Financial expert Nguyen Duy Chuyen.
Financial expert Nguyen Duy Chuyen has gained attention as a prominent “financial KOL” with his TikTok channel, Doctor Housing, featuring videos with millions of views. In a recent appearance on the Extra Money podcast series produced by Rising Vietnam, Mr. Chuyen shared insightful perspectives on financial management and investing.
Mr. Chuyen emphasized the challenges of financial management, requiring experience and wisdom. He pointed out that one of the most common mistakes made by young entrepreneurs is the failure to distinguish between company funds and personal finances.
“90% of young business owners think that the money in their company is theirs. Even some of the largest companies in the market, with valuations up to billions of dollars, fall into this trap. One of my former partners is on the brink of bankruptcy because the owner constantly instructs the accountant to withdraw company funds for personal use. It’s essential to separate company money from personal finances, even if you own the business,” Mr. Chuyen stressed.
This piece of advice is especially relevant for young entrepreneurs. If you intend to use company funds for personal expenses, Mr. Chuyen suggests withdrawing money from the company to pay yourself a salary. The accountant should determine this salary.
Mr. Chuyen provided an illustrative example: if a company earns 100 million VND, and you want to take 50 million VND for yourself, then you should structure it as a 50 million VND salary. If the accountant later informs you that there isn’t enough money to cover your salary, you’ll need to lower your salary accordingly. He explained that the company’s budget serves multiple purposes: paying employees’ salaries, insurance, rent, taxes, and managing future risks.
“Let the company operate, and at the end of the year, allocate a portion of the profits for investment. For instance, if the company generates 1 billion VND, we can invest 500 million VND at the end of the year. If successful, it will create more significant wealth, and if it fails, we’ve only lost 500 million VND, but the company remains intact. That’s the basic formula,” Mr. Chuyen elaborated.
A pertinent question arises: does the proverb “with ambition to be an official, with courage to be rich” equate to taking a gamble?
From Mr. Chuyen’s perspective, this proverb rings true. He believes that a certain level of boldness is necessary to achieve wealth. If one is overly cautious, they may never attain financial prosperity.
“I had a friend from university who was risk-averse. When I bought a house in Tan Phu, I advised her that instead of renting a room for 5 million VND per month, she could buy a two-bedroom apartment and pay the bank around 8 million VND per month. That way, she’d be paying for her own home,” Mr. Chuyen recalled.
“At the time, her income was nearly 30 million VND per month, and she was still afraid to take on a mortgage of 8 million VND. More than a decade ago, buying a house was a daunting prospect for her. She worried about various factors, such as the possibility of unemployment. Eventually, she did buy a place,” he added.
In conclusion, Mr. Chuyen asserted that while financial markets require a degree of boldness, it should be controlled. However, if one is overly cautious, they may never venture into investing.
“Financial ventures are for those with knowledge; only the uninformed would consider it a gamble,” he opined.
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