New Year’s Spirit for a New Financial Journey
It is Lunar New Year! Across China and other Asian countries, the people hold a holiday which marks a time of rebirth and renewal. The Lunar New Year falls on Tuesday, February 1, 2022. It marks the end of the Year of the Ox and the start of the Year of the Tiger. Various kinds of excitement adorn the streets in red and the sky with fireworks.
Talking about China is a never ending story. Starting from the country with the most population in the world to a developed economy, making China the centre of art, culture, technology, and many other things. ‘Seek knowledge even if you have to go as far as China’ is not just a figure of speech.
The strength of Chinese culture and the advancement of the economy has attracted our attention to find out more about the secret behind the greatness. Let’s talk from the simplest one. The Chinese are known for their extraordinary saving abilities. It is not even impossible for them to have wealth by saving or investing.
The China’s Gross Savings Rate over the past ten years remains above 40%. In the most extreme recent example is Wang Shenai, a millennial who saves 90% of her income and makes her the owner of the two flats in Nanjing. But is it true that only by saving people can become rich and have assets? Thomas Corley, an accountant and financial planner, conducted a study of 233 wealthy people and found that 22% of all respondents said they could achieve wealth by thrifting, saving, and investing.
However, saving also requires supporting factors and concrete actions. So what can we do to save more?
1. Maintain a frugal living lifestyle
Frugal living is not the same as being stingy. It emphasizes more on the habit of buying something based on need, not desire. Sometimes it is not that we cannot afford it. As is the case when we see the latest booming smartphone that many people talk about. Then, we are interested in buying it. We can indeed afford to buy but do we really need it? It could be that our old smartphone is still working or if it is necessary to buy a new one, does it have to be the fancy smartphone? So frugal living makes us think about this kinds of things and be more aware of all our expenses.
2. Have other sources of income
It is not easy to find additional job, but it is always a good idea to have more than one income. You do not have to worry about changing places of work to find a job with a high salary. You only need to carry out your current job while still opening up all opportunities for additional work that can generate income for you. Another benefit is not only giving extra salary but it can also provide financial security if at any time you lose your main job. For this, you can open a small business, freelance, try to learn to invest, etc.
3. Teach the next generation the importance of saving
If you look at a rich Chinese family that has been passed down from generation to generation, this is the most plausible reason. Saving is a habit, and it is something that needs to be instilled in a person from an early age. There is no need to wait until you have a steady job or a high income to save. Save even if only a little amount of your money consistently, because for some people saving is not a matter of having money or not, but because of an undeveloped habit. You must have heard that savers with 1 million income will still be able to save, while those who are not used to it will still find it difficult although they earn 10 million.
Saving cannot make you rich in a short time. But with patience and consistent habits, it is not impossible to make you rich. So are you ready for a new financial journey?
-Northern Ingo-
