the equity
• If the company has a debt ratio of 1.5 and above, do not invest in it
• The company should essentially have a debt ratio of 1.0, if the debt ratio is below 0.75, do consider investing in it
• The lower the debt to equity ratio the better
• For the Total liabilities/equity of 2015:1.79, it is out of the recommended range(<0.75)
• For the Total liabilities/equity of 2016:0.17, it is in the recommended range(<0.75)

Why did I invest in this loan?

• Both the current ratio 2015(3.53), quick ratio 2015(3.53) are above the recommended ratio of >2.0 and >1.25 respectively, however, its Total liabilities/equity 2015(1.79) are out of the recommended range of  <0.75.
• The current ratio 2016(1.41), quick ratio 2015(1.41) are above the recommended ratio of >2.0 and >1.25 respectively and its Total liabilities/equity 2016(0.17) is in the recommended range of <0.75, as the financial statement ratio it met all of the above-recommended ratios, I would invest in the campaign
• Furthermore,the Total liabilities/equity (2015) is 1.79 while the Total liabilities/equity (2016) is 0.17,sugggesting it is decreasing and this most probably mean that the company are paying off their liabities/debt

As this is still an ongoing campaign, below is the repayment schedule so far

link on how too read the effective interest rate for moolahsense:http://letscrowdsmarter.com/understanding-interest-rates/

Monthly interest rate:Principal/start balance=$10.00/$500=2%(Percentage conversion must *100)

Effective interest rate:2%*12=24%(Same as the target interest rate)

As you can see the status of the payment is completed, making this my first completed campaign in moolahsense, will continue with my next week post of moolahsense(my fourth campaign).

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(Post 38/week 29)Tip for thought:khan academy investment lesson 1 short summary

1)How long does it take to double your money?

• Use the rule of 72 to calculate
• For example, if the percentage is 10% annually, you will take 72/10=7.2 yr to double your money

2)Calculating simple interest

P=principles amount
I=interest
T=time

1. After 1 year, which means t is 1
2. Amount to pay after 1 years=p+p
3. So assuming the principal amt is 50dollar and the interest is 15%
4. After 20 years
5. 100%=50
6. 15%=7.5
7. 20*15=150
8. The total is 150+50=200

3)Calculating compound interest

P=principle amount
I=interest
T=time
N=number of time that will be compound in that year

Formula for calculating compound interest:P((1+(r%/n))^(n*t) simplified to p(E^r%t)

1. E.g principle of an amount is $50
2. Time: Have to pay for 3 years
3. N=number of time that will be compound is 4
4. I=interest is 10% compound annually
5. 50((1+(0.10/4))^(3*4)
6. =67.49

4)

• A debtor=the person that borrow the money
• A creditor=the person that is owed

5)

• Asset=an asset is something that will give you economic benefits in the future
• Cash is An asset because it allows you to buy things in the future
• Liability: a liability is an economic obligation to someone
• Asset=liability+equity
• Equity: just what you own
• Let say I want to buy a house that is $250000, I have no debt to be pay hence my liability is $0 and my equity is $250000
• Collateral= something you own to a bank in exchange to get money from them
• Marking to market=this mean that every few months or so, I will look at the asset and review it's net worth price currently(because asset like stock will fluctuate)
• Leverage=leverage is when you use debt to buy an asset

6)

• Security=is essentially something that can be bought and sold and has economic value
• Security in the equity world is stock
• Security in the debt world is bond
• E.g if they are giving a 6 % coupon bond this just means that they are going to give me 3% of my bond twice in the year

7)To calculate how much your money is worth now,e.g take the amt/inflation

1. 2% inflation=1.02
2. Amt=$110
3. 110/1.02=$107.8

8)Scenario example for understanding

• I own a cupcake factory
• It is able to produce a million cupcake per year, and I sold 1 million cupcakes at $2 each
• Hence, my revenue will be 2 million per year
• Cogs=cost of goods(or rather cost to produce cupcake)
• 1million cupcake=$1 million
• 2million-1million=1million, this is known as gross profit
• Overhead expenses=advertisements, exporting of the cupcake, e.g overhead expenses is 500thousand
• Operating profit=gross profit-overhead expenses=500thousands

9)Bond: You lend a company some money

How much a share is worth?
To know how much a share is worth, take the equity of the company divided by the no of share
E.g the equity of the company is 20million and the no of share is 2million, We take 20million/2million=10dollars, So if the share price is below 10 dollars we buy and if its above 10 dollars, we do not buy.

• Price of share=stockholder equity/no of share
• Last action-how much was this share bought or sold for
• Bid-how much someone is willing to pay for the share
• Ask-how much someone is willing to sell the share
• 52wk range-the range of the share price in 52 Wks
• Average vol-this is the number of shares sold per day
• Market cap-how much the market think that this company is worth
• To calculate the market cap, take the last action price x the no of share

10)Dilution of share

E.g a company has 4 shares, each of the share is worth $2, hence company total assets is now $8 to raise money the company can divide the share more e.g to 6 share,the share price are still the same at $2 just that the percentage of the company you own has changed(which is not important) and the company now has an asset of $12

11)The merger of the company = the share price will rise

12)Basic leverage buyout example
Let say your business is worth 1 million and earn 1.5million each year and you have to pay 1/3 of  taxes each year and then I say I would buy your company for 10 million, to you it is a very good deal as it is ten time of what your company is worth

But however, I only have one million so how do I raise the remaining 9 million to buy your company?

