RSPH Blogs - Finances!

  Why Is Investing Important? Here's Why Everybody Should Start This ties in closely with an earlier piece on why building wealth matters in the first place — worth reading alongside this one. → Related: Why Is It Important for You to Be Rich? (#35) Here, let's get specifically into why investing — as opposed to just earning and saving — matters so much. The Core Reasons Doesn't require ongoing physical labor Your money works for you, generating more money The potential to earn passively, including while you sleep A realistic path toward earlier retirement Reduced dependence on others later in life Continued earning potential even in old age Historically, a strong hedge against inflation over the long run Let's walk through each one. No Ongoing Physical Labor Required Beyond the research and due diligence involved in choosing what to invest in, investing doesn't demand the kind of daily physical labor a traditional job does. That said — it's worth being...

Powerful Quotes by Powerful People: Must-Read, Life-Changing Lines A collection of 11 short, powerful quotes worth sitting with. Where a quote has a solid, verifiable source, I've included it — and where attribution is genuinely disputed (which is surprisingly common with popular inspirational quotes), I've said so honestly rather than assign a name that may not be accurate. "Someone is sitting in the shade today because someone planted a tree a long time ago." — Warren Buffett → Related: Warren E. Buffett's Best Pieces of Advice for Investors (#15) "If opportunity doesn't knock, build a door." Widely attributed to entertainer Milton Berle, though — like many popular quotes — a fully verified original source is hard to pin down. "It always seems impossible until it's done." Commonly attributed to Nelson Mandela — but worth knowing this is genuinely disputed. Quote Investigator found no verified source for it in Mandela's actu...

  Must-Read Books on Startups & Business Here's a list of 7 books worth reading for anyone interested in business, entrepreneurship, or building a startup. 1. Rich Dad Poor Dad — Robert T. Kiyosaki A genuinely strong starting point, whether you're thinking about business or investing broadly. It reframes how you think about money in a way that's useful well beyond just startups. 2. Rework — Jason Fried and David Heinemeier Hansson A refreshingly simple, no-nonsense take on growing a business — full of unconventional ideas that push back against a lot of standard startup advice. Genuinely worth reading. 3. The Innovators — Walter Isaacson A compelling look at the evolution of our technology-driven world — great for anyone curious about how today's tech landscape actually came to be. 4. Zero to One — Peter Thiel, with Blake Masters Focused on building genuinely new businesses (or meaningfully improving existing ones) rather than incrementally copying what already exis...

  The Best Books to Read on Investing Here's a list of 7 genuinely worthwhile books on investing, for anyone looking to build real knowledge in the field. → Related: 7 Must-Read Books to Achieve Financial Freedom & Be Successful (#61) — a complementary list if you haven't checked it out yet. 1. Rich Dad Poor Dad — Robert T. Kiyosaki A great starting point for rethinking how you approach money. If you're looking to build a genuinely different, smarter relationship with money, this is a strong first pick. 2. The Intelligent Investor — Benjamin Graham Warren Buffett has called it, by far, the best book ever written on investing — and it remains the foundational text on value investing decades later. → Related: What Is Value Investing? (#13) 3. The Snowball: Warren Buffett and the Business of Life — Alice Schroeder A deep, well-researched look at Buffett's investing philosophy and career, useful for finding your own footing in the stock market — including how to proces...

  Get More Traffic to Your Website Without Using Social Media → Related: Drive Traffic to Your Website With Social Media (#64) There's another effective way to drive organic traffic from Google, without relying on social media at all: guest posting , also known as guest blogging . What Is Guest Blogging? Guest blogging is exactly what it sounds like: writing and publishing a blog post on someone else's website, as a guest contributor. Example: say you run a finance blog. If you reach out to other finance-focused websites and write a post for them — as a guest — that's guest blogging. Why Write Content for Someone Else's Site? If your own website is new or still building an audience, it likely doesn't yet rank well on Google or generate much organic traffic. Ranking well largely comes down to demonstrating trustworthiness and quality — which takes time to build organically on a brand-new site. Guest posting on larger, more established websites in your niche gives yo...

  Drive Traffic to Your Website With Social Media: Platforms I Use Promoting your own content is just as important as writing it — a great article does you little good if no one finds it. Here's a look at the social media platforms I use to drive traffic back to this blog, and how I approach each one. The Platforms Quora Reddit Medium LinkedIn Pinterest Quora I answer questions directly related to topics I've already written about, giving a genuine, useful answer and linking back to the full article for anyone who wants to go deeper. I also maintain a Quora Space for my content specifically. Answering questions here takes more effort than the other platforms, since it's genuinely interactive — people can respond, push back, or ask follow-ups. But that same interactivity is part of what makes it worthwhile: it forces you to actually explain things clearly rather than just dropping a link. Reddit I share links to relevant articles in appropriate communities. This one to...

