Can't speak for the other non-finance readers, but this article was a level 4-5 for me.
Compared to the ol' VPN Usage one on BTB which was a level 2 for me (but perhaps truly a level 6 for less technical readers). Probably because I'm in software/tech.
I'd guess the readership can be split into 3 mains groups perhaps: tech/software, finance, and sales/marketing/ecomm.
Long winded way of voicing my appreciation for these finance 101 articles :)
Suggestion: maybe as a followup can you please apply these formulas+concepts on both a crypto token and stock, adjusting different factors to demonstrate how they change the underlying asset value?
Nice article fellas. One way I think about Time Value of Money:
Would you rather have $100 now? Or $105 a year from now? If you say, $100 now, what about $108 or $115 a year from now? At what number does your calculation change?
That's kind of how I think about opportunity cost and projected return rates. Can I do more with the $100 now vs. what the possible return would be in some asset.
Yes, another example is how much are you prepared to pay upfront. For example, 1 haircut for $40, or 10 upfront for $380? What level of discount do you need to purchase upfront something with a long time horizon
Threshold is low mostly because these are tax free savings, but depends on the risks.
Years ago I was offered a 5% discount to prepay my energy bill - given that energy providers aren't allowed to fail and this was the equivalent of 8% taxable returns I pre-paid just over a year (the max I could).
Have previously paid out a lease 1 year in advance to get a discount > interest rates but I judged the risk to be low.
Same with bulk purchases of non-perishables.
Unfortunately these sorts of things aren't scalable.
Good job covering these concepts. I would suggest anyone that comes from a non-finance background read CFA level 1 textbook (not joking), or at least some chapters, to understand these concepts/terms better.
Can't speak for the other non-finance readers, but this article was a level 4-5 for me.
Compared to the ol' VPN Usage one on BTB which was a level 2 for me (but perhaps truly a level 6 for less technical readers). Probably because I'm in software/tech.
I'd guess the readership can be split into 3 mains groups perhaps: tech/software, finance, and sales/marketing/ecomm.
Long winded way of voicing my appreciation for these finance 101 articles :)
Suggestion: maybe as a followup can you please apply these formulas+concepts on both a crypto token and stock, adjusting different factors to demonstrate how they change the underlying asset value?
Nice article fellas. One way I think about Time Value of Money:
Would you rather have $100 now? Or $105 a year from now? If you say, $100 now, what about $108 or $115 a year from now? At what number does your calculation change?
That's kind of how I think about opportunity cost and projected return rates. Can I do more with the $100 now vs. what the possible return would be in some asset.
Yes, another example is how much are you prepared to pay upfront. For example, 1 haircut for $40, or 10 upfront for $380? What level of discount do you need to purchase upfront something with a long time horizon
Threshold is low mostly because these are tax free savings, but depends on the risks.
Years ago I was offered a 5% discount to prepay my energy bill - given that energy providers aren't allowed to fail and this was the equivalent of 8% taxable returns I pre-paid just over a year (the max I could).
Have previously paid out a lease 1 year in advance to get a discount > interest rates but I judged the risk to be low.
Same with bulk purchases of non-perishables.
Unfortunately these sorts of things aren't scalable.
nummer go up GUD?
Good job covering these concepts. I would suggest anyone that comes from a non-finance background read CFA level 1 textbook (not joking), or at least some chapters, to understand these concepts/terms better.