I go to the bank and say, hey I would like to borrow 9 million from you and I am going to put the business as a collateral and you can charge me at 10% per year

So before that, I have a pre-tax income of 1.5million after minus the 900k(which is the interest of 9 million), this means I have a pre-tax income of 600k

The cool thing is that corporate interest is tax deductible so paying 1/3 of 600k is 200k which leave me with 400k, pretty good eh?

13)A private company is one who shares are not traded on a public exchange

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(Post 37/week 28)Zero dollar project updates:carousell,Bitcoin Faucets,Short Link,Online survey and Adsense update

(Note*: Thanks to all the readers, this blog has reach 20k+ views!!)

Updates for last two week of zero dollar project

1.Carousell
2.Bitcoin faucets
3.Short link
4.Online survey
5.Adsense update

1.Carousell

My carousell:carousell.com/eric996

Total earnings for carousell last week:$2.50+$2(via meetup)=$4.50

2.Bitcoin faucets

Current coinpot holding

Bitcoin core: 4853 Satoshi
Bitcoin cash: 4583 bch
Dogecoin:48.62 doge
Litecoin: 132687 ltc
Dashcoin:37152 dash

3.Short link
Last week

This week

Total earning for short link last week:$3.8508-$3.4502=$0.4006=$0.40

For more information on how's I use both short link on my blog and YouTube, read here

4.Online survey

Current online survey on my list...(Bold mean that these survey websites have been verified for payout)

4.1 Toluna
4.2.surveyon
4.3 YouGov
4.4 mobrog
4.5 ipanelonline
4.6 viewfruit
4.7 mysurvey

Last week survey that payout:(viewfruit:$5)

The total payout for last week survey:$5

5.Adsense

Last week earning for Adsense:$7.16(Big increase!!)

Total earnings for last two week zero dollar project:$4.50+$0.40+$5+$7.16=$17.06

That's all for the updates this week for my zero dollar project! stay tuned to my investment project updates for this week!

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(Post 36/Week 27)Investment project updates part 3:Moolahsense(My second campaign)

6.Moolahsense(My second campaign with Moolahsense)

Note*the company name will not be revealed just like the previous post as my money are still inside moolahsense, haha(this is not a sponsored post by the way)

Issuer summary

Date of listing: September 2017
Amount:$100,000
Tenor:12M
Repayment type: Equal installment

Quoting from the moolahsense website

• Equal installment:A promissory note by which an installment of the principal subscription amoung and/or interest accrued and due up to the date of payment shall be payable on such dates as set out in a repayment schedule specified in the promissory note, and on the maturity date, the principal subscription amount would have been paid in full

Repayment term: Monthly

• Repayment term: Will be paid monthly

Target interest rate:18%P.A

Quoting from Moolahsense website

• Target interest rate: The maximum rate the issuer is willing to provide the interest on the principal subscription amount which the issuer wished to obtain, as notified in writing by the issue to Moolahsese

Purpose: Working capital

Quote from valuepenguin:https://www.valuepenguin.sg/what-is-working-capital

• Working capital: It is a concept to describe a business ability to cover its short-term operating costs
• E.g For this campaign, I have funded $1000 into it(which is the amount I actually funded, which is the minimum sum that moolahsense accept for the campaign at that time)
• As the target interest rate is 18%, this means that at the end of the tenor, which is 12 month I will expect to receive $1180
• 100%=$1000
• 18%(Interest for 12 month/1 years)=$180
• 118%(The Principal + the interest for the two years=$1000+$180=$1180
• Since the tenor is 12 months, each month I will receive $(inclusive of interest) in payment/equal installment
• 1month=$1180/12=$98.33

Summary company profile

• The issue is a company incorporated in Singapore in 1999. 
• The Issuer is in the security services industry and has more than 50 employees. The Issuer provides security services (including the placement of security guards) to industrial, commercial and residential properties. 
• The Issuer is registered with the Singapore Police Force as an Approved Security Agency. The Issuer also holds a Level Star bizSafe Certification (the highest level of such certification) issued by the Workplace Safety and Health Council of Singapore. 
• The Issuer is also a member of the Singapore Business Federation and the Association of Certified Securities Agencies.

Detail of purpose

• The Issuer seeks funding to provide working capital for security services contracts that have been awarded to the Issuer.