  This post contains affiliate links — if you click through and make a purchase, I may earn a small commission at no extra cost to you. What Is Digital Marketing? What's the Hype About? Digital Marketing has become one of the most talked-about topics of the past few years. It's a bit different from our usual finance-focused content, but it ties in more closely than you might expect. Here's what we'll cover: What is Digital Marketing? Key metrics and terms — CPC, CPM, CPA, CTR, and more Why Digital Marketing has become such a big deal What Is Digital Marketing? Digital Marketing is simply marketing conducted through digital channels — the tools and platforms businesses use to advertise and reach people online, rather than through traditional offline advertising. Key Digital Marketing Metrics, Explained CPC (Cost Per Click) A metric measuring how many people clicked on an ad, and the amount an advertiser pays the platform per click. CPC = Total Ad Spend ÷ Total Click...

First Economic Bubble: Tulip Mania — All You Need to Know Tulip Mania is widely regarded as history's first recorded speculative economic bubble — an episode in the Dutch Republic during the 1630s where the price of tulip bulbs rose to extraordinary levels before collapsing suddenly in early 1637. → Related: What Is an Economic Bubble? Stages of a Bubble! (#46) How Did Tulips Become So Valuable? Tulips were introduced to the Netherlands in the late 16th century and quickly became a status symbol among the wealthy. Certain bulbs — particularly ones affected by a mosaic virus that caused striking, flame-like streaks in the petals — became especially prized for their rare, unpredictable beauty. These "broken" tulips, like the famous Semper Augustus , became the most sought-after and expensive varieties, since no one could reliably predict or reproduce the exact pattern. As demand grew, so did trading. Because tulip bulbs only bloom for a short window each year, much of the ...

  7 Must-Read Books to Achieve Financial Freedom & Be Successful "Leaders are readers" — and if you're working toward financial freedom, these seven books are a genuinely strong place to start. They've each shaped how countless people think about money, business, and building a better version of themselves. (Note: these aren't ranked in any particular order.) 1. Rich Dad Poor Dad — Robert T. Kiyosaki Hard to overstate how influential this one is. If you're just starting out on the path toward financial freedom, this book lays the groundwork — reframing how you think about assets, liabilities, and opportunity. A genuine must-read. 2. The Innovators — Walter Isaacson A great pick for anyone interested in the digital age — the people and ideas that built the modern tech world, and how that world continues to evolve. 3. The Intelligent Investor — Benjamin Graham One of the most respected books ever written on investing. Warren Buffett — widely regarded as one ...

  Basics of FMCG: FMCG Stocks What Does FMCG Stand For? FMCG stands for Fast-Moving Consumer Goods. What Kind of Sector Is FMCG? FMCG is one of the largest sectors in the economy. What Do FMCG Companies Make? FMCG companies manufacture relatively inexpensive products — but sell them in very large volumes, which is where the "fast-moving" part of the name comes from. Examples of FMCG Companies FMCG spans categories like food, household goods, and pharmaceuticals. Nestlé is a well-known example of a major FMCG company. How Do FMCG Stocks Perform During Inflation? FMCG stocks tend to hold up comparatively well during periods of high inflation. Even as prices rise, demand for these products stays relatively stable, since they're everyday necessities — people generally can't simply stop buying groceries or household essentials the way they might delay a bigger, non-essential purchase. → Related: How Does a Rise in Inflation Affect the Share Market? (#55) Than...

What Is an SBLOC (Securities Backed Line of Credit)? How Does It Work? What Does SBLOC Stand For? SBLOC stands for Securities Backed Line of Credit. What Is an SBLOC, Basically? An SBLOC lets an individual borrow against their investment portfolio — using it as collateral — to access cash for personal expenses, without having to sell any of their actual holdings. Because it's structured as a loan rather than a sale, the funds are typically received tax-free . Let's walk through an example to make this concrete. A Worked Example Say there's an investor — let's call her Ms. Y — with $1 million invested in stocks. She wants cash. The obvious option would be to sell some shares — but selling triggers Capital Gains Tax on any profit she's made, and she'd rather avoid that. Because her portfolio is large enough, Ms. Y can use an SBLOC instead. Say she needs $500,000: she pledges half her portfolio ($500,000 worth) as collateral, and within a few days, receiv...

