#1 December 2
Although money cannot make you happy and health, it can bring you stable life. In order to get a proper financial concept, I take this course as my elective course. The course let me recognize my financial situation through complete the financial tracker. In the chapter of “Ten Steps to Financial Security”, “Budget and take control of your money” is the most significant. I deeply believe that having a good money management can avoid or reduce liabilities. Once you have had liabilities, there are physical and psychological pressure to use the money. Moreover, it easily disturb your financial planning.
About saving, in my opinion, it is important, but I am afraid currency depreciation. In the past Hong Kong, large part of retiree depended on saving interest to support their living. At that moment, the saving interest rate was nearly 10% p.a. and the in low price index. However, nowadays, the interest rate is below 1% p.a. I think it is because the government encourage people to consume and purchase properties. Under this situation, I think using the saved money to invest is one of ways to raise the value of the saved money. Therefore, it is worth learning the operation of stock market and fund.
Although money cannot make you happy and health, it can bring you stable life. In order to get a proper financial concept, I take this course as my elective course. The course let me recognize my financial situation through complete the financial tracker. In the chapter of “Ten Steps to Financial Security”, “Budget and take control of your money” is the most significant. I deeply believe that having a good money management can avoid or reduce liabilities. Once you have had liabilities, there are physical and psychological pressure to use the money. Moreover, it easily disturb your financial planning.
About saving, in my opinion, it is important, but I am afraid currency depreciation. In the past Hong Kong, large part of retiree depended on saving interest to support their living. At that moment, the saving interest rate was nearly 10% p.a. and the in low price index. However, nowadays, the interest rate is below 1% p.a. I think it is because the government encourage people to consume and purchase properties. Under this situation, I think using the saved money to invest is one of ways to raise the value of the saved money. Therefore, it is worth learning the operation of stock market and fund.
#2 December 9
Owning a home is a dream to me. It is my long term objective to achieve it. For purchasing properties, I prefer to do it in Hong Kong. It is because I grow up in Hong Kong, I understand and familiar to Hong Kong real estate market rather than Sydney. In addition, as I know Hong Kong’s tax system is simpler than Australia’s one. I think that’s why Hong Kong can attract many different international companies and investors to invest in Hong Kong. From financial category in newspapers, the stamp duty rule is attractive in Hong Kong – Under or equal to $2,000,000 HKD property, the stamp duty is only $100 HKD. That’s why Hong Kong’s real estate market is popular. It is also my target in future.
Moreover, owning a home is one of vital concept in traditional Chinese culture. Through discussing this topic to parents, they think no matter what asset you have, an own home is the most importance. I think it is because their living standard was poor in their generation. As they said, it was common for a family with six members lived in a rent room in the past. For me, I think that Hong Kong has many apartments, but why there is no one owned myself.
#3 December 14
The concept of insurance was vague for me before. I didn’t realize significance of it until I read a news from newspaper. It is about a family that father’s income is the main income source. The wife is a housewife and take care of a 3 years old son. Unfortunately, the father is crashed .by car driven by drunk driver. Finally, he died in this drunk driving accident. The wife suddenly feel nervous anxious. It makes me feel that it is necessary to provide a protection for my family now. After all, accident is unpredictable. Therefore, I immediately to do some research about different health and life insurance plans from different companies to make comparison. Finally, I choose Zurich Insurance Group.
However, I disagree the saving plan provided by insurance companies because I believe every people has ability to handle the you own. Additionally, everyone’s saving habit and financial situation is different. For me, when I save the money in certain amount, I will put part of it to invest. The saved money I regard it as the cash flow only for uncertain situation.
#4 December 17
Superannuation in Hong Kong is called as MPF (Mandatory Provident Fund). It indeed can release the government’s financial pressure, but it also means that the retirement living has a great change. In the past, elder’s living could be partly support by their companies worked before. Even people didn’t save not much money in young, their living still could be supported. However, running superannuation is equal to pass the responsibility from employers to employees. Therefore, a detailed plan for retirement is eager. Financial knowledge is more important as well.
After reading chapter “Taxation”, I feel that it is a complicated system. For the riches, they know how to use the legal way to minimize their tax and gain the maximum profit from tax system. For the middle class, I think it is the most unhappy class in society because they cannot enjoy government’s social welfare provide to poor class, but they have to pay taxes with limited exemptions or benefits. Therefore, I think becoming a member of middle class is not very difficult, but becoming a rich people is hard as there is a large gap among them.
#5 December 26
For investment, there are many investment tools nowadays such as gold, warrant, index,… In the large number of investment tools, I think most of them are not suitable me. What I need is a simple and can let me easy understand its operation. Therefore, I agree Warren Edward Buffett’s deep value investment. Through doing research to the company you invested and read the annual reports, whether the company is worth to invest or not can be predicted roughly. Surely, stock market is complicated and full of uncertainties. There are many factors to affect the stock market.
For the property, as I mentioned in previous journal, Hong Kong is an attractive place to invest. Hong Kong has conditions to become an ” investment heaven” where has loose tax system. Another condition is that Hong Kong has high population density, so there is high demand in property. The traditional Chinese culture also push the real estate market to become active. Besides apartment, commercial property is also attractive. You cannot imagine that a small shop selling fruit drink in a corner can be rent in $60,000AUD per month. I believe that even I own one only , I can achieve financial freedom.
#6 January 7
Talking about stock with parents, I discovered what they most concerned is “ The money for investment in stock market must not be the money for urgent condition.” They mentioned few news about people committing suicide because of stock market disaster in 1987 in Hong Kong. The people who committed suicide borrowed too much money that they had not abilities to return from bank. Once the stock market dropped rapidly, they finally could not effort the risk. This discussion gave me an vital notice that I have to think what degree of risk I can take before doing any investment.
Therefore, in my future investment, I will try to avoid high risk investment tools such as margin. I prefer a save and stable investment plan rather than the high growth rate but high risk and full of uncertainties.
#7 January 15
The topic - Graduate strategy is interesting. This is a common topic for every university student, but you are hard to collect this type of information from university. Firstly, I think most students are still not brave enough to recognize their real financial situation and problem. Nowadays, it is not easy to discover that university students own more than one credit card, some of students even borrowing money from one card to cover another card’s debt. Finally, their financial problem become more and more serious. Secondly, they have not a clear objective or target to achieve. They didn’t have a detailed plan to follow. That’s why I think this course’s assignment can push us to think of it. It is a good opportunity to think about what life I wan to have in future.
In addition, through the study in this course, it makes me to read the financial part in newspaper in detail. I will actively to these news and discuss with parents. Study and discussion are both important process to review my financial situation.
#8 February 3
With the budget of social welfare for elders gradually cut in many countries, we have to place more attention to plan the retirement life. Because the lives of elders are more and more long, the chances to have diseases are also high. Over 80 years old become normal thing. However, the ability of work is limited. No matter how healthy you are, you may properly can work until 60 years old. There are still 20 years life without stable salary income. Therefore, I agree “Poor Dad, Rich Dad” mentioned “let money to work for you”. My objectives are archiving financial freedom before retirement and have abilities to support my parents living.
Finally, it is close to the end of the course. It may be one of important course in my life. It is a suitable time to achieve what I learned in the course. Surely, it is a start.