Financial statement

Will only reveal a part of the financial statement due to confidentiality. As I have mentioned two weeks ago in my post, that I only mainly use this three ratio: current ratio, quick ratio and debt to equity ratio to decide in investing in a campaign, hence I will be showing its ratio below

The ratio is as follow(left side of the column is for the year 2016/right side of the column is for the year 2015)

Year 2016/Year 2015

(Current ratio 2016:0.5),(Current ratio 2015:4.39)

• A simple ratio of current asset divide by current liabilities
• Current liabilities are debt that needs to clear in the short term(in a year)
• If a company has a current ratio less then 1.0, do not invest in it
• If a company has a current ratio more then 2.0, May consider investing in it
• The higher the current ratio, the better
• For the current ratio of 2015:4.39, it is higher than the recommended range(>2.0)
• For the current ratio of 2016:0.5, it is lower than the recommended range(>2.0)

(Quick ratio 2016:0.5),(Quick ratio 2015:4.39)

• The quick ratio is almost similar to current ratio except that it is assumed that the company does not sell its inventories(e.g Toyota inventory is its car) or stock, it is still able to fulfill its debt
• If the company has a quick ratio of 0.75 and below, do not invest in it
• If the company has a quick ratio of 1.25 and above, May consider investing in it
• The higher the quick ratio the better
• For the quick ratio of 2015:4.39, it is higher than the recommended range(>1.25)
• For the quick ratio of 2016:0.5, it is lower than the recommended range(>1.25)

(Total liabilities/equity 2016:0.16),(Total liabilities/equity 2015:0.41)

• The debt ratio is calculated by total liabilities divided by the equity
• If the company has a debt ratio of 1.5 and above, do not invest in it
• The company should essentially have a debt ratio of 1.0, if the debt ratio is below 0.75, do consider investing in it
• The lower the debt to equity ratio the better
• For the Total liabilities/equity of 2015:0.41, it is in the recommended range(<0.75)
• For the Total liabilities/equity of 2016:0.16, it is in the recommended range(<0.75)

Why did I invest in this loan?

• From the above, you can see that the current ratio for 2016 and quick ratio 2016 is out of the recommended range(>2.0 for current ratio 2016) and (<0.75 for the quick ratio 2016), however, the Total liabilities/equity is in the recommended range(<0.75). Looking at it now I will probably not invest in this as only Total liabilities/equity ratio is in the recommended range, But!!...
• I wanted to test out more of the moolahsense platform
• My previous campaign has a term of about 24 months, hence I wanted to find a campaign that has a shorter term like this campaign(12 months)
• Also, the target interest rate of this campaign is 18%P.A, much higher than my previous campaign of 10%, but of course higher interest rate comes with higher risk

As this is still an ongoing campaign, below is the repayment schedule so far

link on how too read the effective interest rate for moolahsense:http://letscrowdsmarter.com/understanding-interest-rates/

Monthly interest rate:Principal/start balance=$15.00/$1000=1.5%(Percentage conversion must *100)

Effective interest rate:1.5%*12=18%(Same as the target interest rate)

From the above picture, you can see that the Net repayment is at $91.68 instead of the $98.33 that I have mentioned above at the working capital, hence I will do a calculation here again

1-month repayment:$91.68

12-month repayment:$91.68*12=$1100.16

$1000(the amount I put in this campaign=100%

$1100.16=(100/1000)*1100.16=110.016%

110.015%-100%=10.6%

The target interest rate as you can see in my above post is at around 18%P.A, however, that is misleading, as I only gain about 10.6%(i shall call this net interest rate instead)in this campaign. To conclude, this means that if you invest in an 18%P. A campaign in moolahsense, you will get only about 10.6%.

The next few funding campaigns that I will update soon have a target interest rate of 24%P.A and you will see that the net interest rate will varies

As the current status of payment is late, as such, I will continue to update this campaign 

Stay tuned to my next week post:Moolahsense(my third campaign)!

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(Post 35/week 26)Investment project updates part 2:Posb invest saver JUNE 2018 summary

8.Posb invest saver(JUNE 2018)

My POSB invest saver update for the month of may, read here

Regular saving plan updates for ABF Singapore Bond Index Fund(A35)

Breakdown of my regular saving plan(A35) this month(June 2018)
Total amount(regular saving plan)A35:$100
Price per share:$1.11700
Gross sales charge:0.5%
Net sales charge amount:0.5% of 100=$0.50
Net amount invested: Total amount-net sales charge amount=$100-$0.50=$99.50
Units issued: Net amount invested/price per share=$99.50/$1.117.00=89.0778872=89 units

Summary: As of 22 June 2018, the share price of A35 was at 1.117, has some sign of going up due to STI ETF going down. Will be watching it for any further movement, could also be a warning sign that economy is slowing down.

Regular saving plan updates for Nikko AM Singapore STI ETF(G3B)

Breakdown of my regular saving plan(G3B) for this month(June 2018)
Total amount(regular saving plan)A35:$100
Price per share:$3.452300
Gross sales charge:0.82%
Net sales charge amount:0.82% of $100=$0.82
Net amount invested: Total amount-Net sales charge amount=$100-$0.82=99.18
Units issued: Net amount invested/price per share=$99.18/$3.452300=28.72867364=28 units

Summary: As of 22 June 2018 market closing time, the share price of G3B is at 3.43 and ES3 is at 3.345. Both ES3 and G3B has been on a downtrend for the last days and I think highly likely it will continue its downtrend, this could be a sign that the economy is slowing down. Will be watching it along with A35

(Current regular saving plan portfolio)

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