Nguyen Hai Yen – 11195894

PERSONAL FINANCE
Homework week 4

1. Experiences of buying a car/motobike: 

 - What kind of car/motobike do you want to buy? Why? 
- How are the prices of new and old car/motobike? How do they affect your buying decision? 

-I used to buy a motorbike named Honda Vision. It is quite popular with people at my age. I
bought that kind of motorbike because it is appropriate for woman and it has an affordable
price 
- The price for a new one is nearly 35.000.000 VND while the old one is only roughly 25.00.000
VND. But comparing about the quality, the new one is much better and have a long-term
warranty so I decided to buy the new one.

 
2. Calculate the ratios requested debt ratio; current ratio; debt-payment ratio; Saving ratio 
58,000
  Liabilities  $ 7,800     Net worth  $ 
  
  Liquid assets  $ 4,600     Current liabilities  $  1,300   
  Monthly credit
$  640     Take-home pay  $  2,575   
payments 
  Monthly savings  $  130     Gross income  $  2,850   
 
Debt ratio= Liabilities/ net worth= $7,800/$58,000= 0,134 
Current ratio= Liquid assets/ Current liabilities= $4,600/ $1,300= 3,5 
Debt payment ratio= Monthly credit payment/ take-home pay= $640/$2,575= 0,25 
Saving ratio=Monthly saving/ Gross income= $130/$ 2,850= 0.045 
 
3. Watch the videos and explain your idea. 
3.1. Johnny Depp – How has his money management? What are your lessons learnt from
him?   
 Depp is said to have spent a lot of money 
While Depp was in a legal dispute with The Management Group, they had a lot to say about
Depp's spending habits. According to Business Insider, the group said Depp was wasting
millions of dollars. 
Depp spent $75 million on buying and furnishing his multiple houses, according to The
Management Group. He allegedly spent his money on 45 luxury automobiles and a fancy
yacht, according to his accusers. 
 One of Depp's biggest mistakes is how much he's spent on fees and penalties.  
 It's impossible for an actor to lose $650 million in one night. And it appears that Depp's
management organization was responsible for one huge financial loss in his life. According to
Rolling Stone, Depp has filed a lawsuit against The Management Group, accusing them of
"negligence, breach of fiduciary duty, and fraud." 
 Lessons to Learn from Depp’ 
TMG failed to keep proper financial documents for Mr. Depp personally as well as each of his
company entities. Mr. Depp's finances, accounts, and commercial operations were only
preserved in infrequent and fragmentary records by TMG. TMG also made a number of loans
without providing adequate information or backing, as well as without any apparent
agreements documenting the nature of the loans. 
Despite his professional accomplishment, Mr. Depp, like many other artists, has no formal
legal, accounting, finance, or management background... Mr. Depp struggled to focus on
many elements of his life, both personal and professional. 
 
3.2. Is lottery winning helpful? Why? 
In my point of view, I think winning the lotto is definitely a positive thing if you are prepared
and knowledgeable about how to manage the situation. 
Here are the reasons why winning lottery may be helpful for your life: 
1. All worries of not being able to afford something are now a thing of the past (this is if
you win millions/hundreds of millions of dollars). Still be careful with your money and
spend wisely, no matter how large the money you won is. 
2. You can pay off any and all debts that you owe and pay off your mortgage on your
house. 
3. If you have a family member who needs constant medical care, you can afford it. 
4. You can make a list of some charities you can donate too. Bonus if it’s tax deductible! 
5. You can make proper renovations on your house or move to a better neighborhood and
get a nice/modest house. 
6. You can take a lavish vacation that you’ve always wanted to do. 
7. You can help close friends and family who are in dire need of financial help. 
8. You can put a good amount of money aside for retirement later in life (just because you
won the lottery doesn’t mean you can quit your job.) Some people still work their same
job or maybe a job they want. 
9. Be sure any financial advisor you hire will work in the best interest of you/make you
money. Don’t hire him/her if they’ll make money based on a commission 
10. You can put money aside for emergencies such as for medical needs, paying for car
parts, etc