What is the role of money in your life? Do you realize that life is closely related to money and it will be a difficult life without money? When I am in secondary school, I never think of the importance of money and financial planning. At that moment, I just think that getting a job which I like and enjoy without considering the salary. However, I face the reality of this cruel society when graduate from university. We need to spend so much and we just have income once a month. Then, I realize the importance of money.
It is really a bit weird that, we learn so many things during our school day or even our university life, but no single teacher teaching us about managing the money and financial planning. Our parents and teachers always ask us to study hard so that we can get a high paid job in the future. They ask us to earn more income, but did not teach us how to manage the money. In fact, there are so many high income persons nowadays are in credit card debt. So, to achieve financial freedom, the most important aspect is not how much you earn, but how much you save from your income.
Maybe you will ask, do you mean that I can achieve financial freedom if I save money every month? I will answer you, NO. However, if you do not save every month but spend all your income every month, definitely you cannot get rich or financial freedom. Having a good financial plan is the only way to achieve financial freedom.
How to define financial freedom? I believe everybody has their own definition of financial freedom. Some may say they want to have 10millions, some may say they want to have sufficient passive income every month, and some even may say they want to start a business and get the business public listed. So, we should set our target or goal for our financial plan, which means we achieve financial freedom. For me, my definition is free of debt, maintaining the quality of life after retired by having passive income equivalent to my income before retirement, and having 1million worth cash or equities investment.
Financial planning is not a subject in school, and in eastern countries, normally parents also will not talk much about money to us. That is the reason why so many people are in credit card debt and according to EPF (Employee Provident Fund), 70% of the retirees spend all of their EPF withdrawal within three years after they retired. People do not know how to manage their money and spend more than what they earn. Even high income person, most of them do not actually save money, and just think that having a car and house is enough in their life, but they do not think far ahead that how they going to survive after they retired and have no income at all.
In fact, financial planning is so important for us in order to achieve financial freedom and have a great retirement life. And, this is the purpose I write this blog to share with you all especially youngsters about personal financial planning. Let us go towards financial freedom together!
It is really a bit weird that, we learn so many things during our school day or even our university life, but no single teacher teaching us about managing the money and financial planning. Our parents and teachers always ask us to study hard so that we can get a high paid job in the future. They ask us to earn more income, but did not teach us how to manage the money. In fact, there are so many high income persons nowadays are in credit card debt. So, to achieve financial freedom, the most important aspect is not how much you earn, but how much you save from your income.
Maybe you will ask, do you mean that I can achieve financial freedom if I save money every month? I will answer you, NO. However, if you do not save every month but spend all your income every month, definitely you cannot get rich or financial freedom. Having a good financial plan is the only way to achieve financial freedom.
How to define financial freedom? I believe everybody has their own definition of financial freedom. Some may say they want to have 10millions, some may say they want to have sufficient passive income every month, and some even may say they want to start a business and get the business public listed. So, we should set our target or goal for our financial plan, which means we achieve financial freedom. For me, my definition is free of debt, maintaining the quality of life after retired by having passive income equivalent to my income before retirement, and having 1million worth cash or equities investment.
Financial planning is not a subject in school, and in eastern countries, normally parents also will not talk much about money to us. That is the reason why so many people are in credit card debt and according to EPF (Employee Provident Fund), 70% of the retirees spend all of their EPF withdrawal within three years after they retired. People do not know how to manage their money and spend more than what they earn. Even high income person, most of them do not actually save money, and just think that having a car and house is enough in their life, but they do not think far ahead that how they going to survive after they retired and have no income at all.
In fact, financial planning is so important for us in order to achieve financial freedom and have a great retirement life. And, this is the purpose I write this blog to share with you all especially youngsters about personal financial planning. Let us go towards financial freedom together!
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