  How Do Mutual Funds Work? Basics of Mutual Funds What Are Mutual Funds? A Mutual Fund is, at its core, a company staffed with investing experts, pooling money from many individual investors to invest on their collective behalf. How Do Mutual Funds Work? Mutual fund companies employ investment professionals whose job is to manage money on behalf of a large pool of investors. Rather than each investor picking their own stocks individually, everyone's money is pooled together and invested collectively — across a mix of assets, depending on the specific type of mutual fund chosen. → Related: What Is the Share Market? (#2) , What Are ETFs? (#38)** — ETFs work on a related pooled-investment principle. Are Mutual Funds Risky? Mutual funds are generally considered lower-risk than picking individual stocks yourself — largely because professional fund managers bring real expertise and typically diversify investments across multiple assets rather than concentrating everything in one place....

  What Are Penny Stocks? What Are Penny Stocks? Penny Stocks are shares priced significantly lower than the average stock. The exact threshold varies by market: In India , stocks priced below roughly ₹100 are commonly referred to as penny stocks, though this isn't a strict official regulatory cutoff — more a widely used market convention. In the U.S. , the SEC's actual regulatory definition (under Exchange Act Rule 3a51-1) classifies any stock trading below $5 per share as a penny stock. The name comes from the idea that these shares are cheap enough to feel like they're priced in loose change — even though the actual dollar thresholds today are well above literal pennies. Should You Invest in Penny Stocks? Here's the key thing to understand: penny stocks being cheap doesn't automatically make them a good buy, and it doesn't automatically make them bad either. Both extremes are common misconceptions. Why are established companies' shares often more expe...

  What Is Short Selling? Explained in Simple Words Short selling has a reputation for sounding complicated — but the core concept is genuinely simple once you see it in action. By the end of this article, it should click. What Is Short Selling? The basic investing principle is: buy low, sell high. Short selling flips the order — you sell high first, and buy low later. Same underlying goal (profit from a price difference), just executed in reverse order. How Does Short Selling Work? When you invest through a broker (your Depository Participant , or DP), that broker holds shares of many different companies. Short selling lets you borrow shares from your broker, sell them, and buy them back later to return — profiting if the price falls in between. → Related: What Is the Share Market? (#2) — for more on DPs and how they work. A worked example: say a company's share is trading at $1,000, and you believe the price is about to fall. You don't own the share yourself, but your broke...

  How Does Rising Inflation Affect the Share Market? The share market fluctuates constantly, shaped by both economic factors and investor behavior. Today, let's dig into one specific economic factor: inflation , and how it tends to ripple through the market. A Quick Recap: What Is Inflation? Inflation refers to a general rise in the cost of goods and services over time, as the purchasing power of money declines. → Related: What Is Inflation? What Causes It? (#28) Inflation's impact on the share market flows through two main channels: companies and investors . How Inflation Affects Companies Not every company is affected equally — it largely comes down to the sector. Sectors that tend to struggle: businesses selling non-essential, higher-ticket goods — like automobiles — often see demand soften as prices rise. When a car's price climbs due to inflation, buyers are more likely to delay or skip the purchase altogether, since it's a discretionary expense rather than a ne...

  What Is Dividend Yield? What Is Dividend Yield? Dividend Yield is the percentage of a company's share price that it pays out in dividends. → Related: What Are Dividends? (#31) How Is Dividend Yield Calculated? Take the annual dividend paid per share (typically based on the past year) and divide it by the current share price. Multiply the result by 100 to express it as a percentage. Formula: Dividend Yield = (Annual Dividend Per Share ÷ Current Share Price) × 100 A Worked Example Say a company paid an annual dividend of $10 per share last year, and its current share price is $100. (10 ÷ 100) × 100 = 10% Dividend Yield = 10% That's the full calculation. In practice, real companies rarely land on such clean, round numbers — these are simplified figures purely to make the math easy to follow. That covers how dividend yield works and how to calculate it. Thanks for reading.

  What Are NCDs? Non-Convertible Debentures Explained What Does NCD Stand For, and What Does It Mean? NCD stands for Non-Convertible Debenture. Important correction to make upfront: the name itself tells you the key feature — these debentures cannot be converted into other assets like company shares. This is actually the defining characteristic that separates an NCD from its counterpart, a Convertible Debenture (which can be converted into equity shares under agreed terms). An NCD stays a pure debt instrument for its entire term — you lend money, earn interest, and get your principal back in cash at maturity, with no option to convert that into ownership in the company. → Related: What Are Bonds? Explained in Simple Words (#29) — NCDs work in a genuinely similar way to bonds. How Do NCDs Work? When a company needs funds for business expansion, it can raise that money by issuing NCDs to investors — similar in spirit to how companies raise money through the share market, j...

