ENL assignment 1(individual)

Youth and Financial Management

a.       What do you understand from your reading regarding this issue?

           In this day and age, financial management is becoming one of the issues that draw the attention of people all around the world. Financial literacy is equally important for mankind no matter the person is wealthy or poor. If we observe through the happenings, youth should be thought about financial management in their early age. The absence of their knowledge about finance made them falls into the trap of spending without concerning about their financial capabilities. At the same time, the presence of credit cards will lead to the misuse and also the spending above their financial abilities. News had been portrayed on the dailies about the poor financial management of youth. With the income level of the youth, it will be suitable to seek advice from financial planner to explain about the financial situation of the youth. Without the proper management of their finance, youth will be easily got into trouble of bankruptcy and the bright future will be destroyed.  As the education level of the higher learning institute nor at home is mainly about theory, youth did not get the chance of learning it practically. For instance, youth knew that the advantages and the disadvantages of buying things in credit. However, they did not use apply the theory because they did not realize on the importance of the items purchase when using credit payment. The poor financial management did not just applied to low income earner youth. It goes the same for the high income earner youth. When the ability of purchasing goods increases, they tend to spend more rather than saving it. Therefore, it is undeniable that the youth will fall into the situation where their liability is more than their assets. A good financial management of youth will be of the assets more than their liability. In this term, the total expenses of the youth must be in their limit coverage. For example, most youth thought that their house is an asset for them. However, it will be a liability when they tend to work monthly and pay to the bank. The house will only be an asset for the youth when they use the house to earn rental as their income. In this case, the goods purchase will come from the rental from their home, asset which will not cause them to work only for the bank. This example applies to all assets which will bring in income to the youth and not only about house rental. It is a very good example to portray the importance of financial management of youth in order to keep the financial level of youth always positive. Therefore, financial literacy should be taught at home since young and parents play an important role in order to ensure the financial ability of youth in proper management.

b.      Why do you think it occurs? Explain your answers.

Regarding financial management of youth, there are several factors that lead to good and poor financial management. First and foremost, the main factor of good financial management of youth is the financial literacy from their parents. The financial advice from their parents and the way the parents control the finance of their children is very important. For instance, parents could set a credit limit where the children understand they must spend their expenses according to priority of goods. The understanding on how cash flow is important for children to use their money wisely in the future. Another factor that determined good financial management is the way youth understand about the financial system in our country. For decades, youngsters had been taught to study hard and get a good job in the future. But, they are not taught to study hard and be an employer in the future. If this mindset is taught earlier, youth can really understand the importance of cash flow and will be able to set their budget according to the mindset of an employer. The knowledge of how to earn money before spending can also lead to good financial management. For instance, to purchase a product of RM100000, we must have the cash flow of RM200000 to ensure that we can settle all our liabilities if accident occurs.

For poor financial management, the occurrence is mainly because of lack of financial knowledge. The desire to own everything within limited resources leads to the increase of liability of youth. At last, all of the youth with liability will work for money to settle all their bills. Another reason that causes the poor financial management is because the youth is not taught to save their money for future use. Most of the youth spend their money to purchase things that they desire. Without saving their money, there will not have extra money to use in case of emergencies. The poor financial management also cause by the wrong investment of youth. Most youth wanted to get easy money by buying shares without the proper understanding of the current market situation. The greedy characteristics of youth will easily affect the financial level of youth. The poor understanding of how the banking system in the country will cause youth to have poor financial management. The importance of understanding of every policy of the banking industry can give advantage to the youth when they want to do something regarding money. In short, good and poor financial management depends on the financial literacy and how they understand about the cash flow.

c.       Explain their impacts on society and nation.

Society

            Youth is the asset for the country where the society needs them to contribute for the future development of the country. Financial management of the youth will directly affect the future pathway of the country. Imagine a society with high liabilities and the income level is insufficient to cover the expenses. This indicates the society will not undergo any development due to limited resources. As the liability increases, there is a high percentage of youth with bankruptcy. At the same time, the economy of the country will be shrinking due to the less demand from the market. The country will also be borrowing money all around the world to solve the increasing liability issue. If this occurs, the government is not stable anymore and will be easily controlled by other power. For instance, Greece is a country which already announced bankruptcy due to improper financial management. This applies the same to the Malaysian government. If the liability of the country is still increasing, no doubt the Malaysian government will go into bankruptcy in the future. Simply put, the main impact that poor financial management of youth will lead to a society with high liabilities and low purchasing power.

Nation

            As mentioned, youth played an important role for the future development of the country. Therefore, the utmost impact behind the poor financial management will be the country having a poor nation. At the same time, debt will be increasing in an alarming rate. In addition, another impact that will affect the nation will be less of experts in the financial sectors. As we know, the financial sector is the most important sector in a country as it determined the wealth of the country. As the financial management of youth is poor, the experts will be less. This will directly affect the market globally. Without the knowledge in the global market, nation all around the world will face economy problem due to the unstable economic downturn which will affect all the industries. Unemployment rate will be increasing and a nation which is poor will occur. For instance, youth in poor countries could not obtain financial literacy. Although other industries is developing, the country is still facing financial constitutes due to the lack of financial knowledge among youth. In conclusion, financial management among youth should be set as priority to build a nation with strong financial knowledge.

An angel by my side

In this life we all search for something
Something good and something oh so pure
Well I believe that if you find that one thing
You must fight, for then you will be sure

 Could it be that I have found an angel
I can see heaven in your eyes
In my soul I never will be lonely
For there will be an angel by my side

There were times I never thought I'd make it
Never dreamed I'd find someone like you
Who'd be there when days were at their darkest
Watching over everything I do

 Could it be that I have found an angel
I can see heaven in your eyes
In my soul I never will be lonely
For there will be an angel by my side
There will be an angel by my side

Could it be that I have found an angel
I can see heaven in your eyes
In my soul I never will be lonely
There will be an angel by my side

In my soul I never will be lonely
For there will be an angel by my side

  Listening to this song recalls me of everything that you had done for me. I had found my angel of my life. Standing by my side and giving all the support to me, i really appreciate it. Without you, i would not have gone so far. Being alone in a different city where i belong to sometimes really makes me feel lonely. Fortunately, a simple voice from you had made me feel warm. Wish that i could bring you here and accompany me to go through every single moment of life. 

  Some people said that long distance relationship will not last long. However, i do not agree with this statement. It is totally depends on how we handle the relationship. That is the promise that we made to each other and the trust that we gain through the passing of time. Although i could not stay with you always, but believe me, you will be always in my heart as long as my heart continue to beat. Having you in my heart makes my soul will not be lonely again. 

  Nothing comes easy in this world. We have to go through the challenges given in this few years before enjoying for the rest of the life. Wait for me. I will not disappoint you at the end. As time passes, the bonding of our heart will grow stronger. The angel by my side, Shook yin. I love you.

The Business of Life

  And so, on this Sunday afternoon, I have been thinking long and hard to make a choice I am confronted with in a sudden, out of doubt of my own choice in life and of my future. I have reached the verdict and I have decided to present the ideas and arguments in my head in the form of words, hopefully to convince myself and further reinforce the choice that I am making now. 
  The choice of taking a degree in finance is a choice I made quite some time ago and I was sure I made the right choice and I will not regret it, but now after getting involved in OSKIC, a doubt arises which caused me to question myself and my choice. Is it still the right way to go? And I realised, facing difficulties now is not because of the choice i made, i'm still only 18 and in Foundation year. How can i expect to understand and know how to deal with all the investment and trading issues i am facing? If i know everything at this age, everyone in the world can be rich.
   Robert Kiyosaki, the author of Rich Dad Poor Dad says in his book, "The rich don't work for money, they let money work for them." This statement is one of the factors I began to doubt my initial choice. The prospect of earning big bucks and to start early, I admit, is very tempting.. But to solve a problem, we cannot think at the level at which the problem is created, and so i took time, discarded the emotions and temptations and use only the rational thinking tool.  Yes it is true, the rich let money work for them. But wait, we are not born rich and we don't start our career or our working life as the rich. Now there is a problem, what do the rich do before they are rich? The answer is again, they worked for money as well, the only difference is they got rich by doing that, and then changed their way. How can we make money work for us if we have not acquired enough money in the first place? And so we come to the question of, which is the better degree for us to easily land a secure job at the start of our career?
  Frankly speaking, there is no perfect start as everyone of us have to go through a spice of life in order for us to gather all the necessary experience. Struggling in my final thought, i had make up my mind to have a better determination for my choice of studying the degree in finance. Finance is always needed in a company and financial analyst will be the last man standing if anyone will to be fired. I had convinced myself to give myself a year or two after finishing my tertiary education to prove that my decision is right.There is no standard formula for money making.After all, one does not necessary follow his path, it is just on  how we apply our financial education in our daily life.
  

A brief introduction of myself

  Penning down here today represents the other chapters of my life. No longer in secondary school, i had finally come to the place where the final education that i have to gone through before facing the community. Well, my name is Wai Hong and this is what people use to call me. To make it short and simple, i come from Ipoh, Perak. My hometown is indeed a place where you can find sumptious food all over the city and also well known for producing handsome guys and pretty girls. Probably, I am categorized under those handsome guys too.. Haha.. I am officially 18 this year and my birthday is the day where singaporeans celebrate their national day. No doubt, i will be quite famous if i were to born in singapore.

  Progressing towards my living lifestyle, i use to be a state athelete of water polo. Water polo is indeed a game which requires good stanminar, strength, strategies and teamwork in order to win a match. When i was studying in high school, i eventually put in a lot of effort in this sport with the hope of stepping into the international arenas by representing the country. Why I would choose water polo as there are so many sports?? Many used to ask me this questions. Frankly speaking, the only reasons i choose this sport is because I love the challenges in the sport and what I had learn in this sport will be a very important lessons in my life. "Nothing venture nothing gain", this is what i used to listen from my coach. Through this sports, i understand that nothing comes easy in this world and winners will always do things differently.

  If i were to explain my goals of my life , i will say that my ultimate goal is to own an outstanding investment company. I hope that my company will have the same recogisation as Soros Fund Management that is owned by the man who broke the bank of England, George Soros. George Soros is a legend that had gain a very big influence in the world trading market. The only man who survives in the Black Wednesday, he had became my idol and a role model for me to follow. A man who can compete with all the Asia countries in the Asia economic crisis, I am totally impressed with his capabilities. Clearly, my goal in life is influenced by this man and i believe, one day my name, TAN WAI HONG will be mentioned as a legend in the world trading market.

 Thank you for spending your precious time reading over my blog.^^