This post contains affiliate links — if you click through and make a purchase, I may earn a small commission at no extra cost to you. Top 11 Habits & Traits of Successful People One thing worth saying upfront: "success" means different things to different people. The habits below lean toward what's commonly observed among successful entrepreneurs and business leaders specifically — not, say, a professional athlete's routine. That said, plenty of these habits show up across successful people generally, regardless of field. 1. Early Risers A common one, but for good reason. Successful people tend to value their time highly and use early mornings for a fresh, focused start — often paired with exercise, meditation, or quiet planning time. This isn't about sleeping less, either — most figure out how much sleep genuinely works for them and structure their schedule around getting it consistently, rather than running on minimal rest. 2. Meditation Many build in daily...

  Who Is an Enterprising Investor? According to Benjamin Graham In The Intelligent Investor , Benjamin Graham lays out two distinct investor archetypes: the Defensive Investor and the Enterprising Investor . Today, let's focus on the latter. → Related: What Is Value Investing? (#13) Graham's Definition An Enterprising Investor , according to Graham, is someone willing to dedicate real time, effort, and expertise to researching and analyzing individual companies — going well beyond the minimum required to simply hold a diversified, low-maintenance portfolio. This investor actively studies businesses, applies principles like value investing , and takes on the extra work in pursuit of stronger returns than a more passive approach would typically deliver. One clarification worth making : Graham's term "Intelligent Investor" — the title of his book — isn't specifically synonymous with the Enterprising Investor. It's a broader concept, referring to any investo...

  What Is a Stock Split? What Are Bonus Shares? Today, let's cover three things: What is a stock split? Why do companies split their shares? What are bonus shares — and how are they actually different from a stock split? What Is a Stock Split? A stock split is exactly what it sounds like: splitting a company's share price into smaller units. Splitting the price doesn't affect the company's overall market capitalization or any other underlying fundamental — it only changes the share price and the number of outstanding shares. → Related: What Is Market Capitalization? (#43) Example: Say company ABC is worth $100,000, with 10,000 shares outstanding, each priced at $10. After six months, the share price rises to $20 — meaning the company is now worth $200,000 — while the share count is still 10,000. If ABC's board decides to split the stock 2-for-1, each existing $20 share becomes two $10 shares. The company now has 20,000 shares outstanding, each worth $10 — but...

  The Global Recession/Crisis of 2008: Case Study Let's walk through everything worth knowing about the Great Recession — what caused it, how it unfolded, and how it finally resolved. → Related: What Is a Market Crash, a Recession & a Financial Crisis? (#19) The Setup (2001) By 2001, the dot-com bubble had recently burst, and investors had little appetite left for the share market. At the same time, interest rates were extremely low — around 1% — making bank savings unappealing too. Investors were actively searching for a new place to put their money. → Related: The Dot Com Bubble Boom/Burst Case Study (#47) Banks, meanwhile, were issuing home loans (mortgages) freely, since low interest rates made borrowing attractive to consumers. A mortgage is essentially a loan document: the borrower agrees to repay what they've borrowed, with interest, over time — and if they default, the lender has the right to seize the underlying property. For banks, this made mortgages a reliably p...

  The Great Depression Case Study: What Really Happened? The Roaring Twenties (1920–1929) The 1920s were one of the fastest-growing periods in U.S. economic history. Companies manufactured new goods — washing machines, cars, and more — and people bought them eagerly. Banks extended loans freely, giving people more spending power. The share market performed exceptionally well, and as companies raised more capital, they scaled up production to meet growing demand. This stretch of prosperity earned the era its nickname: the Roaring Twenties . → Related: What Is an Economic Bubble? Stages of a Bubble! (#46) The Turn (1927–1929) Around 1927, cracks began forming beneath the surface. Having watched investors profit handsomely from the share market, many people with no real investing knowledge entered the market and began buying stocks without any fundamental analysis. Stock prices climbed rapidly and became significantly overvalued — a textbook stock market bubble, even though few recogn...

  The Dot-Com Bubble: Boom & Burst Case Study — What Caused It? Today, let's look at one of the most well-known bubbles in financial history: the dot-com bubble — what caused it, what made it burst, and when. → Related: What Is an Economic Bubble? Stages of a Bubble! (#46) Stage 1: Excitement (Starting Around 1995) By the mid-1990s, the internet was still new but rapidly gaining adoption. Tech companies were among the market's best performers, and investors — watching the internet's growing popularity — became convinced that tech companies would deliver enormous future returns. This was the excitement phase: investors grew overly optimistic about tech's future potential and began piling into tech stocks broadly — the bubble had begun to form, though almost no one recognized it as it was happening. Stage 2: Prices Skyrocketing As more investors piled into tech stocks, prices climbed sharply — investors kept buying even as valuations grew increasingly expensive, conf...